AL1. One of the main type of business opportunity is Consumer Need. Consumer needs will never go away. There will always be a method that will need improving or a need for a product or service that has not been place into the market. For example, the washer and dryer. For years our ancestors washed their clothing by hand and hung them on a line to dry. The thought of how to make this process quick and easy so other task can be completed created the idea and an opportunity. Although some clothing still have to be hand washed, the progression of the washing machine now removed that task because some machines come with a hand wash setting.
The consumer need advantage is obtained by seeing a need, finding out if a product is out, and if not creating the product or service to fulfill the need. As a mother we have the task of finding our small child that likes to hide between the clothing in the store. Many moms do not like the leash that some parent will put on a child to avoid losing a child. Someone came up with the idea to create a band that the parent and the child wears to locate each other. If the parent cannot find the child they can press a button and it will sound an alarm to help the parent locate the child. On the other hand if the child cannot find the parent the child can press a button to locate the parent. This also helps if a child is being abducted in a mall, theme park, grocery store etc. A parent saw a need and using technology created a device that helps parents and children locate each other if lost.
JK2. One type of advantage that creates a business opportunity is having availability to materials of high demand. In many cases it requires a particular license to purchase materials that are not sold to the general public. Obtaining this type of advantage allows the business to have more flexibility when setting prices. Licenses are granted through certified testing centers, and the general schooling on these areas of expertise are taught through technical schools and on the job training. Another useful advantage that helps to create a business opportunity successful is entering into a market early so that the level of competition will be low. Having fewer competitors also allows a business to have more flexibility when deciding how to set up their pricing model.
IM3. The one type of advantage that would create a business opportunity is innovating an item or method to make doing something on a day-to-day basis much simpler, such as using a smart phone as a television remote or turning on the car with it. Everyone is always looking for the latest thing, but also an item that will improve the way we live our lives. For example, when the world created smart phones, it was an idea that will allow us to multiple-task on conducting different processes at the same time along with having everything we need to do what needs to be done right at our finger tips. This type of advantage might be obtained through research and development by conducting surveys and discovering which target market segmentation it will benefit and why it will benefit.
SG4. Some advantages that create business opportunities consist of having a strong customer base. If the business you are looking to start has a strong demand in a market that you are familiar with, proper planning along with a needs analysis can help make your business idea turn into a great business opportunity. Another advantage is that unlike franchises, business opportunities require a lower initial investment.
Social media and marketing your business or business idea can generate talk from potential customers. It is always good to put your product or business out there to at least build a strong name for yourself. Outlets such as Facebook and other social media outlets are quick and inexpensive means to advertise. Also, because business opportunities require a lower initial investment, options such as a small business loan from the government or even loans from your local bank may be easier to obtain with the aid of a strong business plan.
SG1. The decision whether to buy an existing business or start a new one hinges on both personal and financial issues. Start-ups almost always encounter stumbling blocks that slow down the company’s progress and even put its future in jeopardy, creating a great deal of stress for the management team. But starting a company and seeing it grow can be incredibly exciting. Obtaining financing to purchase an existing business that has assets and cash flow is often easier than securing capital for a start-up venture.
When you buy a business, the financial rewards begin right after the transaction closes because the company is already generating cash flow and hopefully is profitable. Start-up companies usually go through a painful period where they lose money. The entrepreneur must be patient and not expect financial success too soon.
JK2. An advantage that comes with the purchase of a venture that currently exist is quickly being able to enter the market. It takes more time to design building plans, pull permits, and actually construct the place of business than purchasing a business that is ready to start operations right away. In some cases time can be more valuable than the initial investment to begin operating for example entering into a market before the competition increases allows the business’ customer base to grow more rapidly. Also when purchasing an existing venture the business owner is able to merge existing techniques with their own to help increase productivity. Having former techniques to help guide operations will help the business operate smoother which is another advantage over a business just starting up with no experience.
IM3. The advantages of purchasing an existing business opposed to opening a new venture are that the existing company is already established, marketed in the area, and hopefully generating excellent revenue. Versus a start-up company, they have to start from scratch on gaining traction to generate business and establishing the name and brand. If we look at both businesses financially, existing business is already generating revenue to pay for expenses, in which the owner can provide the Cash Flow Statements and Net Income Statements, compared to start-ups, the money is coming from the owner or investor to pay for the overhead expenses in order to generate revenue. Normally in the start-ups, the entrepreneur would have six to 12 months of working capital to operate until revenue is being generated, in which can lead to profitability.
KM4. In some situations, it is much less expensive and far less time consuming to purchase an existing store. In our line of work, we can start with purchasing land, building, and stocking a store for approximately $2 million and take several months to get it ready. However, you can purchase a store that is ready to go (take over normally takes approximately 24 hours) for around $250K. The other advantage is that you already have all the equipment in place and you don’t have to waste time before you can start turning a profit. There isn’t any lost time. In some cases, it is cheaper to begin renting and start your own business. However, this normally is only the case if there is not a large amount of beginning overhead such as large pieces of equipment. Purchasing an existing venture can also give you the customers of the previous owners. You won’t have to start from scratch. The downside of that is the previous customers are going to want you to act exactly the same as the previous owners. Your style may not match their preconceived notions, and you could potentially lose customers. You are less likely to have those issues with a new venture.