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Home Based Business: The Risk Involved

Apr 25, 2008
The risk of delay or not being paid by clients is high compared to the other risks. This is so because everything happens virtually. Most often, you get a client by bidding on a site, surfing the internet for leads or any other manner done virtually. Even if how well you deal with business with your client, there is no 100 percent guarantee that at the end of the project you will get paid. This happens a lot around and some survived such ordeal, some not.

But why does this happens? What lead such clients not to pay what is due upon them? Like any traditional business which involved manufacturing, wholesales or retail and payment is within 30 days or so, there is always that risk that the buyer will default payment. For a service company, who allows 15 days or 30 days grace period for the client to be able to pay, then it turned out some clients are gone and nowhere to be found. Home based business like any other business has this type of risk, even higher. This is by the mere fact that clients or buyers only gained clients or customers through sales talk which is done in the internet. There is no personal contact or appearance made in order to discuss matters with regard to the business. The vendor lives in US, the vendee lives in Europe. It would be inconvenient for one party if they decide to meet up in person. So, what you do have is only the hope that such party would do what is incumbent upon him and the trust that he or she will do his obligation in accordance to what is been agreed upon.

Let's face it there are people who loved to take advantage of people and gained money easily without even doing a single thing, and if you bumped into these scam artists, most likely you will lose money and will not regained such from them. It is difficult to trace a person through the internet, you got to have experts to search such person but it entails costs on your part.

With this scenario happening 24/7, less likely agreements and terms are not laid down in black or white, meaning induced writing. There is no written document that will prove existence of contract to have recourse against the person who breached the contract. Always, remember the risk of not being paid is high. It is for the betterment of both sides to lay it all down in writing, to have recourse if one will not fulfill his or her obligation as stated in the contract. If the buyer will not pay, you can enforce that contract and go to court, if seller has breach of warranties, you can sue for damages. Matters like these can definitely make a change on how you go about home based business and gear towards its success.
About the Author
Olivia Justus is a successful internet entrepreneur and receives multiple streams of income through her home based business. You may visit http://www.richtravelgirl.com and http://www.oliviajustus.com/nesblog to find out she earns thousands weekly from the comfort of her home.
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