Tuesday, March 20, 2012

What Is a Business Opportunity And How To Hunt It Down

A business opportunity is just an opportunity to "make money", using a concept or idea that someone (or you) has developed. Businesses such as multilevel, network marketing, distributorships, vending routes, janitorial contracts, franchises, mail order, and Internet or computer-related businesses are considered business opportunities.

The outline

Many can be operated from home, it's everybody's luxury dream, you purchase a concept that may or may not already be proven. Its success depends entirely on your business acumen and your ability to establish clients. The purchase price usually includes the necessary tools, such as vending machines, inventory, or samples.
Many of these businesses will present you with an idea that is made to sound so exciting and profitable, you just can't wait to sink your teeth into it. Be cautious. Seek professional advice, as these businesses are advertised in a manner that readily attracts people wanting a quick return and who have little cash. Those promises of big money usually don't pan out.

Beware of scams

Advertisements are forwarded and designed to focus on five primary attractions to potential buyers:

  • Low start-up costs.
  • Quick returns with high profits.
  • Part-time work.
  • No experience necessary.
  • The ability to work from home.

Take a look in your newspaper under the business opportunities section on a Saturday, and read the tempting offers of quick, easy money. Here are just some advertisements, taken from a daily newspaper in one weekend edition:
"LOOK! A minimum $10K investment can earn $65K a year immediately.Guaranteed."..
"EMAIL PROCESSORS required immediately. Use your own PC to earn income from home. No experience necessary."..
"AMAZING OPPORTUNITY. Open the hottest franchise in North America. Low investment, high returns."..
"Earn up to 2.5 million annually. Investment required."..
"Earn $900 a month, work only 10 hours a week. Up to $2,500 a month for 25 hours' work."..
"$100,000 year potential, computer earns you money 24 hours a day!"..
"$20K investment, six-figure return, huge market, no selling."..

Advertisers reel in unsuspecting victims, preying on their desire for quick,easy cash with minimum investment. People who want to operate a home based business are often their target. It's hard for the eager not to get excited with these wonderful promises.
But if all these businesses were as simple as they sound, then why aren't more people rich? There are some not so-honest people who are ready to take your money and run, or sell you an unprofitable business that makes money for no one except the vendors.

If you are not sure about with whom you are dealing, spend all the time you need researching. Follow these five simple rules to put your mind at ease. Even if you are purchasing what appears to be a viable and reputable business, a thorough background check is time well invested. A resourceful site for conducting background checks is www.backgroundcheckgateway.com.

Rule #1: Perform a company name search
Any "legit" business should be registered in your state with the Secretary of State. Are the owners really who they say they are? What is the corporate structure? In most states, you can perform a cost-free, online company search by business name to find out the corporate structure and ownership,and in some cases, even view and print out their corporate documents. As an example,visit www.sos.state.ia.us/dbsearch/index.html.

Rule #2: If in doubt, check them out
If you are not sure about the vendor's honesty or you feel that's something wrong, play super sleuth. Note the license plate and personal phone numbers. See which name the phone line is registered under. If the person claims to own property, do a title search. Ensure you have both their home and business addresses.

Rule #3: Check references
Ask the vendor for both business and personal references, but be wary of personal references unless they come from a reputable source. Friends can provide glowing references for often shady characters. Ask for three recent trade references and ensure that the vendor is paying bills on time. Their bank may provide a credit reference with the vendor's permission. Ask for the vendor's bank manager's name.

Rule #4: Check the vendor's credentials
Checking a vendor's credentials is important, particularly if you are considering investing money into a new venture or a partnership. People seeking venture capital will often tell you anything to get their hands on your money. Some become quite desperate. Ask for a "resume" and a list of previous employers,and check all references or contacts.

Rule #5: Check with other agencies
It is a simple procedure to check with the Better Business Bureau, where you can complete an online application (www.bbb.org), for previous complaints about a business. If you are a member of a credit bureau, have a credit check performed on the company. If the vendor is a member of any associations,call them and ask for a reference. If the vendor is trustworthy, they won't mind you asking these questions. If there is any hesitation, take it as an alert.

Bottom line, "use any resource, service, relation ..etc, to have a clear view about what you are getting into before stepping your first step."
Please, share you thoughts and experience with us..

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