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How to find legitimate online businesses using basic businesses' knowledge

Finding legitimate online businesses nowadays is really hard due to misleading and mistaken information. Also, the belief that the internet is a magic money machine capable to get you rich quickly has contributed to the proliferation of scam artists that fool people and steal their hard earned money. This problem can be solved with basic businesses' knowledge...

If you're new here in the site, please take note this article is part of a section dedicated to learn about how to make extra money as a first action step to improve your personal finances.
For your own benefit, we encourage you to read this article and if you need more information, go to the main page of this section to follow the sequence of articles. You can use the links at the bottom. Thanks and enjoy!

What "business opportunities" usually do?

If you search the net, you'll find that many companies and websites talk a lot about the features and benefits their products have. They also try to make you think that their products or services are so wonderful that sell itselves and if you want to sell them (lets say as an affiliate) you'll become rich quick! Sounds familiar to you?

Well let me tell you that a business is a bigger concept than a product or service. The goods news is that if you ask the right questions you're in a better position to make a better decision. Let's see how

What to consider when you're looking for legitimate online businesses

According to the McKinsey's business planning methodology, you have to plan the following aspects for your business; whether is an online business or not:

  1. The product or service. Many companies talk only about this and forget the rest. You have to think in the product or service from the client's point of view, and if it satisfy a need and how.
  2. A marketing plan. This includes studying the demand and competition. Also you have to consider a marketing strategy to reach your customers, prices, etc.
  3. The business system and organization. A business has many different tasks to do and therefore requires many skills. Therefore the tasks have to be planned and the organization (legal and logistic) clearly established.
  4. The team. If there are different tasks to do, the business will need a team indeed. Depending on the business size tasks can be combined (not skipped) between a reduced numbers of people.
  5. You'll need an implementation plan. All the tasks must be sorted chronologically, establishing priorities, objectives, measures and due dates.
  6. The risks. There are risks in any project or business. Your task is to identify risks and take measures to mitigate them.
  7. The financial aspects. This is a try to measure in numbers whether your idea after all the previous points and considerations is going to earn you (and your partners) money or not. Also, this analysis measures the impact of possible scenarios (positive, normal, pessimistic)

Are you thinking these points are too complicated for an online business? Forget one of them and you'll see how important and applicable they are. Legitimate online businesses consider all of them. The difference is in the size...

Examples of legitimate online businesses

As you know, this article is part of a comprehensive analysis of SBI! from the business point of view. This analysis has been focused in measure how this set of tools help entrepreneurs to plan and execute each part of the business building process.

Of course, there's no better way to evaluate this business tool than: read, visit, contact, etc. real and legitimate online businesses built with this tool. You can start with these sample sites.

You can also check these case studies, and if that isn't enough you can watch how these entrepreneurs with very different business ideas (electronics, entertainment, finance, food & cooking, etc.) have built a business with very good results.

Want more proof? Check how these businesses have been covered by the media.

Wrap Up

If you want to evaluate if a "business opportunity" is legitimate, evaluate if this opportunity are giving you all the tools to manage and execute all of the above points. If it's not, is not a business opportunity is just a product or service that you can represent or sell. Therefore, you'll have to create the business.

Now let's back to the main page of this section to learn more about how to make extra money as a first step to improve your personal finances. Just use the links below:

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