Here is a look at how to buy a business opportunity and what to look for to make sure it is safe and potentially lucrative for you. Lets take a deeper look at How Do I Buy A Business And Not Get Ripped Off?
What Is a Business Opportunity / How Do I Buy A Business And Not Get Ripped Off??
Instead of starting from square one, a business opportunity lets you leverage someone else’s preliminary work. You are buying a packaged business investment that lets you begin right away.
According to the experts at Wiley Publications who write the For Dummies books, a business opportunity can take a variety of forms. Here is a quick overview.
Wholesaler. You buy direct from the manufacturer and then sell the items to retailers or direct sales people. You make your money by marking up the price. Perhaps a wine wholesaler or distributor?
Broker. You act as an agent, buying or selling products for the original parent company.
Distributor. You deal with wholesalers, buying directly from them or from manufacturers, then resell your products to brokers, dealers or direct sales groups.
Dealer. You represent a company’s line of products. You buy them directly from the company who makes them and sell them directly to the people who can use them.
Mail-order business. Your business takes orders via the internet or phone for your products. You then send them to the buyers.
Licensee. You receive the right to market, sell, produce or use a recognized product brand name, system or technology. Though this sounds a bit like a franchise, you actually have much greater freedom in how you operate your business.
Vendor. You sell supplies and materials that companies need to produce their own products for future sale or for their own in-house needs. They might also resell them to other companies or to individual buyers.
Manufacturer. You build, assemble and produce products that are sold to consumers, often after going through a distributor or other middleman.
Agents and Representatives. In these cases, you work directly with an established company, following their system exactly in order to make sales and earn a commission.
Network Marketers. People in an MLM opportunity are part of a bigger group that trains them to set up a system for continued sales and recruiting.
General Advice – How Do I Buy A Business And Not Get Ripped Off?
Start by locating an established marketplace with a variety of business opportunities available, like this one. BusinessOpportunity.com is one of the most respected sources of business opportunity ideas online.
Then decide what you want to get out the opportunity. Is this a sideline, to make enough for a vacation or pay off a few bills? Do you want it to eventually produce a full-time income? Do you want to work from home? Do you like to go out and mix with people, or do you want an opportunity that lets you interact via the internet most of the time?
Target a few opportunities that catch your eye. Then get ready to dig in. Buying starts with research. With business opportunities, it is a case of let the buyer beware. It’s definitely a fact that if it sounds too good to be true, it probably is. If you find an opportunity that offers untold wealth for little or no effort, it’s just not legit.
Check is out with the Better Business Bureau. Find out if complaints have been made by other buyers. If the parent company has a D&B registration and rating, look up their financial report at the library or online. It will tell you how they are doing and if they are solvent.
Look up information in the state where the company is registered. Check the Commission of Securities or the Commission of Financial Institutions. Does it have lawsuits and bankruptcies on its record? If yes, you might want to ask about that information to get a better understanding of their situation without excluding it straight away.
Ask for a complete list of buyers in your state or your region from the company. Contact a few of them. The more people you talk to, the better idea you will have about how the company operates and delivers on its promises. Be sure to find out how much training and support the company offers immediately after the sale and then in the future.
Pros and Cons of the Business Opportunity Model – How Do I Buy A Business And Not Get Ripped Off?
Buying a business opportunity has several advantages over investing in a franchise or even an established company. Here is a look at three:
> Enjoy freedom. As a rule, the seller of the opportunity has no control over how you run your business. This means you can run your business as you choose. This is a big advantage for people who thrive on independence.
> Choose your name. Once you buy the idea, the equipment, the system, or whatever form it takes, you can operate under any name you choose.
> Keep more money. In most cases with a biz opp, you don’t have to pay royalties.
But all this freedom comes at a price. You have less support than if you purchase a franchise or can work with the original owner and staff of an established company. Here is a breakdown of the cons of business opportunities.
> Little regulation. According to Entrepreneur, there is little regulation at the federal, state and local level of business opportunities. Scams are common so you really need to use a site that cares about the opportunities it displays.
> Often little support. Once you buy the biz opp, in many cases, you are on your own. This actually varies widely, especially for agents, representatives and network marketers who often receive extensive training. More and more biz opp parent companies are instituting ongoing training as a way to ensure success for investors.
In Summary – How Do I Buy A Business And Not Get Ripped Off?
In a nutshell, if you want to know how to buy a business opportunity, three steps are essential:
> Decide what you want from a business, what you need in the way of profits and training.
> Find a respected marketplace with a variety of business opportunities available.
> Decide on two or three and research, research, research.
Now, go and use the knowledge gained here – How Do I Buy A Business And Not Get Ripped Off? :’)
SOURCES: Wiley Publications