Business Opportunities sometimes referred to as “Biz Op’s or Licensing” is a type of business ownership where a person usually buys a new start-up company (non-franchise). There are very few regulations and laws governing “Biz Op’s or Licensing” and therefore there are many illegitimate and scams with this type of ownership.
Most of the time these type of businesses cost much less than a franchise because they do not give the owner as much help as a franchisor would give. Most of the time they have a high failure rate since they are not regulated very much. Besides giving little help they do not have to disclose their failures. Biz Op’s in my opinion are normally a bad investment. You can sometimes pay much as a franchise to open this type of business yet get no or very little in help in starting or operating it.
There are some good Biz Op’s but most are kind of scary to get into. If you do decide to look at one, research those owners of the company to see what their backgound has been. Be sure to look and research all those owners who have closed their doors. If the company will not give you the list of those closed, do not buy. Also if a company gives you flowery earnings claims without back-up and proven data, then it is probably a scam. Usually they will point to one or two people who have made a lot of money and suggest you can do the same. There is probably a good reason those one or two people have done well. It might take some digging, but if you are serious, it might be worth getting out the shovel.
Just remember most people who buy Biz Op’s or Licienses lose their investment. If you do proper research, you will not be one of them.
No comments:
Post a Comment