Proceed With Caution

When should you be wary of licensed business opportunities?

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
1 min read
Opinions expressed by Entrepreneur contributors are their own.

There are hundreds of variations of business opportunity contracts; consequently, not all the negative points mentioned will apply to every situation.

Under ideal conditions, business opportunities are a good, low-investment way to get into business with minimum risk and a good chance for success. But nothing in this world is perfect, so here are some problems you might run into:

  • Exclusivity clauses: A business opportunity might require that you not distribute products made by any other companies, which can reduce your potential income.
  • Parent company bankruptcy: You might build up a good distribution business, only to have your supplier go out of business.

Excerpted from Starting a Home-based Business

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Let us help you take the NEXT step. Whether you have one-time projects, recurring work, or part-time contractors, we can assemble the experts you need to grow your company.

Latest on Entrepreneur