What Should I Consider When Starting a Home Based Business? What Should My Due Diligence Be?

We all have heard, "if it is too good to be true, it probably is", but the thing is, maybe it sounds good to you and it is not as good as it sounds, but it may be worth your time to get involved with the company.How much are the start-up costs? Let me start out and say that I am not bashing any one company. As you look at what each company requires for you to sign up, you will find most have minimal start-up costs. However, if you came to me and said you wanted to own a McDonald's franchise, and I told you it was $25, you would get excited. However, in order for you to start, you need the building, start-up products, employees, insurance and money for taxes, even before you can open your doors. But then, you have to keep in mind, what will your cost to run your business be monthly? Most home business owners never consider it. You need to ask someone who is in the business now, how much they spend to keep their business running every month, what is required and what is optional. Believe me, even though they say optional, they are probably required in some degree to build your business.What training and support is available?Do they have a training plan? What training is available to you from the company? Is it on product or training to build a business? I will tell you that it is probably just motivational and on the products. Most companies have cheer sessions. You need to know, are there people who will train you that are not in the company? This is why the majority of the companies are weak. They tell you to make the stupid lists. This does not work anymore. Can you invest in building yourself? There is a cost. I would work with someone who has went down the trail of tears and succeeded in building a business, because they know what you are dealing with or will deal with.What are the rules for advertising and promotions?Do not get hung up on this when they tell you that you cannot use company product or company name in your advertising. When you bought your home or car, did you buy it because of the manufacturer or did you buy it because of the person you worked with made you comfortable? I would bet you bought it based upon the person over anything else. This is why I teach you to position yourself as a leader and advertise you. Why should I buy product from you? This is what we need people to see in us as we build businesses. You must add value to your customers!What is the realistic income potential from the opportunity?Here is where as a marketer, keep your feet grounded and be up front with people on income potential. If you make 5% on products and your average sale is $100, how much can you make? Well do not tell people it is millions, because first of all you cannot predict what others will do that you help. Second, it comes down to the sales; you must have a lot of sales to make $1000 in the above scenario. How I approach it, I tell people you want to find customers. Then if you can show that customer what they need to do to make enough money to pay for their products and also cover the investment to convert them to a representative. Then, if they can teach their customers to do the same thing, then they can start to build an income which pays them more than what they spend, most would be happy.How long has the company been in business? Every day, new companies are popping up. Some are using new ideas; others are tapping into proven markets. I like new ideas for products, but a company with a track record on existing product line is a good view. Be careful when calling the Better Business Bureau. One bad apple can spoil the bunch and it may not be a bad company. It could be someone upset at someone who did not get all the answers and felt mislead before starting.What Products and Services are involved?Now, this is where yes you can read about and hear about a product, but you will really never know why the product or service is good or the benefits if you have never used it. This is why I love to talk to my current customers about getting them into the business. They already love the product or service to use it, so this makes them more of an expert. I hope that is where you are starting to look, based on the love of the products.Are there Quota's or Minimum Inventory requirements?You should not need to keep an inventory. The company needs to deliver to you; they can deliver direct to your customers. And if you are starting your business, you should create your quota based on income you want to create. This should be higher than any company quota requirement.Are the products and services affordable?Now, I am not saying cheap, but in this economy, what is the value the customer gets? If no one can afford the product and they can use cheaper products for same results they will. Now, you have to prove value, if you use less and you do not need to do something else which raises the cost of your competitions product to be equal and then your cost is cheaper, and then you need to tell that story!