Business Opportunity - What Exactly Is It?

So, what exactly is a 'business opportunity'?  That's a question that has haunted many lawmakers as well as countless would-be entrepreneur's that have lost their fair share as a result of so-called 'business opportunities'.

As reported by entrepreneur.com, according to the FTC, these 4 elements must be present for a venture to qualify as a 'business opportunity':

1. The individual who buys a business opportunity, often referred to as a licensee or franchisee, must distribute or sell goods or services supplied by the licenser or franchisor.
2. The licensor or franchisor must help secure a retail outlet or accounts for the goods and services the licensee is distributing or selling.
3. There must be a cash transaction between the two parties of at least $500 prior to or within six months after the licensee or franchisee starts the business venture.
4. All terms and conditions of the relationship between the licensor and the licensee must be stated in writing.

So, before you jump head-first into ANY new business, be sure to investigate it thoroughly.  You'll save yourself a great deal of stress and most likely money!