This is the eighth post in a series of articles that will help you avoid scams and invest your time and money into legitimate business opportunities. You can find the whole series in the Business Scams section.
Turnkey Systems
One phrase that features regularly on advertisements for bogus business opportunities is “turnkey system”.
A turnkey system is a business that supposedly requires virtually no managing. Everything will be set up before you invest in the business, and it will generate an income with little effort from you.
You simply turn the key (metaphorically) and off it goes!
A Turnkey System Riddled With Flaws
Here is a summarised example of an advertisement for a turnkey business opportunity that I recently saw:
I have an internet marketing business for sale. I can give you some information but I can’t tell you what the business is. I have created a business that literally anyone can use and benefit from. I have invested over $30,000 in this business. This is a turnkey operation that can be run by anyone. The website has been created, the software is in place, the marketing material is already in circulation and the payment providers have all been contracted out. The only thing that needs to happen now is that YOU need to change where the deposits go and you are ready to go. I am selling the business for $6,000. The business will return the investment to the new owner in three months.
I’m sure you have already spotted the most obvious flaw – a business that has had $30,000 invested in it but is for sale for $6,000 mustn’t be doing well. In addition to this, and the use of the phrase “turnkey system”, there are other factors that make this opportunity look like a scam, such as:
- Not indicating what the business is (“internet marketing” is too broad a term)
- There is no business that literally anyone can run (we all have different skills)
- Running a business takes a lot more work than redirecting bank deposits
- Businesses usually sell for a lot more than three months worth of income
Real Businesses Take Hard Work
ALL successful business require hard work and dedication to run. It is highly unlikely that anyone will ever set up a business that is as easy to run as turning a key. And if they did, they would not sell it – especially for far less money than it cost to set it up!
Please don’t be enticed by the promise of easy money. Evaluate each business opportunity by properly analysing the business’ fundamentals, and try not to be distracted by flashy phrases such as “turnkey system”.
Read the next post in the series Part 9 – No Value Proposition
Read the previous post in the series Part 7 – Lack of Contact Details
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