Definition: Legal definitions vary; In its simplest terms, a business opportunity is a packaged business investment that allows the buyer to start a business. The Federal Trade Commission and 25 states regulate the concept.
A business opportunity, in the simplest terms, is a packaged business investment that allows the buyer to start a business. (Technically, all franchises are business opportunities.example cadastro Hinode de consultores , but not all business opportunities are franchises.) Unlike a franchise, however, the seller of business opportunities usually has no control over the buyer’s business operations. Indeed, in most business opportunity programs, there is no ongoing relationship between the seller and the buyer after the sale.
While business opportunities offer less support than franchises, this can be an advantage for you if you thrive on freedom. Typically, you will not be required to follow the strict specifications and detailed program that franchisees must follow. With most business opportunities, you simply buy a set of equipment or materials and can operate the business the way you want it and with the name you want. In most cases, there are no royalties in progress and no trademark rights are sold.
Defining business opportunities is difficult because the term means different things to different people. In California, for example, small businesses for sale – whether it’s a liquor store, a deli, a dry cleaning operation, and so on – are all termed business opportunities, and individuals who deal with buying and selling must have real estate licenses. .
To complicate matters further, 23 states have passed laws defining business opportunities and regulating their sales. Often these statutes are so comprehensive that they also include deductibles. While not all states with a business opportunity law define the term in the same way, most states use the following general criteria:
• A business opportunity involves selling or renting any product, service, equipment, etc. that allows the licensed buyer to start a business.
• The licensor or seller of a business opportunity states that it will guarantee or assist the buyer in finding a suitable location or supplying the product to the licensed buyer.
• The licensor-seller guarantees an income equal to or higher than the price the licensee-buyer pays for the product when it is resold and that there is a present market for the product or service.
• The initial fee paid to the seller to start the business opportunity must be over $ 500.
• The licensor-seller promises to repurchase any product purchased by the license-buyer if it cannot be sold to prospective company customers.
• Any products or services developed by the licensor-seller will be purchased by the licensee-buyer.
• The business opportunity licensee will provide a sales or marketing program to the licensee that will often include the use of a trade name or trademark.
These are the most common types of business opportunity ventures:
Distributions . A distribution involves entering into a contract to offer and sell another’s product, without the right to use the manufacturer’s trade name as part of the agent’s trade name. Depending on the contract, the distributor may be limited to selling only the products of that company or may be free to market several different product lines or services from several companies.
Job Rack. This involves selling another company’s products through a rack distribution system in a variety of stores that are serviced by the rack jobber. In a typical rack-rack business opportunity, the agent or buyer makes an agreement with the parent company to market its products in multiple stores through strategically located store shelves. Under the terms of the agreement, the parent company obtains several places to place the racks on consignment. It is up to the agent to keep the stock, move the goods to attract the customer and do the accounting. The agent presents the store manager with a copy of the inventory control sheet, which indicates the amount of merchandise sold, and then the distributor is paid by the store or place that owns the rack, minus the store commission.
Routes of vending machines. They are very similar to rack work. The investment is usually higher for this type of business opportunity venture, since the entrepreneur must buy the machines and the goods sold on them, but here the situation is reversed in terms of the payment procedure. The vending machine operator usually pays the site owner a percentage based on sales. The key to a successful route is to get locations in high traffic areas as close to each other as possible. If your locations are far away, you lose time and travel expenses by meeting them, and these expenses can mean the difference between profits and losses.