The following is the last segment of our 10-part series entitled “10 Steps Towards Launch!” by Terrel Transtrum, President/Founder of ServiceQuest. If you are thinking about starting a new direct selling company, contact us today!
The last of ten business segments addressed in the ServiceQuest system for evaluating “launch readiness” is MONEY. Money and MLM, as in any business, go hand-in-glove. Here are the best practices to help you determine how prepared you are for launching a successful MLM business.
- Set up Accounting Software that Integrates with your MLM Software and Technology Systems
- Determine your Capital Requirements for Achieving Launch and Positive Cash Flow
- Implement Business Controls to Assure Safety and Continuity
- Create the System for Classifying and Tracking Information Essential for Taxes
- Pay Close Attention to Commission Payments and Supporting Systems
- Implement Payroll and Employment Tax Systems
- Create the Systems for Banking, Treasury and Risk Management
- Start Early to Set Up the Payment Gateway Systems
- Set up Your Commission and Payment Processing Accounts
Here are examples of descriptions that you might write for your MLM Launch Best Practice:
- Commission Payments – We have in place the technology for reporting and paying commissions to distributors / consultants, integrated with the commission processes of our enterprise software and accounting software.
- Business Controls – The basic business controls are set up to form the information link between business activities, accounting, and commissions. These include procedural standards, source documents, money-handling systems, documented systems, and approval processes.
- Payment Processing Account – We have acquired a Tax ID number, we have our website in place (e-commerce capable), and we have opened a business checking account and have a favorable credit history so that we can successfully apply for a merchant account.
Money is the lifeblood of your MLM business. Careful preparation and planning will be the key to starting and running a successful MLM. For more information, contact Terrel Transtrum firstname.lastname@example.org