4 Pillars Of Business: The Most Successful Home Based Business
What is it that you should look for in a successful small business
? What is the most successful home based business? Is there a successful home business opportunity for me?These are some of the questions you may be asking yourself as you are searching for the right way to be your own boss and the right business to run. Hopefully this piece will offer some clarity for you in what you should be looking for when running a business.
Your business is broken down into two separate costs: fixed and variable. Fixed costs are those that keep the lights on and variable are the cost of production (in a very basic sense).
START WITH LOW FIXED COSTS
The number 1 problem that businesses have is they are not able to keep the lights on long enough to see the benefits of all the hard work they put in to get there. This is especially true with brick and mortar businesses because of rent and utilities. You have a much greater chance of having a successful small business if you can have low fixed costs.
HIGH MARGIN ITEMS
Second, you want to have a premium product that has great margins. I would recommend something in the 80% profit margin area. Sound ridiculous? Think of the price tag on brand name items - that is not the cost of the production. There are plenty of ways for individuals to achieve those margins with a small bit of creativity.
AN EXCLUSIVE PRODUCT
It is not easy to make money selling a commodity. Economics 101 will teach you that, when selling a commodity, marginal cost will eventually equal marginal revenue (i.e. your profit = 0). Your goal is to sell something that no one else has. One of the benefits of this, is that there is only 1 you (unless you are a twin - the good side to that is you have double the manpower). You can create your own brand, that is the key behind any successful home business opportunity.
EDUCATION
I feel like this is the most often overlooked piece of the puzzle. Too many people jump into business without the proper education. Unfortunately, it is also difficult to learn the operational aspect of a business from a book. School and the real world really have it jumbled. Precisely the reason for a low fixed cost business. You can keep it open while you learn the craft. Sorry, that means storefronts are out the window.
What is the solution and most successful home based business? A successful small combines all of these features. Hard to find? Yes. Impossible? No.
Where do you find it? Follow me.
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