The main reason that some people take opportunities when they arise, and others do not, is that some people are ready.
They have their business plan ready and all they need to do is take advantage of the opportunities.
Where can you find the right business plan?
If your business is based in the United States - click here
If your business is based in the U.K. - click here
Ideas To Action.
Part 6 - The Disadvantages Of A Business Opportunity.
Under ideal conditions, business opportunities are a good, low-investment way to get into business with minimum risk and a good chance for success.
But, of course, nothing is perfect, so here are some problems that you can expect:
- Poor site selection. The majority of business opportunities are consumer-oriented retail operations which rely on good location, visibility and easy access to the establishment. Most buyers of business opportunities casually accept the locations chosen for them. Never, ever, do this! Look the site over thoroughly yourself. Having a better location could literally mean millions of dollars in profit over the course of 20 years.
- Lack of ongoing support. There is usually no requirement for the business opportunity seller to offer ongoing support of any kind. If the seller decides not to supply information or guidelines that could help you once you are in operation, you may find that the opportunity was really for the seller and not for you and your business.
- Exclusivity clauses. If you are restricted for any reason whatsoever, you run the risk of only having the least profitable opportunities. If you do break the agreement it will be very hard to hide; most parent companies will require you to open your books for examination at pre-designated periods of time. Any irregularities will be spotted at these times. Always negotiate the point in the agreement that stipulates sources of supply in case product quality is inconsistent or another opportunity for your business comes along.
- Parent-company bankruptcy. Another pitfall is the possibility of the parent company overextending itself and going bankrupt. While this is not as serious in a business opportunity as it would be in a franchise, you still run the risk of losing your business because your property contracts may have been financed through the parent company.
You should always carefully investigate any business opportunity that you are considering.
- Get a list of operators from the offeree and call them.
- Have a lawyer look over any agreement drafted by the offeree.
- Make sure you receive a disclosure statement.
- Carefully evaluate the licensor.
- Do not let anyone hurry you.
Make sure you are dealing with a responsible company and that the opportunity works both ways.
The Disadvantages Of A Business Opportunity
Spotting Opportunities Rising From Your Present business
You could unearth opportunities by examining your present business.
Reviewing your strengths and weaknesses can assist you in discovering areas where your organization could be more effective and pinpoint opportunities or savings. Utilizing these results can increase your profits.
Find any staffing, tangible or other operational assets that you presently do not use effectively. These could be:
- Buildings, space, equipment or facilities,
- Licenses, brand names, patents, copyrights and intellectual property,
- Intelligence, savvy and experience,
- Membership of trade bodies,
- Standing in the market sector and
Consider the strengths and weaknesses of your business, and undertake to work out the results of certain strategies your business might try. Consider:
- Where your operation excels / misfires,
- Where your company is innovative / unproductive,
- Merchandise that is not doing as well as they might,
- Testimonials / objections made by possible customers or others and
- Failings in your company where your competitors are superior.
If it is difficult to remain detached, look at using external consultants to help you examine your businesses strengths and weaknesses.
Create strategies to advance your strengths, reduce weaknesses, or transform weaknesses into strengths. A thorough audit in answering the decisive issues:
- What strengths could be used as a basis for growth?
- Could weaknesses be rectified or turned into strengths in your business?
- What opportunities might be found after considering your businesses strengths and weaknesses?
Ideas To Action - next
A Great Business did not just happen - It was planned that way.