With the vast amount of business opportunities available, there are also more chances to be caught in a scam. In a perfect world, people who sell business opportunities have your best interest in mind. Unfortunately, we do not live in a perfect world.

1. Always check business credentials. One of the first things you should do when considering a business opportunity is to check the business credentials of those offering it. Never just take someone's word that they are who they say they are. Continue your research until you're comfortable working with them.

2. Check the company's business ratings. Your first stop should be the Better Business Bureau, which will have a record of any customer complaints. Another possibility is to check if the company has a Dunn and Bradstreet rating. Don't be deceived; being "listed" with D&B and having a rating are two separate things. Anyone can be listed, but in order to be rated companies must provide financial information. There is much more value in the rating because it represents the financial strength of the company as well as how they pay their creditors.

3. Contact the state's Attorney General office. Your state might require a disclosure document in order to offer a business opportunity. Be on guard if the state does require one, and the business opportunity doesn't offer one. This information is valuable because a disclosure document is another place a company is required to reveal financial information. For example, they must disclose whether they have filed for bankruptcy in the previous seven years.

Businesses that are concerned with this process can be considered more reliable. It's a time consuming process, and in some cases it can be difficult to meet all of the necessary requirements, but if the company is legitimate, it will most likely be registered. In addition, since some states don't require a disclosure document, ask for a generic one instead.

4. Visit their home office. If you are making a substantial investment, invest a little more time and money and visit their home office. If they object to your visit, or try to convince you that it isn't necessary, you might want to keep looking at other options.

CHECK BACKGROUNDS

5. Research the principals of the company. What is their business background? Have they ever offered another business opportunity, and if so, why aren't they still offering it? If a person represents themselves as a principal of a company, make sure their name appears on the disclosure document (if one is required) and any other legal documents.

If their name isn't listed, there may be an underlying reason why. For example, they may have previously been involved in a business opportunity that filed for bankruptcy and they don't want it disclosed. You must be a tenacious researcher, but your efforts will pay off in the end.

6. Find out if the salesperson knows the business firsthand. It is a good sign if the salesperson actually operates the same business they are selling you. If you are getting the hard sell about how great a particular business is, ask, "Why don't you do it your self?" Find out how long your sales rep has been with the company they are representing. They should be able to draw from their own personal experiences to sell the business opportunity.

7. Make sure you receive training on the product or service. You will have a greater likelihood of success if you can receive training on the product or service you are selling. By going to the facility for training, you have their undivided attention and you can work with trainers one-on-one.

In a perfect world, all business opportunities would have the buyer's best interests at heart.

If there is equipment involved in the business, make sure it is there. The same materials or equipment you will be using as a business owner should be available at the training. You should also be given time to test the materials and ask questions. There are also companies that will help you start marketing your services by providing sales leads or quick-start suggestions.

8. Ask if the business provides support after the initial sale. Either directly or indirectly, ongoing support from the business will help you have the best opportunity possible. Make sure you verify all that is promised to you, or you may be surprised later.

For instance, if you are offered home office support and you discover that this consists of an answering machine, pager or a phone forwarded to someone's cell phone, you may find they aren't accessible at the time you need them the most.

If they tout an experienced support staff, make sure to get "names and extensions" and spend some time on the phone with them asking questions to see how helpful they may be to you.

Never accept, "yeah, we do that" as an answer. Dig deeper! Not every business opportunity requires ongoing support, but if they offer it, make sure it's available.

9. Don't fall for the hype. When selecting a business for yourself, don't feel like it has to be a high profile type business. In fact, sometimes it's better if it isn't. It may be a fad or just a flash in the pan, or it can attract so much attention that companies with a lot more resources available to them may enter the market and you will not be able to compete at their level.

BEWARE OF STATISTICS

In addition, it isn't unusual for someone to create a business around a high-profile industry and sell the concept using statistics that will in no way benefit the prospective buyer. If you haven't had a lot of experience in a highly competitive market, you might want to consider a service-oriented business. It may not get you rich quick, but you will have more control over your success. The quality of your service rests completely on you.

10. Be cautious if it requires that you buy "now." Any business worth buying will be just as good tomorrow, after you have had the time to do your due diligence. It works best to give prospective customers a minimum of two weeks before they pay any money. This gives them time to investigate the company and plan their investment. A rush to collect money is an indicator of a larger problem: lack of stability.

11. The company should bene-fit if you succeed. Sometimes you are better off paying more initially to invest in a company that has structured itself to be tied into its clients' success. The company will work harder to support you if they are dependent on your business. Investigate if any of the company profits have been invested back into the company for that purpose.

It is impossible to overstate the importance of conducting due diligence before the purchase.

If a company does support you, the cost of your investment will likely reflect it. Be willing to pay extra to become part of a progressive business. I am continually surprised at how many people, when told by a company that they offer the same service as another, but at half the price, never take the time to verify what they were told. The adage that you "get what you pay for" can even be true when purchasing a business opportunity.

Owning your own business will require hard work. Make sure that whatever business you choose, you have the time to manage it. Do not quit a good job right away to start a business at home. Wait until the income from your new business reaches the level of your current job.

In closing, take responsibility for whatever decision you make. Do your due diligence. Don't allow someone to talk you into it. Take your time and do it right the first time.

Travis Young is the General Manager for Press-A-Print, based in Idaho Falls, Idaho. He can be reached at (800) 775-9021 or tyoung@pressaprint.com.