You have likely heard the expression that if it sounds too good to be true, then it probably is. Well, that is certainly some wise advice, but often when a business opportunity sounds great, it actually is.
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The key is to analyze all possible business opportunities, see how they fit in with your strengths and weaknesses and then determine if any of them are worth pursuing. Many business ideas do fail in the end, but many are also successful. You need to begin the process by knowing what to look for in a business opportunity in the first place.
Be Cautious
When examining any potential business opportunity, caution should first be exercised. If you are the type of person that can never turn down a good sales pitch, then you also have the potential to fall victim to one of the many business opportunities that are out there that do little more than cost you a great deal of money. While many such businesses are quite legal, they do not work for the average individual.
Here are some things to look out for to make sure your investment, in the end, is well protected.
- If a big upfront and non-refundable fee is required, be leery. This is especially true if the amount requested is an odd amount, such as $8,255 or $2,222.
- If you are required to pay up a set amount a monthly basis, you might want to pass on the opportunity. This means that you would have to pay that amount regardless of whether or not you made any sales. Look instead for opportunities that take a percentage of your sales.
- If the opportunity would call for you becoming an ‘affiliate’ or ‘member’ but then prohibit you from actually using the name of the company when working with customers or suppliers, this is a warning sign.
- Watch out for possible opportunities where the claim is made openly that they are looking for individuals who have never been in the business before.
- If the brochures and website for the company fail to give any information about executives or management, then something is fishy.
What To Do If You Like the Sound of a Business Opportunity
Now that you know what to look out for don’t let that stop you from looking. There are many excellent possibilities out there just calling out your name. When arriving at one, consider the following few pieces of advice.
- Have a lawyer review any agreement before you sign. If the person you’re dealing with refused, then walk away.
- Make sure the agreement allows you to walk away from the opportunity at any time if you’re not happy.
- Make sure that the seller has an indemnity agreement covering you from any possible legal risk that may be involved in the business.
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You are to be applauded if you are actively seeking out a business opportunity. Becoming your own boss is quite liberating, but you do want to make sure you choose wisely.
