How to Research a Business Opportunity
A Home Business Article Contributed by Heather Fontan
There are Many Different Ways to Research a Business Opportunity.
Once you decide that you would like to explore a business opportunity, you should do your best to look into the company or firm that offers it. Many people do not know exactly what information they should be investigating. Here are some guidelines when researching a business opportunity that interests you.
Make Sure the Company or Firm Offering the Business Opportunity is Registered.
Depending on the industry, often times companies are required to register with various state, local, or even federal agencies. For example, home improvement contractors in Massachusetts must be registered with the state. Spending a little time online or in person at your local city hall or library can help you find access to that information. Never consider a business opportunity of a company that should be registered and is not.
The Cost of the Business Opportunity May be More for Established Companies.
Often times, you may find that the cost of the business opportunity with an established company can be significantly higher than that of a new opportunity. Some may think they can save some money by going with the "new guy." Be careful here. You may find it worth it to pay more for the name recognition and positive reputation of a given company. You can probably expect to spend much less in the long run on advertising and marketing efforts. Keep in mind that partnering with a newer firm can be a good idea, but be realistic about the added costs of getting their name out to the public.
Visit the Headquarters of the Company Offering the Business Opportunity.
Any company offering a business opportunity to you should welcome you to their location. This gives you a chance to talk the staff, and get a feel for how things are run. Visiting their site will give you an impression about not only how they run things at the corporate level, but also whether the staff members are happy with the way they are treated. Chances are, if the company treats its corporate staff well, they will probably treat their business brokers well also.
Investigate Financial Information on the Parent Company Offering the Business Opportunity.
Take a look at whether the company has the financial backing to help new business brokers. Can they help secure a building or a lease? How is their credit? Have you read anything negative about their financial situation recently? You want to partner with a company that has the financial ability to support your efforts for success.
Talk to Others Who Have Already Taken Advantage of the Business Opportunity.
This is probably the very best research you can do. Get in touch with real people, facing the real ups and downs of the business opportunity on a day-to-day basis. Keep in mind that you want to talk to those who have been running their business for at least a year. Why? Some people are successful right from the start. You may talk to someone who just got started and is doing great. However, you really need to get a snapshot of the big picture.
Every industry has busy and slow times that fluctuate throughout the year. You want to be able to get an idea of how the business owners are doing over an extended time. This can help you set realistic goals.
If You are Still in Need of More Information, Get a Professional.
If after all of the above research, you are not satisfied, hire a professional. You can look to an attorney, or a business consultant to help you research the business opportunity. Starting a new business opportunity is a huge step and should not be taken lightly. Armed with all of the above information, you can make an informed decision and focus your first days as a business owner on growing your business, not wondering whether you made the right choice.
