SIX KEY QUESTIONS TO ASK BEFORE YOU SET UP A NETWORK MARKETING BUSINESS

5. Are You Willing to Invest Adequate Finances?

All businesses require financing, and your network marketing business will be no exception. Underfinanced businesses are generally unsuccessful, and again your network marketing business will be no exception.

The good news is that, compared with most businesses, network marketing businesses typically require a comparatively small amount of financial investment. Shops require expensive stock, equipment and staff, etc; a franchise business typically requires a sizeable (perhaps $100,000 plus) up-front payment, plus stock, equipment and staff, etc; a network marketing business on the other hand generally requires only a small up-front payment, a fairly small investment in stock and equipment, and no staffing costs.

Because the amount of investment required is so small, many would-be network marketers fail to take it seriously. This is a big mistake, since it leads to an underfinanced business and probable failure.

The costs involved in setting up your network marketing business will vary depending on the particular requirements of your supplier company - and will be larger again if you have more than one supplier company as discussed in question 4. Typically they will include costs such as:

- a start up fee
- stock
- web site(s)
- marketing equipment
- business cards and stationery

Before you make the final decision to go into business, make sure that you compile a thorough estimate of both the up-front costs and on-going costs which will be required in order to operate an effective business. Then confirm that you have access to the required funds AND are willing to use them.

If - and only if - you can give a positive answer to these questions, you are ready to proceed to the sixth and final question.