How to choose your online business
Entry: Any business should have a high barrier to entry - otherwise everybody will copy you and your business will basically make minimum amount of profit. All your earnings will need to go towards marketing to keep the competition off. The good news is that any business you create online which is based on good SEO research will give your competitors a high barrier to entry - because you own the domain that will rank well.
Control: You need to be in control over your business. Otherwise you will depend on others in order to earn money, which is never a good thing. If you don't control your own destiny, you will be very reactive and have little impact over your own future. Naturally, an online business based on a domain you own gives you a lot of control - because you are in full control over what you do with that domain.
Scale: In order to earn any kind of money, it is crucial that your business is not depending on your own person in order to grow. You need to be able to create the initial machine, and have that machine grow to global size without any barriers to growth. Without scale, you will not be able to get "one dollar from every person in the world". Any online business you have will naturally lend itself to global scale - just look at the name "world wide web".
Time: In order to create a muse business a la Tim Ferriss, the business has to free up your time. This means that the business should not depend on you in order to grow - it should be able to run even when you sleep. The reason for this is that your time is limited, so if it is depending on you putting in more time in order to continue running, there is a barrier which is 24 hours per day which will determine the maximum size of your business.
>>Click to tweet: Make sure your business follows the NECST rules in order to grow it!<<
Steps to create an online business
Every business has a couple of inherent risks that may stop it from ever working. The best entrepreneurs don't simply have an idea and then bet everything on that idea because of a belief that comes from within them. Instead, they start with that belief, but then start thinking about every possible way they can think of why this belief might be false and why it might not work. Then they make a list of the biggest risks, and start disproving these risks one by one.
What might these risks be? Well, the risks might be related to the market, to the technology, to the competition, or to something completely different. For example if we look at market: Is there actually a need? You might think that people need your service, but how do you know? Well, you don't, until you prove it. In order to prove that there is a need, you might create a website pretending that you have a product that solves that need, and then simply start trying to sell something you haven't built yet.
Let's take another example. Let's say you have a couple of assumptions around the technology itself. One way to prove that you can build such a technology might be to look at other companies who have built similar technology, which would in itself prove that it is possible. But this might not exist - and your only bet might be to build a minimum viable product that only does the hard things that you are not sure if they are possible, while omitting everything else, just to see as quickly as possible if you can.
>>Click to tweet: Before building your business, list the biggest assumptions and disprove them one by one.<<
How to have a scalable business online
The question how to do this though is not so easy and depends on what kind of business you have. There are several types of businesses, but almost any online business is possible to automate more or less. The cheapest form of automation is systems and software based automation. In this kind of automation, you build systems that run themselves which are software based. By the way - if you need something to automate your own business, it is highly likely that other people might need it too. So a tip would be to, if you find such a need and don't find a solution online, build it but don't just use if for yourself. Instead, see yourself as your first customer, and sell it to other customers as well.
The least obvious and most expensive way to automate a business, but which may still work if you have enough margin, is a people-based automation system. Perhaps the tasks you want to automate are too complex to be done automatically by a software, and people need to make actual decisions that machines can't do. In that case, you might need a people-based system, meaning a work-force that does that tasks for you. With the role of freelancing growing in the world of employment, you can easily find freelancers that can run specific parts of your business for you. The only consideration you have to make here is that these systems run on "fuel" in the form of money - so your margins have to be big enough to be able to cover this continuous cost.