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The Ultimate Business by Yisroel Goodman

Defining the Ultimate Business

How would you define the ultimate business? Perhaps you would start by listing criteria. The ultimate business:

- is fun to do
- your whole family, and especially your children, join in (and not because you make them, but because they enjoy it)
- you do not have to sign up other people and pester your friends (though many of your friends' children will beg to be allowed to help)
- the initial costs are not excessive (about $800) and future costs are extremely low
- you do not read manuals, attend meetings or listen to motivational tapes
- the product is an easy sell. Folks will line up to buy it
- profit margins are generally 90%
- your efforts are never wasted. You make as much money as the effort you put in.
- you even make money when not working at all!

So far, you are probably thinking this is another Internet scam or MLM program, which will begin with me asking you to send money. It isn't and you won't have to send me a dime. After I explain it, you can go out and do this yourself. If you can't find the items you need at the prices I mention, feel free to email and I will reveal my sources. If you find them at better prices, let me know that, too. This is not a new idea, nor does it have anything to do with the Internet. It is an old idea that has made folks rich when they discovered the high profits available in the concession industry.

Popcorn is a good example. Five cents worth of kernels, some salt, butter and a cup translates to a $1 sale. The problem with popcorn is that it is not a novelty. Home popcorn makers and microwave popcorn are readily available. So it will be tough trying to sell your product in the neighborhood. While you can buy a commercial popcorn maker and go to special events, your ability to profit at other times will be limited.

Cotton candy is a better example. Five cents worth of sugar and flavor translates to a sale of $1 to $3. Cotton candy, also called Floss, is still a growing industry. Yes, there are $50 home cotton candy makers. But how many people will spend $50 just to make this one product? And the best home units make one small ball in 3-4 minutes, which means that they are not much use at parties. A commercial cotton candy machine can turn out 200 ounces in an hour. Bagged cotton candy is still a hot seller. Many people rent floss machines for parties and events.

I fell into this business by accident. I was going to rent a floss machine for a party. But when I discovered that it would cost me $125 for one night's rental, I thought I could probably buy one for not much more. I knew that there were $50 home machines available and assumed that there were $200 versions around. I was wrong. There was nothing between $50 and $500. One was either committed to the business or not. But I figured that we would have more parties and eventually it would pay for itself. Still, the cost was a bit high. So I did some research to decide if it made sense to spend $500. My research indicated that it made sense to spend even more than that. Here are my findings:

As I said before, cotton candy is 90% profit. It takes a nickel's worth of sugar and flavor and a cone or a bag (about 2-3 cents) to produce a product which sells for a dollar or more. I have been to several events in my neighborhood at which cotton candy was sold. Folks stood in line. I never saw the operator waiting for business. The machine can produce as much as 200 cones in an hour. However, this is like the miles-per-gallon estimates on cars and should be taken with a grain of salt (or sugar). But even at half that volume, the operator takes in $100 an hour. Deducting costs of about $10, that is still a $90 per hour profit. My sons and a number of their friends have volunteered to operate the machine. If I pay them $10 an hour, I can still be earning $80 an hour while not even working. In my neighborhood there is one party store renting the machines for $125 a night. They include 100 cones and enough sugar to produce 100 cones. So I rent my machine for $125 a night and this includes 150 cones, 50 bags and enough floss sugar to produce 200 cones or bags. It also includes two teenagers to operate the machine. (I feel safer knowing that I have trained the person operating the machine.) I pay the teenagers $25, spend $10 on supplies and pocket $90 for doing nothing.

Part 2: What You Need