by Paul Kemp

Created on: February 14, 2009

Such a broad topic! If you are wondering what is a Business in a Box, I am, too. Let us assume this is a new euphemism for a Network Maketing or MLM business opportunity. That's the only place I've heard the term used.

Each Business in a Box will be somewhat different, with some being downright toxic and begging for the FTC to shut them down and others will be quite lucrative for the person who is willing to work and knows what he or she is doing.

Here are some things to look for in a Business-in-a-Box:

It shouldn't cost you more than $500. More than that is a red flag to regulators that there is "front loading" going on. Front loading is the practice of forcing distributors to buy unneeded ammounts of product, so that hefty commissions can be paid to the recruiter.

The business should make sense. What is the product? Is it something that is of a quality and price that it will be attractive compared to similar products on the retail market?

Are there attractive and well-thought-out sales materials included?

Is the product or product line unique in some way?

Is the product or service - whatever it is that you will be selling - unique in some meaningful way? Can you easily explain this to a prospective customer?

Is the buyer of the Business-in-a-Box well-capitalized? He or she will need some affordable way to find interested prospects for his products and the business opportunity itself. The best way to do this is by setting up a simple Web site on the topic of whatever problem these products are supposed to solve. This takes some knowledge and Internet savvy, but it is the best way for the average person to let those who have an interest in what he or she is selling.

Alternatively, some Business-in-a-Box programs encourage a tell your friends and family or "party plan" method of introducing others to the products. This works well for those who are very outgoing, while many others will not be comfortable with this arrangement.

There is nothing wrong, per se, with the concept of a Business-in-a-Box. Some are quite a viable way for the average person to generate a secondary income in a recessionary (or worse) environment, such as we are experiencing. Great care must be used to pick the right one based on sensible business fundamentals and not "blue sky" and hype.

It can be argued that a Business-in-a-Box is one of the best businesses to be in at this time. Many people are looking to replace their incomes with a home business - and not much else is selling except consumables.

There are very attractive tax benefits for those who work the business from a seperate room in their home. Keep in mind that you can write off losses to the business as long as you have a reasonable expectation that you may make a profit eventually. If you take the deduction, though, and quit the business the next year, you may be asked to repay any tax savings you gained.

So, as you would with any business venture, choose it carefully. Watch your expenses. Ideally, you shouldn't choose any such business that isn't at least four or five years old.

Make sure you can put your heart into it, that you can afford to promote it and wait for the profits to arrive. Then, go to work!

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