Evaluating business opportunities

Here are some factors I have decided to use to evaluate business opportunities using these criteria

  1. Break-even point – there is nothing more depressing than being involved in something and feeling you are losing money. It is therefore critical that whatever opportunity you pursue have a low break-even point.
  2. Cost – What startup costs and monthly costs are involved? Are there affiliate fees on top of product costs?
  3. Work required – how much and what sort of work is expected?
  4. Profit share / compensation plan – this is very crucial and it ties in with break-even point. It is important to know the number of ways you will be paid for the activity. Be sure to look for some sort of profit share or company pool.
  5. The test of time – depending on who you are, this may or may not be important. And even if it is important, it does not guarantee unexpected collapse. We all recently witness2 years of rapidly increasing profitabilty shutdown in a heartbeat. Only diversifying among mutliple income streams will do that.

Once you have these factors assessed, then you can set a mental vision for the next 6 months and not be upset by the day-to-day efforts. You will be planting seeds with some certainty about eventual growth and what time frame.