How To Use Disclosure Agreements For Home Work Business Opportunities
Have you ever given $5000 to a complete stranger? I have…
When I was in college I jumped on the bandwagon of a network marketing company that some of my friends joined. I saw all the leverage potential with the home work business opportunity, and I was as giddy as a school girl at a Hannah Montana concert.
I started to talk with everyone. If animals could speak I would have created a downline that would have made Noah jealous. My friends and family started to sign up because of my pure excitement. It only went so far before I realized that I had to find income in other places. Apparently you had to “market” in a network marketing company, but I didn’t get the memo.
I signed up a friend who had experience with internet marketing. He set up and marketed a web site that quickly got on the first page for several targeted keywords.
About a week later he told me that he signed up a man from the Philippines. What made this even more thrilling was that the company was about to open in that country. Now I started dreaming about me in rap videos with girls draped around me. Take that Flavor Flav!
This modern day Filipino miracle had loads of experience in network marketing with other companies and had huge connections ready to sign up. These key players owned franchised health stores in the Philippines where they could distribute the product. The only question I had left was, “Does my Mercedes-Benz SLR McLaren come with a flux capacitor?”
I had visions of swimming in a pool of money by that winter. I started communicating with our friend in the Philippines and he soon began asking for help, financial help. I figured what could that hurt? He seemed motivated and nice. He promised me millions, and we had a good conversation about the NBA finals over Skype. That is good enough, right?
You Can’t Always Get What You Want
What hurt us the most initially was that he couldn’t sign up anyone in that country because the MLM company was slower than molasses at getting an Philippines operating license. While we waited, he needed money for marketing supplies. Next, money for products, then funds for other people to sign up, and finally money for an office and office supplies. As the delay continued for the company to open in the Philippines, I went deeper and deeper into debt and despair. Bye bye flux capacitor.
Surprisingly, to the dismay of my 23 year old, genius intellect, he got frustrated and stopped responding to my emails. His wife gave me one last email, in broken English, telling me he had a nervous breakdown and couldn’t talk with me.
So there I was: young, in college, mounds of debt, a dying business model, an office in the Phillippines that I will never see, and still no flux capacitor.
Life Lessons
This was a perfect learning experience, but what did I need to figure out?
1. Never trust a man that tells me he will make me a million dollars in a night because we talk about the NBA Finals.
2. Never put all your eggs in one basket no matter how beautiful the basket may look. Diversify, diversify, diversify.
3. Before making any financial decision with business, take all legal action that you can in order to protect yourself in case anything goes wrong.
There are a few things in the business world you can count on: death, taxes, and scammers.
Although I was the upline in this situation, when you purchase a franchise or business opportunity make sure that you protect yourself and find legitimate home business opportunities. No matter how great the situation seems, someone could be your best friend one day and your enemy the next.
Disclosure
Before I proceed any further, I suggest you get a retainer for a lawyer if you can afford it. Even if you do find a solid lawyer that you would trust to walk your mother across the street, still make sure that you are aware by means of a disclosure agreement.
This form simply protects any potential buyer by making sure they are informed of any unpaid tax liabilities, penalties, or bankruptcies known to the seller. This document requires all qualified entities, shareholders, or beneficiaries entering into it that they must disclose all facts.
The disclosure form isn’t voluntary because of FTC regulation in 1979. Numerous states have their own disclosure laws for business opportunities and franchises. So make sure that any company you are buying is very transparent and willing to fill this out or else I would look at another business. If they suggest they are exempt, then demand a letter showing that they are exempt or contact information of the FTC office or local state agency that issued the exemption.
It is very rare that companies are exempt from disclosure agreements. One of the few ways a company can be exempt is if they are requiring less than $500 in the first six months of the transaction.
This is a great way to protect yourself and your interests when so many people feel deceived by business owners. It will also be a good initial test on the seller to make sure that you are thoroughly informed and if they can be trusted.
Harvey Firestone, founder of Firestone Tire & Rubber Co., said, “I believe fundamental honesty is the keystone of business.”
If sellers are thinking in the best interest of their investors, distributors, franchisors, etc. then they will always be open and honest with them. If they are not forward initially, then there is a good chance that habit will not change.
Be willing to call their bluff and always leverage with other business opportunities that are forward and honest.
Every prospective buyer of a business opportunity must receive the FTC disclosure statement at least 10 business days before signing a binding contract and also 10 days prior to any money transactions.
If they try to pressure you into signing then that is another sign that it isn’t worth it and they have something to hide. Often meeting face-to-face can solve this issue because many scam artists want to hide behind smoke and mirrors.
Make sure to bring your own legal representative to discuss a proposed sale or purchase of the business opportunity. They will know your rights and will protect you. Your legal representation will make sure the seller provides you with the disclosure at that time. If they proceed to hard sell you then they are required again by law to provide disclosure documentation on the spot.
Here are some other things to be aware of:
- Family Tree Companies have a way of being owned by parent companies that you might not be aware of, and could cause harm to your business and potential branding.
- No One Told Me That! Remember that stupid movie Santa Clause, with Tim Allen, where he signs the contract, but doesn’t realize a hidden clause that he has to become Santa. Business has a way of working the same way, but without the milk and cookies. You should know obligations to third party companies you have, to the seller, conditional clauses that are hard to fulfill, training and education you are obligated to have, rights with goods and services, etc
- Do I Get All The Bells And Whistles? That same network marketing company that I signed up with before had a clause that didn’t allow us to use the brand on the internet with any personal sites. I have no clue why that would hurt their marketing, but they felt it would diminish the traffic to their company site. We were given a letter to either terminate the site or terminate our distributorships. Know exactly all the trademarks, logos, media marketing, and exclusive benefits you may have. You need all the ammunition you can get.
- Follow The Rabbit Hole Hire a CPA or get someone that you trust with your bookkeeping and check the numbers. Find out exactly how money is being made and where it is going. You don’t want to get caught in a Ponzi scheme or something else that could cause bankruptcy, embarrassment, and potentially legal problems
This is as much your blog as it is mine and now the blog is yours.
Let me ask you what is your single most important question about home work business opportunities?
What brought you to Write To Right?
What would you want to see more of on this site about home work business opportunities that would excite you, but you can’t find?
This is your chance to make this site better one comment at a time. Feel comfortable to express your inner feelings and don’t hold anything back!
If you liked this article, then learn how to take it to the next level by matching physical health with business success at Know My Body. If you would like to get an internet business started from home today for cheap then join the The Keyword Academy.
Filed Under Home Based Business Opportunities, Small Business Opportunities, Starting A Business | 2 Comments
Can You Find Legitimate Success With Home Business Opportunities
With this economy, Is success possible with a home business?
We live in a frantic society these days. In Georgia it takes a couple hours just to find a gas station that actually has gas. We also see huge companies like Lehman Brothers going bankrupt in a matter of days after not being able to sell their company to competitors.
Things seem to be getting worse as unemployment increases and the value of the dollar goes down. The Dow Jones is falling faster than Star Jones’ weight. So what hope does an average person like you and I have in not only finding legitimate home business opportunities, but something that can actually be successful?
What We Should Focus On
John Jantsch at DuctTapeMarketing.com has some advice that I think is worth mentioning. He states, “How small business makes money, who they serve, when and where they work has little to do with the Dow Jones Index - a fatally flawed gauge of just 30 companies. Forget the Dow and focus on these numbers instead - lead generated, leads converted, average $ per transaction, average number of transactions per customer - and the turnaround will get underway.”
He goes on to mention that the ADP National Employment Report and the ADP Small Business Report shows that over the last six months, large businesses have hacked away more than 170,000 jobs, while small businesses saw over 200,000 jobs created. In September alone, small businesses added 28,000 jobs.
So how can this be the case? Don’t large businesses control the economy and the direction that we go? Well yes and no
When the economy does well huge companies will impact political decisions with lobbyists, have the capabilities to buy up smaller competing companies, and influence the direction of the industry with solid marketing.
National Geographic
The problem for large companies is that there are always niches that they can’t and won’t reach. This is where small businesses come in to find these niches. They deliver in a way that larger companies can rarely deliver. It is similar to a symbiotic relationship that exists between different animals. For instance, the Remora fish has a fin that actually acts as an organ for suction. The fin attaches to the sides of larger fishes and turtles. First, it helps as a method of transportation, and it gives the Remora an opportunity to eat remnants of food from bigger fishes and turtles.
Your small business can act just like a Remora fish, creating a business symbiotic relationship. Larger companies in your industry will probably get more media attention with more financial success. This means that they are out in the opening to be duplicated and followed.
Next, you can see where they fail and how you can succeed. You can often find this online at discussion forums, public complaint websites, and organizations like the Better Business Bureau. Like the Remora, you can find the food (market) they miss and go after it. This can be your unique selling point for your business opportunity from home, that can lead to a consistent income. You might find a way to create similar products at a cheaper price or offer faster, friendlier customer service.
Overweight Businesses
Companies have undercut their larger competition time and time again by offering cheaper prices to a different market that couldn’t purchase the product before. Milton Hershey did this with chocolate, Henry Ford did this with the Model T, and Bill Gates did this with the PC.
With more money, companies have a tendency to get fat and greedy. They will buy more real estate, invest in more opportunities, and hire more employees. They become bigger targets for lawsuits, financial blunders, and other legal damages. They constantly have to cleanse their systems like nature burning away old, weak trees in a forest.
With enough market size, your business will be successful. You just have to find out what their customers and prospects lack.
Small companies are the subtle foundation of the United States economy. They provide job opportunities, they are the laboratory for big ideas, and the school for many of our future leaders.
The true risk of your financial future is if you don’t take your destiny into your own hands.
This is as much your blog as it is mine and now the blog is yours.
Let me ask you what is your single most important question about business opportunities from home?
What brought you to Write To Right?
What would you want to see more of on this site about business opportunities from home that would excite you, but you can’t find?
This is your chance to make this site better one comment at a time. Feel comfortable to express your inner feelings and don’t hold anything back!
If you liked this article, then learn how to take it to the next level by matching physical health with business success at Know My Body. If you would like to get an internet business started from home today for cheap then join the The Keyword Academy.
Filed Under Home Based Business Opportunities, Starting A Business | 15 Comments
Finding A Unique Selling Point For Your Business Opportunities From Home
I watch that whenever I am having a bad day and remind myself: it can always get worse with your business.
I am not the only one that watched that clip often. It was shown 633 times by cable and network media. It got so bad that channels like CNN started to feel bad about it, and offered public apologies after the fact for over airing the “Dean Scream” as it became known.
Dean gave this speech with the intention of rallying his troops after coming in third at the Iowa caucus. He was gaining a lot of momentum after his anti-Iraq speeches in 2003; many started endorsing him. Unfortunately a late surge by John Kerry and John Edwards caused a depressing third place finish in the 2004 Iowa caucus. The finish was followed up by this speech, and the rest was history for Dean and his campaign.
Have You Ever BYAAAHH Before?
How many of you have felt a little sheepish after something went wrong with your business opportunities from home? You might very well have found some of the best home based business opportunities only to find out you were scammed.
I have felt this often. I have put together a solid plan, and I have prepared for what I thought would and could happen, but some how…some way…fate decides to drop kick me in the face.
Realize this maxim now: expect the unexpected with your business opportunity.
Dean had no intention of causing this type of stir. In fact the microphone was set up to drown out the audience, so it made it sound worse on television than how it was heard in person. His was doing a good job of building the spirits of his supporters, but there was no “Dean Scream” audible in his Road To The White House Play Book.
Be All You Can Be
The U.S. Military has to be one of the most prepared organizations out there. They receive an order from the Commander-in-Chief, who sends it to the Join Chiefs of Staff. They devise a plan based on his recommendation and direct the Generals. It gradually goes down the chain until it reaches the foot soldiers, pilots, and/or sailors.
Now the problem is the plan will hardly ever go as it was drawn up. This is because you have to deal with so many elements in the equation. You have to deal with weather, climates, opposition forces, and often civilians. There can be so many other variables to deal with that it can become very overwhelming.
To prepare for this military enigma, the Army came up with a term in the 1980’s called Commander Intent or (CI). This helps to solidify the main objective no matter what chaos occurs.
Two questions are asked:
1. If we do nothing else during tomorrow’s mission, we must: (fill in objective here)
2. The single, most important thing that we must do tomorrow is: (fill in objective here)
Business Intent
For you and your business plan, the same rules apply. Instead of a Commander Intent, you have to create your own Business Intent.
You never know what your business partners, upline, or franchisors are going to do. You never have any clue how a customer may react to an unfortunate event, like suing you for a million dollars because of injury sustained from your product. Avoid paranoia, but prepare thoroughly.
If you want to see real chaos then look at our economic crisis of the $700 billion bailout. I remember hearing companies and media hosts saying we were inching out of our financial recession. Maybe not…
Again, expect the unexpected. Your industry is not static, so prepare yourself financially, legally, and with every other aspect for your business.
You Are Now FREE To Move About The Country
One way to start doing this is by creating consistency in an inconsistent market. One of the finest companies to ever fly the friendly skies is Southwest. They have continued to do well through financial storms, such as 9/11, when many other companies have gone bankrupt. My parents have worked decades for one of their competitors. For my parents, it has caused moves, personal layoffs, stress of a fast pace industry, and frustration with co-workers and upper management.
I remember one day my dad walking up to the house while I was riding my bike on the driveway, and he told my older brother that he was laid off from work. I didn’t comprehend what that meant at the time as a child, but I will never forget the frustration in my dad’s face as he walked into the house. Even as a little boy I could tell that meant a lot of trials were ahead for our little family.
So how does a company like Southwest excel (not to say they haven’t had setbacks) and a company like my father worked for goes up and down like a yo-yo?
This quote from Southwest CEO Herb Kelleher might give some insight:
“I can teach you the secret to running this airline in thirty seconds. This is it: We are THE low-fare airline. Once you understand that fact, you can make any decision about this company’s future as well as I can.”
“Here’s an example. Tracy from marketing comes into your office. She says her surveys indicate that the passengers might enjoy a light entree on the Houston to Las Vegas flight. All we offer is peanuts, and she thinks a nice chicken Caesar salad would be popular. What do you say?”
“You say, ‘Tracy, will adding that chicken Caesar salad make us THE low-fare airline from Houston to Las Vegas? Because if it doesn’t help us become the unchallenged low-fare airline, we’re not serving any damn chicken salad.’ “
Kelleher’s intent is clear. He knows exactly what his company stands for, and people buying his product know that too. It isn’t just through advertising and smart marketing, but they LIVE it in everything that they do. Even their slogan (with numerous meanings) skips low-fare and goes straight to FREE!
What They See, Should Be What They Get
Customers face so many inconsistencies from business owners. What can you be consistent about that you think your competitor is not consistent about? This is the beginning of putting together a unique selling point that will resonate with your customer, and it will always stick in their mind.
To catch everyone up, a unique selling point (or proposition) is: any portion of or characteristic of a product that differentiates it from the competition.
This concept was invented in the 1940’s by advertiser Rosser Reeves as an attempt to sneak customers from competition. The purpose was to point out at least one distinguishing aspect that makes your company, brand, and/or product better than company x,y,z.
Now this doesn’t mean you have to tear another company apart (like bloggers love to do), but if you keep telling prospects that you are the best customer service company in the industry; what do you think people are eventually going to believe?
Prospects want to be given a simple, reassuring promise that is kept. That is why so many people go and get jobs because it is safe. They trust the company brand for some reason whether that is the product, co-workers, management, etc. They also know that they are going to get that paycheck every other Friday.
Give your prospect something simple that they need. Tell them you will fulfill it, and then show them that you will fulfill it. Business is only as hard as you want to make it.
Two questions you should ask for your own (BI) Business Intent:
1. If we do nothing else during tomorrow’s work day, we must: (fill in objective here)
2. The single, most important thing that we must do tomorrow is: (fill in objective here)
Business empires are built on daily victories. Zig Ziglar once said, “People often say that motivation doesn’t last. Well, neither does bathing — that’s why we recommend it daily.”
Find out what your customer wants for his product or service, and then face each day as a battle for your customer to get them what they want. This might mean you need to gain knowledge to overcome your own weaknesses. This might mean you have to sacrifice your own dreams for those of others. Whatever you have to do; don’t give up, don’t ever give up.
“The wise man does not lay up treasure. The more he gives to others, the more he has for his own.”
-Lao-Tse
This is as much your blog as it is mine and now the blog is yours.
Let me ask you what is your single most important question about business opportunities from home?
What brought you to Write To Right?
What would you want to see more of on this site about business opportunities from home that would excite you, but you can’t find?
This is your chance to make this site better one comment at a time. Feel comfortable to express your inner feelings and don’t hold anything back!
If you liked this article, then learn how to take it to the next level by matching physical health with business success at Know My Body. If you would like to get an internet business started from home today for cheap then join the The Keyword Academy.
Filed Under Home Based Business Opportunities, Starting A Business | 3 Comments
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