Business Opportunities UK – the TOP 10 MUST KNOWS about finding and running successful UK Business Opportunities.
Investors looking to ‘start-up’ are always on the lookout for suitable business opportunities. What types of business opportunities exist out there, and what should you, as an investor, know before buying one?
“Business opportunity” is a term that is very loosely thrown around, especially in the franchising circuit. Businesses that want to diversify their revenue streams come up with ideas that may or may not work – and all these ideas are usually labelled and marketed as business opportunities. That, in itself, is the only negative point associated with such ventures.
But, for the time being, we will discount such practices and focus on what matters – legitimate business opportunities that can help you get started with your very own business.
Regardless of whether you want to set up an additional source of income or you want to be your own boss and lead your life the way you want to, grabbing the right opportunity at the right time is the only thing that matters in this context.
As it turns out, business opportunities and franchising have a lot in common – to the point that inexperienced investors often use these terms interchangeably. So, we will consider the potential of UK business opportunities from a franchising point of view, to add a new perspective to the discussion.
What Exactly Are Business Opportunities?
A business opportunity, in the easiest of terms, a transaction that helps the buyer start a business.
This transaction could be anything – leasing a machine, hiring a vehicle or licensing a technology.
There are further nuances to the concept of business opportunities.
For instance, many would classify a transaction that helps improve an already-existent business as a business opportunity. This broad definition has one problem – it brings any and every B2B transaction under this umbrella. At any rate, without being too pedantic, let’s just understand that a business opportunity is supposed to ‘unlock’ a viable, repeatable profitmaking channel for the buyer.
Recommended: Buying A Franchise? Download Our Free Franchising Checklist First!
Types Of Business Opportunities UK
We have already discussed the various types of business opportunities in the Knowledge Base section of our website. We will just quickly sum them up here.
Turnkey operations are among the most popular business opportunities among inexperienced investors and first-time business owners.
A turnkey operation puts on offer everything one needs to start and run a particular business. The model is already developed, tried and tested by the seller – the buyer only needs to purchase it and get the business off the ground. In the same breath, let us make it clear that despite these opportunities being called ‘turnkey’, the investor may need to spend more time, energy, efforts and money on hiring staff, finding a suitable location, marketing and other operational expenses.
Turnkey opportunities can be found across all investment levels and sectors. Common examples include fitness businesses, payment processing businesses and retail businesses.
Many businesses that do not want to undergo the hassle of expanding their operations and investing money in marketing choose the licensing way. This allows them to ‘license’ their bespoke products/services/technology to the interested buyer. The buyer can then use the licenced product/service/technology for their own good, thus benefitting both the parties.
Common licencing examples include brand licensing, certification licensing, process licensing and so forth.
Distributorships represent the simplest, most widespread business opportunities.
A successful business can’t always afford to establish an efficient supply chain throughout the country. So, despite having an opportunity to capture the market, they end up ceding important ground to their competitors. To avoid such lapses, businesses bring on board local investors as ‘distributors.’ The distributors get exclusive rights to sell the product in their territory for a commission, and the business keeps the rest as additional revenue.
Common examples include tyre distributors, electronics distributors and industrial equipment distributors.
Dealerships are similar to distributorships – they only tend to cost higher.
The best-known example is perhaps that of auto/car dealerships.
These represent business opportunities that are available to businesses/individuals that already own a retail location. Such space can be commercially leased to other businesses for product display, placement and advertising. A good example is vending machine placement at a busy retail location.
Other business opportunities include work from home opportunities and sales outsourcing.
When Is It A Good Idea To Invest In A Business Opportunity?
Investing in a business opportunity is much like investing in a franchise business – you need to get many things right to give your hard-earned money a fair shot at generating profits. The right place to start is, as always, knowing what you want, and getting your numbers right (our handy franchise market research guide is a relevant read).
Having studied hundreds of business opportunities and franchise businesses over the years, we have observed that investors who are sure-footed about their expectations are the ones who tend to fare better. This covers important aspects of business such as your readiness to commit to the business full/part time, your ability to raise finance as needed and your understanding of the sector.
For example, if you’re looking only for secondary/passive income, investing in a work from home opportunity might be a more favourable choice. On the other hand, if you’ve got a sizeable sum to invest and you’re willing to commit yourself full time to the business, you can go for a turnkey opportunity within your area of experience and expertise.
How Is Buying A Business Opportunity UK Different From Buying A Franchise?
Franchising is an ongoing working relationship between the franchisee and the franchisor. On the contrary, business opportunities signify just a one-off transaction.
Therefore, you cannot really expect any post-sales support or help from the seller when you’re buying a business opportunity. Additionally, there is more freedom afforded to you – you can choose to utilise the opportunity the way you see fit (while, when you buy a franchise unit, you’re expected to follow the franchisor’s business model).
This can also be taken to mean that business opportunities are more suitable for investors who have prior experience in running a business.
Less Hassle, Easy Process
Buying a business opportunity is usually much easier than buying a franchise. For starters, the seller (in most cases) has no expectations from the buyer other than the money. No interviews, no internal assessment and no long holds on the application – the entire process can complete within a matter of hours, in some cases.
Related: Business Opportunities – Search Franchise Reviews Directory
A Word Of Caution
Franchise businesses (by and large) are regulated in the UK. The BFA, for example, keeps a close watch on various developments, making sure that investors and franchisors don’t fall prey to scam and deceit.
Business opportunities, unfortunately, aren’t regulated in this way. The buyer/investor has to bear the full responsibility of their money, and hence, it becomes even more important to tread carefully. Engaging with businesses that enjoy credibility and good standing in the market is a good way of eliminating much of the risk.
How Much Does A UK Business Opportunity Cost?
The costs depend largely upon the nature and potential of the opportunity. An investment to the tune of £15,000 to £30,000 should suffice to secure a small/medium sized opportunity.
Top UK Business Opportunities
We are presenting a brief overview of some of the popular business opportunities UK, to give our readers an idea of what to expect:
- Minimum Initial Investment: £1,499 (plus VAT)
- Type: Distributorship
- USP: High quality tyre sealants
- Low start-up costs
- Operate as per your convenience
- Home-based opportunity
- Additional income
- Minimum Initial Investment: £9,995 (plus VAT)
- Type: Work from home business opportunity
- USP: Utility rates optimisation
- Generate passive income
- Work full/part time
- Work only with referrals and introductions, no cold calling
Business Opportunities – The Takeaways
- Conduct a thorough check before you invest.
- Understand how business opportunities differ from franchises.
- Know your requirements and expectations.
- Prioritise opportunities that fall within your skillset/domain.