To make sure you don’t get caught up in the excitement of a new business opportunity, use the following check list to give yourself a realty check. Do your research on the company or product and check references to avoid any home based business scams. There isn’t a shortage of business opportunities out there, so pick your new business wisely by making sure your business meets all 10 requirements listed below.
Top 10 Requirements for the “Perfect Business”
1. Large profit potential of $ 30,000 per month within first year (or equivalent of $ 200 per hour for part time business)
How much profit is needed from your new business will vary for each person. Maybe you have a hobby type business and just breaking even is okay. However, achieving the financial goals mentioned above is very possible if you chose the right business model.
2. Recession proof business that would thrive in a downturn
Even if the US doesn’t slip into recession, the next few years are certain to be rough for most people and businesses. Finding a business that won’t just survive, but will actually thrive in a recession is key.
3. An industry with a strong upward growth trend
Each industry or product niche goes through up and down cycles. Real estate for example is suffering in a down market right now. Find products or services that are at the beginning or in the middle of an upward trend and you will see an increased demand and higher profits.
4. Low start up and overhead costs
Even if you have a lot of money to invest, it just makes sense to keep your start up costs low. There are many business opportunities available with start up costs below $ 2,000. Likewise, a business that has high overhead brings added risk. Operating from a home office and not needing to keep inventory are the two best ways to limit overhead costs.
5. Ability to work from home office if desired
Working from the comforts of your home office have many benefits. Even for those who prefer to work from an office, just having that choice is a big advantage. Shared office systems are a great alternative and can be cost effective.
6. Receive income quickly (short account receivable timelines)
If you have to wait 30 or even 90 days before receiving payment for your services or goods, then you are sure to have cash flow issues. Receiving payments quickly is important in maintaining a healthy company. Paying close attention to cancelation and refund policies is also important.
7. A simple business, yet challenging enough to create reasonable entrance barriers
If you have a hard time explaining your business model to a close friend, then it may be too complicated. Complicated business models often run into problems. Keep it simple and the business will run smoother.
8. Ability to systemize and delegate to free up owners time
You eventual goal should be to turn over operations of your new company to other people to run on your behalf. This frees up your time to work on other projects or businesses, or to vacation at the beach. If your product or service depends on your personal creative abilities then systemizing the business could be difficult.
9. Part of income needs to be passive income which could be increased each month
Earning money while you sleep should be the goal of every entrepreneur. By having part of your monthly income coming from passive functions that don’t require any effort on your part, you are building a stronger company.
10. A fun business that you can feel good about
Sure, you will work hard at your new business but it should be exciting and fun to operate. Find what gets you excited and you will see a lot more success. Having a business that is ethical in nature should also be a priority.
I developed this top 10 list after spending 3 months of full time searching for my perfect business. I looked at over 80 different business opportunities before finding the right one for myself.
