This article are provided for information purposes only, and are not intended as legal advice.


Business opportunities

May 15th, 2009

You are looking to buy a new business or start a new business, you are shown many different opportunities, how do you now when you found a good business opportunity?  If you met a sales person, they will always tell you that they have something to sell.  What is an good opportunity?  A good business opportunity may be good for your and not for someone else.

 

First you need to determine what are you looking for.  Does this business opportunity meet your criteria.  If no, then no matter how good it may look, it is not the right opportunity for you.  To be a good business opportunity, it has to be within your means, in other words, if you cannot afford this then it is the wrong opportunity.  What is your risk tolerance?  Is this a risky business opportunity? Are the projections realistic or does this sound too good to be true?  If it sounds too good to be true, it probably is.

 

Do you have experience in this area. If not, will someone train you?  Are you able to get support or are you on your own to figure out how this new opportunity works?  Is this a good business opportunity for you or is it a good commission for the person selling you the business opportunity.  I have seen cases where consultants and insurance people pray on business people who lack knowledge in a certain area.  The client needed some insurance because they had no insurance coverage on the three owners.  An insurance agent sold each of the three owners and each of their wives $1 million whole life insurance for a total annual cost of $250,000.  The company is cash flow negative by almost an identical amount of money.  If they cancelled the insurance policy, they would be marginally cash flow positive.  Was this the right product to sell and the right amount?  If the company cannot afford what you are selling, it is definitely the wrong product.


Filed under: Business opportunities — Gary Landa @ 2:06 pm


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