If the potential risks have held you back from starting a home-based business, consider investing in a business opportunity or franchise. These ventures have the advantages of being part of established companies that have proven operating systems and customers already familiar with the names and the benefits of their products and services. On the down side, franchises and business opportunities are usually more expensive to obtain and operate.

A franchise is a company whose owner, the franchisor, charges the franchisees the right to sell his products or services under his trademark and/or name and through his established business system. All franchises are business opportunities but not all opportunities are franchises. Business opportunities, however, can also include dealerships and distributorships, network marketing, licensing of names and trademarks, and other company-supported ventures.

Self Analysis
Consider the following to find a business opportunity or franchise that is compatible with your personal preferences, experience, interests, and skills:

~ Your Personality: Business opportunities and franchises want purchasers to be enthusiastic participants and require them to follow the parent companies’ procedures, manuals, and training. If you are a free thinker, are not comfortable asking for help, and resent constraints, then an independent venture may suit you better.

~  Your Interests: You can choose from thousands of business opportunities and franchises that interest you. Your success is more likely if you have some background, or education related to the venture. To see if you will like the work involved or need more experience or training, you can get a job in the business opportunity’s industry and/or take some business courses. If you attend a business opportunity expo, go with a list of questions to compare similar companies’ packages.

~  Your People Skills: You should like and work well with people so you can handle customers, employees, and suppliers. If you are contemplating a partnership, have a separate written agreement defining what duties each will do and how the operations will be impacted if one partner should leave.

~  Your Experts: Ask other entrepreneurs and industry associations for referrals for reputable professionals such as accountants, lawyers, bankers, and if needed, business opportunity or franchise consultants who can assist you in your quest for the ideal business opportunity.