Business Opportunity

Some Business Opportunities Are Just the Right Fit for Stay-at-Home Moms

As a Mom, you’re a jack of all trades. You cook, you clean, you drive your kids all over town, do the food shopping, do the laundry?and that’s just the first ten-hour shift on any given day. Salary.com estimates that full-time mothers, if they were to be adequately reimbursed for all the jobs that they do, would be making as much as six figures a year. That’s sure nice to hear, but we all know that being a mom, or a dad for that matter, is really a labor of love that has no price tag.

Despite the fact that being a full-time mom is something you do willingly, maybe there’s a part of you that really does want to get out there and interact with the public or showcase your talents or just earn some extra income. Who knows, you might have always dreamed of owning your own business, but because you’ve been busy raising your family, it’s never seemed like the right time. Or, you’re a woman who once was climbing the corporate ladder, but stepped off to focus on raising your children. Now you’re ready to explore the idea of returning to work in some capacity, but you’re not sure how or where or even what it is you want to do.

The delicate balance of work and family in this day and age is a tough one, for both men and women. Although for women in particular, having more options available to them than ever before can make life more interesting, but also more challenging. Decisions....decisions! If you’re a mother who wants or even needs to work and get paid for it, where do you begin?

Getting a job and earning money means resumes and networking, right? It also often means working for someone else. But, when you work for someone else, you’re schedule is not your own, you often have little control over your environment and salary, and the money you put out commuting or to buy a suitable wardrobe sure cuts into your take-home pay. What if there was another option, an affordable, manageable and oftentimes lucrative one that you might not have ever considered before? Welcome to the world of the business opportunity?where accomplished entrepreneurs are willing and able to put you on the road to creating your own business success story by following in their footsteps.

According to the second edition of Home-Based Business for Dummies, “a business opportunity is an idea, product, system or service that someone else develops and offers to sell to others to help them start their own, similar business.” Your customers pay you directly for your products or services, but unlike many franchises, you are not compelled to share a portion of your profits on an ongoing basis or to adhere to someone else’s idea of a business or marketing plan as your business grows.
Choosing Wisely

If the idea of being your own boss appeals to you, you need to know that all business opportunities are not created equal. Some of them are just plain more suitable than others for women who really enjoy being full-time moms first and foremost. And, some of them are just scams intended to get your money up front and leave you hanging. In fact, stay-at-home moms represent one of the biggest targets for scam artists out there, so be careful that any business opportunity you pursue is reputable.

A truly legitimate business opportunity is one that does everything it can to ensure your success. And, in the case of the stay-at-home mom, it also means choosing one that meets your need to balance work and family to your own satisfaction.

Scott Kochman is the President of Friendly Songs, Inc. His company produces high-quality, personalized CDs for children featuring original music, professional vocalists and expertly crafted lyrics that allow for the tastefully integrated mention of a child’s name throughout each song. “My business partner and I have figured out how to blend the child’s name into each song so that it is totally natural and seamless,” Kochman says. “It’s all our original music, using real musicians and sung by an amazing Broadway vocalist.” Of course, personalized music CDs are nothing new. They’ve been around awhile, but as Kochman says, “We’ve built a much better mousetrap.”

The company not only produces all the music, but it makes the software that is necessary for its business opportunity associates to actually create and sell the personalized CDs on demand anywhere. Not surprisingly, many of its dealers are moms who are looking to balance family and owning their own business. “We look for someone who believes in our product, who will take initiative and be creative in how they market it,” says Kochman.

Perhaps one of the nicest benefits of this business opportunity is the seamless way for children and their parents to become part of the marketing effort and ultimately the business’ success. “We have a number of testimonials from moms who actually say they spend more quality time with their kids now that they are in the business of marketing and selling Friendly Songs,” he continues. “The places and events that are the most suited to marketing our product are family-friendly venues, and the kids actually become part of the marketing effort and even help out with managing the software and burning the CDs. Once the music is playing and kids start dancing, the CDs actually sell themselves,” he says.

Thus far, Kochman has been really pleased with the way his business is growing as new associates join what is quickly becoming an international team, and he is dedicated to ensuring their success wherever and however possible. “We want to keep our dealer base small and manageable, yet far reaching at the same time. Our dealers are our partners. Without them, we can’t grow. If they do well, we do well, so it’s in our best interest to do all that we can to see that they succeed,” he says. In consult with its dealers, the company is always developing new products, as well as new ways to market its current products with that goal in mind. It is particularly excited about the upcoming release of a new Christian music CD due out by Christmas 2008, and a new lullaby CD shortly thereafter.

Kochman says that one of his key pieces of advice for stay-at-home moms who think they want to start a business of their own is to find something that they really enjoy doing. “There will always be an element of work in any business you choose,” Kochman says, “but if you find a product that you feel a sense of pride in and connectedness to, and you can integrate it into your life, you’re much more likely to do well with it.”

Picking Your Passion

Kochman’s words of wisdom on that score are supported by many experts who assert that one of the keys to success in owning your own business is that you’ve got to really enjoy what you’re doing. The old adage, “If you do what you love, the money will follow,” really has some truth to it.

Take Hedy and Ross Hale for example. For more than 30 years, this dynamic husband and wife team has made a successful business out of merging their passions and talents for art and teaching with raising a family. As the owners of Original Pawprints, as well as an internationally recognized art studio, they create personalized, high-quality and affordable ceramic handprints that families treasure for generations. They’ve also made their expertise, both in clay artistry and business, available in the form of a business opportunity that is especially suited to stay-at-home moms.

“We started making ceramic handprints for friends who were having babies more than 30 years ago,” says Hedy Hale, the company’s co-owner and CEO. “We did a local show and met a woman with a daycare center who wanted to offer our handprints as gifts and, in moments, a business was born,” she says. “We started training moms to do what we do because, over time, more and more moms told us that there was nothing like it available in their own areas and that they wanted to go into business for themselves making other people happy like we had made them happy.”

The Hales’ ceramic handprint business opportunity is very suited to managing work and family and there are no educational or other real prerequisites. “The nice thing about our business opportunity is that your schedule is incredibly flexible, you do not need experience, you do not need to be a professional artist,” says Hale. “You do need to have integrity, a good work ethic and a willingness to learn. We can teach you everything else,” she says.

Asked if she’s concerned about creating more competition for her and her husband’s own business when she trains others to do what they do best, her response conveys the generosity of spirit that her associates must find so comforting. “There’s just no way that any one or even ten people can do all the babies or all the beloved pets in any one location,” she says. “This business is so heartwarming, so personal, so rewarding, and the demand for it is endless. New babies are born every day, and now we’re even serving a second generation.”

And although their business is not the only one of its kind out there, the combined expertise, dedication and honesty of its owners just might be. The Hales want people to know that “this is not a get-rich-quick scheme.” If you want to make this business work, you have to learn, plan and be motivated to work hard. But when you deal with the Hales, you can rest assured you’ll be off to a great start. “We teach you everything you need to know about this business, not just how to make handprints. We even guide you in acquiring materials and equipment, and there is no question that is not worth asking; we leave nothing unanswered,” Hale says. “We offer the most affordable and yet the most thorough on-line training in the business and our person-to-person in-studio training is always one-on-one.”

She finishes by adding, “I am so passionate about the work that I do and this business, and I want to share that with others. Hale sums up with a rhetorical question that could just as easily refer to any mother’s most important calling as it does her thriving business of many years, “Who would have ever believed that a gift from the heart could grow this big?” Indeed. And it always seems to happen way too fast.

Disadvantages of a Business Opportunity

* Poor site selection. The majority of business opportunities are consumer-oriented retail operations which rely on good location, visibility and easy access to the establishment. Most buyers of business opportunities casually accept the locations chosen for them. DON'T! Look it over thoroughly yourself. You might even hire an outside marketing consultant to evaluate and possibly argue with the parent company's choice. Having a better locations could literally mean millions of dollars in profit over the course of 20 years.

* Lack of ongoing support. There is usually no requirement for the business opportunity seller to offer ongoing support of any kind. If the seller decides not to supply information or guidelines that could help you once you're in operation, you may not have much recourse available to you.

* Exclusivity clauses. Are you restricted to selling only the manufacturer's merchandise? If this is the case and you deviate for any reason whatsoever, you run the risk of the licensor canceling the agreement. If you do buy from other sources, it will be very hard to hide-most parent companies will require you to open your books for examination at predesignated periods of time. Any irregularities will be spotted at these times. Most smart buyers of business opportunities will negotiate the point in the agreement stipulating sources of supply in case product quality is inconsistent.

* Parent-company bankruptcy. Another pitfall is the possibility of the parent company overextending itself and going bankrupt. While this is not as serious in a business opportunity as it would be in a franchise, you still run the risk of losing the business because your property contracts may have been financed through the parent company.

You should carefully investigate any business opportunity you're considering. Get a list of operators from the parent company and call them. Have a lawyer look over any agreement drafted by the parent company. Make sure you receive a disclosure statement. Then carefully evaluate the licensor. Don't let anyone hurry you. Make sure a responsible company backs the business opportunity.

Advantages of Business Opportunity

# A proven system of operation or product. Existing systems serve to maximize efficiency and returns and minimize problems. It's simply a matter of passing on experience, still the best teacher. Whether they admit it or not, most people like having their hands held once in a while. During crises, the parent company is there to help the licensee over the bumps. Many people like this idea of safety in numbers.

# Intensive training programs. In any new business, a lot of time and money are consumed during the learning period. A good business opportunity venture can eliminate the majority of ineffective moves through an intensive training program.

# Better financing options. Because of its financial size, credit line and contractual agreements, the parent company offering the business opportunity can often arrange better financing than an individual could obtain. Financial leverage is an important consideration in any investment situation.

# Professional advertising and promotion. Most small businesspeople don't spend sufficient money on advertising. When they do, their efforts are often poorly conceived and inconsistent. Many business opportunity ventures supply the buyer with print advertising slicks, radio ads, TV storyboards, etc., in order to provide a better marketing effort. Some business opportunity ventures will even have a cooperative advertising agreement under which they will split the cost of print, radio or TV ads. This type of marketing help is especially beneficial in large metropolitan areas where the cost of media is prohibitive to the one-shop owner.

# Ongoing counseling. Most business opportunity ventures offer support not only through training but also through counseling from a staff of experts who offer assistance that no independent could afford. Legal advice is available to a certain degree. The most efficient accounting systems-perfect for that particular business-have been designed by experts in the field. Some licensors offer free computer analysis of records, and through comparison with other units can pinpoint areas of inefficiency or loss as well as profitable aspects of the business that are being neglected.

# Site selection assistance. Experts in site selection and marketing choose locations using all the scientific tools available. Professional negotiators arrange leases and contracts to the best advantage, using the power of a large organization to influence landlords and other important figures.

# Purchasing power. Many times, the parent company's tremendous buying power and special buying techniques can bring products, equipment and outside services to the licensee at a much lower cost than an independent could ever get.

Types of Business Opportunities

* Distributorship. Refers to an independent agent that has entered into an agreement to offer and sell the product of another but is not entitled to use the manufacturer's trade name as part of its trade name. Depending on the agreement, the distributor may be limited to selling only that company's goods or it may have the freedom to market several different product lines or services from various firms.

* Rack jobber. Involves the selling of another company's products through a distribution system of racks in a variety of stores that are serviced by the rack jobber. Typically, the agent or buyer enters into an agreement with the parent company to market their goods to various stores by means of strategically located store racks. The parent company obtains a number of locations in which the racks are placed on a consignment basis. It's up to the agent to maintain the inventory, move the merchandise around to attract the customer, and do the bookkeeping. The agent presents the store manager with a copy of the inventory control sheet which indicates how much merchandise was sold, and then the distributor is paid by the store or location which has the rack-less the store's commission.

* Vending machine routes. Very similar to rack jobbing. The investment is usually greater for this type of business opportunity venture since the businessperson must buy the machines as well as the merchandise being vended, but here the situation is reversed in terms of the pay procedure. The vending machine operator must pay the location owner a percentage based on sales. The big secret to any route deal is to get locations in high-foot-traffic areas, and of course, as close to one another as possible. If your locations are spread far apart, you waste time and traveling expenses servicing them.

In addition to the three types of business opportunities listed above, there are four other categories you should be aware of:

* Dealer. Similar to a distributor but while a distributor may sell to a number of dealers, a dealer will usually sell only to a retailer or the consumer.

* Trademark/product licenses. Under this type of arrangement, the licensee obtains the right to use the seller's trade name as well as specific methods, equipment, technology or products. Use of the trade name is purely optional.

* Network marketing. This is a generic term that covers the realm of direct sales and multilevel marketing. As a network marketing agent, you would sell products through your own network of friends, neighbors, co-workers and so on. In some instances, you may gain additional commissions by recruiting other agents.

* Cooperatives. This business is similar to a licensee arrangement in which an existing business, such as a hotel or hardware store, can affiliate with a larger network of similar businesses, often for the sole purpose of advertising and promoting through a common identity.