By David Jahr
Since the onset of network marketing, it’s amazing how many times people get approached with another “great opportunity” that’s life changing. Although I appreciate the eagerness of shooting for dreams, it’s hard not to be short with someone selling a future in a bottle of lotions, potions and creams etc.
Still, every business — and employment– opportunity has merit to some degree. In fact, it may actually be the “best opportunity” to come into your life. But due to previous experiences, we tend to shut off our minds and don’t even listen.
How do you know if the business or job represents a legitimate opportunity to be involved with? Since I’ve been a marketing consultant for more than 17 years, an entrepreneur and investor, I’m always open to looking at a new concept and passing it by the following criteria used to evaluate ANY business or job opportunity. Most will accomplish at least one of the five, perhaps even two or three. But rarely, does any business I’ve come across satisfy all five. I do know of one. More on that later, if you want my opinion.
Here they are, and I’ll break it down for you, and give you examples:
- Leader
- Product
- Value/Compensation
- People/Training
- Timing
LEADER
The first key to measuring an opportunity is to ask, “is the company a leader?” Whether it’s the first, the only, the best, the fastest or the largest are all examples of being in a leadership position. Not all companies are, but before I seriously consider an opportunity, I want to know if I’m going to be representing a leader or a follower. By affiliating with a leader, you will have a competitive advantage, at least for the time being.
PRODUCT
Next, look for products that everyone needs. This creates stability over the long haul. Trendy items come and go, and so do the income. In a best case, you want to be involved with a product that is in demand, and is needed by as many people as possible regardless of the economic climate. You will also want to believe in your product because a strong belief will come across in your tone of voice, non-verbal communication and help your determination to persevere. I also look at the consumer loyalty. Will clients buying the product be inclined to continue to buy the product? You’ll find consumer tastes come and go. But there are some products, people will stay with forever. You will also want to figure the competition into the equation and I explain more about that under “Timing.”
VALUE/COMPENSATION (or ROI)
Businesses the provide a significant value, and pay well, are also a key criteria. Like beauty, value is often seen only in the eye of the beholder, but if you are offering a valuable product or service at an affordable price, then it’s comfortable to represent the business to anyone because of the confidence in the value. Plus, we all want to be paid well. So, I’m always looking for a good value that rewards its people well. It’s a tough combination because typically affordable products do not pay well because of the lower profit margins. This is the primary challenge with most multi-level marketing companies. They have a good product and a good value, but you have to enroll a country or two of people in order to make good money. If you are evaluating a business opportunity or investment, the primary tool is to measure the return on investment. If you invest $100,000, what kind of money will that earn you? If you earn $200,000, that’s doubling your money and a good investment.
PEOPLE/TRAINING
Whenever you come across a business or job opportunity, determine if the people and leadership are consistent with who you would like to spend time with. Are they people you can learn from? Also, ideally you want to be a part of a business that provides ongoing training to support your personal and professional development. There’s nothing worse than being stuck in a job with no hope for growth and with people you don’t want to associate with. On the other hand, this can be the most exciting part!
TIMING
Finally, be sure to consider the market timing to any business, product or job opportunity. Is it a particularly good time to be in that industry? Will the business thrive or dive based on the timing of entry into the market? Or is it always a good time to be in that business? Envision the future and if you see the company still in the picture, you may have a winner. Consider the competitive environment and if you have entered a market with little or no competition, then you are in a good place. Avoid entering into a crowded marketplace, even if you have the best. It takes time to break in, unless you are heavily capitalized and can rely on big-time advertising and promotions effectively explaining the merits of your brand.
To see how this works, use any company that comes to mind, even your own. Be honest, and put a check next to each one that satisfies the criteria. Ask is the company a leader in some way? Is the product something everyone needs or is in high demand? Does it provide a great value, and do they pay well? Are the people and leadership in line with who you want to work with and is there appropriate training for your growth? And is it a good time to be in that business? Then, you have to put your own values up against each one. If you feel strongly for one or the other, keep that in mind when you are making a decision.
Now let’s look at an example: 24 Hour Fitness. Is it a leader? I believe it’s the largest health club chain in the world, so that’s worth something. Is it a good product everyone needs? Yes but people join and don’t stay committed to fitness. Does it provide a good value? Yes, but the pay is not that great unless you are a top executive. Are the people cool? Varies. Is there training offered to help you grow up the ladder? I don’t think so. Is it a great time to be in the health club business? Not especially and there’s a lot of competition. So you can see, the best thing about working with 24-Hour Fitness is they are a leader and a valuable product. If that is good enough for you, then go for it!
You can apply this criteria to every business out there, I just randomly picked 24-Hour. I’m a member and love the place, but would never work there.
