A: A Personal Franchise is a low cost of entry business with a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification, products or services in a business that can be run from a home, dorm, RV or other place of residence. A personal franchise generally means a home-based business, tailored to your personal strengths, which allows you to help people or businesses in their core competencies. For example, as a coffee or tea distributor. Read more about it.
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- Q: What is a home business?
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A: A home business is the most flexible and diverse option for individuals and families available today. The variety of options reflects the diversity of products and service available. Some companies structure their business to distribute products through home parties while others use word of mouth methods. A home-based business can be as unique as you are.
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- Q: What are some of the things Cash Flow Potentials uses to set their ratings?
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A: Our goal is to research every home-based business opportunity. We feel the following items are important in searching for am appropriate solution for you:
- Willable
- Financially sound
- Product protection
- Q: What types of individuals and families have home businesses?
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A: All types – single, families, all race, new to business and retired corporate executive. Most people who run business out of their homes are just normal people who have decided to take charge of their financial future allowing them greater flexibility and freedoms. Home business owners are everywhere and come from all walks of life. They are cities, in the suburbs, and in the country. They were doctors, janitors, mom’s, dad’s, realtor and school teachers. Some business owners have strong religious beliefs and some are nonbelievers. More importantly most are just like you.
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- Q: Is running a business out of your house legal?
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A: A home business is legal in all fifty states, throughout Canada and most of the common law world. Having a home based business is becoming increasingly popular in Australia, New Zealand, England, and Japan. However, every state and province has its own laws regarding business and some are more "friendly" than others. If you are considering a home business, you will need to get information on the current laws in your area.
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- Q: How much does it cost to run a business out of your house?
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A: Depending on the opportunity you choose, a home business can run anywhere for a $100 to hundreds of dollars to start.
The bottom line is that: (1) you have complete control over how much it will cost and (2) you can get significant tax deductions.
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- Q: What are the advantages of running a business out of your home?
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A: For many home business owners, one of the greatest benefits is the strengthening of family bonds. Families get to spend more lots of time learning and playing together and this naturally creates close ties. These advantages allow business owners a superior opportunity that is attuned to their own needs, learning style, personality, and interests.
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- Q: What are the disadvantages of running a business out of your home?
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A: None that we can think of. There are problems if your intent is not to make a profit and potentially use it to run the company to take tax write-offs. One of the first step in running a business is creating a business plan to project profitability. For a sample business plan as well as detailed day by day coaching to set up and run your business, please visit our partners at Your Cash Flow Mentors.
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- Q: Can I distribute my products overseas?
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A: Home business is growing in popularity around the world, particularly in Australia, New Zealand, South Africa, the United Kingdom, and Japan. There are more business resources and opportunities available then ever before. If your goal is to expand internationally into select countries, you will need to check with the company you are associating yourself with. Many companies do distribute their product overseas. You could find travel brochures of those locations you would like to travel and post them in your office, or you could remind yourself each day that "I am in charge of an international organization with headquarters in the U.S., Hong Kong, and England." When the mind can envision the completed goal, you will be more eager to do what's necessary to achieve the desired result.
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- Q: Can a single parent generate enough income to be a at home parent?
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A: Absolutely. That is why we at Cash Flow Potentials Institute help you select the right company by giving you the basis for making an educated decision. You don't have to take the proverbial "leap of faith" hoping you get lucky. We all know that doesn’t work too well.
If this is your first or your third business, be sure you select a company that has some longevity, has developed mature training program, sales aids and has a mentorship program. Finding a company in the momentum stage is great as well, but don't get blind-sided by what appears to be fast bucks. If you choose the wrong company and have a bad experience, it may sour you on the entire concept.
If this is your first experience, you might want to look for an established company that's been in business for at least two years but is in its early momentum stage. We can help you determine the strength of the product line, management team and compensation plan.
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- Q: Is the team supporting me important?
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A: Absolutely. Selecting a competent sponsor is as important as selecting the right company. Choose your sponsor just as you would choose an employee to hire. Interview them. What can they do for you to assure your future success? You don't have to join an opportunity under the first person who tries to sign you up. Today, savvy opportunity seekers make potential sponsors meet qualifications in the same way they do with the business opportunity itself.
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- Q: Do you have a list of questions I should consider?
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A: Before you make your final selection, ask yourself these questions:
- Why do you want a home based business?
- What type of personal interests do you have that would be satisfied by a compatible business opportunity?
- What's your knowledge level for running a business?
- Does the company offer the type of support that will serve your personal needs at our current knowledge and skill level?
- How much money do you need to earn and how quickly?
- Have you talked to others who've experienced some success with this company?
- Do you have an experienced mentor that has a history of helping build successful distributorships?
- Do you have realistic expectations of the type of income you could earn during the "honeymoon" stage? This is the stage when you may have more enthusiasm than measurable benefits for the opportunity.
- Q: Are these get rich quick schemes?
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A: No. Most legitimate opportunities are a "get rich slow" business. Beware of those that offer shortcuts to success. Just like any business, it can take any where from a year to five years to become profitable. It is important to create a business plan. Many can move faster then other depending on the products or services. Cash Flow Potentials will share with you the ones we believe are moving and why.
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- Q: Is finding a good mentor / business partner important?
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A: Yes. While your mentor may be your direct sponsor or part of your upline, he or she may also be an independent advisor who's in no way connected with your MLM company. Some, such as a consultant, may charge you a small fee and help you evaluate various business opportunities in order to select the right one for your special talents. Others may mentor you for free and possibly guide you to opportunities they feel good about. It's part of their job to earn your confidence and respect. You may choose to be sponsored by them in one of their favorite companies, but don't feel obligated. Don't forget to check their references and dig into their credentials.
You must select a mentor you respect who has a history of success. If you were an employer hiring a new employee, would you be skeptical of someone who was a job hopper? Make sure your mentor is not an MLM junkie. Look for someone who believes in career MLM opportunities. To consistently earn the type of income you dream about, you must find a solid company, build a loyal distributorship and customer organization, and resist the impulse to jump on every hot new deal. Too many hot deals that fail will simply waste your time and money and leave you cold.
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- Q: What is Buyback and why is it important?
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A: Most good business opportunities have Buy Back clauses built into the distribution agreements. The purpose of a buyback clause is to eliminate the potential harm of "inventory loading;" i.e., the practice of loading up salespeople with inventory they are unable or unlikely to be able to sell or use within a reasonable time period. Inventory loading has historically been accomplished by giving sellers financial incentives for sales without regard to ultimate sales to or use by actual consumers. Having a repurchase provisions in the agreement is meant to deter inventory loading and to protect distributors from financial harm which might result from inventory loading.
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- Q: What is a Pyramid Scheme and are any of the solutions them?
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A: Pyramid schemes or endless chain schemes are illegal with applicable federal, state and/or local law and regulations.
The definition of an "illegal pyramid" is based upon existing standards of law as reflected in In the matter of Amway, 93 FTC 618 (1979) and the anti-pyramid laws of Kentucky, Louisiana, Montana, Oklahoma, and Texas. In accordance with these laws, member companies shall remunerate direct sellers primarily on the basis of sales of products, including services, purchased by any person for actual use or consumption. Such remuneration may include compensation based on sales to individual direct sellers for their own actual use or consumption.
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- Q: What is Word-of-Mouth marketing?
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A: Word of Mouth marketing has been around forever. We all do it and we always will. To learn more look at womma.com
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- Q: What is the difference between Direct Sales, Multi-Level Sales (Marketing) and Network Marketing?
A: Direct Sales (Single Level Marketing) - Compensation is based on one's own personal sales activities. Individuals cannot take on other distributors. Income comes from commissions on personal sales or bonuses.
Multi Level Sales or Marketing (MLM) - Compensation is based on one's own personal sales activities and from other distributors they are supporting or have enrolled. Income comes from commission on personal sales, sales from their distributors and/or bonuses.
Network marketing - Using one of the above compensation methods while distributing a product or service through a personal franchise.
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- Q: Should I have a business plan?
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A: Yes you should. It is a critical component to any business. Most people because they fail to plan - plan to fail. A smart business plan will allow you to not only survive and become successful, but will provide for implementing contingency plans.
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- Q: What is a Super Asset?
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A: Most family's main asset is their HOME. By running your business out of your home you are making your main asset a SUPER ASSET.
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- Q: Are these Home Based Franchises?
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A: Yes, they are also referred to Personal Franchises.
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- Q: Are the tools that important?
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A: Very important. This allows you the education to grow in your business. You should ask to see the tools each business uses as part of your evaluation process.
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- Q: What is the difference between “Word of Mouth”, “Network Marketing” MLM, “Conversational Marketing”?
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A: Very important. This allows you the education to grow in your business. You should ask to see the tools each business uses as part of your evaluation process.
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- Q: Does everyone succeed?
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A: No, it depends on YOU and your TEAM.
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- Q: Why are there different opinions on the same opportunity on the Internet?
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A: There are many reasons why people have different opinions. Some people look at businesses from a job perspective not from a business one. Many individuals do not succeed in business because they never have run a business before and they try to run them like their family affairs. Education, training and mentorship are critical for your success.
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- Q: What is financial freedom?
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A: You get to paint this picture on your canvas. Everyone is different and it falls true for success as well.
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