15 Guidlines To Choosing Business Opportunity
#Business
When choosing a business opportunity, keep in
mind that if you buy an opportunity from a company with a sizable number of
outlets that's been in business for at least three years, you'll pay more for
this established concept that you would for a newer one.
If you're considering a more recently
established business opportunity, you should check out the parent company's
history to evaluate its success and longevity in its particular field of
operation.
If you were to ask a business consultant how to
evaluate the "right" business opportunity for you, you would probably
receive these guidelines:
1. Make an honest evaluation of yourself and your
abilities. If you've been behind a desk for many years, will you be happy
calling on businesspeople and selling them an intangible service? If you've
been a field salesperson for years, will you be satisfied selling snack foods
behind a counter?
2. You must run your business enthusiastically.
Will you be happy introducing a new product or an unusual service that the
public knows nothing about? Can you generate excitement for an item not
nationally advertised?
3. You must have complete knowledge of the
product or service with which you are involved. If the parent company gives you
little or no training in technical or management know-how, be wary of the
business opportunity. If the licensor-seller has organized all the operating
knowledge into a standard operating manual, look with favour upon this business
opportunity.
4. Make a market evaluation of the product or
service to be offered. Is the time right to introduce it to the public? Is
there a need for this type of item, and what is its potential in relation to
competition?
5. Find out how many buyers have been in the
business successfully for a respectable period of time. A legitimate business
opportunity will even provide you with phone numbers of other buyers, so you
can verify that they're generally satisfied with the opportunity and that the
seller is capable of fulfilling his or her promises.
6. Check the training and experience required to
run the business properly. Is there a suitable curriculum of training? What is
the scope of training? Does your background fit its requirements?
7. What is the company's profit ratio to sales;
to time and service requirements; and to the financial leverage requirements?
Can you make more in another type of business?
8. Do you have to work more hours to make the
same amount you do now? Can you invest the same amount in the business
opportunity yet operate a larger operation and get a better return on
investment?
9. Check with current operators to see how
they're making out. Are they happy with their businesses? What problems do they
have, if any, which are common to all units, sold?
10. Research company's history. Is it a new firm
with little expertise and experience? Is it an older firm whose regular
products have satisfied customers for years? Are the business opportunities all
offshoots of their regular business?
11. Is there financial strength and strong credit
behind the business opportunity? Can the licensor-seller give you an escrow
agreement to deliver a building, equipment, leasehold improvements, inventory,
etc., as the unit is made ready for your use? Check out the bank references
given by the licensor-seller; discuss the company's financial strength with the
appropriate managers.
12. Evaluate the policies and plans of the
company with the associations and business groups in which the parent company
or seller is involved.
13. The Better Business
Bureau will give you a report if others have lodged previous
complaints against the company.
14. Having an attorney, accountant or business
consultant conduct an in-depth study of the company may be an excellent idea.
15. Visit the headquarters of the
licensor-seller. Talk to the personnel and the training director. Visit the
original prototype of the business being sold. Evaluate other outlets. Expose
yourself to the other outlets' products and services to determine the quality
dispensed.
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