- Hello, in this video I'm gonna share
with you three brilliant, profitable business ideas.
Hey gang, I'm James Sinclair.
I'm a business owner here in the UK.
I've been running businesses for over 15 years now.
We employ hundreds of people
and we've turned millions of pounds
and I take all of this to help grow your business.
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on marketing, business growth, (bubbles popping)
profitable businesses, then this is the channel for you
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Hey guys, welcome back.
Now let's get into this
because I've done loads of seminars,
spoken to loads of entrepreneurs and business owners
and really what it comes down to,
a lot of them say,
"James, what's the most profitable businesses out there?"
Well now there's so many different types of businesses.
And it is true that some businesses
are just way more profitable that others
and really you want to shoehorn yourself
into the more profitable business ideas
rather than the least profitable business ideas.
It's just the way it is.
And hopefully in this video I'm gonna share with them
some of those tips really
that are gonna get you to be a more profitable business
rather than the most business that just trogs along through
on and on and really not making it.
So let's get into it. (fingers snapping)
I've just really put up here the number one reason
that some businesses are more profitable than others
is they have a high margin
and there's a quick rule on this high margin thing.
It's what I call the times five rule.
So if you're buying a product for a pound
you need to be able to sell it for five pounds.
People go oh my god, you're ripping everyone off!
Well let me just go through
and explain why we're not ripping anyone off here.
If you buy something for a pound,
you sell it for five pounds,
roughly a pound of that's gonna be of that.
Roughly a pound of that's gonna be on your staffing.
Roughly a pound of that's gonna be
on your operational overheads.
Roughly a pound of that's gonna be for the product
so that's just a measly 20% profit for you.
And in reality there's gonna be
more and more excess taken away from you there.
So try, try your absolute hardest
to make sure you've got the highest possible margin.
Don't think that if you're buying in something for a pound
and selling it for one pound 50 or two pounds
that you're making loads of money
because the excess are gonna steal all of that gross profit
before you actually make a net profit.
So in effect, you want to make sure
you've got the highest possible gross profit
so that you have a chance of making a great net profit.
Let's move on.
Number two in finding a business that's profitable
is making sure it's leveraged.
Now some business owners have unleveraged work
and some have leveraged work.
You see, I've wrote loads of books.
I'm making these videos right now.
They're leveraged work,
i.e., I do the work once and get paid forever.
I make a book, I get it put on the Internet,
and I sell it and it keeps on working for me.
Other businesses are what I call the set the stall business.
Every morning you're setting out your stall.
Maybe you're a market stall.
You're setting out your stall.
That's unleveraged work.
You repeat the work every single day to make income.
You need to try and find leveraged work
because if you're always forcing yourself
into the setting the stall mentality
then you're never gonna have time
to do higher profitable tasks like marketing,
going getting customers
because you're forced to always do operations.
Try and make sure you choose a business that's leveraged
in terms of your time
and you've got a far better chance
of making that more profitable
because you'll have time to go and do profit-making tasks.
Let's more on.
Next thing is love, want, and need.
If you can find a business
that where people love, want, and need it,
you tend to find it's gonna be way more profitable
than the businesses that just have two of these elements
and most businesses do have just two of these elements.
You know, going out to a restaurant.
Yeah, people love to go out and eat,
they want to go out and eat,
but they don't need to go out and eat.
They can eat at home
and therefore it's a discretionary spend.
Whenever you've got discretionary in your business
you tend to find it's not as profitable
as the ones that don't have discretionary.
So let's look at the iPhone.
People love their iPhones, they want an iPhone,
and they would absolutely say they need an iPhone now
to operate and live.
So you're to find this love, want, and need.
It's why I love childcare, day nurseries.
They love their childcare, they want their childcare
because they've got to go to work.
They need their childcare.
It follows the love, want, and need.
So try and find all three of those elements
in your business.
I got some examples now of some businesses
that I've discovered are the most profitable
when I've worked with business owners
over the last few years
and spoken at tons of seminars speaking to business owners.
(fingers snapping) Let's look into it.
Here they are.
Insurance brokering, I've always found
this is a really good business.
It's a business that's not discretionary.
People know they need insurance.
Here's the things as well.
If you do a really good job as an insurance broker
that client just renews with you every single month
and that's really powerful.
So look for insurance brokering types of businesses
where people repeat buy from you.
Commercial property, again, leveraged work.
You build a commercial property
or you buy a commercial property.
You put a tenant in
and they pay you every single month, very profitable.
Also education, training, and consultancy.
Think about private schools, day nurseries,
these types of businesses where people pay you regularly.
Same with consultancy businesses and training businesses.
They're renewed customers
and they know that they need to have this stuff.
People want their children to be educated.
They'd love for their children
to learn how to read and write.
They want them to have great jobs.
They need them to do this stuff.
It follows the love, want, and need.
It makes it therefore far more profitable.
It's not discretionary.
And care homes and senior living,
that's another great example.
There's sort of my snapshot into profitable businesses.
I've got this one last thing that I want to share
with you on profitable businesses.
Avoid the businesses that start from zero each month.
This is just so stressful on you
if you've got to go and find customers
each and every single month.
Far better to like my commercial property,
insurance brokerage example,
you find a client and they buy from you continuously
and they keep buying from you
as long as you deliver great customer service.
Look for those types of businesses.
They're usually always more profitable.
They might be a bit harder to build
but hey, it's well worth it.
Thanks for watching the video.
If you've got any ideas, any comments you've got
where you think hmm, I don't agree with you gents
or maybe you've got some better ideas,
hit them in the comments below.
I'll do my very best to reply.
See you real soon, bye-bye.
Thanks for watching the video.
Really hope you enjoyed it to help grow your business.
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