Mystery to Me

The Dollars

Can you afford the package? This is a toughie. Many business-opportunity investments run into five digits. In the right (wrong?) frame of mind, many of us will spend untold sums as investment in ourselves. The reasoning goes: "I believe 1,000 percent in myself and in my drive to succeed, and I will make a go of this business by the sheer force of my will." The availability of easy plastic credit in these situations make it easy to vote for ourselves with money we don't have. A natural rationalization sets in: "I'll be making big money on this business in the first month, and can easily carry and pay down the credit-card debt."

Use this one rule to decide whether you can afford to buy a business opportunity: "If you can afford to lose every dollar you invest in the business opportunity, then you can afford it." No matter how much you believe in your own limitless ability and fierce determination to succeed, a business opportunity is a risky investment. Any start-up business is risky, and the risks increase exponentially when the person at the helm has no experience in starting and running businesses. By definition, your purchase of a business opportunity is at the risky end of the investment scale.

Let your first lesson is business be to understand and plan for its inherent risks, as weel as its potential successes. The business may well meet your goals, but there's also a chance the business won't succeed. Be realistic in your evaluation of the investment costs and risks, and you'll be well ahead.