In today’s economy, more and more people are looking for additional income or an entirely new primary source of income. Some choose to work more hours, some get a second job or a different job, but some choose to investigate owning their own business.
If you’ve tried searching online or talking to your friends about a way to make extra cash, you’ve probably been inundated with “business opportunities”. So how can you determine which ones might be a viable option for you and which ones are a scam? I’ve put together a short list of questions to consider. I hope they will help you weed out the very few excellent opportunities from the plethora of scams and garbage offers.
What is The Product?
The product you choose must be one that is needed in the marketplace unless you enjoy trying to twist people’s arms to get them to buy from you. It also must be a quality product or service that surpasses any product or service that your prospect could buy at the local grocery store.
Many home-based businesses have decent products, maybe even great products. But if they’re optional for your prospects, it will be much harder to convince them to buy when times are tough. Nutritional products are some of the first to go when it’s time to tighten the belt.
You’ve probably heard someone say they are such a good salesperson that they could sell ice to an Eskimo. Well, even if you are that good in sales, do you really want to work that hard? If you find a demand product with a large target market, then your success will be much easier.
Who is The Company?
Of course, with any business opportunity, you’ll need to do your own research on the company. Remember to look for both good and bad reviews and take each with a grain of salt. Then you can make your own informed decision.
You need to know:
* who are the founders of the company? * what is their background? * what are the debts of the company? (Hint: they should be low or zero for the best stability and future) * how many other representatives are there now? * what is the projected growth of the company?
Make an informed decision about the team you would be joining. Are they “on the inside” with the corporate office? Will they be able to provide you with the support and training you need to be successful? Be sure you talk with (and get contact information for) at least three other members of the team besides the person who is introducing the opportunity to you.
What is The Compensation?
Obviously this is the reason you’re looking at a business opportunity at all. You need to be sure you can actually make the money you expect to with the compensation plan the company offers. There are so many different plans and all have their pros and cons, so the key is not to find a certain type of plan, but to be sure you can make money with the plan they have.
Determine how much money you want to make, whether part-time or full-time, and then work backwards within the plan to figure out the production required to produce that income. For example, if your plan offers a 25% commission rate at the bottom level and their average sale is $800, then how many $800 widgets would you have to sell to make the income you want to make? Is it reasonable to assume that you can make that many sales?
Residual Income — what we’re all after! Most of us would love to be lying on the beach and have the money still come rolling in and that’s the dream you’ll hear retold countless times. The reality is that you need to understand how the residual income is generated. If it is dependent on friends and family to keep ordering your too-expensive products, that residual will go down the drain quickly.
What is The Cost?
While home-based businesses typically have an array of costs associated with the (initial fees, ongoing fees, cost of goods, etc.), these costs are so much less than if you were going out to start your own business or buying a franchise. If you can find a really good home-based business to join, you can recoup your costs and be making money within the first few weeks.
What is The Value?
Opportunity is missed by most people because it is dressed in overalls and looks like work. ~Thomas Edison
This last question is one of soul-searching. You have to determine what you are willing to “pay” for the value. You can pick up your paycheck every week and keep working to try to stretch it out over all the bills, or you can turn your life around with a legitimate business opportunity and start building for the life you really want. Whichever opportunity you ultimately choose will require hard work and sweat-equity, but the value you derive from believing in yourself and changing your future today is worth it all!
Whether you think you can or think you can’t – you are right. ~Henry Ford
Diane Hibbs is a professional who is creating a team within AdzZoo. If you are looking for a turn-key business opportunity that sells a much-needed service to other businesses, you should spend some time on her site.