The concept of a business opportunity might not be completely understood, simply because it can apply to so many different situations. For the purpose of our discussion here, we will not be talking about franchise opportunities. Otherwise, almost anything goes–from distributorships to vending machine routes, from network marketing to dealerships. Business opportunities can be online or be located in the real world. In general, a business opportunity is the sale or lease of a product, service or equipment that enables you to start a business.
Business opportunities usually involve a product and they may have a location, although the online world is quickly changing that. The assumption with a business opportunity is that there is a market for the product or service and there is the potential for profit. Initial fees for taking advantage of a business opportunity vary and there may be a buy-back or guarantee provision. Business opportunities usually come with some sort of marketing program as well.
A “business opportunity” doesn’t normally refer to the one-off sale of an independent business. Business opportunities normally consist of a system or set of procedures that can be sold to more than one buyer in more than one location. With the sale of an independent business, they are usually no continuing obligations between the seller and the buyer. The buyer can do anything they want with the business they’ve bought, and there’s no requirement for a continuing relationship with the seller.
There are many advantages and benefits connected with business opportunities. They normally have a lower initial fee and lower startup costs than a franchise. Business opportunities are normally based on a proven system or product, so you can profit from the experience of others. There may be a training program connected with the business opportunity and longer-term business counseling may be available as well. You benefit from the buying power of a larger company and you can often take advantage of cooperative promotional activities and advertising.
But the world of business opportunities is not always perfect. The company offering the opportunity may not always have your best interests in mind. There may be a lack of support at some times. Exclusivity clauses (meaning you can sell their product and no others) may hinder your ability to compete in the marketplace. It’s not unheard of for parent companies to go broke or declare bankruptcy. The bottom line? Anytime you consider taking advantage of a new business opportunity, it’s your responsibility (not someone else’s) to diligently evaluate both the company and yourself.
First of all, are you truly ready to take on a business opportunity? In addition to having the financial freedom to take a chance, do you really have the passion and excitement to put into a new business opportunity? And what about time? Do you have enough time freely available to devote to the success of this business opportunity?
Successfully starting up a new business requires complete knowledge of your product or service. If the company is not willing to immediately and cheerfully provide that knowledge, then you should quickly back away from this particular opportunity. Do some market research of your own. Don’t take the company’s word for it that a rabid demand exists for their particular product.
Investigate the company’s record of past success and try to interview someone who’s currently involved with the business opportunity. Has the company lived up to its promises and fulfilled its obligations?
What sort of income claims are connected with this business opportunity? You should look for assurances of reasonable income, but at the same time there should be no limit on future income. Promises of fast and easy riches should be a warning for you to stay away. How many years has the company offering the opportunity been in business? What sort of reputation do they have? Are their ethics and standards compatible with yours?
There’s no shortage of business opportunities available. It’s a fairly simple matter to find something that appeals to your interests and fits within your startup budget. But don’t allow yourself to be rushed into any arrangement. True business opportunities based on proven models will have no trouble waiting for your careful consideration.