Building a successful business takes time, energy and effort. And not only that, it takes a good business model. You need to select a business that will perform for you in the long run.
Let’s take a look at 5 key attributes of a successful business:
1) Low start-up costs
Unless you are already wealthy, you may want to consider a business that has low start-up costs. The more you invest up front, the more you risk. And not only that, the longer it will take you to earn back your initial investment of capital.
2) High demand product
If you start a business, it would be nice to know whether you will actually earn money, wouldn’t it? Absolutely!
When you start a business, make sure that you do your due diligence. Research the market to see if you are offering products that people want. Make sure there is a market for your product and you know how to reach potential customers.
Look for an industry where there is a high demand for your products. This can make a big difference in the results you get.
3) Scalable business
One challenge that many business owners face is that their business is not scalable. As they gain new customers, they have to shift energies from sales and marketing toward service and delivery. As a result, they are able to spend less time bringing in new customers. This shift can put a strain on their finances.
Look for a business model where you scale the business up. You want to be able to add new customers without creating problems for your business. Partnering with another company that can help fulfill orders can be a real time-saver and will allow you to continue to focus on getting new customers.
4) History of satisfied customers
To build a successful business, you need satisfied customers. Make sure that you have the best opportunity to attract and retain lifelong customers.
If you are buying a business from a past owner, take time to interview customers and find out why they like doing business with the company. If you purchase a franchise business, talk to customers and ask them what they like best about working with the company. Ask them if there is anything they would change.
5) Recurring income
There are many ways to earn income in a business. Many companies sell products. They earn revenue on each sale. That revenue goes to pay business expenses and the remaining amount is considered a profit. You can reinvest your profits in the business or draw money out in the form of income.
Many companies are successful in selling one product. Other companies offer a variety of products. There is a value in giving customers a selection of products to choose.
You need to look for ways to find new customers. You should develop your sales skills to improve your results.
One other strategy to look at is to create a recurring income. What if you could make one sale and then earn money every month after that from the sale. How is that possible? Think about how an insurance company works. They sell an insurance policy. The insurance agent that sells the policy earns a commission after the sale. Not only that, they earn a commission every month after that for as long as the policy remains active. That’s because the policyholder continues to make payments every month. Actual results may vary depending on the company.
What if you could earn an ongoing recurring commission from making a single sale? Think about how you can create a recurring income. This one idea alone could generate tens of thousands of dollars in income every year for the rest of your life.
Thomas Holthus is a Business Mentor who teaches people on strategies to start and run a successful business. He has a background as a Senior Program/Project Manager and System Engineer with extensive experience proposing, winning and managing high technology programs. For a Free Video with tips on how to start your own business, visit http://yoursuccessandwealth.com/wealth/.