Business opportunities have been changing dramatically and radically over the last decade. There are different factors that should be considered when looking at the profit potential of a business opportunity and I wanted to go over a few.
The most profitable business opportunities that I've found have to do with recurring revenue. Online business opportunities can offer recurring revenue through business models such as membership sites or paid subscriptions sites. The revenue comes in time and time again for one marketing dollar. Traditional business opportunities are much the same but can get a lot more complex.
The cost of getting a new customer to your business or website is cloudy or even unknown to most business owner and the life time value of a loyal customer is ofter hard to calculate. Having a customer or client by from you time and time again is the most profitable way to organize, market and plan you business.
Consumable items are a no brainer for recurring revenue in the traditional business opportunity world whether they come back once a year or twice a day, if you can get them to come to your store or website and buy from you ever time they need the product or service you offer your on your way to maximum profitability.
There are different ways to go about achieving this goal. One of my favorite and a more profitable way to increase customer loyalty, in my opinion is to offer the customer exactly what they want. Online it is called tight niche marketing but offline the market can get pretty broad and it can leave customers feeling under served or mediocre about what they get.
If you want to start a profitable business look a for a profitable business idea that you can be the only guy offering you product or service. The cost of acquiring a new customer will be lower as word of mouth spreads quickly when folks know exactly what you have. People get tired of searching all over to "see if so and so has it".
Can you think of a profitable business that is tight niche and you can be the only guy doing it? Think of it this way: A shoe store.... OR a shoe store for working women.
