How To Research A Biz Opportunity
Evaluating a Potential Opportunity.
In the preceding section, we outlined numerous things you should do to ensure that you’re choosing a venture that will be appropriate for you personally, and will represent a sound investment. It’s important that you cover all your bases before signing a contract with the seller. The following are some strategies you should use to protect yourself.
* Have legal representation. Your attorney should be present when you’re negotiating with the licensor-seller. At the very least, your attorney should go over the contract to purchase the business opportunity and advise you as to whether or not you should sign it in its present condition. He or she should explain what each aspect of the contract means so that you understand what you’re signing.
* Have financial representation. Your accountant should look over the financial statements of the licensor-seller. In addition, he or she should be able to check out the financial strength of the company and determine whether the business is a viable financial investment for you.
* Make your own independent survey of other owners of business opportunities sold by the parent company. Are they happy with the company? Did the company do everything it promised? Is the company good to work with? Does it give its distributors help? Does it send out advertising materials? What do they feel are the strengths of the opportunity? If they had to do it over again, would these licensees buy another unit? Would they advice you to buy a unit?
* Contact competitors. This will verify the status of the company in the industry. A competing company will tell you in a hurry what the company’s weaknesses are. You’ll also get an opportunity to see whether or not the business opportunity compares favorably in terms of pricing and so on.
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