What is the criteria of an “Ideal Business”?
Most of my readers know that I prefer real estate investing over owning any business. But I am involved in many businesses such as my real estate syndication, the education company, the tax reduction company, the real estate management company and soon we will be launching a full fledged crowd funding website and portal. In all of my business listed above there is a direct connection to REAL ESTATE. As I analyzed each business I took time to compile a list of criteria for an “Ideal Business”. Please read it and add to it as you see fit in the comments below.
Here is my list so far:
- Unlimited Global Market
- Product needed by people (a basic human need)
- Low to no market price resistance
- Profitable through residual income
- Unique values not available anywhere else
- Minimum labor
- Low overhead
- Low inventory requirements
- Low capital cost requirements
- Low to no credit required
- No equipment
- Income in cash (no account receivables)
- Fewer to no government regulations or intervention
- No complicated permits or licenses to own or operate
- Portable – movable or can be handled from anywhere
- Interesting, fun, intellectually stimulating
- Truly helps others
- Compounds over time
- Frees your time – controlling schedule
- Several avenues of profit
- Low taxes (incentives and rebates)
- Easy to pass on (to loved ones)
- No direct exchange of unit of time for unit of income
- Can be systematized for predictable work and returns
- Can be automated through people and processes
- Can be leveraged (bank desirable)
- Can be scaled and expanded through duplication (going public)
- No special degree or complicated/on going education
- Can work through different economic cycles (up and down markets)
- Gives you a great reputation and support from others
Again, feel free to add to it in case you feel I missed something. And BTW if you know what kind of business that could be, please share it with everyone you know. The closest I came up with was real estate.
Sincerely,
Cherif Medawar
CEO Founder of the ideal business
CrowdFundExpress.com
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