Entrepreneurship has to be the most rewarding and riskiest of all money-making endeavors. Sure, you can have stability with a job, but do you make the same amount of money as Bill Gates? However, you should know that companies require you to take on a certain amount of risk before you can reap the rewards. This is why most entrepreneurs conduct business background checks to evaluate the viability of an investment. What are the components of a good business background check? Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Strengths: What are the inherent strengths of a business opportunity? Is the activity original? Does the owner have the knowledge or skills needed to make the business successful? These are just some of the questions that are answered in this part of the company background check. Today, more and more people are choosing to franchise certain businesses rather than creating their own from scratch. If this is the case, then you should check how well known the franchise is. The popularity of franchising in the market could indicate its strengths. This part of the business background check will help you evaluate how the company will be able to overcome obstacles often faced in the market. Weaknesses – Of course, where there are strengths, there are also weaknesses. Weaknesses are those factors inherent to the business that could be detrimental to your success. Including weaknesses in your company background check will help you ensure that you are able to form a balanced plan of action and decision. Knowing a company's weaknesses will help you protect it from ruin. By knowing a company's weaknesses, you will be able to discover which areas you should strengthen. This is an essential part of the company background check, but it can be the most difficult to honestly review. Opportunities: Opportunities are factors that are useful to the company and are found outside the company itself. This means that you will not be able to control these factors, but only take advantage of them. By including opportunities in your company background check, you will be able to ensure you know how to best leverage the company's strengths to make the most of it. The key to completing this part of the company background check is to see opportunities where others don't. By doing so, you will be able to outperform others in the market. Threats: Threats are factors that you cannot control and yet could prove harmful to your business. Their impact may not be reduced, but their effects on your business may be. Every business faces threats. By considering the threats in your business background check, you will be able to ensure that you withstand any threat and survive to fight another day. You may not be able to control threats, but you can certainly control how you react to them. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay These are the four most essential parts of a business background check. By examining your strengths, weaknesses, opportunities and threats, you can arrive at a decision that turns out to be the right one. As we all know, every entrepreneur has to take risks. However, what not many people know is the fact that every risk must be calculated to obtain the maximum return.