“Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.” – David Rockefeller

Everywhere I go, almost everyone I speak to wants to make more money. Their heart’s desire is to have some earning potential outside of their regular nine-to-five job.

Some people wish to find a way of making ‘big money, fast’ and are not are willing to consider options that require slow and steady growth over time. Some are scared of the risk of losing money, and will dismiss any idea that would require a large capital outlay to start. Others want a chance to make money while utilizing their talents, in order to feel truly fulfilled.

Although their business ideas might be diverse and unique, there is one common denominator that floats through the minds of prospective business owners – they all want a business that’s perfect for them. But is there really anything such as a ‘Perfect Business’?

Recently I read an internet article by Richard Russell of Dow Theory Letters Inc. Online, which looked at the concept of the ideal business. “The ideal business doesn’t exist and probably never will,” declares Russell. However, he says that if you’re about to start a business or join someone else’s business, it would be useful to know the some of the criteria that would help to make the venture successful.

The following are some of Russell’s characteristics of an ideal business:

1.   It enjoys low overheads

To be really perfect, a business should not need an expensive location or high recurrent expenditure on utilities, inventory, or advertising. There should be minimal need for big cash investments in equipment, so that your capital is not tied up in the business. “One of the major reasons for new-business failure is undercapitalization,” Russell points out.

2.   It has minimal labour requirements

Russell states that the fewer the personnel your business requires, the better. He looks at the business concept of a virtual corporation which is gaining popularity today. The virtual corporation may be made up of two or three executives who contract out all the manufacturing and service requirements of their business. Therefore, they avoid all the hassles of hiring and maintaining staff.

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3.   It offers a product that is in demand

Ideally, the business would supply a product or service that has a high, inelastic demand. Russell defines inelastic demand as one where people need and desire the product so much that they are almost indifferent to its price. The item or service should also be hard to substitute or copy. So if the business is supplying an original or copyrighted or patented product, it would help to make it successful.

4.   It offers cash up front

Many businesses run into trouble because they have large receivables that may be difficult to collect. Cash flow is the life blood of any successful operation. Therefore, the perfect venture would be one where your capital is not tied up with offering your customers credit.

5.   It is easily portable

The ideal business should not tie you down to any one location. Your business model should allow you to move your centre of operation to anywhere in the world you want to be. For example, any business that uses the World Wide Web to showcase itself, can be located in your bedroom, or even on the beach.

6.   It satisfies your intellectual and emotional needs

How perfect would it be if every day you went to work you really loved what you were doing? Ideally, work would not seem like a chore, it would just be fun for you. Finding viable business opportunities that are in line with your talents and passions would help to make this a reality.

7.   Its income is not limited to you

In the perfect business, you should still be earning even if you stop working. How many people can say that they would still receive income if they took a three-month holiday? Even though they might be high-income earners, most doctors and lawyers don’t have a perfect business because it requires so much of their personal output. Any venture that involves receiving residual income such as publishing or network marketing can give you this opportunity.

8.   It gives you free time

Who really wants to have to work 14-hour days in order to be successful? The ideal business would provide flexibility in work time and work hours, where minimal effort would receive maximum returns. It would provide you with income while you have the freedom of choice how to spend your time.

Think through your own business ideas and see how you can design them to meet some or all of the criteria for the ‘perfect business.’

Copyright © 2007 Cherryl Hanson Simpson. No reproduction without written consent.

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Originally published in The Daily Observer, May 24, 2007

Cherryl is a financial columnist, consultant and coach. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl