What is an ideal business like? Ideal business can be very different for different people. Here is a list of traits that an ideal business might be for you.
Your ideal business doesn’t have to fill all the boxes below. You can choose what are the most important things and use that as a blueprint, when you start to plan and create your ideal business. Let’s get right into it.
1. Something you love doing
The first characteristic of an ideal business is that you get to do something you love. When you get to do what you like and have fun doing it, chances of your business being successful increase. You are more likely to continue, even if things don’t go as planned.
Having at least some interest in the field of your business will help. You won’t give up so easily and you don’t mind working so long days in the early days of your business if necessary. Have your eyes on the goal, and work towards that.
You might end up spending hundreds or thousands of hours working on your business, so it is much better if you like what you are doing. Hating every second of it, even if you manage to make it successful, is not always worth it. You only have so much time on this planet, use it by doing something you enjoy.
2. Easily scalable
The second characteristic of an ideal business is that is can be easily scaled. When you find the right formula to make profit with your business, why not duplicate and multiply the size of your operations, since you already have the secret recipe.
Choosing a business that is easily scalable makes it much easier in the future to expand your business. You might think that you don’t want a large business, but if it only increased your work by tiny bit, and it gives you the opportunity to double your revenue, wouldn’t you want to do it?
Internet-based businesses are easy to scale since they sometimes don’t even require buying any additional equipment. By selling digital products, after you get your business up and running, you just sell copies of your product. Most of the work has been done beforehand and you can focus on scaling.
3. Low starting costs
Low starting costs are the third trait of an ideal business. When you don’t have to pour your life savings and borrow money from your family to start a business, your risks are way smaller. Of course, even if you don’t have to invest so much money, you will have to use time.
However, even if your business didn’t take off, at least you won’t be in debt and have probably learned new things that can be useful in the future. Low starting costs also make starting the business easier, since you don’t have to do any paperwork for the loans or have to apply for a loan from a bank.
There are business models that require very little or even no start-up capital at the beginning. Starting a YouTube channel doesn’t cost you anything if you have basic equipment to shoot and edit your videos, for example.
4. Not tied to certain location
The fourth thing on the checklist for ideal business is that it is portable. Not being tied up to a single location will have flexibility if things in your life change. It will also give you as the business owner more freedom. You can work from anywhere if your business is online.
I know, not all businesses can fit into this category. If your dream is to open up a pizzeria, why not? Don’t let this stop you. However, if you want a portable pizzeria, buy a bus, and customize that a little bit and make a portable pizzeria. Everything is possible in the modern world.
5. Stable or growing industry
The fifth thing is to start the business in a stable or growing industry. Things are moving into the internet and new trends and inventions are coming every year. By starting it to industry that is likely to be around in 10 years, you will reduce the risk of your business failing due to conditions in the industry you are in.
Some industries and businesses are on decaying industries. Internet is changing things and some jobs that are around today, might be replaced by AI in the future. There can still be room for new businesses, even in decaying industries, but you have to be innovative and tolerate the risks that the industry has to offer.
6. High profit margin
Next up on the list is that your business should have high profit margins. By having higher profit margins, you have room for error. If a global pandemic hits the world and your sales drop by 50%, if your margins are high enough, you will have higher chances of surviving.
Another benefit of higher profit margins is that you will have more capital to use on growing your business. This can really speed up the growth of your business when you don’t have so much money tied up in the process.
7. Generates income passively
The last thing on the checklist is that your business should run even without you working all the time. When everything is set up right, you can take some time off, and just see your business run by itself. This can be done few different ways.
One is to start your business in an industry that doesn’t rely on physical presence or your time. That can be a YouTube channel or other online-based business that has a digital product.
Another option is to have employees that do the work for you. Replace yourself with others so you only have to step in if something goes wrong. When you get the business automated, you can just enjoy the ride.
I know, you might be so in love with your business that you don’t want to leave it in someone else’s hands. No problem, you get to do what you enjoy, and that is the most important thing.
These are the traits of an ideal business, for me at least. When you think about starting a business, have a look at the list and think, what are the most important ones for you? Your new business doesn’t have to fit into all of these categories.
Rank these characteristics from most important to least important and start thinking about what kind of business would work the best for you. If you don’t mind working on your business all the time, you don’t have to consider the passive income part at all. For some, it might be the most important one.
Other business-related posts can be found here.
Hopefully this was helpful to you, have a nice day.