Friday, July 25, 2008

Different Types of Business Opportunities

When searching for business opportunities, one should be open-minded about the different types of business opportunities available. This article takes a look at the various options to consider before launching into the world of entrepreneurship.

Business for Sale
Buying an existing business is a great way to enter the world of business ownership because a lot of the risk has been eliminated. If it is an established business and is being sold for legitimate reasons, you can be confident knowing that you will be dealing with an established customer base and proven business systems.

Although buying a business and finding the right one can take some time, it’s something you cannot and should not rush.

Buying a franchise is also a relatively low risk entry into the world of business ownership, especially if it is a well known franchise. Most franchise packages provide ongoing support as well training of franchisees. It’s also usually a lot easier to secure financing for a franchise than a new business concept because of its proven business success.

Becoming an agent for a particular product or a series of products can be quite lucrative especially if:

You can secure a particular area / location

You are good at sales.

Your product is unique, imported or difficult to find

Direct Selling
This is a little more difficult than owning an agency because usually there are no exclusive area rights so there could be a lot of people in one area selling the same thing. This however can be a great business opportunity if you are passionate about the product and can network well. In order to start up in Direct Selling, one usually purchases a starter-kit with a couple of products which could be topped up once sales start to increase. Direct Sellers that order a lot of stock would usually qualify for a discount and therefore make a higher profit margin. Direct selling is something that one could do part time or full time.

Sometimes business owners look for a partner to join their existing business, be it to help them manage and grow the business, to share the work load and responsibility or to inject capital. Although becoming a partner in a business is a great opportunity, it’s not the type of thing that is publicly advertised but rather an opportunity that comes looking for you, through word of mouth, friends, family or previous colleagues.

Start your Own Business
The fact that anyone can start a business is an opportunity in itself. Business tools and guides are freely available and opportunities are everywhere (you just need to be receptive to them!). People often generate business ideas through identifying a need, hence the saying "necessity breeds invention". Sometimes this can take ages to come about naturally but entrepreneurs are also known to brainstorm in order to generate novel ideas. Once you have identified a business idea, research it and develop a business plan. You will need business savvy, motivation and drive to get your concept off the ground but it could land up being the best decision you have ever made. This is definitely a business option that can have one of the biggest risks but also one of the biggest pay-offs, not only financially but also in terms of self-fulfillment.

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