1. A low overhead and startup cost
Overhead is any fixed cost that accrues whether you make a dime
or not. They include; rent, employees, utilities, phone access,
etc. Starting a business can be costly if it requires developing
a new office space. A home-based business makes the most of
existing resources. The lower the fixed costs, the greater the
odds a new business will be able to weather the storm from
start-up to profitability.
After much searching, I chose The Success Website as an
additional income stream: http://www.thesuccesswebsite.com/2542
It is a great opportunity at just $19.95 per month. It requires
NO additional overhead and I am entitled tax write-offs on my
computer, Internet access, phone line, in-home office space,
utilities, lunches where I talk about the opportunity and more.
In tax savings alone it pays for itself without making even a
dime. (Consult your tax advisor for your specific situation).
2. Leverage
Leverage is the difference between the rich and the poor. The
rich effectively leverage their time, money and resources. The
poor do not. The rich leverage time by having others do tasks at
less than what they have the potential to earn during the same
time period. The poor spend their time working for the profit of
others. And, the rich leverage their money by controlling a cash
flow generating resource – assets - with as little of their own
money as possible.
Working on your business and in your business are not the same.
As Rich Dad Poor Dad author Robert Kiyosaki says, if you can walk
away for a year and it doesn’t miss a beat you have a business.
If not, you’re self-employed – you have a job. You are not
utilizing the power of leverage. (I highly recommend Kiyosaki’s
books if you have not read them. Learn more at
http://www.getSynergized.com/richdad.htm)
3. Little or no inventory
Inventory is expensive to acquire and maintain. It requires a
big chunk of cash - or debt - to acquire and there is no
guarantee of selling even one widget. It requires complicated
systems. It requires a team of people to manage it, order it,
sort it, ship it, restock it, count it and reorder it again.
Inventory also requires space. Having a low, or ideally,
no-inventory business is the way to go.
Again I recommend the Success Website – mentioned above. I also
recommend e-books - electronic books that you can store on a
diskette. Check out some examples at
http://www.CoachingWorksInc.com/ebooks.htm
4. Product or service benefits people
It’s easier to sell something you can stand behind than not. It’
s also easier to sleep at night knowing what you have to offer is
improving the life of another. Seek out a business with a
product or service that produces an asset for those who buy or
use it.
An asset puts money in our pocket. A liability takes money out.
Nothing feels better than helping people create assets in their
life – investments that produce ongoing good for them. Do you
offer assets or liabilities?
5. The product or service produces residual income
Residual income means you invest an hour today and you get paid
for that hour indefinitely. This is the information age.
Intellectual property is a hot product. The creation of
intellectual property may require some time up front, but in the
long run it pays and keeps paying without any additional effort.
You can either invest the time developing your own intellectual
property - books, music, etc. Or, you can take advantage of IP
that already exists with the right business program.
My Success Website business puts money in my bank account every
month. If I never did anything else, it would continue to
produce a passive revenue stream for me.
As a fledgling entrepreneur, I tried a lot of ways to make a
little (very little) money. I made many mistakes. If you
utilize these five criteria in evaluating a business before you
enter it, I believe your long-term results will produce the
financial goals you desire. Best wishes to you for all the
success you can handle!
About the Author
John R. Barker is a personal and professional coach, author and
successful online businessman. He is co-creator of the hot new,
5-Day Financial Makeover telecourse. You can learn more about
him at http://www.getSynergized.com or e-mail him directly at
mailto:John@getSynergized.com