Posts Tagged ‘business opportunities’

Avoiding Business Opportunity Scams

Thursday, June 30th, 2011

Too good for real? Beware, it might be a scam

If you really want to invest in a good venture, there are thousands of business opportunities for you to choose from. The recession greatly affects the country’s economy. With this, thousands of people lose their regular corporate jobs. The good thing is, many of them chose to start or buy their own businesses. Buying a business is easy when you know where to look. Check out GlobalBX.com – they have over 36,618 businesses and franchises for sale. Best of all it’s a FREE site! 

Along with this increase is the sudden prevalence of business opportunity scams in various industries. Now, how can you tell a legitimate business opportunity from a scam? During these rough economic situations, many people choose to do fraudulent activities just so they can make a quick buck. One of their notorious practices is to come up with a business opportunity scam. With this, what are the necessary precautions that one needs to remember to avoid a business opportunity scam that might eventually appear on your pop up browser window and emails?

How to Spot Notorious Business Opportunity Scams

If you are determined to know if a certain business opportunity is a scam, you need to put yourself first in the situation of the scammer. Try to think about certain promises that you would likely offer if you are to scam a person. To successfully target entrepreneurs, scammers would work hard to make their fake opportunities appear plausible. Scammers also notoriously target the greed and weaknesses of their prospect victim. A scammer may also use the apprehension of missing out a once-in-a-lifetime opportunity. They would demand money to be paid up front. Finally, these professional scammers figure out ways on how to be untraceable once their scam has been uncovered.

Avoiding Business Opportunities Scam

Not all scams are executed by strangers who popped out in your browser while you are in a chat room. Alarming as this may sound, but there are hundreds of hoax business opportunities on the Internet that appear legitimate.  These scams are either franchises for sale or existing businesses for sale. Read on below for a guide on how to avoid business opportunity scams:

  • Check all the paperwork.

See to it that you hire a good business lawyer who will review all the necessary paperwork including disclosure statements, business ledgers, sales documents, and all contracts. Hiring a certified public accountant is also important. Your accountant will be the one to go over all financial documents and bank statements.

  • Request for a detailed documentation.

The U.S. Federal Trade Commission is requiring all business opportunities to give out detailed disclosure document to all prospect buyers 10 days before any sale contracts or agreements are drafted and signed.

  • Be vigilant about misleading numbers.

Be wary of companies that do not want to say anything about how they came up with their existing cash flow and earnings figures.  Better avoid business opportunities that promise a minimum profit for a particular time frame.

  • Do thorough interviews.

It is a must to talk and transact directly to the owner of your prospect business. Do not depend too much on the sales agent for communication with the owner. You should visit some of the operational locations of existing franchisees. Ask for their feedback and opinions about the company.

  • Be cautious of surreal earnings information.

It is best to keep this rule in mind, especially if you are determined to buy a franchise opportunity. Note that there is a law that requires all businesses to share information on the number of franchise owners that failed over a given time period and the actual earnings of these franchise owners. See to it that you review all information and get the evidences you need.

Other precautionary tips to keep in mind

It takes many hours of researching and a good alertness to stay safe from notorious business opportunity scams. It is a big no to rush your decision to buy a business. Remember that this transaction involves lengthy writings of the demands and claims of both parties regarding the sale of business. Today, the most common tactic of many business scammers is this scheming phrase: “This deal is only good for today, and then it’s gone”. You should be alert with bad sounding business deals such as chain letters, networking marketing, work at home, vending machine routes, and credit repair services. While not all opportunities under these categories are scams, there is a big chance that you will likely stumble into one, especially if you are not too careful in scrutinizing their legitimacy.

Make sure you do your research before you start or buy a business. GlobalBX.com provides a FREE business for sale exchange connecting business buyers, sellers and lenders.  Get free information on any small business opportunity or franchise opportunity –  they have over 36,618 businesses for sale!  Sell your business for sale for free with no listing fees and zero commissions.  Contact over 300 lenders instantly” and get financing for businesses and commercial real estate.

Selling your business

Wednesday, May 25th, 2011

The timing when to sell your business is just as crucial as buying a business

The value of the business opportunity  is founded on past financial statements, earnings, cash flow, assets and many other factors. 

If your profits have been high for the last three years but starting to diminish during the last few months, you may not have experienced a full year of weaker earnings. Since no one knows where the economy is going over the next year or two, should you sell now or wait another year?

If you wait another year and your earnings are substantially weaker, the amount that you receive for your business will drop considerably

If you wait another year and your earnings are considerably weaker, the amount that you receive for your business will drop considerably.

Any prospective buyer must project the income of your business, and if he or she is affirmative, they will pay more for the business. If he or she projects overoptimistically, you can get a higher price than if you sold in a year’s time. 

Typically buyers look at the last three years of earnings, but if the current year is weak, a greater emphasis is placed on the most recent financial statement.

If you want to retire in a year and you know that your business will be considerably affected by the economical downturn, do you try to sell now for a higher price, or risk selling in a year and risk getting a lower price? If you’re looking to preserve your capital, do you sell now and get what your business is worth today or wait until your earnings recover in one, two or three years? 

Remember, buyers look at three years of earnings, so if it takes three years to get your earnings back to normal, you have to add three more years to that to fulfill a sound three-year history.

That means you will now have to sell a business in six years’ time. But what if you want to retire in less than six years: should you not sell now?

Invest in the DVD Rental Business

Sunday, April 17th, 2011

Aspiring and business-minded individuals should be mindful that there is a unique offer proclaimed by DVDNow Kiosk, a successful company that is planning a major expansion. To make this business opportunity  even more extraordinary, the company also offers complete instruction and support to help you with your new business.

About DVDNow Kiosk
With firm roots in the exceptionally lucrative entertainment  industry, which generates billions of dollars every year, the DVD rental business   capitalizes on the lack of serious competitors and reaps remarkable income. The company specializes in operating numerous DVD rental kiosks, forming the most rapidly growing segment of this marketplace – thus, their business is both exclusive and highly lucrative, attracting many entrepreneurs willing to invest in such a successful opportunity . You can now be one of them.

Due to the incredible convenience of its services, DVDNow Kiosk has increased the frequency of rentals significantly. Furthermore, the popularity of these automated machines is now frequently being compared to the advent of the ATM – and many experts who have noticed this cannot be wrong.

Why Invest In DVDNow Kiosk?
You can capitalize on this wave of popularity that this DVD business  enjoys and at the same time suffer no difficulties while running your own business under the company. Here are just some of the reasons why:

– Incredible popularity and growth , with the industry being worth more than $20 billion every year
-Total control over your profitability and freedom to choose the best locations
– Untapped market with very little  competition
– Incredibly easy business to establish and run – you can start earning within 30 days
– Vast growth and expansion potential

– Proven and successful track record with immense profitability
– Freedom to choose your own working hours
– No competition from other DVDNow Kiosk owners

Clearly, this is a business opportunity that should not be missed. Get free information now to learn about more advantages that await you as a DVDNow business owner!

GlobalBX.com provides a FREE business for sale exchange connecting business buyers, sellers and lenders.  Search over 33,000 businesses for sale and franchises.  Sell your business for sale for free with no listing fees and zero commissions.  Contact over 300 lenders directly and get funding for business and commercial real estate.