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10 Important Decision Criteria When Evaluating a Home Business

October 2nd, 2009

Lots of people are interested in home businesses to make a little extra cash, to help pay the monthly bills, or to create financial freedom and security. Either way, an internet business can help you.

There are a few good ones, but unfortunately, there are a lot of “scams” – so be sure to do your homework. Be sure to find a good one; don’t waste your time on the losers.

I used the following model to choose my internet marketing business – a similar process should work for you as well.

1. Legal?

Don’t get caught up in any scam; make sure the product and company are legal. If you’re not sure, check with the Better Business Bureau.

2. Desirable Product?

Is there a big enough demand for the product? A lot of home businesses go after small markets that may not be large enough to make you any real money. Will lots of people think this product is valuable and worthwhile for them?

What we want is a large, hungry, market that will buy from us now; and buy additional products later as well.

3. Huge Profits?

Can you make a decent profit? Expenses will eat away at your profit margin – be sure to consider them. Be sure to consider the impact of advertising and start-up expenses on your profits.

4. Competition?

What do other companies charge for similar products. Are you price-competitive?

Similarly, it is very difficult to make a sale if you can’t even get your potential customer’s attention.

5. Decent Commissions?

Can you make a profit without an army of customers? Is that realistic?

Is the proposed commission reasonable? Will you do most of the work, but receive little of the commission?

6. Labor Intensive?

Personally, I’m looking for a business opportunity that doesn’t require very much of my own time and effort. I want to remove myself from the success equation.

The best home businesses I’ve seen have systems and processes that will work for you 7x24x365 – whether you’re spending the day at the beach with your kids, laid up in the hospital, or sailing around the world.

7. Targeted Traffic?

Prospects are the critical success factor – you need lots of qualified prospects to succeed. For “brick-and-mortar” stores, the key has always been “Location-Location-Location,” but for online businesses, the key is targeted traffic.

Will your up line help send you quality traffic?

8. Training?

Adopt a learner mindset and seek out training from your sponsor. Don’t try to muddle along on your own.

So, another key is to make sure that your sponsor provides adequate training.

9. Free Technical Support?

Computers are necessary for today’s businesses. For online businesses, that computer will likely be yours.

For internet marketing businesses, a lot of the technical support will be needed up-front, getting your system set up before you can even start doing the business. Technical support is a critical key to success.

10. Follow-On Customer / Sales Closing Support?

Regardless of the product you end up selling, there will likely be problems, returns, changes, upgrades, etc. involved. You’ll also need adequate back-office support.

Look for businesses that also include customer and sales support. Opportunities that provide sales support score high with me.

Winners act; losers don’t.

So, if you want to join the winners rather than losers, use this checklist, and then. The most critical step of all – Take action.