So if I was aiming to find the perfect business – any business – in 2020, what would it look like?
What attributes would it have?
Can an agency business measure up?
1. It would sell a product that people need or desire at almost any price. My son is doing Economics A Level and tells me this is called inelastic demand. Clever lad, it’s a big ask though!
2. It would sell to an unlimited global market. A little easier to achieve. The world gets smaller everyday. Better suited to service based businesses too.
3. It would sell a product that cannot easily be copied. Or at least it can be copyrighted or patented. Unique products are hard to find, but IP can be established and protected.
4. It would be a business that is moveable. It would not be fixed to a single location and could move with the business owner or be operated remotely. Flexible working even extends to business ownership these days.
5. It would enjoy low overheads. It wouldn’t need large amounts of raw materials or a large stock inventory etc. A business with high overheads is less agile and can’t adapt to changing circumstances or environments.
6. It would satisfy the intellectual needs of the owner. Boredom is the scourge of many business owners. There is nothing better than being fascinated by what you do.
7. It wouldn’t be capital intensive. It wouldn’t require large capital investment in equipment, R&D or product development. Funding is not going to be easy to find in the next few years.
8. It would be relatively easy to get paid. A perfect business shouldn’t have to wait too long to get paid or use complex credit terms. Cash has always been King but this applies now more than ever.
9. It wouldn’t be reliant on large numbers of people to operate it. The fewer people the better. Less headaches, less management time, less cost.
10. It wouldn’t be limited by the personal input of the owner (time and attention). A business that can operate and grow without you at the helm 24/7.
12. It wouldn’t be heavily regulated. It would be largely free of government restrictions, laws or regulations. This is not as straightforward as it was 6 months ago!