Here’s a quick overview of the CENTS framework from a book called The Millionaire Fastlane.
Use this to evaluate your existing business or a business opportunity 👀
You don’t need to score well on each part of the CENTS framework to have a successful business, but the more you score well on, the more successful the business is likely to be.
- C = how much control you have (or would have) over the business. High control = email newsletter. Low control = Instagram Influencer.
- E = what are the barriers to entry? Low barrier to entry = freelance writer. High barrier to entry = open a bank. A high barrier is actually a good thing in the long run because it makes it hard for someone to compete with you once you’re established.
- N = whether or not the business really needs to exist. Needs to exist: food or shelter businesses. Doesn’t need to exist: luxury goods business.
- T = time, a measure of how passively the business operates and can generate revenue. Low score = freelance video editor. High score = a well-run SaaS.
- S = how scalable the business is. Low scalability = creating and selling handmade jewelry. High scalability = online store selling digital products.
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