In todays Internet business world it is important to do your due diligence on the company you are planning to join. However, the question is… Is there a legitimate source of information for that business.
If you do a search for your business and put “scam” after it, you will find a review that bashes that particular company. The questions you have to ask yourself are:
- Did this person actually join the business and work it? or did they request a refund after a week of “trying” to build the business? Any legitimate business takes time to build.
- Did this person want “something for nothing”? Many people on the internet want something for nothing. A legitimate business takes an investment of time and money. It could be a year before you see results.
- If the company is “free” to join, how do people get paid? If everyone is joining for free, where is the money coming from to pay everyone? Always look at the compensation plan for any company you are joining. There are legitimate companies that allow you to join for free, but on the back-end you will need to purchase a kit or the product. How can you sell a product you have never tried?
- Were they mad because they didn’t make a million dollars over night? Anyone who tells you this is possible on a “free to join” program is lying to you.
One of the best sources of information are from people who have been with the company for a long time. Ask them what they did to build their business. Ask them how long it took before they saw profit. Below is another checklist provided by Businessknowhow.com.
- Does the business have healthy cash flow?
- By looking at the books, can you tell where the revenue stream is coming from?
- How reliable are its financial projections and what multiple is it placing on those earnings?
- Are profits going up or down?
- How big is the market for the company’s products or services?
- Is the market growing, shrinking or stagnant?
- Are there any major new competitors in or coming into the area that could negatively impact earnings?
- What kind of online presence does the business have, and how does it compare to its competitors?
- If the company has physical assets, are they valued correctly and fairly?
- Are there any hidden liabilities?
- Are the company documents complete? (Articles of incorporation, board meeting minutes, tax registration, etc.)
- Is the business up to date on its taxes?
- Does it lease property? If so, when does the lease end?
- What insurance information is provided and what is covered?
- Are there complete employee files including salary and benefits?
My point here today is that anyone with a computer can write anything they want about a company or person without fear of retribution. Its just too easy to hide behind a computer. So do your due diligence!! and here’s to your success.