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.

Making the Most Out of Selling Your Small Business at Retirement

Retirement is the holy grail of the working individual’s lifetime. Having the free time to travel, spend time with grandchildren or pets, or even hitting the links at the nearest golf course is what gets many through the forty plus years of hard work and dedication they commit to day after day. When it comes to retiring for those who own small businesses, the same thought comes to mind. How do I sell my business and make the most profit?

Selling a business in today’s economy is not an easy task. The unemployment rate is at an all time high and many individuals are seeking the help of the government in the form of stimulus checks and unemployment income. What does that mean for the small business seller? Simply put, help is needed. It is near impossible to sell a small business alone or without the help of a small business broker. According to the Business Brokerage Press, the average business broker has a 14-24% success rate, where as an individual sale may only be effective up to 2% of the time. That’s almost ten times the success.

Finding the right broker can take some time and research, but it is well worth the effort. The right broker can provide your business with the exposure it needs and the help you need to find the perfect buyer. Business brokers are a part of every aspect of the selling process, from advising, advertising the business through a network of buyers, screening potential buyers, structuring the sale (including valuation) and all the negotiations there out. Business brokers also guarantee complete confidentiality and identity safe guarding.

Retirement should be enjoyed, not spent worrying about income. Make the most out of your retirement years. Work with a business broker to obtain the maximum profit from the sale of your small business and leave the legacy you deserve.

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.