Today, many people with business development skills and experience are looking for affordable business ownership opportunities. In addition to traditional franchise business models, a number of low-cost business opportunities (also known as “biz opps”) exist for them to consider. The investment range for biz opps is relatively modest, usually ranging from $20,000 to $75,000, and they are well-suited to people with a history working in a business development role.
Biz opps’ low initial investment provides an opportunity for a quick return on investment (ROI). The low monthly operating costs provide the potential for attractive profit margins, as well as great flexibility with work hours. The owner can work as few or as many hours as desired – without any pressure from the boss.
Business opportunity versus franchising
A biz opp is a business ownership model that allows the acquirer to start his or her own business through a simple licensing or affiliate agreement. Licensing (or an affiliation agreement) can be a more suitable expansion strategy for some businesses, and presents an attractive alternative to prospective business owners. A buyer of a biz opp generally has less structured, ongoing support and oversight from the seller, as compared to a franchise. Since a biz opp model is a simpler business structure, the initial investment cost is usually lower than a franchise.
A franchise business model offers three important characteristics: 1) strength of brand recognition through the rights to use the franchisor’s trademark(s), 2) structured and proven business processes that provide guidance and control over the franchisee’s business, and 3) consistent structured support and education funded by ongoing royalty fees.
There are positive characteristics to each arrangement, so prospective business owners are wise to consider all the pros and cons, and understand which business model best matches their skill sets and ownership visions.
Success characteristics – are you a good fit for a biz opp?
Becoming a business owner, whether it’s through a biz opp or a franchise, is not for everyone. However, licensing and affiliation arrangements can be appealing to people with some or all of these characteristics:
- Strong business development and consultative sales skills;
- Disciplined and self-motivated (work well on their own);
- Strong networking skills;
- Communications, listening and persuasion abilities;
- Confident in managing their own business infrastructures;
- Desire to serve as expert resource for their clients;
- Ability to build their own brands and marketing strategies;
- Five to ten years of business experience; and
- Business ownership investment resources in the range of $20,000 to $75,000.
Burgeoning number of business opportunity options
People with business development skills leaning toward a biz opp have a growing number of options to consider. They include biz opps that:
- Help small businesses use digital technology to market those businesses on the Internet and via mobile communications devices;
- Offer alternative “cash out” options for existing life insurance policies of insured parties on the secondary market for more than their cash surrender values;
- Make commercial loans;
- Provide counsel and assistance for senior care services; and
- Sell advertising on indoor and outdoor digital billboards.
Features and benefits of business opportunity models
Biz opp agreements are typically simple in their structure, which allow business owners to quickly and easily launch. The business owners can create their own company names and brands. Often, biz opps can be home-based, with low monthly operating costs. Royalty fees, often associated with franchises, are not usually part of a biz opp; however, there may be some optional and/or monthly membership fees.
Most biz opps offer an open territory – no geographic or other restrictions. Marketing programs and materials are ready to use. Biz opps typically incorporate the consultative sales model, and people with consultative sales experience often thrive in a biz opp. Owners can grow the business as individual contributors or can add staff in order to expand faster.
Good business opportunities provide expert guidance on how to launch and run the business, along with marketing and customer relationship services. A quality business opportunity provides training and best practices. Fellow biz opp participants are usually available to provide tips and advice.
If you’re highly motivated to be your own boss and want to be in charge of your own future, you may find business opportunities an attractive career option. Licensing and affiliate agreements have a lot to offer those genuinely seeking a solid business ownership opportunity. These agreements also provide great lower cost options for existing businesses to expand their current service offerings. If you’d like to learn more about business opportunities and how they may fit your ownership vision, just call (913-338-1840) or email me today.