How to Choose a Business Opportunity

Before investing your capital and efforts in a brand, contact those that interest you the most, investigate them and distinguish false promi...

Before investing your capital and efforts in a brand, contact those that interest you the most, investigate them and distinguish false promises of opportunities.

A developer of web pages and digital environments- considers that the most common causes involved in the decision to undertake can be summarized in below options.


  1. Economic independence;
  2. to be employed or self-employed;
  3. generate extra income;
  4. the desire to complete a project;
  5. the vocation to create a company. "In the end, the need to solve a lack or ambition to do something beyond what is already established prevails," explains the entrepreneur.

How to Choose a Business Opportunity
The circumstances of the economy suggest that some of the reasons stated by Javier weigh more than others. For example, the minimum wage of Mexican workers, in addition to being one of the lowest, has a higher tax burden than that of middle-income employees, according to the report The Minimum Wages Before Crisis, prepared by the Organization for Economic Cooperation and Development (OECD). The study denounces European minimum wage represents 40 percent of the average income of the population, making it among the lowest among the Czech Republic, the United States, Estonia, and Japan. "This situation, where the growth is not in the proper provisions but in being actively involved in the private sector.

However, the risk of an undertaking is high, because of 100 businesses that are born a year in the country, only 11 will reach the age of 20, according to estimates by the National Institute of Statistics and Geography (INEGI). Hence a possible solution, judged by experts interviewed, is to thrive with the support of a consolidated brand, which helps mitigate the risk of failure.

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What yes and what not


Getting an already active and solvent model facilitates business learning. An opportunity consists of a set of proven business processes, designed to generate revenue and profits between two parties: the company that created the means, and an associate that will execute them autonomously. This company, with a profitable product or service, delegates its operation and marketing to third parties to start a partnership.

In other words, it means that a brand increases its points of sale and in passing, shares with other entrepreneurs the wealth that happens to the implementation of its methodologies.


Franchising, distribution, catalog sales, licensing, representation, multilevel vending machines are some examples of opportunity models. The common feature is that in all cases a win-win relationship is established that is incremental for both.


But look: 


Not all those offering a remunerative relationship really intend to share a slice of cake motivating entrepreneurship. If you have a miscellany and are being asked to sell your product there, you are not actually participating in a 'business opportunity,' you are just one more transaction in your distribution channel. And if there are no operational manuals, technical assistance, a legal contract that establishes a relationship beyond a logo, or a brand that testifies to its responsibility, neither can speak franchise or license.

Experts agree that there is an indicator that a business model is not a company: the lack of liability on the part of the owner of the brand on know-how and a previously executed business plan. If there is no commitment to grow hand in hand and to harness marketing and innovation efforts, then there is no purchase or sale or consignment at all. You work as a channel, not as a partner. The difference between a business relationship and a business opportunity lies in the terms between the company and the intermediary dealing with the final consumer (which you can determine with the questionnaire at the end of this note).


Not even the looser formulas (such as vending machines) leave out that the success of an associate translates into the success of the brand. And dissociating itself from the growth of that one implies that there is no interest in sharing the benefits: only the involved one is used to not pay salaries of sellers.


Custom Suit


If your decision was finally to start with an opportunity, now comes the best part: determine what will be the right option for you. Decide it by taking into account the following factors:

Financial needs. To earn more income without abandoning your employee role, opt for direct sales (catalog selling, multilevel). And if you want the increase in your income to be constant, in addition to new customers, add to new sellers that you direct. The same in the case of representation: extra income in exchange for promoting, disseminating and generating economic events for a brand (of all this you will get a commission). If you are looking for absolute financial independence, with a business that gives you a job, fixed salary and to which you dedicate your commitment to consolidate it, the franchise, the license and the sale of inputs can be your choice.


And if you want to create a network of product placement at low cost, with a non-invasive operation in your day today and increase your income consistently as you encompass territory in logistics, distribution models, and vending machines are an opportunity.


Means. If you have a broad network of contacts, you can use your database for a representation model, multilevel or catalog sale. If on the other hand, you have vehicles to transport products (vans, large cars) and some place to store, you can weigh the possibility of becoming a dealer or dedicating to the sale of inputs. If you have the time to operate different points of sale and you are looking for a low-cost, more scalable model, you can invest in vending machines. And if you have much capital saved, you can bet on a franchise or a license.


Personal profile. Your skills, talents, professional experiences, studies and achievements throughout your career are an asset. If you get good public relations or deal with people, but you do not necessarily have very developed sales skills, you can be a very effective brand representative. If on the other hand, it makes it easier for you to convince others and you have experience in negotiations, the multilevel and catalog sales are probably your thing. Your experience in logistics and warehousing could work to be a distributor. And if you are particularly calculating, managed, with managerial and financial skills, in addition to being disciplined and with the vocation to comply with the rules, franchises and licenses are ideal models for your temperament.


What follows is to evaluate each brand with the same parameters. Here are 10 essential questions that all the companies you interview with your offer must answer satisfactorily, along with a series of solutions that, if nothing else, are unacceptable when it comes to gaining security in The most important thing: doing business.

Also read: How to Start Your Own Business Without Money
What Every Entrepreneur Needs To Know Before Starting a Business

The option you are looking for


The following questionnaire will help you choose the business option that best suits your needs. Consider it when interviewing with the representatives of the brands that have caught your attention to undertake.

  1. What is the value added of the company?
  2. Why did you decide to create a business opportunity instead of growing individually?
  3. What do you offer regarding infrastructure, operation, experience, training and technical support to those who are associated with your brand?
  4. What expectations do you have of your partners?
  5. How do they ensure that these do not affect the brand with bad business practices?
  6. What is your investment in marketing, innovation and product development (as a percentage of income, pesos or dollars per year)?
  7. In what state of development is the company currently and what is the current growth strategy? 
  8. What are the legal terms in which the benefits and allowances offered to entrepreneurs are established?
  9. What partner profile do you seek and what skills, experiences, and degree of preparation do you require?
  10. Could you provide me with a directory with five emails and/or phones associated with your network that I could chat with?

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