International Law

Business Opportunities - Tips From Florida

Image via Wikipedia

When you can log on to the Florida site which provides advice about purchasing business opportunities, it does have some good information.

Many Americans dream of owning their business. Although many achieve this dream, others run into financial ruin by falling prey to scams devised by unscrupulous promoters of business opportunities.

A business opportunity is an offer to assist a person in starting his or her own business by providing - either through sales or lease - products, equipment, supplies or service needed to carry on the business.

Business opportunities range from addressing envelopes or assembling toys at home at a cost of a few dollars, to establishing vending machine routes or installing pay telephones for thousands of dollars. Many times, these promoters imply that investors can see a substantial return with minimal effort.

Prospective investors should take an active role in investigating the business opportunity before signing any contract or sending any money.

A few tips to follow before investing or signing are as follows:

* Talk to current investors, preferably in person. If their names and addresses are not in the disclosure document, ask for them.

* Ask these investors whether information in the disclosure document matches their experience with the company. Failure or refusal to provide names and addresses of investors should serve as a warning sign that the venture may be questionable.

* Ask questions. Investigate earnings claims. Keep in mind that once you invest your money, you may be competing with other, more experienced independent operators.

* Get all guarantees in writing from an authorized representative of the company. Listen closely to the sales pitch. A seller with a good offer doesn't have to use pressure sales tactics.

* Get professional advice - an attorney, accountant or other business adviser could save you a great deal of inconvenience, aggravation and money.

Full post as published by Misleading Advertising Law on September 03, 2008 (boomark / email).