Thursday, January 26, 2006

Key Factors to Investigate When Analyzing Any Business

It doesn't matter what business or investment you are looking at...it all comes down to analyzing a few key factors.

The higher each of these factors rate with you, plus the combination of them all, the better your potential for return.

Industry - Is the business's industry expanding or contracting?

Trends - Will you be ahead or behind the trends?

Timing - Are you early or late in the product & industry life cycle?

Products - Do they provide value for money to the end user?

Uniqueness - Does the company have any exclusivity, patents, etc?

Demand - How big is the market for the products & services?

Longevity - How long could the products last in the market?

Future - Are there more products "in the pipeline"?

Competition - Who else are you marketing against?

Profitability - Are there good profit margins?

Compensation - How much can you earn?

ROI - How soon can you return your initial investment?

Leverage - Do YOU have to do all the work or can you earn overrides?

Company - How long have they been in business?

Management - Who's running the company?

Legality - Does the company trade legally in all aspects?

Public or Private - Is the company listed on the Stock Market?

Marketing - How, what, why, when, where?

Global or Local - Does the company market worldwide or only local?

Internet - Are they "On the Net" and E-Commerce enabled?

Tools - Are you supplied with business tools to make your life easier?

Training - Will you be trained?

Commitment - how much time and/or money is required from you?

Lifestyle - Will you be able to live the lifestyle you planned?

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