There are some key factors that should be in place when deciding if a business is a legitimate home business opportunity.

I'll discuss three of these important factors below.

Consider these factors when selecting a legitimate home business opportunity.

1. COMPANY TRACK RECORD

Researching the company track record is very important when looking for a legitimate home business opportunity.

The company behind the home business opportunity should have a few things in place that indicate the strength and strong leadership of the company. Your research will also give you an indication if the company will be around long term.

Financially Sound

A business that has not debt is a positive sign, and something you should look out for when searching for a legitimate home business opportunity.

This is a good indication that the company is financially healthy and stable. The product or service being offered is more likely to be higher in price if the company has debt, versus one that doesn't have any debt. You also want to make sure there has been no record of fraud, repeat issues with the IRS, or a bad reputation.

If possible, research or contact the company to find out the net growth over the last three years to determine if there has been consistent positive growth.

2. REAL PRODUCT/SERVICES

When choosing a legitimate home business opportunity it's important to make sure that whatever opportunity you look into, that there is a real product or service being offered to a real customer base. You don't want a fad or something that was quickly made up that really doesn't service a provide a real benefit to a market place.

A good indicator is asking yourself if the product or service being offered is something you see yourself or others purchasing? Is there a real market out there that would desire this product/service? And if that market will purchase the product/service consistently long term?

Beware of companies that just compensate on just recruiting fees, and not on the direct exchange of a legitimate product or service to an end consumer.

3. STRONG MANAGEMENT

Research the management team leading the company, and their background. This is often overlooked when searching for a legitimate home business opportunity. Do a background search on each member on the management team, and those leading the company.

Make sure they are competent and have a good track record of leading successful businesses with no past criminal charges or signs of unethical business practices.

Having leadership with Fortune 500 experience is a plus. This shows they have experience leading and managing a large company and can lead, grow, and manage the company you're looking into.

For more information on choosing a legitimate home business, or to see additional options to work from home, take a look at our Home Business Success Blueprint.