Join our Waitlist for Expert Advice!

Is That Opportunity Legit? Be your own boss, yes, but be smart about how you get there.

Opinions expressed by Entrepreneur contributors are their own.

Q: I want to work from home, but the idea of starting abusiness overwhelms me. I get e-mail all the time about making bigmoney at home in just a few hours a week. I've sent in moneyfor a few of these, but I've concluded the only way to makemoney from such opportunities is by convincing other people theycan make money at home. Are there legitimate businesses I canstart?

A: If you're not the kind of person who needs tomarch to the beat of your own drum, you may be a candidate forhaving a homebased business that someone else's cookie cutterhas already created. Regardless, you'll have to heedsomeone's else drumbeat if you buy a franchise or businessopportunity.

Whether the advantages of a prepackaged business outweigh thedisadvantages is as much a personal decision as a financial andbusiness one. With a franchise or business opportunity based on aviable concept, you won't have to invent or reinvent the wheel.Plus, you'll often get faster earnings and receive initial orongoing assistance and support.

But there are potential disadvantages, too. First, virtuallynine out of 10 corporations that sell franchises, businessopportunities, and network marketing goods and services fail intheir first five years. Common sense says you would therefore wantto seek out companies that have at least a five-year trackrecord-but that leaves out the possibility of getting in on theground floor of a cutting-edge company that's maybe the one of10 that makes it.

Second, there's the investment. In the case of a franchise,generally the more you pay for one, the more training and supportyou'll get. Business opportunities may come with or withouttraining. You should consider your learning curve an investment.Even as a distributor for a direct-selling company (a term thatincludes both direct-sales companies like Avon and Tupperware andmultilevel companies), you are apt to need to purchase samples,become a customer yourself, and go to meetings and training thatyou typically pay for.

Third, even though the business you buy may work for someoneelse, it doesn't mean it will work for you. Too many peoplethink they'll be buying a business that runs itself, includinggetting customers. If you're considering a business that claimsthe contrary, the seller is probably manipulating you.

If you determine the advantages of a prepackaged businessoutscore the disadvantages, you'll want to carefully answer thefollowing questions:

  • What would your territory be?
  • What is the product line like?
  • Is there a body of knowledge based on a proven trackrecord?
  • Is there a valued name brand associated with theopportunity?
  • Will you receive training and ongoing support?
  • Is there a marketing plan you can implement, both on a localand national level?
  • Will you receive leads and referrals to paying customers?
  • Will you receive any software, equipment or othersupplies?

Finally, always ask yourself whether you're buying somethingyou don't already have or couldn't obtain on your own.


Paul and Sarah Edwards' most recent book is Changing Directions Without Losing Your Way.Send them your start-up business questions at www.workingfromhome.com or through us atEntrepreneur.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Money & Finance

The Government Is Forcing Business Owners to Share Personal Data or Get Fined $10,000 — So Why Don't More People Know About It?

The Treasury Department wants to know who owns your business, and the smaller your business, the more attention you should pay.

Money & Finance

Customers Have a Favorite Payment Method — But 30% of Businesses Don't Accept It. Are You Driving Business Away?

This article examines the surprising gap between what consumers want in payment options and what small businesses currently offer. It also provides strategies for small business owners looking to adapt to these preferences and enhance customer loyalty.

Leadership

Could We Have The First Native American Woman Governor? DEI Expert Weighs In On What Allyship Should Look Like If History Is Made.

We can all learn more about what it means to be a better ally for those who are the "firsts" in their space. Here are three strategies around allyship this DEI expert recommends to her diversity, equity and inclusion (DEI) consultancy clients.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

'Additional Human Touch': Starbucks Has a Turnaround Plan That Includes Buying 200,000 Sharpies. Here's Why.

Faced with declining sales, Starbucks has a comeback plan that involves several changes to stores and menus. Here's a look at the changes coming to your store.