Choosing the right business opportunity – part 2
As I mentioned in the first portion of this series it is very important to know what you’re getting yourself into no matter what type of business. If you don’t understand these areas you run the risk of losing your business and wasting your time.
You need to know:
Who endorses the company?
You need to have third party support that potential customers, employees or representatives can relate to. This endorsement really needs to align with the product or service strongly as well.
What direct competition do they have?
Is this a one of a kind product you’ll be selling or are there a lot of other companies selling competing products? What sets their products apart from the competition?
Are they publicly traded?
Depending on the area this may not be critical, but when choosing a home based business it might be. Because of corporate reporting laws and other things put in place to protect investors a publicly traded company has the potential to be a better choice than a private company.
Do their policies and procedures limit your marketing efforts in any way?
Some companies require that you only market to specific types of customers or limit your use of certain words or phrases in your marketing. You need to clearly understand these limitations so that when you are building your game plan you’re not caught off guard.
Do they charge extra for tools, websites, etc? How much?
You need to know how much you’ll expect to pay for a web site, business cards, leads, etc. Some companies include this for free and others charge. Don’t assume anything.
What countries can you do business in?
We are constantly operating in a global market and you need to keep this in mind from the beginning. If you can only do business in the United States you’re severely limiting your upside potential.
What paperwork are you expected to do?
Some companies will handle everything for you while others require you to track your business personally. Make sure you know what will be expected of you.
How do the business opportunities you’re evaluating stack up?
read moreChoosing the right business opportunity
I had an interesting conversation with one of my good friends the other day over a game of pool. He told me about how he could sit with another entrepreneur and brainstorm new ideas that might “make money” for hours.
I’ve seen this time and time again where someone will see a business opportunity and believe that because it can possibly make money they should proceed.
This is dangerous and you should always do your homework first.
Whether you’re looking to open up a new home business or start a new McDonald’s franchise you need to make sure you’re choosing the right opportunity for you. Many times one opportunity will shine over another pretty obviously, but sometimes it boils down to whom your direct mentor will be.
Here are some key questions that should allow you to determine if an opportunity will be appropriate for you:
How long have they been in business?
This will help you understand how well established the company is. There have been tons of examples of companies that are only around for a few years before being shut down or closing up shop.
How large is the market for their products?
You don’t need to go crazy and do market analysis for this, but understanding how many people you know might be interested in the product is a start. Begin by taking a group of your friends or family members and asking them about their use of similar or competing products.
How strong is the leadership team?
Your business will live or die by your ability to develop leaders. It is critical for you to have support from all levels of the business. Understanding the leadership’s strengths and weaknesses is critical.
If you are considering beginning a network marketing endeavor you should also critically examine the direct up-line as they will be responsible for getting you started.
What kinds of training do they offer? How often?
We are all constantly learning and growing in many different personal areas. Each person has their own deficiencies and will need education. Make sure that the areas you are weak in are supplemented by training!
Can I sell or will my business?
None of us will live forever and you need to be sure you know what might happen to your million dollar business after you are no longer on the planet!
Stay tuned for part 2 of this series where I will cover some additional questions that will help you to choose the right opportunity to invest your time and money in.
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