Know your facts! 10 Questions to Ask Before Starting Your Home-Based Business
Perhaps you are one of the many motivated individuals investigating various home business opportunities. While there is a wide selection of products and services to choose from, careful research is key to your satisfaction and success.
The following is a series of questions that I believe should be answered before entering into any contractual agreement with any business corporation.
Is this a legit company?
Whether we like to believe it or not, there are businesses that are deceptive. Protect yourself. Do your research ahead of time and find out if the company is a member of the Direct Selling Association or the Better Business Bureau. A little homework at the beginning can say a lot about your future.
Is there a demand for the products or services being offered?
Of course you want to offer something that people want to buy. Look for quality and be selective when making your decision. We all know that we can buy almost anything, anywhere. Look for something that is unique and of value. Consumable products are a great option because people will use the product and contact you for additional purchases after the product has been consumed.
Can you get excited about the products?
Don’t try to sell cookware if you hate cooking. Find a product or service that has changed your life and get motivated to announce it to the world. People will know when you’re being genuine and if you can find a product that practically sells itself, that’s even better!
What are the start-up costs?
I would suggest being careful with companies that require more than $500.00 as an initial investment to start their business. This initial start-up fee should always be in exchange for products and training materials. Look for businesses that require a low initial fee and that don’t require you to have a lot of inventory on hand to be successful in sales.
Are there established territories?
Some businesses will place limits on how far you can sell outside of your home location. If you want to be able to travel and sell your product without territorial limitations, you’ll want to make sure the company allows you to do so.
Is there an established residual income plan?
Team building and training can be one of the most rewarding and financially lucrative ways to establish a long-term income. Find out if this home-based business offers a residual income plan and investigate potential financial growth. Realistically, you can expect to invest 3-5 years if you are being intentional in building and training your team. Don’t fall for any “get rich quick” scams.
Will the company buy back any unsold inventory?
This is a very important question to answer if you are researching a business that requires you to have a lot of inventory on hand to be successful. For those who are members of the Direct Selling Association, any resalable inventory will be purchased back from you if you choose not to maintain your membership. Be sure to research the specific terms and conditions.
Are there monthly fees?
Some companies will require you to meet a monthly fee to maintain an active status. Depending on how much time you can invest in the business on a weekly and monthly basis, you may want to ask yourself if this sales goal is reasonable for what you are trying to achieve.
What are the perimeters for the commercialization of your business?
Ask how others market the products and services. Are they limited to house shows and Christmas bazaars? Does the company allow the product to be sold at retail in store windows? Does the company have a policy on marketing online, and if so, does it allow its distributors to take advantage of one of the most effective ways to market today?
How can I opt out if I decide to leave the company?
Find out if there are any hidden costs or penalties for leaving the companies distribution team. A clean and easy opt-out is always preferred.
The answers to these questions are critical and can greatly affect the outcome of your business success when combined with your vision for the future. Take your time to choose the right business for your personality and lifestyle. Patience is a virtue.