Evaluating a New Gig
In the article “Is the juice worth the squeeze” we covered a lot of topics to consider in evaluating opportunities. Each topic will help make sure that you’re signing up for something that works for you personally and financially. The worst thing is being blindsided by a situation that you weren’t expecting. After you have scoped out exactly what you want, you are going to have to manage contracts. We all know that it’s very important to cover all your bases before signing a contract and that article covers the way I manage my own field research. This being said, make sure to talk to a professional who knows your situation too.
Here are some strategies that will help in protecting yourself once you have covered your bases are ready to move forward with a new opportunity.
Find yourself a kick ass attorney. The person who represents you should be present when you're negotiating. If you can’t make that happen, at least have your attorney go over the contract and tell you whether you should sign it right off the bat. You are also paying for him or her to explain each aspect of the contract. You must understand what you're signing.
Have your bean counter squared away. Your accountant needs to check out the financial strength of the company. He or she will be able to determine whether the business is a good financial investment for you. Often, when people approach me for business advice because their business is disorganized, it’s usually because they don’t have an accountant at all and are trying to manage the accounting when they should be spending that time building their business. Have the right team pulled together.
Really sniff out the people you are negotiating with and all the other power players. Are they happy with the company? Did the company do everything it promised? Is the company good to work with? Do all the stories line up? Does your gut tell you that they are good people? Is the culture one that is transparent and politely honest? Are they really interested in you or are they just looking to offload? If you can, speak with the staff as much as you can. A few times, conversations with the staff saved me from going down the wrong road.
Scope out the competitors. A competing company will be the first in line to shit talk your new gig. You’ll quickly find out what the company's weaknesses are. You'll also get to see whether compares favorably in terms of pricing or anything else.
Run a credit check of the seller or the company you are joining. Your accountant or the person auditing the business opportunity can help you with this.
Check out their social media as well. It’s easy to paint a picture of oneself in a couple meetings. However, what’s posted shows a more descriptive story. Read reviews, look at all of their pictures and check out their friends too.
Make sure that you understand everything you're signing. Read the disclosure statement, the purchase agreement and the advertising bulletins carefully. Read everything!
Check the company's management. Having a good idea is not enough. Do they have the management strength to train you, help you and keep the company running for another 20 years?
Know all the costs and obligations. Who has skin in the game and how much of it? What costs are you going to have to incur? What are your obligations on an ongoing basis? Is the company going to train you? Is training at your own expense? Do you have enough money to sustain yourself while you're in training and before your business starts earning money?
Find out how they are going to advertise for you. Will the advertising program work for you? Check out what everyone else is doing. Also, what are the company’s ads like? Is the copy good? Remember, not all advertising is good. There is a possibility that their advertising program will hurt you more than it will help.
If you need more help or have questions on something that was covered, please feel free to reach out to me.