Do Small Business Opportunities Still Exist?

Posted by on May 24, 2013

bt-business-opportunity.gifThe concept of small business opportunities 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 a franchise business opportunity. Otherwise almost anything goes from distributorships to vending machine routes, from network marketing to dealerships.

So What are Business Opportunities

Business opportunities can be online or be located in the real world. In general, business opportunities are 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 opportunities 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.

Will I Own The Business Opportunity

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.

What Are the Benefits

There are so 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.

Will I Require Training

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.

The Con’s

But the world of a new business opportunity 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?

Don’t Take the Sellers Word

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?

Have Your Solicitor View the Financials

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 in Australia. It’s a fairly simple matter to find something that appeals to your interests and fits within your startup budget. Make sure you 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.

Author: Andy White

Andy White holds a Masters of Business Management and after a career as an Officer in the Australian Army, worked as a Business Consultant and now operates his own successful Real Estate business on the Queensland coast.

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