Entrepreneurial Articles
Home Business Opportunities - Scams to Avoid
Many Business Opportunities and franchises are now are home based. The advantages are great. You can wake up at 7.30 in the morning and start work five minutes later. Many of these opportunities only require a computer, high speed internet connection and a phone.
You can work around your family life and forget completely about office politics. You become the boss and answer to only yourself. So how does one evaluate a home business opportunity or franchise? In this article I will examine the types of businesses that one should be highly sceptical off or even avoid altogether.
Avoid any multi level marketing scheme where you cannot see a market for the end product or the retail price of the product is far too high. One such scheme I researched recently involved selling vitamins at much higher prices than the high street prices. They justified their costs due to the fact that they had a superior product. Now in my experience if you as an agent are trying to sell a very expensive product why should normal people trust your product to be superior to a major high street store?
Be highly skeptical of gambling schemes that persuade customers that their chances of winning are higher through them then buying normal lottery tickets from the supermarkets. Most are crafty schemes designed to take money of normal people without any payout or much lower percentage of payouts then normal lottery tickets.
Definitely avoid any products that have not yet been independently tried, tested and approved. One such product that I heard about recently claimed that it could save users a lot of money on their fuel costs. The idea is that you use their product in your vehicle on a regular basis and you can achieve savings of over twenty five percent! I do not know if this product works or not. My main concern is that if it worked as well as it is claimed to do, why have the major car producers not yet latched on to it? Why have the large motoring organizations not yet recommended it to their members?
Avoid any scams that involve fortune telling, psychic ability or magic. Many of these are cleverly designed to take money of people who are easily fooled. Have you have heard of the saying “there is one born every minute?”
Definitely do not get involved in any pyramid schemes. Usually the only people who tend to make money in these types businesses are the ones who are at the top of the pyramid. Most people end up losing money in these and they have been made illegal in many countries around the world.
Be very wary of any businesses that claim that you can make a fortune working only a few hours a week. If they were as good as they claimed to be why are they selling the secret to you for such a small sum of money?
Finally never pay upfront for any home working business opportunity where they refuse to reveal full details until you have paid them a large sum of money.
Some home based franchises are extremely good. The great thing about buying a franchise is that in most cases you can speak to other franchisees and find out how well they are faring. They will be happy to tell you all about the franchiser, the products and the difficulties that they encountered.
Always speak to an accountant and lawyer before signing any franchise agreements and paying over any sums of money. A home based business does have its rewards and if you find the right opportunity it could be the start of a new life.
Naz Daud is the founder of CityLocal. This Business Franchise Opportunity is for people who would like to work from home and be their own boss.
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