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6. Is business opportunity working within confines of federal, state and local laws? Depending upon where a member lives, these laws can vary widely!
The real statistics on failures of small businesses, many of which now are business opportunities and franchises, are well documented by United States Small Business Administration: www.sbaonline.sba.gov/. Business statistics provided by United States Department of Labor, report that in 1994, number of businesses that failed that year were divided into following categories:
* Bankruptcies (a 15.4% increase from 1993).
* Failures (a 17% increase from 1993).
* Terminations (.3% increase from 1993).
The Small Business Administration attributes these failures and evolving higher percentages to fact that there are now MORE small businesses in United States overall, with a 49% increase in numbers since 1982.
The Small Business Administration also states specifically that statistically, only one in seven can be considered a true "failure", leaving unpaid obligations in their wakes. Others simply sell or shut their doors for a variety of other reasons.
Since most business opportunities, at least initially, open with less than 100 employees (many are simply owner, as sole owner and executor of all business "chores"), then most Biz Ops are indeed "small businesses" and as such all pertinent failure statistics can be applied to them. What is really surprising and rather "staggering" is fact that most business failures are not due to outside forces, but those that business owner has complete control over! These issues included lack of marketing know-how, lack of record keeping, lack of management competence, lack of financial management, and other business basics such as controlling employees and inability to seek outside assistance and advice!
The wise business owner, whether or not involved in a business opportunity, will seek to learn and implement proper procedures, and investigate proper methods of operation throughout life of a business.
If this is done, a Biz Op owner, or any small business owner, has less of a chance of becoming "latest failure statistic"!
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Vishal P. Rao is the owner of: http://www.work-at-home-forum.com/ - An online community of people who work at home.