What makes a million dollar business

**s3gment** · 10-29-2010 03:36 AM

Hi all,

I have been thinking about what makes a million dollar business, or at the very least successful enough to employ me full time. I was reading into margin calculations and I compared my gross and net margins with the billion dollar companies out there, to be perfectly honest they are very similar.. with around 70-80% net.

Does a gross/net margin that high translate into a multi million dollar business idea? What am I missing here?

Advice please!

s3gment

**Lambo** · 10-30-2010 10:05 AM

a million dollar business comes down to 2000 people paying you 39.99 a month for something

**The Stealthy One** · 10-30-2010 05:36 PM

s3gment,

Your question is very broad. Lots of things factor into the success of a business:

- Is there a market for the products or services?
- Can the products or services be delivered cost-effectively?
- Is there enough labor to produce reliably?
- Are the products or services of sufficient quality to please buyers?
- Is a marketing strategy in place and producing a positive ROI?

Margins, of course, play a part in profitability. Something to keep in mind is that the higher the margins, typically the more niche the business. This isn't a bad thing - keep in mind, however, that a niche requires smarter marketing than a mainstream business. Advantages of a niche include less competition, increased customer knowledge.

Sorry I can't be more helpful than that - there's just so much that goes into a business and contributes to its success.