Wednesday, May 09, 2007

Top 5 Things to Look For In a Home Business

Hi everyone,

Often people ask me about home businesses. Usually these people are just wanting confirmation on a decision they've already made, however some are really looking for a good home business. If you are looking for a home business, here are the top things to look for.

#5 - Low initial start-up investment - Most home businesses do have a start up fee - in fact for it to be a business there is going to be some investment (otherwise it is likely a job). These start up fees do not have to be high. You can find many good home businesses that require less than $500. Even better look for a business where you can get started for between $100 - $300.

#4 - No inventory - Watch out for home businesses that require you to purchase inventories. In these businesses you're often a distributor and you will need to sell those inventories to friends, neighbors and others. Certainly some home business companies have become successful by running these sorts of business, however many people are left hurt along the way. Many distributors buy big inventories and are never able to sell them. With technology today there is no need for anyone to stock inventory.

#3 - Strong Management - Unfortunately many home businesses start each year under inexperienced management. Often these are people who were top distributors with one company, and decided to start their own company and recruit distributors themselves. Generally these people are successful at marketing, networking and sales, however few of them have any success in management. Look for a company to work with that is run by people with Fortune 500 management experience. These people know what it takes to grow a business, to manage a workforce, facilitate product manufacturing etc. If you are looking for a business that will last, find a company run by these sorts of people.

#2 - No Risk - Look for a business without risk. You should find a business where everything you spend to get started with the company comes with a solid money-back guarantee. Look for 60-90 days to try out the products and the company and be sure you can get your money back after that time.

#1 - At Least 10 Years Old - Very few home business companies last five years, and out of those companies many more do not make it to ten years old. There is nothing magical about the ten year mark, however most companies that make it ten years will continue to survive for sometime. Anytime you hear about a "Ground Floor Opportunity" you should run. This is a sure danger sign. Many companies today are trying to get around this by partnering (or purchasing) a shell company that has been around for a number of years. That way, instead of admitting that they are a new company, they will claim that they are a 10 year old company. In reality, only the shell company has existed for 10 years, and they are very new at running as a home business opportunity. These companies have just as much risk as any new company. Look for a company that has been involved in the home business industry for a full ten years or more.

Hopefully these tips help. Feel free to share other tips that you have found useful.

Danny Gamache

No comments: