How do you know the difference between the truth and the hype?
If you are like I am, you are bombarded every day in your email, snail mail and telephone with someone pushing the “latest and greatest” business opportunity. How much is hype and how much is fact? Chances are there is a bit of each in every presentation.
Every business takes work. Granted there is a difference between productive work and busy work. Cleaning off your desk and checking private emails consumes time but it does not qualify as productive work.
Selecting the perfect business for you requires cutting through all of the empty promises and delving into facts.
Depending on the current promotion and the level of commitment, initial costs can vary from $1 to $20,000. If you are purchasing a franchise or a pre-owned brick and mortar business, the cost can exceed seven figures. Since a franchise or a pre-owned brick and mortar have extensive additional factors, we will focus on the more popular MLM or Network Marketing businesses.
Should be – Frequently Asked Questions:
1. There is generally some initial fee. It may be as little as the current Melaleuca promotion of $1 initial fee until March 20, 2013. In other cases it may be an initial product purchase of $1, 995, $4,995 or 19,995. (High dollar network marketing companies have a variety of rates; these are more common. Some companies even have a level 4 product which is even more expensive.) The principle behind the higher initial fee is that you have fewer products to market but make a much higher commission per sale. Having participated in these, I have experienced incredible months and “oh no, I’m in the red” months.
2. There may also be regular monthly fees. It could be for a website, product purchase or training. Different companies structure their fees differently. Remember to ask.
3. Ask about training. How will you be trained? What is your responsibility in your training process? It is your business. Training is designed to assist you in being more profitable in a shorter period of time. It is NOT the company or your sponsor’s responsibility to make your business successful. They are there to help you, not do it for you.
4. Compensation. What time lapse is there between the time you make a sale and the time you receive your commission? Do you understand the compensation plan and can you explain it to others? Compensation plans are like the odds in Vegas – enough to inspire you but loaded in favor of the company. The company is a business of its own.
5. What problem does the product solve? What problem do you expect it to solve for you? If your answer is money, keep looking for another business. You want to earn money but it must also be a product you feel good about on its own. Would you buy the product if you were not seeking a business opportunity? If yes, great. If no, keep looking.
6. How large is the target market which will pay for this specific solution?
7. What is the market duration? Will the market exist for this product for several years or only for a few weeks?
8. What will it cost you to acquire a sufficient share of the market in order to meet your financial goals for the business?
9. Do you have or can you acquire the expertise to properly market the product?
10. Do you have a passion for the product? Do you truly believe in the value of the product?
11. Will you be proud to have your name associated with this company and product?
These are just a few questions to ask yourself before start a new business. Having your own business can be a great experience. Go into it with your eyes wide open having done your due diligence. As a serial entrepreneur, I have seen phenomenal success and not so successful ventures. No regrets from either; both have been learning experiences.
Owning a business can be fun and profitable. Analyze the criteria and make the best decision for yourself. If you would like help, ask. Contact me. Comment on the article. Help is available.