|
|
-
Requires a lower initial fee than a franchise. Although the
number of low-investment franchises has increased, the fee to get into a
business opportunity is still considerably lower. The FTC requires a
$500 minimum investment for an opportunity to be considered a business
opportunity, but there are many that fall under this set fee, although
most average around $2,000 to $3,000.
-
A proven system of operation or product. Existing systems serve
to maximize efficiency and returns and minimize problems. It's simply a
matter of passing on experience, still the best teacher. Whether they
admit it or not, most people like having their hands held once in a
while. During crises, the parent company is there to help the licensee
over the bumps. Many people like this idea of safety in numbers.
-
Intensive training programs. In any new business, a lot of time
and money are consumed during the learning period. A good business
opportunity venture can eliminate the majority of ineffective moves
through an intensive training program.
-
Better financing options. Because of its financial size, credit
line and contractual agreements, the parent company offering the
business opportunity can often arrange better financing than an
individual could obtain. Financial leverage is an important
consideration in any investment situation.
-
Professional advertising and promotion. Most small
businesspeople don't spend sufficient money on advertising. When they
do, their efforts are often poorly conceived and inconsistent. Many
business opportunity ventures supply the buyer with print advertising
slicks, radio ads, TV storyboards, etc., in order to provide a better
marketing effort. Some business opportunity ventures will even have a
cooperative advertising agreement under which they will split the cost
of print, radio or TV ads. This type of marketing help is especially
beneficial in large metropolitan areas where the cost of media is
prohibitive to the one-shop owner.
-
Ongoing counseling. Most business opportunity ventures offer
support not only through training but also through counseling from a
staff of experts who offer assistance that no independent could afford.
Legal advice is available to a certain degree. The most efficient
accounting systems—perfect for that particular business—have been
designed by experts in the field. Some licensors offer free computer
analysis of records, and through comparison with other units can
pinpoint areas of inefficiency or loss as well as profitable aspects of
the business that are being neglected.
-
Site selection assistance. Experts in site selection and
marketing choose locations using all the scientific tools available.
Professional negotiators arrange leases and contracts to the best
advantage, using the power of a large organization to influence
landlords and other important figures.
-
Purchasing power. Many times, the parent company's tremendous
buying power and special buying techniques can bring products, equipment
and outside services to the licensee at a much lower cost than an
independent could ever get.
|
