I’m contending that the use of your personal credit card for mentoring services may not be the best way to use OPM. However, if you have identified a true niche market by doing all the upfront research, have done a trial with that niche product or service, and determined that the niche is real, then the use of credit in some form or another may be justified. Even if you have the perfect product or service, proceed with caution.
So what is a safest example of OPM for those who haven’t quite found that niche product or service? Probably the safest form of OPM is the use of Dropshippers. The Dropshipper warehouses the product, you advertise it for sale, you sell the product and collect the money, you order the product from the Dropshipper and they deliver to your customer. By using a Dropshipper, you can try several product ideas and see what works best for you before outlaying real cash quantities with a wholesaler.
Should you use OPM outside of a Dropshipper? This is a really tough question that only you can answer. Do the research. Run trial auctions before purchasing large quantities. Try several headlines with various keywords. Get a feel for the market. Verify that the market is NOT seasonal (only good at certain times of the year). Write a business plan. Review the business plan with financial lending institutions and get a feel for their confidence in your ability to succeed. If you can get to the end of this list with a positive feeling about the potential of using OPM to advance your business, then proceed with caution making sure you stick to your plan, only making adjustments as you discover things that will surely come your way to divert you from success. Will you succeed with OPM even after all this? Many businesses do, however, many do not. If you’re not willing to plan and investigate to the ultimate degree, then find another way.