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BizOps -- I Was Scammed! (Or Not)

Written by: Tom Parsley

Article Overview: You wanted to own a business for yourself, but you didn't have the capital to buy a franchise. So you took the less-expensive route and elected to purchase a business opportunity (ie - bizop). But things haven't panned out like you had hoped and now you feel like you were sold a bill of goods. Were you?

BizOps -- I Was Scammed! (Or Not)

You searched business opportunities for sale, and you bought into the claim about how you would make thousands of dollars per day without even working. You could even make money in your sleep. So you thought to yourself, "How could I lose?"

Very quickly you learned that the opportunity was “not as advertised.” Your new business failed. Not only did you lose your investment, but all of the time you wasted. And then there is the embarrassment factor -- you had to go back and tell all of your friends and relatives that it really was just a scam.

But was it really a scam? The fact is, most likely you were not scammed. Rather, you just didn’t do your homework. You bought into the hype, not the substance.

These business programs and e-books are considered “Business Opportunities”. A Business Opportunity (BizOp) is defined as a system that delivers a business system, training, equipment, or service to the buyer. In some cases, the seller may also make residual income for the ongoing sale of products or services, but for the most part, the relationship is over once the purchase is final. Since there is no ongoing royalty payment, there is no vested interest by the seller to ensure that the buyer succeeds in the business. Although many business opportunities provide system training, they may not require or monitor performance. Sellers generally don’t invest in local marketing or operational support, but buyers are given complete freedom to run the business.

In order to succeed with any BizOp, you need to do your homework. Research the opportunity offered. Research the company. Research the industry. Talk to others in the industry. Seek professional (legal and accounting) help. Trust me, your accountant has probably seen many of his or her clients venture down a similar path. And above all, make sure that you have the time, energy, capital, expertise, and desire to work your tail off. It’s a job!

Many business opportunities are very successful, and often times it pays to get in on the ground floor before everyone else gets in. But before you sign on the dotted line, make sure you do your homework.

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