Before you invest, whether it is in a franchise, multi-level marketing program or other business opportunity, there are many things you should consider.
The following is a guide to some of the questions you should ask yourself. Go over these questions carefully to help make your decision.
Do you posses these skills or can you easily get them?
What specialized knowledge or talents do you bring to the business?
Do you have the necessary skills to manage a business?
Your Goals
Do you require a specific level of income?
Is this a new field of interest?
Do you like sales or performing a service?
How many hours are you willing to spend on your business?
Do you want the day to day management of the business or are you going to hire a manager?
Will this be your primary source of income or a supplement to your present income?
Is this something that you will enjoy doing for the next 20 years?
Are you interested in staying small or do you want to grow large?
Making Your Selection
Investing in a business opportunity is like any other investment, there are risks. As you narrow down your possibilities, carefully consider these factors.
What is the background of the promoter?
What is the level of support you will receive?
Have you talked to other owners?
Demand
Is there a demand for the product or service?
Is it seasonal?
Is it a fad?
Is the product or service a one time shot, or will it generate repeat business?
Even though it may be the greatest thing in Florida, will it work in Washington?
Competition
Is there competition, not only in your immediate area, but nationally?
Are there other companies offering the same products or services?
Will you be competing with well-established businesses with name recognition?
What will set you apart from them?
Your Ability to Operate a Business
Will you be able to operate if the promoter or parent company goes out of business?
Will you be able to purchase supplies?
Can you run your business alone without extra personnel?
Name Recognition (Franchises or Multi-level Marketing)
The main reason for purchasing a franchise or multi-level marketing program is the right to use the company's name. The more successful the franchisor or multi-level program, the more the name will be recognized.
How widely recognized is the name?
Is the name and/or logo a registered trademark?
How long has the parent company been in business?
Company Reputation
What is the company's reputation for services, products?
Are there any complaints on file against the company with the Better Business Bureau or a local consumer protection agency?
Are there any complaints on file with the Washington Department of Financial Institutions?
Training and Support Services
Does the company offer training or ongoing support services?
How does the training compare with other similar training?
Will you be competing with others with more training?
What are the backgrounds of the current franchises or business opportunity owners?
Do they have prior technical or special training that is enabling them to be successful?
Wealthy investors are known for their strategic approach to investing, considering various factors before making investment decisions. Three key aspects that often influence their investment choices include risk tolerance, portfolio diversification, and goal-based investing.
Wealthy investors are known for their strategic approach to investing, considering various factors before making investment decisions. Three key aspects that often influence their investment choices include risk tolerance, portfolio diversification, and goal-based investing.
This sort of five percent rule is a yardstick to help investors with diversification and risk management. Using this strategy, no more than 1/20th of an investor's portfolio would be tied to any single security. This protects against material losses should that single company perform poorly or become insolvent.
The Dragons will want to know if there is enough demand for your product or service to make it profitable. Who is your competition?What makes your product better?Does your idea or product have the capacity for growth?
Understanding and going through the financial reports of the company can make buying and selling decisions easier. Study the yearly reports of the company and compare them. Evaluate the profitability of the company. Check whether the revenue and the bottom line are showing consistent growth.
The best ask is simply the lowest (or best) price someone is willing to sell a basket of securities at. A best ask may also refer to the lowest price that a given individual market participant is willing to sell, in which case it would be their best ask, and not necessarily the market's best ask.
Introduction: My name is Merrill Bechtelar CPA, I am a clean, agreeable, glorious, magnificent, witty, enchanting, comfortable person who loves writing and wants to share my knowledge and understanding with you.
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