How To Select A Business Opportunity

THE BUSINESS:

Enter the name of the business opportunity and any other particulars you would like to include in your final summary:

COSTS:

What does it cost to start? Include sign-up fees, initial equipment investment, store costs, labor to create your initial products or services, licenses, etc.

What does it cost to run or operate?

Do you have to pre-purchase any of the business's products or services up front and/or per month?

If the opportunity uses a network marketing or Multi-Level Marketing (MLM) business model, does your purchase quota increase as you increase in stature?

Will you have to hire employees?

How much money will be at risk until you start to make a profit?

INCOME:

How much income potential does it offer?

Is the potential income worth the time investment?

Are you essentially trading hours for money, or does the opportunity leverage your time?

How will you get paid?

Do you have to set up a credit card merchant account, or is it provided by the opportunity? Can you just use Paypal, 2Checkout, or an affiliate provider services such as Clickbank?

Can you work your business part-time or "after hours" while you keep your "day job" until the business can carry you financially ... or will it require so much time and energy, you will have to quit your day job?

How long will you have to work before you can expect to make a profit?

MARKETING:

Are you restricted in how you are allowed to market or advertise?

Are marketing aids already created and available for use?

Do you have to get marketing materials you create approved before you can use them?

Does the opportunity help you advertise or market your business? If so, how much does it cost?

How much will it cost you to market this business?

Can you identify marketing avenues likely to work for your business and its products and/or services/

PRODUCTS & SERVICES:

What are the products and/or services?

DEMAND:

Is there a demand for the products or services?

Who wants or need the products or services?

How likely are your customers to buy your products or services at the stated prices?

Do you have any price control?

MLM (Multi-Level Marketing; generally synonymous with Network Marketing):

Is there a mechanism in place to help you build your downline?

Does the business structure "motivate" your upline to help you build your business? For example, if your upline benefits by ever-increasing "width" (i.e., more recruits on your sponsor's Level 1), it's not really in your sponsor's interest to build your network ... even though they will receive a commission.

Does the MLM structure include "spillover" where additional recruits by your upline will automatically go into your downline?

How wide can you build your downline?

For how many levels deep do you receive commissions?

COMPETITION:

How much competition is there for your target market for the products/services you will offer?

Does your competition consist of exact copies of what you will be offering or similar products or services?

USP (Unique Selling Proposition):

What do you or your business have to offer that makes your products or services unique to your potential market (customers)? Why would your customers pick you (or your opportunity) over the competition?

DISCLOSURE:

How much does the opportunity disclose to you Before you sign up or invest?
NOTE: The more it costs to start/join and the less they tell you up front, the faster you should run away.

THE WORK:

What activities do you have to do? For example, do you sell face-to-face, take orders, deliver products, file paperwork, collect payments, write commission checks, assemble or manufacture products, or are these chores done for you?

Do you have the skills and interest in doing the work, will training be provided, or will you have others do the work?

Do you have a need or are you interested in the product or service yourself?

If you have others do some or all of the work, how will you pay them and how much will it cost?

Do you have the time to do what has to be done to succeed in this business?

Do you know what it means to succeed in this business opportunity?

LIABILITY:

Is there a risk you will be held personally liable if things go wrong with the product or service?

Will you need to get additional liability insurance (e.g., "Umbrella Liability" coverage) or business structure protection such as provided by incorporating or creating a Limited Liability Corporation (LLC)?

MOTIVATION:

Do you know "why" you want to start, run, & own your own business? The "why" is more important than the "how".

What is your goal relative to specific dates in the future?  Assuming you are successful, can this business meet that goal?

"How To Select A Business" Evaluation Summary

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