How do I make lots of money?
It’s a question most of us have on our minds from time to time. In a world that is constantly changing, the answer to this question is also changing daily. Here’s the short answer.
The dynamics of business are evolving at a speed we’ve never seen before. Dot com businesses with no shop fronts and few staff are rapidly overtaking traditional models.
Big business no longer requires large retail space. Banks are rapidly closing branches in favour of going online. Other retailers such as Harvey Norman, David Jones and Myer are surely feeling the pinch from online giants Kogan and Amazon.
Newsagencies are also suffering. The global trend of receiving our news online is slowly but surely reducing the demand for retail newspaper sales. Entertainment also has changed. 10 years ago, you could regularly rent a video or DVD from the local Blockbuster Store. Today we simply log on to Netflix or Stan and click to view a smorgasbord of entertainment.
The modern-day success is more of a concept. The rich list has essentially worked out how to effectively go around the traditional models and deliver goods and services more efficiently (and at a fraction of the cost).
If you’re looking at buying a business, it’s more important than ever that you consider the huge impact that online competition may have in the future. Certain service-based businesses such as salons, clinics and car wash services are largely protected. But businesses relying on a product or service that can be delivered online are now directly in the firing line. Other important matters to consider may be the ease of how the business can be replicated, and the uniqueness of the product or service being offered.
If you can find a unique business or product that has managed to find a niche in the online world, you will be starting in a great place. If you’re trying to figure out how to make lots of money, then you need to consider the constant rise of technology and the potential competition you may encounter along the way.