Source: Entrepreneur | Repost QBScott 10/29/2020 –
Business is full of bets, especially where investing is concerned. If you’re interested in rolling the dice by purchasing a business, making an angel investment in a startup or even allocating your hard-earned money for your first employee, it’s important to know what makes a smart bet and how to protect yourself from a worst-case scenario. It’s worth stating that even deciding to go into a business of your own is a form of a bet, and merits the same type of background due-diligence.
This may require testing or gaining new knowledge, but a thorough understanding is critical, especially with glaring statistics regarding the failure rate for startups at a whopping 50 percent, according to Small Biz Genius. With statistics like these, there’s no way to ensure success. However, there are definitely ways to think through potential pitfalls in business models and feel more secure regarding where you invest your money and your time.
Verify demand through popularity
When it comes down to it, a sure bet in business is dependent upon how much customers want what it is that you’re selling. If you can do some market research and verify demand, you’re in good shape. Demand can come from the product’s value — such as its ability to solve a problem — or even from the person who’s selling the product, like a major celebrity who has established trust with millions of followers online.
Author: Scott Meister, CPA
I help small businesses, accountants, bookkeepers, office managers, and business owners with their accounting needs. I’ve used QuickBooks since 2002 and train folks on how to use it efficiently. I create high-quality video training tutorials for QuickBooks and post them on QBScott.com.
Certifications include: Certified Public Accountant (CPA) | Certified Bookkeeper (CB) | Advanced Certified ProAdvisor for QuickBooks Desktop | Advanced Certified ProAdvisor for QuickBooks Online | Certified ProAdvisor for QuickBooks Enterprise | Certified ProAdvisor for QuickBooks Point Of Sale