The first thing many people do when presented with business opportunities to make a choice is to make their decision based on how much income it rakes in. No doubt, profitability is an important factor in deciding the type of business to run. However, there are other factors that are just as important as profitability and can play a huge role in your long term success in the business.
For instance, you may choose a business that’s very profitable but is already saturated. Stiff competition isn’t often good for new businesses except if they’re bringing an innovation to the game. A business may also be profitable but it is about to be phased out by another model which would substitute it, case in study, petrol cars and electric cars.
Below are the top factors we advise those who want to choose any type of digital business model to check before stepping into one
1. Ability/Hobby check
The foremost thing to check is how much you like doing that kind of business model. Do you enjoy doing it? You may need to sit on a job for hours at a stretch sometimes; so is it something you can do without having to worry much? There may be many businesses available for you to choose from but you will do yourself a favour by sticking to the one you enjoy doing.
2. Profitability check
This factor obviously doesn’t need lots of explanation. You want to pick a business that has the ability to yield profit that’s commensurate with the level of time and energy you invest in the business. If it drains your strength and does very little to fatten your account in return, you probably shouldn’t pick it.
3. Crowdedness check
It is important to always check to see how popular such a business opportunity is. The more popular it is, the less likely it is that you will be able to make more profit, except you are extremely gifted at what you do. It is simple business sense. Okay, let’s assume you own a shop and you sell to 1000 customers every month. If three new competitors enter the market, guess where their customers will come from? Most likely from yours! In the end, you may be left with maybe 400 customers while they split the rest between themselves.
4. Time check
Except you have plenty of time on your hands, the type of online business that would suit you should be one that’s not time consuming. There are online businesses that require your availability almost all throughout the day. But there are also businesses that you engage in that requires just two hours from you each day. And the hours you select in the course of your day is entirely up to you. In other words, any time of the day will do.
5. Effort check
You have to ensure that the profit matches the efforts that you invest in the business. If you invest plenty of time only to have meagre earnings, then you are simply under a form of slavery. If the business requires you to work more, then it should pay more. Don’t just hop into any business only to see that you do not get value for the efforts you put into it.
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6. Automating Check:
Can the business run without your attention for a couple of days? Businesses that need your attention like a baby may not really be helpful for you, except if you’ve found a way around it. If your absence or failure to attend to it for one day can be very damaging to your business, it means you should search for better business ideas.
7. Longevity Check
This is not a major criterion, but if you can find a business that can fetch you money for a long time even with little effort from you, then you may just have found a gold star. What this means is that, there are a few businesses that can still generate cash for you even if you actively stop making contributions to it. Yes, there are such businesses. This point will only be valuable to you if you desire to have a business that can still thrive in your absence, yet bring in some bucks for you.
8. Knowledge Check
This is the final check you need to make. Do you have enough information about it? Most businesses crash so fast because their owners felt the surface idea they had could make up for detailed information and mentoring. So, before you rush into anything, seek enough knowledge about it.
To wrap this up, you need to take time to consider the business you want to engage in instead of hopping into anything that comes your way. Remember, preparation plus action is what equals success. Napoleon Bonaparte puts it better, “Take time to deliberate, but when the time for action comes, stop thinking and go in.”
If you are wondering what business model checks all these points, you should take a look this oneand see how smart Nigerians are doing it.
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