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BUYER'S GUIDE

How To Research A Business Opportunity For Sale

Just what does it mean when there is a business opportunity for sale? This is not the same thing as buying an independent business and owning it outright. Buying a business opportunity can mean you are buying a franchise, dealership, network marking, or other rights or license to sell someone else’s product. But a business opportunity can also mean something like a networking marketing opportunity where you are not a franchise owner.



Many fast-food restaurants are franchised and the owners of the franchise give the franchisee the right to sell products or food items under their trademark. There are also home-based business opportunities for sale. You will find thousands of home-based business opportunities by doing a search on the internet. The one thing you will find quite common in business opportunities for sale is they all want a fee up-front for licensing, product inventories, and for their services. Services offered by those selling business opportunities can be marketing, inventory buyback, and other administrative services to help ease your operation.

Here is the bottom line: Anyone asking for an up-front fee before you can sell their products needs to be researched. Failure to do the proper research will in most cases result in you losing significant amounts of money after you pay an unscrupulous firm a fee.

There is a very popular classifieds site known as Craig’s List (www.craigslist.org) that warns those posting advertisements and those buying to always buy and sell locally so as to avoid scams. This rule is not always the case when researching a business opportunity for sale. Actually, people can scam you locally as well. It is just a little harder.

For example, let’s take a drop shipping business opportunity. It sounds great. You can sell quality or designer merchandise without having to stock the products (which means you do not have to buy inventory). You post a listing on eBay and customers start buying your products. All you do is place an order with the drop-shipping supplier and they ship the goods to the customer. You get your commission for selling the product, which would be what you have left over after paying for the merchandise you bought from the drop-shipping supplier.

Drop shipping sounds great, right? It sounds like very little work other than posting a listing on eBay and collecting payment. But this is a highly saturated market that is notorious for running numerous scams. The main scam is when your customers never receive their goods promised by the supplier. You already have been paid but now the customer has reported you to eBay for non-delivery not to mention the chargeback on your Paypal account.

This cannot be stressed enough: Know who you are dealing with when researching a business opportunity for sale. Visit and talk with other owners who run the same or similar business opportunities for sale. Look up the business and check their reputation with the Better Business Bureau and the Federal Trade Commission. Researching a business opportunity and doing your due diligence before buying or starting your own business is critical to your success as a new business owner.


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