Profit potential of the business
Thursday, September 17th, 2009
Some home businesses have twice the profit potential of others. Why work in a low profit potential business when you can just as easily work in a high potential profit business? As a general rule a high potential profit business
(a) Requires unusual or special worker skills
(b) Provides a product or service that is not readily available from many sources
(c) Adapts its product or service to the special needs of its customers or clients
(d) Is not driven to lower its prices by extreme competition from others
(e) Serves the needs of wealthy people or profitable companies
(f) Renders its service quickly and efficiently
Claude M. analyzed a list of 32 home businesses which he compiled from the Yellow Pages using the technique described above. His study showed him that a home business in which he used his personal skills would probably be most profitable for him. The home business which seemed to promise him the highest potential profit from his personal skills was a jiu jitsu school. However, Claude knew little about jiu jitsu.
But after applying the methods which you will learn in the next chapter, Claude chose the jiu jitsu school as the best way to build his fortune in his own home. He studied several books on jiu jitsu and then took a short course in it. Once he finished the course, Claude opened his school in his basement. The school was an immediate, highly profitable success because it (a) filled a need in his local area, (b) provided a service not readily available in his town, (c) altered its lessons to the special needs of his customers, regardless of age, financial means, or reasons for taking the course— self-defense, physical development, etc.—and (d) gave lessons quickly and efficiently in a short period of time.