5 Types Of Business Opportunities For Entrepreneurs
Are you looking for different types of business opportunities to start your own business? Do you have an entrepreneurial mindset? Are you the type of person who wants to go into business to be their own boss and succeed through their own decision making? Many people feel the call to become an entrepreneur, but are unsure what type of business opportunity to pursue.
Quick note: If you are thinking of starting a home business, read our detailed list of 8 work-at-home ideas that you can start at your kitchen table.
Types of Business Opportunities
There are many entrepreneurship opportunities you can choose from. Here is a brief description of the different types of business opportunities available.
1. Buy a franchise
Many business owners like to have a business running at full speed right away. Instead of spending time reinventing the proverbial wheel, an entrepreneur buys a franchise opportunity. A franchise is an existing business with a solid business plan and business processes in place.
An entrepreneur can operate a new business with a recognized business name. They can receive support from franchise headquarters with marketing, promotional materials, new products or business services, etc. Good examples of popular franchises are McDonalds and Subway restaurants, home cleaning companies, the Dollar Store, or fitness centers.
2. Distribution or Concessionaire
Another place to find business opportunities is with distributors and dealers to sell other people’s products. A distributor is a person or company that has a contract to sell products or services produced by another company. Think of an Amway or Avon distributor as a good example.
A reseller is much like a distributor, but more focused on one product. A car dealership may sell only Hondas, or an insurance agent may be considered a life insurance ‘dealer’.
3. Network Marketing
Although an Avon lady may be considered a ‘distributor’, there is much more to this kind of business opportunity. In addition to distributing the products or services offered by the parent company, a network marketer also strives to recruit other distributors.
By creating a “network” of distributors, you can earn considerable income through residual commissions made by the distributors who work with them. This entrepreneurial opportunity is also known as multilevel marketing.
You can also find highly lucrative business opportunities through licensing. Licensing is where you can take a new or existing product and use your talents to market it. For example, you can use almost any product and try to get a license for a brand, icon, or trademark of a widely recognized company.
Think about Disney products. An inventor might have a great idea for a child’s toy that would become a big seller if the famous Mickey Mouse were associated with the product. By obtaining a license from Disney, the inventor could produce his product and share the profits with the licensor (Disney).
5. Filling a Niche
While prefabricated opportunities or other types of business opportunities can be profitable through an already successful parent or franchise company, there are also entrepreneurial opportunities for one person.
Simply find a consumer need and find a way to address it.
You may be a new mother who thinks a baby product that is not on the market is needed. Then you create and distribute one of yours. Or you are an expert who finds that other companies will pay for your consultation and experience in improving a business function.
Any business owner who wants to make a business of their own has many types of business opportunities to explore. Find the right one for you and enjoy the success you can build on your own.
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