Which business to choose?
If you do not have any experience — any. If you do — try to play in high-margin business.
A high-margin business is when something is sold for 100 USD, and 95 USD is the net profit. In this example, the margin was 95 percent, and the investment was multiplied by 19. Of course, this is rare, and 50 percent is also considered high.
This is where most business advice ends. But in reality, you still need to add scalability and volatility into this equation. Making three sales a year with high margins means nothing. The same applies to sales throughout the year during a crisis that occurs once every 20 years.
This metric is determined by the complexity of the product or service. Specifically by complexity, and not by uniqueness or anything else — an offer should be difficult to repeat. As a result, margins are inversely proportional to competition.
What businesses are difficult to replicate? Illegal. Joke. For example, military-related or IT businesses, the development of which requires large investments of expertise and time. In short, everything complex, unclear and risky.
Whether the game is worth the play, or whether it is better to resell the socks (nothing against it), decide for yourself.
scriptop.co
If you do not have any experience — any. If you do — try to play in high-margin business.
A high-margin business is when something is sold for 100 USD, and 95 USD is the net profit. In this example, the margin was 95 percent, and the investment was multiplied by 19. Of course, this is rare, and 50 percent is also considered high.
This is where most business advice ends. But in reality, you still need to add scalability and volatility into this equation. Making three sales a year with high margins means nothing. The same applies to sales throughout the year during a crisis that occurs once every 20 years.
This metric is determined by the complexity of the product or service. Specifically by complexity, and not by uniqueness or anything else — an offer should be difficult to repeat. As a result, margins are inversely proportional to competition.
What businesses are difficult to replicate? Illegal. Joke. For example, military-related or IT businesses, the development of which requires large investments of expertise and time. In short, everything complex, unclear and risky.
Whether the game is worth the play, or whether it is better to resell the socks (nothing against it), decide for yourself.
scriptop.co
