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Finding the ideal business
- 1. Finding The Ideal Business How do I determine what the ideal business for me is?
- 2. The Ideal Business Keywords “A Compounding Machine”
- 4. A Penny Doubled This is what a compounding machine looks like
- 6. Location The Ideal Business sells the world rather than a single neighborhood or even a single city or single state. In other words, it has an unlimited global market.
- 7. Demand The Ideal Business offers a product, which enjoys an Inelastic demand. (Inelastic refers to a product that people need or desire almost at any price.)
- 8. Unique The Ideal Business markets a product that cannot be easily copied. This means that the product is an original or, at least, it is something that can be copyrighted or patented.
- 9. Employees The Ideal Business has minimal labor requirements. The fewer personnel, the better.
- 10. Overhead The Ideal Business operates on a low overhead. It does not need an expensive location. It does not need large amounts of electricity, or advertising, or legal advice, or high-priced employees, or a large inventory.
- 11. Capital Investments The Ideal Business does not require big cash outlays or major investments in equipment or product. In other words, it does not tie up your capital.
- 12. Cash Billing The Ideal Business enjoys cash billing. In other words, it does not tie up your capital with lengthy or complex credit terms.
- 13. Government Regulations The Ideal Business is relatively free of all kinds of government regulations or strictures.
- 14. Move Anywhere The Ideal Business is portable or easily moveable. This means you can take your business and yourself anywhere you want to.
- 15. Fascinating The Ideal Business satisfies your intellectual needs. There is nothing like being fascinated with what you do.
- 16. Free Time The Ideal Business leaves you with free time. In other words, it doesn't require your labor and attention 12, 16, or 18 hours a day.
- 17. Leverage The Ideal Business is one in which your income is not limited by your personal output. In the Ideal-Business, you can sell to 10,000 customers as easily as you can one.
- 18. Is There a Business That Fits all 12 Criteria? Yes, The ideal business does exist. There is a business model that’s available to everyone and it checks off every item on the list. 118 Million people are using this model as their business of choice $189 Billion in products and services are sold annually $76 Billion paid to average people
- 19. Want To Learn More? If you would like to learn more about the options you have for starting your ideal business, set up a time for us to talk about your goals and your dreams for becoming an entrepreneur. Reply “Tell Me More” to my LinkedIn message or in the comment box below this post and we’ll set up a convenient time to talk about your dreams and goals.
Editor's Notes
- Hi. My name is Len Fry. I am a father of four and grandfather to nine amazing people that are the stars of my life. I have been an entrepreneur for over 30 years and I have learned a thing or two about being in business for yourself. I’d like to share some things I’ve learned over the years with you with the hope that you can benefit from my experiences - both good and bad. So, let’s get right to it. In these times of economic uncertainty, many folks are considering creating their own income security by starting a business of their own. Unfortunately, most people just have no idea where to start. So, I thought I’d put together a short presentation to kind of kick off the process of determining what kind of business would be ideal for you. I’ll answer this question. What things do I need to consider before jumping into the entrepreneurship ring? You won’t find these 12 criteria together anywhere else. So pay close attention and take notes. Using these 12 criteria, will enable you to evaluate any endeavor you are considering and compare that opportunity to the lifestyle you’re looking for.
- So, lets start by consulting a guy who has made a few bucks in his lifetime. Warren Buffet is one of the most successful business men of all time and is known as the Oracle of Omaha because the investment community follows his activities very closely trying to duplicate his success. He says the ideal business is one that earns very high returns on capital and that keeps using lots of capital at those high returns. That becomes a compounding machine. Those are the keywords “become a compounding machine”. Most of us don’t have the skills or the capital to do what Warren has done but we can create a compounding machine in other ways. A business where the owner can experience exponential growth is truly a blessing. Look hard for a business that has that characteristic. Let me show you an example of exponential growth.
- Let me ask you a question. Would you rather have 1 million dollars today or a penny doubled for 30 days. Seems like a trick question right. If you haven’t seen this before, you will probably take the million dollars. If you made that choice, you would have lost nearly 4.5 million dollars. Many things grow at an exponential rate. Compound interest on your savings account, viruses spread exponentially if they aren’t controlled. Let’s look a bit deeper at this penny doubled idea.
- So, here we are at day one with a penny. At the end of week one, we’ve screamed up to 64 cents. Week 2 $82. Week three. We’re still only at $10,000. But look at what happens in the last week. The doubling really begins to create big numbers. So, keep this idea in mind. We will talk more about leveraging in a little bit.
- During my career as an entrepreneur, I have owned and sold two multi-million dollar businesses. My first business was extremely labor intensive with 55 employees which presented many day to day issues to deal with I have to tell you one of the best days of my life was the the day I signed the sale documents to put that business behind me. Never again will I have all those employees. I still wanted to be a business owner but also wanted to have a life. My wife and I wanted to spend time with our grand children and travel. Those goals required a business that was flexible and didn't require me to go to a bricks and mortar location every day. As we were deciding on what was next, I came across a document that really put things in perspective for me. Paine Webber was an investment company from many years ago. They issued a document to their brokers which was to be used as a guideline for their clients who were considering becoming an entrepreneur and opening a business of their own. To me, this was an Ah Ha moment of huge proportions. Here in one place was a list of criteria to use before taking that next step. I found the list to be in invaluable so I’m going to share it with you in the hope that you’ll learn how to select the business that is right for you as you begin your journey to becoming an entrepreneur. As mentioned, I was ten years into my journey before I gained these simple insights, so even if you’re well on your way, you will still find them valuable. Let’s get started.
- Number one - The Ideal Business sells the world rather than a single neighborhood or even a single city or single state. In other words, it has an unlimited global market. Many people want to open a local establishment and do business just within their community. Nothing wrong with that but you are really limiting the number of customers you can attract and thus limiting your income potential. On the other hand consider a business like Amazon that sells their products all over the world. The wider your footprint, the better. You don’t have to be an Amazon to have a worldwide business.
- Criteria Number two -- The Ideal Business offers a product, which enjoys an Inelastic demand. Inelastic refers to a product that people need or desire almost at any price. As the cartoon shows, people will buy milk even if the price triples. That’s an example of inelastic demand. Gasoline is another good example. People need gas to get to work and as we have seen many times, the price has little to do with demand. It’s a product we need and will pay for it even as the price increases. So, it’s important to select a product or service for your business that people need and will continue to need even as money gets tight. Can you think of something that people will buy even in a recession?
- Criteria number three –The Ideal Business markets a product that cannot be easily copied. This means that the product is an original or, at least, it is something that can be copyrighted or patented. There have been too many times when an imaginative person has developed a product that is unique – nothing else like it on the market. They neglect to patent it and some other company with deep pockets comes along and grabs the patent and your product is no longer yours. The other thing is there are a huge number of “me too” type products on the market today that can only distinguish themselves by the amount of money they spend on marketing. Be sure to do your research to determine if what you are considering is, in fact, unique. Consider how you are going to differentiate yourself from other products that are similar. This can be a tall order if you don’t have a huge marketing budget. Just because you have something amazing, doesn’t mean it will grab the market. Get the whole picture before you make any major investments.
- Criteria number four - The Ideal Business has minimal labor requirements. The fewer personnel, the better. If you have never owned a business with employees, you have no idea of the many things your company will endure to support the fact that you have employees. Things like liability insurance to protect you should someone damage the property of a customer. Unemployment insurance should you have to lay someone off. I once had to go to a state arbitration to justify why I had fired someone that stole from me only to find out he could file for unemployment unless he was convicted of a crime. So my rates went up and he received unemployment compensation. In my second business, I elected to subcontract services I needed to others rather than have people on my payroll. Be sure to evaluate all the responsibilities before you embark on a business where you intend to have people on your payroll. Look for ways to avoid hiring if you can.
- OK, criteria number 5 - The Ideal Business operates on a low overhead. It does not need an expensive location. It does not need large amounts of electricity, or advertising, or legal advice, or high-priced employees, or a large inventory. Did you ever wonder about how a particular business survives when they have a store front selling all white clothing in a high-end location. I often have. They need to have large margins or a high sales volume to support that kind of overhead. So many of them are operating just to pay the rent. My first business had trucks and warehouses and lots of fixed costs. All of which created a huge monthly outlay whether I had income or not. The business we had required all that but I was always worried that if we had a downturn for whatever reason, how would we support the overhead. Fortunately, that never happened but the worry was always there. Don’t be fooled into thinking that you need an office in a high-end building when your business really can operate from an off the main-stream location or out of your basement. Be careful of the ego boost that is attached to the expensive furniture or the receptionist at the entrance. Be sure to evaluate every purchase decision to be sure that the fixed cost you are about to acquire will make the business more profitable and not less. Don’t forget to include the maintenance and repair costs included in that purchase.
- Criteria number six kind of goes along with number 5. The Ideal Business does not require big cash outlays or major investments in equipment or product. In other words, it does not tie up your capital. When I sold my business, all the trucks and tools and forklifts and all the other equipment we had purchased over the years, really didn’t add any value to the business. The only thing that determined the company’s worth was the profit that those assets allowed us to realize. Interesting right. Not like selling a house or building. The smart move is to avoid investing capital into major equipment if there is a way of avoiding it. If I need that piece of equipment, can I find it on the used market so I don’t have to tie up as much of own money. The best scenario is to choose a business that doesn’t require a capital investment that will take many years to break even on. Things move fast in today’s economy. Will the need for your business be around long enough to pay for that new piece of equipment. One other concept is important when considering a capital outlay. What is the payback? I also owned a solar equipment company and one of the benefits I sold to potential customers was that the solar system you are buying will pay for itself in saved electricity costs in X number of years. A payback of two years was typically a good purchase, seven years was not.
- And on to number seven. The Ideal Business enjoys cash billing. In other words, it does not tie up your capital with lengthy or complex credit terms. You don’t want to have your money tied up in accounts receivable if it can be avoided. The most desirable scenario is that you get paid right away or at least within a very short period of time for your product or service. That can be a very big deal especially if you have to use a credit line to pay your expenses while you are waiting for your customers to pay you. We used to carry about 300 thousand dollars outstanding in receivables. I used to think that we were being taken advantage of by some of our best customers. If you think about it, the long paying customers were just using me as a bank to finance their expenses. This is another headache to avoid at all costs. Keep it real simple. In my solar business, customers would pay in full before the system was turned on. The best situation is to have no receivables at all. There are ways to have a large business and never have to deal with accounts receivable.
- Ah yes, then there are the government regulations. Number eight is The Ideal Business is relatively free of all kinds of government regulations or strictures. I didn’t deal with too much grief in this area. Safety standards and other things that made common sense for running a business were about it. But, many business today deal with environmental requirements and all kinds of specific taxes and regulations that can drive you crazy especially if you do work across state lines. Choose a business model where you don’t have to deal with any of that.
- Our ninth criteria is The Ideal Business is portable or easily moveable. This means you can take your business and yourself anywhere you want to. Best scenario – your activities only require you to have a laptop and a phone. As long as you have internet and phone service, you’re good to go. There are so many businesses today that are realizing that this is the most efficient way to conduct activities. Communication with your team can be accomplished with a webinar. No real need for a conference room when you can have a virtual conference room. If you like to travel, a portable business is ideal. In our current business, we once spent three months in the United Kingdom. My wife is from Scotland so we were able to combine a really fun trip with business activities along the way. A good part of the trip was tax deductible as well. Always ask the question: Can I do this business remotely. As we saw during the Covid-19 pandemic, many businesses had to close up shop because they were not able to work without all the infrastructure they had. Others were able to take advantage of the ability to work from home and didn’t miss a beat.
- Do you love what you’re doing? Number ten - The Ideal Business satisfies your intellectual needs. There is nothing like being passionate about what you do. Few people would find a business where you are doing repetitive, boring chores over and over all day every day very rewarding. What floats your boat? Do you like helping people? Do you like teaching people and seeing the aha moment when they get what you are saying. You’re interest in your business probably won’t last unless you are passionate about what you are doing every day. Are you excited about starting your day or do you dread Mondays. When selecting your journey, Make it something that feeds your soul. Our current business is all about helping people with their health and if they choose, we can help them create a new income stream. I am passionate about our products and love telling people about them. It’s the best of all worlds.
- And Number eleven. The Ideal Business leaves you with free time. In other words, it doesn't require your labor and attention 12, 16, or 18 hours a day. This is exactly what forced me into selling my furniture business. The business was consuming my life. I made great money but had no time. We have nine grandchildren who were growing up and we wanted to have the time to go to all their events and enjoy all the benefits of being a grand parent. So we had reached a tipping point where time became more valuable than money There was a personal incident that was the wake-up call. My wife was born and raised in Scotland she had an aunt who was like a mother to her. She had been ill for awhile and we went home to be with her when she passed. The woman hung on longer than we anticipated and I had to return to take care of things with the business and leave my wife in Scotland to go through all that by herself. That was when we realized that something needed to change. We had to find something where we had both time and money.
- And, here’s our last one. The Ideal Business is one in which your income is not limited by your personal output. In the Ideal-Business, you can sell to 10,000 customers as easily as you can one. It’s a beautiful thing when you are able to create financial leverage in your business. Most businesses strive for leverage but there always seems to be limits. As an example. When you have employees, you are leveraging their work. Maybe you are able to charge $25 an hour providing your employee’s services to your client and then pay the employee $15 an hour. The difference then covers your overhead and leaves you something to put into your own pocket. The problem comes with managing all those employees. The headaches become tremendous and you realize that just having a large number of employees itself become a limit on the leverage you’re able to create. The best scenario is when you can increase the leverage but not the headaches. There is a way to make that happen.
- Well, the ideal business does exist. There is a business model where you can be in business for yourself but not by yourself. 118 million people worldwide have chosen to participate and have accomplished sales of over $189 billion and they have received an income of over $76 billion. Consider a model where you saddle up with a company that manufactures products that you really like. You test the products on yourself and the results are great. When this happens, most people’s natural response is to share that product with people they know. In fact, we do that all the time. A good movie, a good book, a recipe and more. However, we never get paid for those recommendations. But what if there were a business model where you can share products you like with others and be paid for doing that and keep getting paid for that over and over. What if all you had to do was talk about the product and the company you work with did all the rest – The shipping, credit card processing, product development, insurances, inventory etc. Well, there is a business model where all this is a reality. I would like to tell you about it if you have an interest in learning how you can become a part of the exploding world of home-based businesses.
- So, that’s it. It’s time to take the next step and learn about the businesses that are considered to be the” Ideal Business”. Get yourself fully informed on how this unique entrepreneurship business model has changed the future of millions of families and how you can become part of the elite group of successful business owners who understand the power of leverage and residual income to create a stable income for your family. No business background, education or significant investment is required. Hard work and persistent effort are all that is needed. I really appreciate your attention and I want to take this opportunity to applaud you for your desire to improve the future of your family. Reply ”Tell Me More” to my LinkedIn message or in the comment below this post and we’ll set up a convenient time to talk about your dreams and goals.