Finding the Right Home Based Business: 7 Questions to Ask

There are lots of things to look at when you are starting a business, especially when you are starting a home based business. As Linda and I started looking for a business opportunity that was right for us, we asked these 7 important questions:

1. Is this a company with integrity? First of all, what is integrity, and how in the world can you determine if a company has integrity before you start working with it? Integrity is more than honesty, it is the "adherence to moral and ethical principles; soundness of moral character." In Wikipedia it is described as "A consistency of actions, values, methods, principles, expectations & outcomes." Everything flows from the top. Whatever the leader's top values are, their decisions, and the effect they have on those they touch, will revolve around those values. For example, if their top value is making money, their choices will stem from that value. If their top value is servicing people, they will make entirely different choices.

2. Are the products top-tier products/services? If the company does not have high quality, top tier products/service, you should run fast and find a company that does. You will be paid on the products/service and if they are low priced or low quality, you will have a much harder time earning high profits. Top-tier products are easier to stand behind with product guarantees, and as a result, are easier to sell to the right prospect.

3. What is the up-sell to the products/services? Once you make the initial sale to get customers in the pipeline, can you make additional sales to the same customers? Initial sales are generally harder to make than to existing customers. Once you get your prospect to buy a smaller item, their experience will make additional sales much easier. If you have multiple "up-sells" it is even better.

4. Is there a system to follow? McDonalds can hire an 18-year old kid to run a million dollar operation because every store has the same system. If the company has a simple, duplicable system, new people can learn, new people will start making money faster because they don't have to figure it out themselves—it has been tested before and works. Plug into the system and do what the top producers are doing and success will follow.

5. How much training does the company offer? Training is a vital and essential part of your decision about which company you want to join. Without training from experienced producers, you will have to "figure it out" on your own. The quality of training will determine how fast you get started.

6. Can you earn passive income? Does the company's compensation plan offer current income with the possibility of future passive income? Passive income is income received on a regular basis, with little effort required to maintain it. The IRS defines passive income as income from "trade or business activities in which you do not materially participate." If you can work for a period of time with the knowledge that in the future you will have passive income, you know that your work is building forward to "drink from the coconut" money. You can be sitting on a beach and know that money is still coming in because you have built your business on passive income.

7. What is the growth potential of the company? Has the company been around for a long time and already been through their major growth? If you find a company that has all the fundamentals in place and you are joining at a time that tremendous growth is about to happen, you will grow with the company.

If you can find a growing company with integrity, top-tier products, and services with up-sell potential, a simple system with great training, and passive income, you have found a gem. Just as gems are very precious, a company with all these qualities will be very valuable to you.