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Is having a business the best way to getting rich?

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I was researching for a chapter of my upcoming book, and I came across this question on Quora.

It really piqued my interest.

But what was most surprising were the answers. Most of the answers were about how having a business is the worst thing you can ever do. Some were citing very valid statistics about business failure, and others were sharing stories about people they know in business who failed.

A couple years ago, I would have discarded these answers and thought that they are all wrong. But nowadays, I tend to do much more thinking before discarding opposing arguments.

And I realised that they are indeed right.

Without any business knowledge, having a business is probably the worst thing you can do to get rich. Without the ability to choose right type of business for you specifically, it’s most certainly a bad idea to start a business. And, without a deep knowledge of your market and what they crave, it’s very risky to depend on that business.

The issue is that the statistics bundle all types of business together. We don’t have specifics. For example, what percentage of doctors who started their own practice have actually failed? How many lawyers and accountants with their own firms are bankrupt?

While, there will be always a few who failed, there are hundreds who are thriving.

On the other hand, I have seen my fair share of shops opening and then closing within the same year back in my home country.

Are these two types of businesses the same? Certainly not! So why do we insist on thinking about them the same way?

Yes, starting most types of businesses is risky and can lead to bankruptcy instead of riches. But there are a couple of types who are less prone to the risks.

When I sat down to really list the different types of businesses, I came up with nine main types. It turns out that 7 out of the 9 are really bad ideas for most people.

What about the remaining two? Well, one is fairly easy to start, but harder to scale. And the other is fairly hard to start but easier to scale.

If you’re wondering what are the 9 types, here goes:

  1. Brick & Mortar
  2. Physical E-commerce
  3. Manufacturing
  4. Middleman
  5. Affiliate
  6. Advertising
  7. Software
  8. Info Products
  9. Service

In my opinion, if someone is looking for profitability, they can safely ignore the first 7 types and instead focus on the last two: Services and Info Products.

With these two types of businesses, your chance of success goes up drastically.

It won’t happen overnight, but they can also make you rich if you’ve got what it takes.

As a consultant, I focus my attention on service-based businesses. They are my favourite, and I love helping service-based business owners grow.

And it all starts with my Service Business Blueprint. The blueprint is a 7-step system that helps service-based business grow and scale. It’s a very short read, and it’s currently free.

If you want to have a look, go to ServiceBusinessBlueprint.com

About the author

Umar Bahadoor

Umar helps service-based business owners grow their businesses online so that they can finally stop stressing out and live the life of their dreams without working all the time. Unlike others who sell complex solutions, Umar focuses on simple strategies that are massively profitable for service-based businesses.