Find out more about Business Opportunities in the UK and learn how they differ from Franchise Opportunities.
Business Opportunities – Unlocking the Door to Success
Starting, running and sustaining their own business is every enterprising individual’s dream. Much of the financial growth that witnessed in the UK over the last few decades can be directly attributed to this spirit of entrepreneurship – thanks in part to the growing popularity of Business Opportunities.
It is, however, not quite easy to manage a business. And the biggest hurdle, contrary to what many imagine, comes even before one gets started. Finding suitable business opportunities has often proved to be the bottleneck in achieving their goals for many businesses. On this page, we will discuss what business opportunities are, how you – as an entrepreneur – can find the best business opportunities for you and how such business opportunities differ from the franchising business model .
What is a Business Opportunity?
A Business Opportunity is, at its core, a transaction. It usually involves the sale of products and/or services that, when put together, enable the purchaser to start a business venture. Business opportunities, thus, are essential tools for start-ups and small businesses to start their operations.
The term ‘Business Opportunity’ is typically used to include all types of sales transactions that lead to more business for the buyer.
Common Types of Business Opportunities in the UK
A Business Opportunity can come in vast array of shapes and sizes. Just like other important business skills, being able to identify and make use of such opportunities is what differentiates successful businesses from the not-so-successful ones.
Some of the most common types of business opportunities in the UK are listed below.
Licensing can yield significant profits for the licensor as well as the licensee. It also happens to be one of the most popular business opportunities around the globe.
A turnkey operation can present the easiest way for inexperienced businesses to grow their presence. Turkey operations are based on products or services that, upon delivery and installation, are immediately able to generate profits. Such opportunities can greatly vary in scope, size and financial operations across various industry sectors.
From a simple software package to a pre-built chemical plant, turnkey operations are known to help businesses cut down on research, development and strategy costs.
Product distribution is one of the oldest type of business opportunity. Many businesses can trace their successes directly to their efficient distribution networks. From household products to high-end electronic gadgets, all sorts of products and services are distributed by independent distributors across the UK. It’s important to note here that distributors operate their businesses in their own names, and not in the name of the parent manufacturing business.
This brings us to the sub-type of distributorships – dealerships.
Dealerships are business opportunities that are much like distributorships. However, a dealer – unlike a distributor – operates the dealership in the parent manufacturing business’s name. For example, a Mercedes dealer in London will, despite being an independent business, will run their business under the brand name ‘Mercedes’.
Sales-point networks are business opportunities that are exclusively available for businesses that already run retail locations. From rack merchandising to vending machine placements, there are many ways to ‘lease’ retail spaces to product suppliers.
Business Opportunity vs Franchise – What are the Differences?
A Business Opportunity and Franchise have a lot in common. In fact, many would go so far as to classy franchising as a special type of business opportunity. There are, however, many points that separate these two.
Nature of Business
Franchise businesses are substantially – wholly, in many cases – based on the franchisor’s business model. A Business Opportunity however, allow the buyer to choose how to further their interests. In other words, business opportunities typically afford more freedom to the buyer than franchise businesses can.
No business model is immune to risks. Franchising minimises the buyer’s exposure to risks, since the business model they use has already been tried and tested to work. Business opportunities, on the contrary, come with inherent market risks that every new business has to deal with.
The lower risk exposure in franchising is often accompanied by higher entry costs . This is especially true for retail franchise businesses. Similarly, business opportunities require buyers to invest relatively smaller capital, thanks largely to the higher risk the same is exposed to.
Business opportunities consist of one-off sales transactions that involve minimal post-sales support. Once the transaction is complete, the buyer retains the ownership to the product or service. Franchising works in much the opposite way, in that franchisees expect and receive consistent business support from the franchisor.