| Let's face it, business opportunities are a rather quick, | | | | does it meet the needs of "you" personally, as far as |
| easy way to start a business. They are usually | | | | personal satisfaction and approaches to sales and |
| "turnkey" operations, where someone that buys into | | | | marketing? |
| a program either online or offline is provided with all | | | | 6. Is the business opportunity working within the |
| the necessary elements of immediately being in | | | | confines of federal, state and local laws? Depending |
| business for themselves. Business opportunity | | | | upon where a member lives, these laws can vary |
| programs can also be cost effective, as many | | | | widely! |
| abound, and finding one within a restricted budget is | | | | The real statistics on failures of small businesses, |
| rather easy. | | | | many of which now are business opportunities and |
| The biggest challenges faced when choosing a | | | | franchises, are well documented by the United States |
| business opportunity program are the following: | | | | Small Business Administration: Business statistics |
| 1. Choosing one that suits an entrepreneur's needs | | | | provided by the United States Department of Labor, |
| and skills as well as interests. | | | | report that in 1994, the number of businesses that |
| 2. Choosing one that pays enough in commissions on | | | | failed that year were divided into the following |
| goods or services that makes it lucrative enough to | | | | categories: |
| turn a healthy profit. | | | | - Bankruptcies (a 15.4% increase from 1993). |
| 3. Choosing one that is wanted and needed by | | | | - Failures (a 17% increase from 1993). |
| customers/clients. | | | | - Terminations (.3% increase from 1993). |
| 4. Choosing one that does not exist in an already | | | | The Small Business Administration attributes these |
| glutted market. This would lead to too many choices | | | | failures and the evolving higher percentages to the |
| of other providers and a rather limited market for | | | | fact that there are now MORE small businesses in |
| the business owner. | | | | the United States overall, with a 49% increase in |
| The sad facts are that because of the easy start up, | | | | numbers since 1982. |
| and the rather quick "fix" that business opportunities | | | | The Small Business Administration also states |
| present to potential entrepreneurs, business | | | | specifically that statistically, only one in seven can be |
| opportunity members can quickly enter a business | | | | considered a true "failure", leaving unpaid obligations in |
| and just as quickly leave it. Turnover can be quite a | | | | their wakes. Others simply sell or shut their doors for |
| problem. Since little initial investment is required, many | | | | a variety of other reasons. |
| members "jump into" a business opportunity at whim, | | | | Since most business opportunities, at least initially, |
| and quickly find that running a business is a whole | | | | open with less than 100 employees (many are simply |
| heck of a lot of work! | | | | the owner, as sole owner and executor of all |
| The reason for the failure rate is also attributable to | | | | business "chores"), then most Biz Ops are indeed |
| certain outlooks and requirements that many business | | | | "small businesses" and as such all the pertinent failure |
| opportunity "joiners" fail to consider when joining: | | | | statistics can be applied to them. What is really |
| 1. Is the business opportunity nothing more than | | | | surprising and rather "staggering" is the fact that |
| empty promises, the old "too good to be true" | | | | most business failures are not due to outside forces, |
| adage? Unfortunately, these types of offerings run | | | | but those that the business owner has complete |
| rampant both online and offline. | | | | control over! These issues included lack of marketing |
| 2. Is the business opportunity catering to a dying | | | | know-how, lack of record keeping, lack of |
| market? Markets can fluctuate, so due diligence is | | | | management competence, lack of financial |
| needed. Research into markets, just as with any | | | | management, and other business basics such as |
| other business is paramount. | | | | controlling employees and the inability to seek outside |
| 3. Is the business opportunity solvent? Talk to other | | | | assistance and advice! |
| members, and do research. Become aware of any | | | | The wise business owner, whether or not involved in |
| problems in payments/revenues before you join. | | | | a business opportunity, will seek to learn and |
| 4. Is the business opportunity flexible? Does the Biz | | | | implement proper procedures, and investigate proper |
| Op restrict members in their advertising methods, or | | | | methods of operation throughout the life of a |
| are they inflexible and "distant" in their approach to | | | | business. |
| members' concerns/problems. | | | | If this is done, a Biz Op owner, or any small business |
| 5. Is the business opportunity viable? Viability should | | | | owner, has less of a chance of becoming the "latest |
| be financial as well as personal. In other words, does | | | | failure statistic"! |
| the Biz Op have a great financial track record and | | | | © Vishal P. Rao. All rights reserved. |