Are you looking to buy a business? If so, you’ve probably come across some outrageous claims online. Claims like “make money without lifting a finger,” “no investment required,” and “make money while you sleep” are common. While it is true that some businesses can practically run themselves, this is only possible after a significant amount of time and effort has been invested in developing a solid foundation for the company. Do not be duped by snake oil salesmen who claim you can have a successful business without wasting time, effort, or money. The good news is that while numerous scams and get-rich-quick schemes are available, there are also countless legitimate businesses for sale. The benefit of having so many companies and individuals with businesses for sale is that you have many options and choices.
On the other hand, there appears to be an impossible amount of research to make the right decision. I can’t tell you exactly which company is best for you because everyone is different, and what works for me may not work for you. I can, however, provide you with some valuable tips on what to look for when looking for a business for sale.
Another advantage of having so many different businesses for sale is that you no longer have to write a business plan, rent a building, find something to sell, and hope to gain a client base before you run out of money. While a brick-and-mortar business is still viable, it is not the only option for someone looking to work for themselves. Of course, I’m referring to multilevel marketing and network marketing. These business plans have made business ownership available to the general public and enabled a person with no business knowledge or experience to take control of their own business and shape their future.
So, the number one issue I encounter when speaking with prospective clients about a business for sale is that many people have been burned by other “opportunities,” leaving them with a bitter taste about trying something new. So, how can you tell the difference between a scam and the real thing? I have established some common sense procedures for analyzing a new prospective company.
1. Determine whether you have what it takes to run your business. While everyone fantasizes about telling their boss to take a hike, the reality is that running your own business requires a significant amount of time management skill, as well as a strong desire to succeed and a work ethic to back it up.
2. Money, even if you promote affiliate links, you will most likely purchase some training material to figure out what you are doing unless you are a marketing prodigy. I think a good target number to look for when looking for a business for sale is $500 or less to get started.
3. Product, how will a company sell a product that no one wants to buy? I know this sounds obvious and shouldn’t be mentioned, but it amazes me how many companies ask you to sell something nearly impossible to move. A good company to invest in is one that either has a monopoly on a market or is more advanced than the competition. Again, this may appear to be the first thing that comes to mind, but it is easy to get caught up in the sales hype of a well-crafted landing page.
4. Compensation strategy, how does the company compensate its affiliates or representatives? There are many different types of compensation plans, and many other people are more qualified to discuss them so I won’t go into detail.
5. Teamwork, what kind of teamwork exists in the company? A good business for sale will emphasize the importance of collaboration to its representatives. Simply put, a network marketing company will either live or die based on how well it fosters a support system within its team. This means they should be able to train you efficiently, preferably through a website with training calls and videos for you, rather than sitting on the phone for hours listening to training.
6. Public Opinion, how well does the company manage its public relations? What is the first thing people do when they learn about something new that piques their interest? Most people nowadays Google it, which is why if you’re trying to sell something to someone and they Google it to find reviews if all they see is negative, it will be tough to sell, regardless of whether the product is fantastic. With information so easily accessible on the internet, a company must invest significant time and effort to maintain its image, or else it may as well pack its belongings and close its doors. I check this in two ways: first, I Google it, and second, I look up the company at bbb.com. The Better Business Bureau is an excellent source of information on businesses for sale.
7. How does the company function? Many network marketing companies focus on internet sales today; they heavily rely on social networking, whereas others focus more on person-to-person sales. You must decide which one you are more comfortable with and that the company you are considering uses it. If computer illiterate and dislike technology, person-to-person communication may be the best option. I would strongly advise anyone interested in network marketing to work with a company entirely web integrated; believe it or not, many companies still prohibit or make it very difficult to market online. This is critical because it can be challenging to be successful if you join a company and get trained in it, only to discover that they only allow you to market in specific ways.
These guidelines help you separate the good from the bad, but in the end, it all comes down to you. Do you have the ability to take charge, schedule, plan, execute that plan, call leads, and, most importantly, close a sale? This is an essential part of the process because your success is determined by you and the company you represent.
Kyle has been in network marketing for two and a half years and has trained many successful entrepreneurs, including stay-at-home moms, those looking to get out of the rat race, and those simply looking to diversify. He looks forward to assisting many more people in reaching their financial goals.
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