Free Start Your Own Business by Inc The Staff of Entrepreneur Media Page A

someone the seller recommends will assist in securing locations for display racks, vending devices, outlets or accounts;
    2. The seller will return the money and repurchase what is sold to or made by the investor if the investor is dissatisfied with the investment;
    3. The seller will buy any or all of the products assembled or produced by the buyer;
    4. The seller guarantees (or, in some states, implies) that the buyer will be able to generate revenues in excess of the amount of the investment paid to the seller; or
    5. The seller will provide a marketing plan or a sales plan for the buyer.
    If a seller meets the definition of a business opportunity in states that regulate them, it generally means he or she must register the offering with the state authorities and deliver a disclosure document to prospective buyers at least ten business days before the sale is made. (For more information on states’ regulations, check with consumer protection agencies—often a part of the attorney general’s office—in your state.)

Checking It Out
     
    Researching a business is a more challenging task than investigating a franchise. And if the business opportunity you are considering does not provide buyers with a disclosure document, you get a lot less information, so you have to do a lot more legwork on your own.
    Whenever possible, follow the same steps you would for investigating a franchise. Check out Entrepreneur magazine’s BizOpp Zone ( entrepreneur.com/bizopp ). Contact the Better Business Bureau to see if there have been complaints against the company, and if the company is registered with D&B, a financial report will give you details on its financial standing and other information.
    Also check with the regulatory agency—either the Commission of Securities or the Commission of Financial Institutions—in the state where the business opportunity has its headquarters. This will tell you if the company is complying with all state regulations. If you discover the company or its principals have been involved in lawsuits or bankruptcies, try to find out more details. Did the suits involve fraud or violations of regulatory laws? A copy of the petition or judgment, which you can get from the court that handled the case, will give you the answers to these questions.
     
    WARNING
     
    Watch out for promises from third-party location hunters. The sales rep may say, “We’ll place those pistachio dispensers in prime locations in your town,” but more likely, you’ll find out that all the best locations are taken, and the next thing you know, your garage is filled with pistachio dispensers. The solution: Get in your car, and check for available locations.
    Finally, see if the business opportunity seller will provide you with a list of people who have purchased the opportunity in the past. Don’t let the seller give you a few handpicked names; ask for a full list of buyers in your state. Try to track them down, and talk to as many as you can. Were they satisfied with the opportunity? Would they recommend it to friends?
    The path to buying a business opportunity is not as clearly defined as the road leading to franchise ownership. The good news, however, is that you have more freedom to make your business opportunity work. More so than with a franchise, the success or failure of your business opportunity depends on you, your commitment to the venture and the level of effort you put into it. Put that same effort into finding the right business opportunity program, and your chances of success increase exponentially.

part 2
     
    PLAN
     

chapter 6
     
    CHOOSE YOUR TARGET
     
    Defining Your Market
     
     
     
     
     
    Y ou’ve come up with a great idea for a business ... but you’re not ready to roll yet. Before you go any further, the next step is figuring out who your market is.
    There are two basic markets you can sell to: consumer and business. These divisions are fairly obvious. For example, if you are selling women’s clothing