Business Opportunities - 9 Things
to Watch Out For
If you are considering striking out and starting a new
business, you have probably been investigating what are known as "business
opportunities". A business opportunity is usually a complete package that
contains a product or line of products, and a marketing strategy for selling
that product.
Any business opportunity worth considering will either
have a track record that you can investigate and evaluate, or it will have
a clear statement of the plan, the potential, and the up-front costs. Before
investing any time or money in a specific business opportunity there are
some things you should consider. Here are some of the more important ones:
-
How long has the business opportunity been in business? -
Before investing time and money in marketing a business opportunity it
is important to determine how long that business opportunity has been operating.
If it is a new concept that has not been proven in the
marketplace, you have no assurance that it will even work.
-
Does the company have a fixed address and phone number? -
This may seem obvious to you, but the fact is, thousands of "companies"
operate with nothing more than a website and an email address. Many of
them are here today and gone tomorrow. Make sure the business you intend
to deal with has a fixed address, physical location, and established phone
number.
-
Does the business opportunity have some successful members
you can talk to? - Most business opportunities will show you "testimonials",
but these are often untrustworthy. They could even be completely fabricated.
Ask the owner of the business opportunity for names of real people you
can talk to. Call them on the telephone and ask them to share their experiences
with the program. This will not only provide you with valuable first-hand
information about the program, but it will give you a list of advisors
who many be happy to help you along the way.
-
How much initial investment is required? - In many cases
a proven business opportunity with a successful track record will involve
some kind of initial investment. This could involve an initial amount of
product inventory, a program subscription fee, or possibly a piece of equipment
required to produce or finish the product. You should not assume that a
business opportunity that is free to join is a better investment. Usually
a free-to-join business opportunity will involve other costs such as marketing
and advertising fees. Nobody gives away "opportunities" for free.
-
What you have to determine is whether a specific business
opportunity has a successful track record, is managed by honest people,
and offers you a realistic chance of actually making some money. These
are the things you must weigh against the entry costs.
-
What is the realistic income potential of the business? -
Have a careful look at the numbers and projections provided by the business
opportunity. Then talk with actual members who are using the program to
determine if they have been able to turn those numbers into reality.
-
Are there extra fees such as yearly or monthly subscription
fees, shipping costs, or minimum purchase requirements? - Make sure to
get a detailed list of all the fees involved in operating the new business.
These things may not seem significant now, but they can easily eat into
your profits later.
-
Who controls the money? - When you generate sales for the
business opportunity what assurance do you have that you will get your
share of the profits? This is the primary reason not to deal with "fly
by night" outfits that have no track record. Again, the best way to get
an accurate reading on this is to talk with people already using the program.
-
Does the business opportunity supply marketing materials
and person-to-person mentoring? - One of the most difficult parts of starting
a new business is "learning the ropes". It can be extremely helpful to
have advisors who have first hand experience in making the program work.
The same goes for marketing materials. You will have enough to do without
having to create brochures, ads, and newsletters for your new business.
-
How much control of your new business will you have? - Be
clear on who owns the business, and who controls the way it is developed
and marketed. You may want to diversify your product offerings in order
to avoid being at the mercy of "head office". Remember that you are trying
to create a business that has long term value. This will involve considerable
investment of time and energy on your part. You don't want your business
to be completely dependent on the stability and integrity of a single supplier.
The ideal business opportunity is one that is offered by
a stable company with a proven track record. The business opportunity should
require low initial investment and have high profit potential both in the
short term and in the long term. It should allow you to build a profitable
business of your own that will be a source of income far into the future.
Next Home Working Opportunities Article:
Have
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It's easy to think that any business can be successful
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