Franchise Opportunities Vs Business Opportunities: Pros and Cons

Congratulations!

So you’ve decided to be your own boss rather than work for someone else the rest of your life. Good for you! Many decisions will crop up before you make that first deposit or paste that first dollar bill on the wall next to your cash register. Choosing what sort of business you wish to operate is tops on the list – retail versus wholesale and service-related versus product-oriented – as well as the specific industry you plan to enter or the type of work you hope to do. But selecting between two major categories of self-employment is awfully high on that list – buying a business opportunity as opposed to a franchise opportunity.

What is a Franchise?

Many U.S. companies, especially those in the retail sector, provide goods and services through franchisees. If it’s a national brand, chances are good the owner of that particular establishment has purchased the right to operate it from the parent company. Fast-food restaurants are one major category, but the concept extends to everything from car repair shops and daycare centers to mobile veterinary clinics and home cleaning services. By paying an up-front fee, plus perhaps a percentage of your monthly gross revenue for ongoing licensure, you have the opportunity to become an independent operator with the full backing of a major corporation.

What is a Business Opportunity?

A business opportunity is far less structured than its franchise equivalent. You are given basic information about an industry and how to operate within it, but you’re under no obligation to promote a particular brand or to do business in a particular or controlled manner.

Franchise Opportunity Benefits

By purchasing a franchise, you gain immediate name recognition and credibility. No one questions the fact that Dairy Queen is a great place to buy soft-serve ice cream treats. Because the parent company is invested in making your business a success – they can’t collect that monthly payment or use you as a reference for new franchisees if you’re out of business – they provide both initial and ongoing training, regional or national ad campaigns, and well-tested business methods that are guaranteed to work. If the business requires a storefront, the company will usually help you find a good spot with lots of traffic, and perhaps even offer some sort of financing arrangement. Does the business require specific supplies or inventory? You will probably be offered significant discounts, since buying in bulk across the enterprise usually leads to lower prices for all.

The Downside to Franchise Opportunities

A legitimate franchisor will not allow you to buy into their system unless you pass a rigorous review process, which usually includes a careful analysis of your finances, your business experience, and your willingness to accept all their rules and regulations without question. Most franchise fees can run into the tens of thousands of dollars, plus you will have to spend additional money for equipment, supplies, and a location from which to operate – unless you are involved in a mobile business (which still probably requires a dedicated vehicle or two) or one you work from home. Some of your earnings every month will go toward a license fee, payable to the home office, and you may also be required to share some marketing expenses.

Business Opportunity Benefits

You will generally spend less money to acquire a business opportunity than you would a franchise opportunity. By definition alone, there is no upfront franchise fee, plus you usually keep all of your revenue rather than paying ongoing franchise or royalty fees. You are free to choose any business name you like, and even branch out into other areas as you see a need in the community. For example, if you purchased a hamburger fast-food franchise, you could only serve the items on the “approved” list. By buying a business opportunity, if you liked pies – well, you could sell whatever kind of pie you wished. You are also able to operate pretty much anywhere without fear of stepping on someone else’s toes. Franchises can have some very strict territorial guidelines.

The Downside to Business Opportunities

The acquisition of a business opportunity rarely gives you the option to use trademarks, brand names, or other elements readily identifiable to the buying public. The freedom you have to do things your own way also means your chances of success rest entirely in your ability to run a business. There is no home office support, no massive buying power for equipment, inventory or supplies, and no other business owners to consult when you’re faced with an issue that needs to be resolved. In a very real sense, you are on your own.

The Bottom Line

In many respects, deciding between a franchise and a business opportunity comes down to two main factors – how much money you have to spend, and what kind of a personality you possess. Rule-followers can become great franchisees, while people who like to go off in their own direction – maybe not so much. Be sure to weigh all the factors before you decide which is best for you.

Pro’s and Con’s of Business Opportunities

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.

Discovering & Identifying Turnkey Business Opportunities

If you are looking for turnkey business opportunities, you’ll quickly find that there are many internet business opportunity scams out there. You would probably be amazed at how many people end up entangled in a scam when they are merely trying to find a good business opportunity. Although there are many great legitimate opportunities, scams abound, which means you need to choose your business opportunity very carefully.

There are many advantages to going with turnkey business opportunities. They can help you to avoid having to build a business from the ground up. You already have a good foundation when you get started, which is definitely advantageous. Another benefit of going with a turnkey business is that it is usually much cheaper than starting a business from the bottom as well. Of course if you pick the wrong opportunity, none of these benefits will do you any good.

It’s important that you know how to pick a good opportunity that will help you to make a great income. Here are a few important tips and ideas that will help you avoid internet business opportunity scams and pick out turnkey business opportunities that will truly work for you.

One of the first tips that you should definitely keep in mind when choosing turnkey business opportunities is to never go with the first opportunity that you find. Even if it seems like the best opportunity out there with many benefits, don’t make a quick move. Before making your decision you will need to carefully analyze various ideas so you can make an intelligent decision.

Take the time to look around at many different turnkey business opportunities before making your final choice. Even if you do go back to the first one you came across, at least you know what is out there. Making a hasty decision can be disastrous, especially if you accidentally get involved in one of the many scams out there today. Spend the time doing your research first and make a decision that is based on your research.

Considering your interests and your capabilities is also very important as you take a look at the many turnkey business opportunities available. If you choose a business you are not interested in at all, more than likely you are not going to stick with it. Of course you also need to have the knowledge and skills to run the business as well. A combination of something you like and something you are skilled at will make the best opportunity for you and will get you on your way to success.

Check into the potential of the business before making your decision. While some of the internet business opportunity scams look good in the beginning, careful investigation will show you that the potential of profit is not there. Be sure that the opportunity is truly financially viable before you get involved in it. This way you are sure to pick out turnkey business opportunities that will provide you with financial gains.

Another important tip to remember when choosing turnkey business opportunities is to take inventory of your time. How much time do you have to devote to your new business? This will be important, since some business opportunities will require far more time than others. If you start out with a business opportunity that you don’t really have the time for, chances are you won’t be able to make it work. Remember, you have to balance your work and your home life, so consider this as you choose your new business.

There are definitely many things to look for in good turnkey business opportunities and many things that you should avoid if you want to succeed. With these important tips and ideas, you should be able to make a well informed choice on a good opportunity for your needs. Make the right choice and you’ll soon be reaping profit and success from your new business.

What to Look for in a Home Based Business Opportunity

When you were younger, did you ever dream about having your own home business? Were you sidetracked somewhere along the way and now find yourself caught in the 40-40-40 rut?

40-40-40 Plan (Rut)

40 minutes going to and from work

40 hours of work per week

40 years of life spent working slaving away for someone else?

When things get unfairly tough at work, do you still dream about your own home business – what you would do, how you would run your own home business, how you would treat your employees, what kind of money you would make, what product you would sell? Then when you decide to make a change in your life, do you look for another 40-40-40 job, putting your dream of your own home business on the back burner again for more of the same?

Do you know the end results of the 40-40-40 plan?

1% are wealthy enough to retire in comfort

3% are barely able to survive

27% are dead

69% are dead broke

Do you want to be in the top 1% that is willing to do something about it now, before it is too late? Being a former Human Resource Manager, I knew these statistics all too well, and I decided to take preventative measures.

Since you are still reading this article, I am going to assume you are looking for a change, moreover, a change as quickly as possible. So, let me share some of the wisdom I have gleaned from looking for a home business opportunity.

The two major focal points when looking for a home business opportunity are ones that will:

· optimize your efforts and time

· produce optimal financial rewards

Below are seven simple criteria to consider when looking for a home business opportunity:

1. Look for a business opportunity that offers a product or service that is, or will be, used daily by every household and/or business…

Think about products or services in your house that probably everyone around the globe uses on a daily basis. For example, services such as utilities, communication, appliances, etc., or products such as shoes, clothing, soap, etc.

Now think bigger – a product or service used on a daily basis AND that would represent a paradigm shift. For example, a paradigm shift was created in global communication when Alexander Graham Bell invented the telephone. Before 1885, no one had a telephone, nor had they ever heard the word “telephone”. Today, how many people do you know that do not have a telephone or cell phone?

Another paradigm shift was created when the first flight was made by the Wright Brothers in 1903. Today, man has already stood on the moon. Make yourself a list of products or services in your house that you can research to consider for a business opportunity.

2. Search for a home business opportunity that offers a product or service that has a global market…

It’s a small world. Plain old common sense would tell you that a home business opportunity with a product or service that has a global market would produce warp speed revenue when compared to one that is only within a local, regional, or national area. For example, the revenue produced from Microsoft with a global market is light years greater than that of a local shoe repair shop.

In addition, as you research this global home business opportunity, you will want to make sure that you are not required to stock products. It is time consuming to order products, receive and send out the products, manage backlogs, etc., not to mention the additional costs out of your pocket for shipping and mailing. You also encounter product changes or upgrades that makes your stock obsolete. So, avoid these types of home business opportunities like the plague.

3. An absolute must! Find a home business opportunity that incorporates leverage in its pay plan…

A business opportunity that incorporates leverage in its pay plan provides the best of both worlds. Leverage is a relatively simple concept. The best example is probably Ray Kroc and McDonald’s. Ray Kroc set up franchises for McDonald’s that agreed to pay him 3% of their profits.

In essence, McDonald’s sits back and collects 3% of the profits resulting from others exerting their time and their efforts. Let’s say, just for discussion purposes, that Ray Kroc sold 100 franchises and each produced profits of $50,000 that year. 3% would have produced $150,000 for Ray Kroc, yet he personally exerted no effort or time himself. What he did do though was brilliant, as he applied leverage by selling franchises, and became quite a wealthy man as a result.

Leveraging your home business will minimize your time and effort while maximizing your financial rewards. In a relatively short period of time, your home business will take on a life of its own, and you will be on the fast track to healthy wealth.

To find a home business opportunity that will rocket you into financial freedom, the company should incorporate leverage, not only in their business plan, but also in their financial rewards, preferably on a weekly, monthly, and annual basis – one of which should be residual. Residual is important because you want some form of steady income that you can depend on.

4. Search for a home business opportunity with a company that has live 24/7 support available…

Perhaps you have experienced the nightmare of attempting to make an automated payment where you could not figure out which button to push next, or what they meant by their selection choices, and you were unable to talk to a real person to get your question answered. The frustration even compounds when there is a deadline involved for a continuation of service.

Repeat customers comprise 75% of businesses, and satisfied customers will be the main reason for their repeat business with you and your product or service. Even in this automated society, the person-to-person contact is preferred, at least by the customer. Therefore, your success is dependent upon a home business opportunity with a company that has live, warm bodied live support 24/7 – whether it is support you may need, or support your customer may need.

Another important aspect of a home business opportunity with a company that offers live support 24/7, is the global perspective. What is morning for you may be the next day for someone else on the other side of the globe. To be honest, I am hard pressed to think of an international company with live personal support. Locally, they are even hard to find! So, when you locate a global home business with a personal touch, you have found a true gold nugget.

5. Seek a home business opportunity with a company that has a proven success record…

A lot of people, and a lot of companies offering their business opportunity, will tell you anything they think YOU want to hear in order to separate you from your money. When you talk to someone about a home business opportunity – turn the tables. You interview them.

Don’t be afraid to ask the hard questions like what they are making on a weekly, monthly, or annual basis with their home business. Ask them how long they have been running their own home business. Find out how many hours a day, week, or month they spend working their business. Ask them to give you examples of how they market their home business. Especially important is to ask if they have to spend additional money for items such as business cards, advertising tools, etc.

An example of a company with a proven success record is Xerox. Although Xerox is not a home business, it has a proven success record. In fact, they were so successful that their name is not only an icon, but the name “Xerox” is synonymous with the word “copy”.

6. Look for a home business opportunity with a company that incorporates training from experts and other professionals…

The majority of people on the Internet do not know how to harness the power of the Internet and turn it into wealth machine for themselves. Most people do not know how to market a home business. Therefore, a home business opportunity with a company that incorporates professional, expert training, taking you from the basics through the advanced stages of a marketing system, including how to use software programs, marketing tools, etc., is a virtual gold mine.

Since the majority of people on the Internet are not savvy with how to harness its power, a home business opportunity with a company that incorporates professional expert training is a definite requisite for success.

7. Look for a home business opportunity where the company works as a Team.

We all have our own weaknesses and strengths. We all like to have periods of “fun” when we work. When you have a business opportunity where the company works as a team, then your weakness may be a team member’s strength. For example, you may be detail oriented and have a harder time conceptualizing or seeing the whole picture. However, someone on your team may be the opposite. Combining your strengths will optimize your productivity.

In addition, we all have our “good” days and our “bad” days. Have you ever been around a negative person for any length of time? They pull you down too! If you have your own home business, you need to be upbeat and project a positive outlook at all times. So, when we have one of our “bad” days, it is always helpful to have someone from the team help to re-focus on the positive. Then when all are sitting around on the beach somewhere sharing war stories and battle wounds, everyone will have a good laugh.

Well, those are my nuggets of wisdom when looking for a home business opportunity. If you would like to minimize your search time and discover a home business opportunity that incorporates all 7 criteria, I can offer you one final nugget — simply go to: [http://www.globalsnippetes.com]

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