9 Characteristics Of An Ideal Business

9 characteristics of an ideal business

If you’re like me (and millions of other North Americans), the idea of being your own boss is a pretty attractive thought.

I mean, who doesn’t dream of waking up whenever they’re rested, working on their own schedule, taking time off without asking permission and no longer having a boss breathing down their neck.

The problem is, 95% of new businesses fail, and a big reason for that is because most people who start their own business just end up creating a job for themselves, instead of the kind of business that gives them true freedom.

These Are The 9 Characteristics Of An Ideal Business.

#1. Do What You Love  Your ideal business needs to be based around something you’re passionate about. If you don’t love it, and you’re just doing it to make a buck, it won’t last. It’s gotta be something that makes you jump out of bed in the morning or soon enough, the novelty will wear off, and your business will fail.

#2 In Demand  Pick a business with high demand. Don’t try to reinvent the wheel. Sure, some renegade entrepreneurs have come out with radical new business ideas that created entire new industries, but they’re the diamonds in the rough. You’ll have way higher chances of success from choosing a business idea that’s in high demand, with competition – because that means there’s lots of people willing to spend money right now.

#3 Be Portable  Let’s face it, who wants t be chained to a desk if you can work from a couch, a coffee shop or even a hammock on the beach? Technology today makes it possible to work from virtually anywhere, so why not utilize it?

#4 High Margins  You’re in business to make money right? (say yes). So would you rather make a little profit or a lot? A LOT right! Therefore, it makes sense to build your business around products with high profit margins. Not 5%, 10% or 20%, but 80%, 90% or 100%.

#5 Scalability  Your new business must be set up from the start with the ability to grow, and ideally grow fast. Ensure you can sell more products to existing customers, add new revenue streams and increase profits right from the start.

#6 Low Start-up Costs  Don’t break the bank! Sure, opening a McDonald’s franchise might be a virtual home run, but you’ll need a million dollars just to open the doors. I don’t know about you, but that’s a big investment to make that will take years to recoup. Why not start something for a few thousand, or even a few hundred dollars that gives you the ability to get into profit almost immediately.

#7 Little Or No Staff  Dealing with employees sucks. (ask me how I know)  Having to let someone go was one of the most stressful things I’ve ever done. Your ideal business should run with little or no staff. Possibly an outsourced assistant or two to help you stay on top of things or handle the tasks you’re not good at, but definitely stay away from having employees, and payroll unless you love losing sleep and dealing with drama.

#8 Low Overhead  This is an extension on the previous point, but more about stuff, instead of people. Don’t spend money you don’t need to. Keep your business lean and mean. Even when the money starts rolling in, fight the urge to start spending it on fancy offices, staff and other extravagances. The more money you can keep in your pocket and put away, the better you’ll be able to weather the storms and down cycles (all business have up and down cycles).

#9 Automated Income  This one is my favorite. If your business isn’t set up to make you money while you sleep, then it isn’t an ideal business – it’s a JOB (sometimes referred to as Just Over Broke) If your income is determined by how many hours you work, then you’ll never have FREEDOM. It needs to produce income even without your direct involvement.

Your goal in business is a lot like this Spanish Proverb “Health, wealth and the time to enjoy it.”

There you have it. The 9 characteristics of an ideal business. Thankfully, I’ve found a business that checks off all 9 of those characteristics.

If you’re looking for a way to spend more time with the people you love, doing what you want, when you want, where you want, and do it all without having a boss, then check this out.

 

 

P.S. Thanks to my mentor Dan Lok for introducing these 9 Characteristics Of An Ideal Business to me in his book FU Money. You can get a free digital copy of his book here.

4 thoughts on “9 Characteristics Of An Ideal Business

  • Bill

    Hi Dan,
    Fill me in. What are you recommending, and why?
    Thank you.
    Bill
    bill@newt.biz

  • Rene Jaspar

    Hey Dan, you certainly capture key points of an Ideal business.
    Where do you find such a business?
    Sharing knowledge of what you know that will and can help others. Consulting to a Niche industry marketing would be great for.me.
    The.However for me has always been
    HOW DO THEY RECOGNIZE THAT THEY NEED HELP,
    AND THAT I CAN HELP THEM.
    Thanks Dan

    • mentoredlife

      Hi Rene,

      You raise a great question. One I struggle with myself. It can be frustrating knowing you have a solution for someone else’s problem, but they don’t even realize they have the problem.

      I guess it’s like the old adage “You can lead a horse to water, but you can’t make him drink.” All we can do is our best to get our information out to as many as we can, and the ones ready to hear it will. The ones that aren’t ready might be ready sometime in the future.

      Dan

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