I wanted to share some thoughts on small business ideas and the trends and thoughts that come with small business ideas and popular investment behavior. Real estate has been, for decades, a popular small business idea. Most people consider it an investment, but that is debatable. I’m not talking about current markets or the economic turmoil in our midst today. In general real estate is not an investment.
A good small business idea?
Real estate investment are just that, investment ideas, well thought out business deals that have built in return mechanisms. Middle class America is taught be real estate marketing, banking institutions, and general advertising that a house is a real estate investment, its not. Most houses are not real estate investment, just like most guns aren’t murder weapons. I guess a good point that could be inserted here is that its smart to get your small business ideas from someone who doesen’t have a hand in the game. Bankers sell money, real estate agents sell hope… or houses I mean. And when they work together, the simple investor won’t have a chance.
Simple Small Business Ideas.
Small business ideasthat have gained tremendous success and popularity have usually been simple. While implementing a great small business idea is usually much more complex. Riches have been made in manufacturing, distribution, and now information and technology. This reminds me of a story I told a friend when he asked, “What are you up to these days?”. I’ll share that story here. Before I do, if you are an entrepreneur, or interested in small business, subscribe to the updates and you’ll get them in your in box. I am interactive with readers and invite you leave comments or email ideas and questions, it gives me something to write about.
One story I like to use, a hypothetical one, to illustrate what the information age offers, that the industrial age really doesn’t. Back to the real estate idea. Sticking with conventional thinking, if you were to buy 5 houses for $100,000.00 each it would cost $500,000.00, plus commissions and closing costs, but just forget that for know, were just pretending….
Now if you were to rent each of those houses for $600 per month, you would theoretically have a cash flow of $3,000 per month… Keeping it simple here, just go along with it. Oh, I almost forgot, do have a half a million dollars? No? Oh, OK, so actually, keeping it simple again, lets just say in 20 years, you will have 3k per month in passive income.(rentals are not passive, and you wouldn’t earn close to 3k) we are pretending.
Now let’s look at an information age business idea and look at a few differences. I don’t care if you think real estate is the best thing since nursing homes, it does not matter to me….
Here is my example: Let’s say you have some special knowledge or information that would either save someone a significant amount of money ( let’s use $400 bucks) or a significant amount of time (let’s say a month)…
what is the best small business idea?
What small business idea would work? What kind of information? Doesn’t matter. Chances are if your interested in something so are other people, a hobby, a career, life experience, sports, reading, writing, fixing things, whatever, doesn’t matter.
Lets say you put that information together in an easy to read format that would help a person solve a few specific problems or save them a significant amount of money. Maybe even help them be more healthy. Ok your going to put this together in an information product format (people can do this for ya) with video and audio, maybe a workbook and even a DVD. Know you know and I know it is worth $400 bucks. It is a good small business idea, your neighbor might even buy it. Since you don’t know everyone and maybe you stink at sales, you’ve got to use the Internet, a simple website, and some smart marketing to get some initial exposure for your product and price it cheap…. Maybe $50 bucks (easy math) OK, here’s the point. If your new information age business idea sold two copies, programs, or reports, per day, anywhere in the free world, only 2, you would earn $3,000 per month, and in this case, it would be quite passive.
Kinda cool, huh? Just one way to illustrate the power of the information age and how entrepreneurs are taking small business ideas around the globe. Is everyone and entrepreneur? No, but everyone could stand to earn an extra 30 or 40k per year in a passive way part time, right? I think so. Everyone may not be an entrepreneur, but everyone does have a small business idea.