5 Ways to Find the Right Company and Success

For your home-based business you want a good compensation plan, the right training and support, and a product you can be excited about. However, most important is the right company. Thats because your investment of time, energy and money will vanish quickly if the company is not solid and likely to be around for the long term.

It could fold

If you are in the home-based business industry, you will have heard of companies that folded due to financial problems or problems with the government . Other companies changed ownership, and with that policies, products and compensation all changed. People (along with their carefully nurtured friends and family downlines) have lost everything.

Embarrassing, annoying or infuriating

Like dealing with irate customers More problems could come from companies that dont deliver their products on time or have problems with their products (how would you like to have a product invested with worms in delivered to an important prospect)

So how do you choose the right company

1. New Is Not Always Better

Statistics vary, but within five years anywhere from half to 90% of new businesses fail. Often new companies promise that getting in early allows you to make the most money. Thats true in the stock market, if you buy the right company early and watch it carefully, so that the company tanks you can sell in time to get your money out. However, its not true about buying a business, unless the market is saturated with a product. If you sign on with a new business, unlike watching the stock on an hourly basis, you have no way of knowing if the company will suddenly fold or sell or change critical policies. People have joined long-established companies and done very well very quickly. The rule of thumb is that five years is a reasonable time period, longer is safer.

2. Do Your Due Diligence

If you want to have fun losing money, go to Vegas. Its not fun losing it in a business, and watching those you brought in lose, too. You are investing in a business, and business people always investigate before taking calculated risks. Google will help you check your prospective companys credit rating and any tangles with Federal regulatory authorities. Some debt is acceptable if its used for expansion, but you want a company thats financially solid. How good are the reorder or customer retention and return rate Check what the Better Business Bureau has to say, but be wary of what may be the ulterior motives of some people who post to forums.

3. Is the Company Going Places

You want a company that shows an increase in sales and profits (unless the profit is going toward expansion). However, if sales are going up dramatically, does the company have the production capacity to handle it

4. Going to a Different Place

Even if its financially solid, how likely is it that your company could be bought out or sold Who owns it, are they involved in the business, and even better, are their children involved in the business Otherwise policies (especially compensation and support) and products could dramatically change.

5. Made In

Even if its not pet food from China, where is the product made Have there ever been any disruptions in deliveries or problems with defective products If so, how were these handled

Once you have found a nice, solid, reputable, established company thats only the start. The next question is whether its going to be worth it. Compensation plans can involve a magnifying glass and the strategic abilities of a chess master, but if you read my companion article, Compensation and Support: MLM/Referral Marketing Business made Easy or Hard, youll learn the key elements to finding a lucrative compensation plan in a great company.