A business opportunity is one where you purchase a packaged system of doing business that often comes with an instruction manual or a demonstration video. When you purchase a "business opportunity" package, you are purchasing instructions and perhaps some materials to conduct this business, but there are no set rules and regulations that you must follow to the letter. Once you have bought the business package, you are on your own, free to conduct the business as you please.

While this might sound like the perfect platform to help you to start off on your own, there is one important thing to be done before taking the plunge and that is to investigate the business opportunity. Remember the old adage - if it sounds too good to be true, it probably is!

Therefore, it is vital to conduct due diligence before you invest your money in any scheme. Remember, there are many business opportunities that turn out to be scams, where you can end up losing your entire savings. So, be vigilant and take steps to ensure that the business opportunity you are interested in is legitimate before handing over your hard-earned money.

There are several ways to investigate the business opportunity of your choice, as listed below:

oCheck with your local Better Business Bureau (BBB). Call the BBB and ask if they have a "reliability report" filed on the company. This report provides information on the company and will include whether or not complaints have been filed against it. It will also let you know how the company handled those complaints.

oCall the National Fraud Information Center at 800-876-7060. The Center provides information, referral services, and assistance in filing complaints, all of which could be hugely helpful when you wish to investigate the business opportunity.

oContact the Chamber of Commerce in the city where the company is based to know if it is a member.

oCall the Attorney General's office in your state. Also, check with the Secretary of State's office to find out whether there are any complaints filed against the target company or if there are investigations pending.

oYou can also investigate the business opportunity further by calling the magazine or newspaper that carried their advertisement and asking whether they have information on the target company.

oContact the company itself and secure finer details about the business opportunity package and what it entails.

oThe Federal Trade Commission offers free information about the FTC Franchise and Business Opportunity Rule. Write to: Public Reference Branch, Federal Trade Commission, Washington, DC 20580 or call the FTC at 202-326-2222.

Companies that have a legitimate business opportunity package will be more than willing to send free additional information about themselves and their program before asking you to invest in it. Finally, listen to yourself if, after checking out the company, you still have questions and reservations, walk away from the proposal. Do not send money unless you are completely satisfied about what you are buying into.