Business Opportunities – 9 Things to Watch Out For

If you are considering striking out and starting a new business, you have probably been investigating what are known as “business opportunities”. A business opportunity is usually a complete package that contains a product or line of products, and a marketing strategy for selling that product.

Any business opportunity worth considering will either have a track record that you can investigate and evaluate, or it will have a clear statement of the plan, the potential, and the up-front costs. Before investing any time or money in a specific business opportunity there are some things you should consider. Here are some of the more important ones:

  • How long has the business opportunity been in business? – Before investing time and money in marketing a business opportunity it is important to determine how long that business opportunity has been operating. If it is a new concept that has not been proven in the marketplace, you have no assurance that it will even work.
  • Does the company have a fixed address and phone number? – This may seem obvious to you, but the fact is, thousands of “companies” operate with nothing more than a website and an email address. Many of them are here today and gone tomorrow. Make sure the business you intend to deal with has a fixed address, physical location, and established phone number.
  • Does the business opportunity have some successful members you can talk to? – Most business opportunities will show you “testimonials”, but these are often untrustworthy. They could even be completely fabricated. Ask the owner of the business opportunity for names of real people you can talk to. Call them on the telephone and ask them to share their experiences with the program. This will not only provide you with valuable first-hand information about the program, but it will give you a list of advisors who many be happy to help you along the way.
  • How much initial investment is required? – In many cases a proven business opportunity with a successful track record will involve some kind of initial investment. This could involve an initial amount of product inventory, a program subscription fee, or possibly a piece of equipment required to produce or finish the product. You should not assume that a business opportunity that is free to join is a better investment. Usually a free-to-join business opportunity will involve other costs such as marketing and advertising fees. Nobody gives away “opportunities” for free. What you have to determine is whether a specific business opportunity has a successful track record, is managed by honest people, and offers you a realistic chance of actually making some money. These are the things you must weigh against the entry costs.
  • What is the realistic income potential of the business? – Have a careful look at the numbers and projections provided by the business opportunity. Then talk with actual members who are using the program to determine if they have been able to turn those numbers into reality.
  • Are there extra fees such as yearly or monthly subscription fees, shipping costs, or minimum purchase requirements? – Make sure to get a detailed list of all the fees involved in operating the new business. These things may not seem significant now, but they can easily eat into your profits later.
  • Who controls the money? – When you generate sales for the business opportunity what assurance do you have that you will get your share of the profits? This is the primary reason not to deal with “fly by night” outfits that have no track record. Again, the best way to get an accurate reading on this is to talk with people already using the program.
  • Does the business opportunity supply marketing materials and person-to-person mentoring? – One of the most difficult parts of starting a new business is “learning the ropes”. It can be extremely helpful to have advisors who have first hand experience in making the program work. The same goes for marketing materials. You will have enough to do without having to create brochures, ads, and newsletters for your new business.
  • How much control of your new business will you have? – Be clear on who owns the business, and who controls the way it is developed and marketed. You may want to diversify your product offerings in order to avoid being at the mercy of “head office”. Remember that you are trying to create a business that has long term value. This will involve considerable investment of time and energy on your part. You don’t want your business to be completely dependent on the stability and integrity of a single supplier.

The ideal business opportunity is one that is offered by a stable company with a proven track record. The business opportunity should require low initial investment and have high profit potential both in the short term and in the long term. It should allow you to build a profitable business of your own that will be a source of income far into the future.

Online Business Opportunity – But Where Do You Start?

Are you looking for an online business opportunity but have no idea where to start? In this article, I’ll attempt to highlight the primary steps that will lead you toward creating a successful online business that meets your needs.

Starting your own legitimate online business opportunity is going to require a lot of commitment from you, just like a traditional offline business. The only difference is that starting a home based business on the internet is a whole lot cheaper.

You won’t need to have access to large amounts of money to help you get started, you certainly don’t have to go out and find office space to rent and you won’t have to employ dozens of people to work for you. It’s just you and your computer in your own home or wherever you choose to work from.

There are so many legitimate online business opportunities for you to choose from, but what it really comes down to is this:

• What are you good at?
• What are you interested in?
• Why do you want to work online?
• How much money do you want to make? – be realistic with this amount and remember you have to start somewhere
• Are you open to starting a new business opportunity that perhaps you would never have thought about previously?
• Are you willing to learn new skills?
• Do you consider yourself to be a patient person?

All of the above questions play in vital role in the route you decide to take. You have to be honest with yourself, because starting an online business isn’t for everyone. It can be very challenging at times (to put it mildly). It requires as much hard work and commitment as building a traditional offline business does.

I have an online business opportunity that allows me to work from my home. This is something that I can honestly say that I enjoy doing but it does demand a lot of my time. But this is something that I’ve grown to respect. I have managed to devote most of my time towards growing my home based business and the remainder of my time goes towards my family and then to my friends.

I’ve said all of this to make a point.

Whatever online home based business opportunity that you chose to go into, make sure you understand where you want to take your business opportunity. Decide for yourself how successful do you want to be. Do you want to earn $500 a month or $5,000 a month. The amount of time that you spend on building your business opportunity will dictate how successful you are and much money you make.

Also, make sure that you know exactly what is expected of you, and if this particular business opportunity can meet your needs and expectations.

Be prepared to put as much time and effort into growing it as you can, especially in the early days. I say this because if you don’t spend enough time either learning about your industry or actually putting steps together every day, you are at risk of losing interest in it and not finishing what you’ve started.

Don’t expect to get rich quick. But what you can expect is that you’ll start to earn money on a regular basis in the long term. How much money you earn all depends on how much time, energy and effort you physically put into your business opportunity. Learning the right marketing strategies and putting them into place will determine your level of success.

When it comes to making money online, the possibilities are endless. There are real people making modest amounts of money each month, and then you have others who work tirelessly to earn 4, 5 or 6 figure incomes weekly. Don’t for one second think that this is not possible, because it is. But like I said, how much You make really all depends on how much time You decide to put into your business opportunity.

Business Loan Strategies to Buy a Business Opportunity

When buying a business opportunity that does not include commercial property, borrowers should realize that business loan options will be significantly different when compared to a business purchase that can be acquired with a commercial property loan. This problematic situation occurs because of the normal absence of commercial real estate as collateral for the business financing when buying a business opportunity. In terms of arranging the business loan, efforts to buy a business opportunity are almost always described by commercial borrowers as excessively confusing and difficult.

The comments and suggestions in this report reflect business financing conditions that are frequently offered by substantial lenders willing to provide a business loan to buy a business opportunity throughout most of the United States. There are likely to be circumstances in which a seller will privately fund the acquisition of a business opportunity, and it is not our intent to address those business loan possibilities in this report.

BUSINESS OPPORTUNITY BUSINESS LOAN STRATEGIES:

Buying a Business Opportunity – Length of Business Financing to Anticipate

Business financing conditions to buy a business opportunity will frequently involve a reduced amortization period compared to commercial mortgage financing. A maximum term of ten years is typical, and the business loan is likely to require a commercial lease equal to the length of the loan.

BUSINESS OPPORTUNITY BUSINESS LOAN STRATEGIES:

Expected Interest Rate Costs for Buying a Business Opportunity

The likely range to buy a business opportunity is 11 to 12 percent in the present commercial loan interest rate circumstances. This is a reasonable level for business opportunity borrowing since it is not unusual for a commercial real estate loan to be in the 10-11 percent area. Because of the lack of commercial property for lender collateral in a small business opportunity transaction, the cost of a business loan to acquire a business is routinely higher than the cost of a commercial property loan.

BUSINESS OPPORTUNITY BUSINESS LOAN STRATEGIES:

Down Payment Expectations to Buy a Business Opportunity

A typical down payment for business financing to buy a business opportunity is 20 to 25 percent depending on the type of business and other relevant issues. Some financing from the seller will be viewed as helpful by a commercial lender, and seller financing might also decrease the business opportunity down payment requirement.

BUSINESS OPPORTUNITY BUSINESS LOAN STRATEGIES:

Refinancing Alternatives After Buying a Business Opportunity

A critical commercial loan term to expect when acquiring a business opportunity is that refinancing business opportunity financing will routinely be more problematic than the acquisition business loan. There are presently a few business financing programs being developed that are likely to improve future business refinancing alternatives. It is of critical importance to arrange the best terms when buying the business and not rely upon business opportunity refinancing possibilities until these new commercial financing options are finalized.

BUSINESS OPPORTUNITY BUSINESS LOAN STRATEGIES:

Buying a Business Opportunity – Lenders to Avoid

The selection of a commercial lender might be the most important phase of the business financing process for buying a business. An equally important task is avoiding lenders that are unable to finalize a commercial loan for buying a business.

By eliminating such problem lenders, business borrowers will also be in a better position to avoid many other business loan problems typically experienced when buying a business. The proactive approach to avoid problem lenders can have dual benefits because it will contribute to both the long-term financial condition of the business being acquired and the ultimate success of the commercial loan process.

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