subject: Searching for The Perfect Business -2 [print this page] The Richard Russell* Model The Richard Russell* Model
Part 2
In Part 1, I examined three of Russell's criteria for the ..."theoretical "Ideal Business", selling to the world, minimal labour and low overhead. In Part 2 let's examine your internet business against three more of Russell's criteria - portability, inelastic demand and low capital investment.
Richard Russell Criterion 4.
The ideal business is portable or easily moveable. This means that you can take your business (and yourself) anywhere you want
With your laptop computer and wireless internet connections your Internet Marketing Business can be operated from anywhere and at any time; like during your lunch break, while you are on vacation, when the rest of the family is asleep or while you are waiting to catch a flight. Think of how much more you could accomplish when you don't have to waste long hours in traffic getting to and from work every day and even connecting with your customers and associates in real time wherever in the world they are located.
This is great if you are starting up part time. It is even greater when you are successful and want to enjoy the fruits of your endeavours by enjoying the frequent vacations you always wanted to take but for which could never get your boss' permission, or even afford. Now you just take your laptop to Timbuktu or wherever and still keep your eye on your business which we have been told since biblical times "fattens the calf" which in this case
is your business.
Richard Russell Criterion 5.
The ideal business offers a product which enjoys an "inelastic" demand. Inelastic refers to a product that people need or desire -- almost regardless of price.
Not many products or businesses qualify for this criterion in today's competitive world. One could argue that the basic demands for food and shelter may be 'inelastic', but the demand for a specific brand or food may not be; because the customer usually has choice and many have financial restrictions. It behooves the entrepreneur however to constantly research markets with a view to finding products with "inelastic" demand.
Richard Russell Criterion 6
The ideal business does not require big cash outlays or major investments in equipment. In other words, it does not tie up your capital (incidentally, one of the major reasons for new-business failure is under-capitalization).
You will note that Russell identifies "under-capitalization" as "one of the major reasons
for new-business failure". Any one who has struggled to start a business with insufficient
capital knows only too well the problems that this creates. And this is where your internet
marketing business scores highest. Think of the start up capital you would not need to build
your internet business. Here is a good planning exercise. Make a list of the capital
requirements for a small bricks and mortar business, a retail store for instance. Your List 1
will include location, rent or buy, furniture and fittings, dcor, and initial inventory.
Now compare that list to your capital needs for your internet marketing business. If you are reading this online you may already own a computer. Tthe capital requirement imay be not only minimal, but what you have or can raise is available to be invested in services and products that could bring earlier revenue returns.
In Part 3, I will examine three more of Richard Russell's Criteria for The Perfect Business.
Think about these: cash billing - no credit, relatively free of all kinds of government and
industry regulations and your income not limited by your personal output.
* Richard Russell is the Editor/Publisher of Dow Theory Letters which he began publishing in
1958. He has been writing and publishing the Letters every three weeks since (never once
having skipped a Letter). Dow Theory Letters is the oldest financial services letter in
America that is continuously written by one person in the business.
Searching for The Perfect Business -2
By: Kelvin Scoon
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