The perfect home business: ten criteria
In the beginning, I thought my first major business, though not a home business, was a dream business. I ran archaeological expeditions all over the world. It was fun, glamorous, and profitable. I had lots of incredible adventures and provided them for many other people as well. I consulted with foreign governments, flew everywhere first class, enjoyed 5 star hotels, luxury cruises, and cuisine to kill for. There were also austere accommodations in the mountains, in jungles, and deserts, but that was all part of the experience. I even got arrested a couple of times by greedy officials who wanted a share of the treasure.
However, after a few years, I realized that I had created a monster with lots of employees, and a big building full of tenants. Unwittingly, I had turned into a desk jockey. It wasn't fun anymore, so I quit and retired at age 45.
After too much leisure time and some more travel, I realized I needed a project that would make life worthwhile. I set out to find a perfect home business that wouldn't have all the negative aspects of the previous one that had grown to control my life. Accordingly, I developed some criteria for what I felt would be the perfect home business. Let me share them with you.
Ten criteria for a perfect home business
1. First and foremost, it had to be a business that didn't require any employees. I was sick of employees. I actually felt as if I had been working for them in putting their welfare before mine in most cases. NO Employees!
2. It had to be a business for which I could outsource any temporarily required extra labor as in a virtual corporation or simply using commission or contract workers as needed. In that way, there wouldn't be all the continued overhead of maintaining employees. Outsource labor when needed.
3. It had to be a highly profitable business with an extremely high profit margin. The problem with most businesses is that once you sell the product you have to purchase more raw materials and then make more product to sell. That’s not a good business.
4. It had to be a highly leveraged business that would allow me to make money while I slept. A bad business is one that requires that you trade your time for money. This is a particularly poor business model because there are only so many hours in the day so that your income is automatically limited no matter how much you charge per hour. Even the highest paid professional working by the hour is limited in income potential. Not only that, but you are required to be at a certain place at a certain time to take care of business, and that sucks.
5. The ideal business is one that can be automated with a money-making engine that grinds away unattended.
6. It had to be a business that I could run on my computer as I had acquired a real passion for the fun and power of computers.
7. It had to be a business that I could run from home or from any remote location in the world. I didn’t want to have to commute through traffic and bad weather everyday to an office downtown. I wanted my commute to be about 30 seconds or less walking downstairs to my home office. Of course that meant that I could go to work in sandals, T-shirt, and shorts as well. This also means that you don't have to have an up-to-date expensive wardrobe and high dry cleaning bills. The other major attraction of a home business is the economy of it because the expenses are tax deductible. This makes the overhead low and adds to the profits.
8. It had to be a simple business that was easily duplicated in case I ever wanted to package it, franchise it, sell it, or take on affiliates.
9. The ideal product would not involve expensive shipping, packaging, and handling. Complicated shipping and packaging can be a profit killer, time consuming, and limit your ability to run the business remotely. Acquiring product can also make you dependent on forces outside your control.
10. Clearly, the ideal home business has to offer a product or products that serve a perceived need and for which there is a reasonable demand in the marketplace.
Now that I had brainstormed and isolated the top ten criteria for a perfect home business, the next daunting task was to find one or create one. I will tell you about that process in the next article.
Finding the Perfect Home Business: a painful process