This background is a tremendous asset for anyone considering launching an MLM company.  It is arguably one of the single most valuable skill sets required to allow the new company a real shot at success. But unfortunately, many new owners are a bit myopic concerning other areas that are critical to successfully conceiving, designing and launching a new company in our industry.

Having personally been involved in every aspect of launching four MLM companies, as well as consulting in specific areas for scores more, several clear common denominators have emerged as problem areas for the new corporate executive. These deficiencies are generally operationally based, and not necessarily intuitive if the new owner has not personally handled the majority of the tasks associated with the development and launch of an MLM company.

Inadequate Planning:  The lack of proper planning.  If you are not sure of the detailed requirements for proper planning, you have committed the first faux pas in the planning process.  Lack of planning is by far the most critical mistake a new entrepreneur can make. The lack of a strategic plan that is both detailed and well thought out can almost assure the failure of a new company.

One of the best ways to describe what an adequate strategic plan is, is to be clear about what it isn’t. Do not confuse a strategic planning document with a business plan, marketing plan, proforma or a list of tasks to be completed. A proper strategic plan will contain all of these components, but the whole is greater than the sum of the individual parts.

At a minimum the strategic plan needs to address six areas of your new business.

Each of the five areas is critical to your ability to successfully launch and grow your new business. As well, each of these areas must be broken down into sub-categories and ultimately individual tasks with responsibility and timeline assigned. My experience has shown that you would need to define, prioritize and complete between 275 and 750 individual tasks for a successful launch. Failure to identify or properly address any single task can cost thousands of dollars in cash, weeks of delay, loss of critical momentum or even the complete failure of your new venture.

If you are in the process of starting a new company, think long and hard about your ability to define the foundation for the new business. Pride or ego should not enter into the equation. Failing to get the required assistance from someone who has “been there – done that,” could be the most expensive money you ever saved…

Leveraging Technology Partners: One of the things that amazes me the most about our industry is the term “Due Diligence”.  You hear it tossed about by everyone from the CEO to the newest distributor.  If Wal-Mart launched an MLM division tomorrow, the switchboard in Bentonville, AR would light up like the Christmas tree in Central Park… Ten thousand potential distributors would be calling in to do their “Due Diligence”, before investing $30 for a distributor kit.

In contrast, the single most critical decision in launching a new company, selecting an IT partner, is often made by the equivalent of tossing darts over your left shoulder at a wall behind you. Any company owner, who patently believes the marketing and sales spin of many of the vendors offering to handle the back-office piece of your business at a bargain price point, should be ashamed of him or herself.

In the past three or four years it seems that every kid that can push the power button on a PC, or throw together a web page, has decided that they are the anointed and appointed technology wizard destined to save the MLM industry. What hogwash!!!  Saying that there are a handful of qualified, experienced and capable software vendors is optimistic at best.  The diversity of the product offerings, compensation models and fulfillment options in the direct sales industry demand a technology partner that has been around the block and proven their ability to perform.

Don’t be misled by emotional statements from the new vendors like “That is old technology”, or “If it isn’t Microsoft based it is inferior”. There is a narrow balance that needs to be struck between cutting edge technology and proven reliability. If you have a hard time coming to grips with this concept, try plowing a cornfield with a Ferrari… you’ll look really cool, right up to the time the car stalls and fails.

The same concern should be examined for all of your technology partners. You will need to investigate unified messaging vendors, conference calling companies, web hosting providers, hardware vendors and many others. Invest a little time or money getting unbiased, third party validation before you make critical IT and technology decisions.

Legal review:  The complex and often litigious legal environment we find ourselves in mandates the use of qualified, experienced and effective legal counsel. While your local corporate attorney may be able to address a large number of your standard business issues, you absolutely must have a relationship with a direct sales specialist. To try and get by with a generalist would be akin to using your family physician for your heart transplant.

You should never consider producing any marketing collateral, recruiting tool, internal policy or product extension without the review of your qualified legal counsel. They need to be onboard before you begin to design your applications, compensation plan, policies and procedures and web page. It will always be less expensive to consult before production than to defend afterward.

The list of attorneys, and or firms that would receive my recommendation would be even shorter than the list of qualified IT partners. There are precious few attorneys that specialize in our industry, and are capable of providing the kind of service and knowledge base you need to protect you and your company. The ever-changing regulatory climate that affects a direct sales company is multi-jurisdictional and complex. You may receive scrutiny from a local governmental agency, State Attorney General’s office or a myriad of federal regulators. Make sure you have a relationship with a firm with real world experience.

The message that I am trying to share with you is a simple one. Most company owners have a variety of skills and abilities that will help them achieve their dreams and goals in launching their new company. But, no one I have ever met has expertise in all of the areas required to give you the best chance of success. Get assistance from the right source for all of your needs. A little money saved on the front end will many times equate to a huge loss down the road.