Ideal Business

In this job, clients usually ask me for advice on what business they should go into.

I don’t have a standard answer for that.

Most of the time, however, I usually advise them to select a business that allows them to pursue their passion and that also provides the opportunity for profitability.

I discovered from experience that people with a lot of passion can withstand disappointments and difficulties which are normally encountered by neophyte entrepreneurs.

If you really think about it, setting-up a business isn’t really for everyone. And even if the person has the knack for it, the kind of business he can get into would depend on his assets, liabilities and other non-tangible matters.

However, I came across a publication The Entrepreneur’s Handbook, by Richard H. Buskirk which contains ideas about the characteristics of the ideal business. I've also made a little research on the internet. Potential entrepreneurs could use these ideas as guidelines:

Fun and fulfilling: a natural expression of your gifts and talents. It satisfies your intellectual and emotional needs.

No initial investment: free entry to market, easy to get other people’s money, or very low entry fee.

No employees or minimal labor requirements: do everything yourself, subcontract the rest, avoid benefits, labor hassles, government reporting.

It has an unlimited global market ( this is important than ever since world markets have opened up).

Perceived need: your customer wants your product badly regardless of price.

Distribution system in place: you don’t have to build a system of retailers, wholesalers, and transport.

Cheap and Ready Supply of Materials: no limit on raw materials and cost is neglible.

It enjoys low overhead. It does not need an expensive location; it does not need large amounts of electricity, advertising, legal advice etc

No perishability: no obsolete or out-of-fashion items, no pressing deadlines like 3 days for peaches.

No dependence on weather: no waiting for snow, rain, sunshine, wind, or light or dark.

No obsolescence: product or service adapts to the times or is timeless.

No government regulation or interference: no costly compliance efforts or litigation costs.

Potential for cashing out in 5 years: investors must be able to see the end of the rainbow.

Requires no more than 8 hours/day or 40 hours/week. Working smart not hard. It leaves you with free time.

No competition: small enough niche not to attract large companies and unique products others can’t copy.

Completely portable or easily movable: no geographic ties and can be run from laptop computers worldwide. This means you can take your business anywhere you want

Information based: information is the next source of power after violence and money.

No or low taxes: a company based in an enterprise zone, online, or a non-profit.

No legal liability: no need for lots of liability insurance and no threat of lawsuits.

100% gross margin: almost all profit with very little to no cost of goods or high perceived value.

Great news value: produces positive PR without the need for much advertising.

Customers pay in advance: produce product using the customers’ money to fill demand.

Theft-proof: business depends on your unique and continued efforts and cannot be stolen.

Before you select a business, consider some of today's trends that have a major impact on people's lives:

Explosive Web Growth: The world wide web is growing and bringing with it a new economy, new business opportunities, and different business models.

Think globally and act locally: Technology is shrinking the world into a small, connected global village where your product or service could attract customers from around the world. However, you must service those customers by paying attention to their local needs and wants.

Convenience: Customers want to save time and money.

Aging baby boomers: Those born between 1946 and 1964 constitute the largest age group and are the trendsetters of the population. Follow the boomers to the money.

Mass customization: Customers want products and services tailored to their specific needs and wants. They are no longer happy with the standard one-size fits all.