Which Home Based Business Do I Go For? Part 1
Many people will look to either an online or offline way of supplementing their current income.
There are many scams out there on the internet, so how can you tell a genuine opportunity if you come across one? A few things to remember, always due your due diligence.
Check out the company thoroughly as far as you can online and offline, on message boards and forums.
Get a more rounded impression of the company.
Do they offer a presentation that you could watch, if so make notes while you are going through the presentation.
Compensation Plan What are your ROI (returns on investment).
How good is the compensation plan.
There are many types of compensation plans, roll-ups, bonuses, matrices, commissions are just a few.
There is no one compensation plan better than the other, it depends on what it is you want to get out of the business.
With some opportunities the compensation plans mean high numbers of potential customers or clients, which in turn can be costly to get them in the first instance.
More about this in part 2.
A question to ask yourself is, how quickly can I make back my start up costs through the compensation plan shown.
if the business has cost you $2,500 and the compensation plan is either a % of the sales of the products, or a commission to bringing in other members of your team.
You will need to consider these things to see if you can make your ROI back quickly.
Many Home Businesses have a dual earning capacity.
You can retail the products and you can 'recruit' other people who also want to start their own home business.
This can be called MLM or Network Marketing.
Is there a chance to earn 'residual income'.
In other words is there leverage in the business you are looking at.
Leverage is a way of utilizing other peoples time and effort to expand your own business.
In other words there are only 24 hours in a day and 8 of them we spend sleeping, however, if you 'recruit' 1 or 2 others with you in your home business it means that you now have potentially 32 to 48 hours in that one day.
MicrosoftInternetExplorer4 Cost of Owning Your Business
- Look at the how much it will cost you to become either 'an affiliate, or Franchisee, or Distributor'.
There is the initial sign up costs which need to be bourne in mind.
How much money have you got to invest into your own home business? make yourself a budget and look for an opportunity which is within that budget.
- Bear in mind ongoing costs, all businesses have ongoing costs, but make sure that these are listed up front, so there are no surprises for you after you have 'signed up'.
- There may be a time lag, from when you purchase your business to the income coming in.
Be prepared to have a learning period where no income will be coming in straight away, unless you have people who you know will be interested in your products right away.