Here are some things to check off, before you invest your time and money:

1: EXACTLY WHAT IS THE BUSINESS PRODUCT? This is one of the most important factors you need to realize BEFORE signing up. Pyramid structures are considered illegal. There are quite a few companies that attest to being legitimate, but are in all reality, pyramids in disguise. The litmus for determining this is twofold. First is you need to determine where the company’s focus REALLY is. Do they have a realistic product line which they are strongly promoting or is their thrust mainly on recruitment? If their sales pitch is based highly on how much you can make by sponsoring more people, and they gloss over their products, that should be a very big red flag warning sign.

Secondly, the actual cost to buy into the company is another indicator. If the buy in is several hundred dollars or more, thisprobably means your sponsor is making a handsome commission on your initial investment. This also points towards the pyramid model since that is where the money is really being made. If a company is in the business of selling products, they are NOT looking to make their primary money on recruitment money. This is because they want as many reps as they can get, selling their products. This is basic business sense. There are many business opportunities which one can get involved with, where the initial investment is under $100.

2: WHAT IS THE INDUSTRY? Once you’re comfortable that the prospective business is a legitimate company, your next question is how comfortable are you with that particular industry. If you are looking at a direct sales company, and the thought of face to face selling makes you physically ill, you may want to reconsider your options. There has to be a good fundamental match up between you and what the business plan offers.

3: THE COMPENSATION PLAN. Can you make money with this business? Is the compensation worth your time, effort and investment? Does it offer residual income or one time payments, only? (This is NOT to say one time commission payments are bad, but rather is it what YOU want?)

4: THE ACTUAL TIME AND MONEY INVESTMENT. Every business requires an investment of both time and money. If you are not prepared to commit to both of these, then you shouldn’t be looking at starting your own business. With that said, and understood, the next question is how much? Some businesses require a full time commitment, while others can be managed with only a few hours each day. Take a very objective and analytical look at the time you will need to commit in order to make your new business succeed.

As for the money investment, this is also something you need to look at in a realistic manner. After the initial buy in, what other expenses should you expect? Some of the basic business expenses are: Supplies, advertising, any subscription or monthly membership fees, transportation fees, overhead expenses, etc. Decide what is in your budget and determine if what you have will properly cover these start up expenses.

5: TIME. All new businesses require time to get off the ground. Some take longer than others to bear fruit. Overnight success is rare, and should not be counted on. However, the actual ramp up time, is something you need to decide on. Based upon your resources, and what the business offers, you need to determine how much time it should take for you to get your business running and earning money. For an internet business, a good time frame is 60 -90 days. For bricks and mortar, at least 6 months to a year. Make sure you are prepared to make this time commitment. The saddest thing that can happen is being literally on the brink of breaking through, but instead, closing shop.

If all factors point favorably, then go for it. There is a very special thrill and pride in owning one’s own business. It fills you with strength and a lot of renewed self esteem. There’s nothing like waking up in the morning and looking forward to going to work.

See you at the top!