Are you tired of your corporate job and looking for an opportunity to transition to business ownership? With the right information and support, you may be able to find a business opportunity near you that is a perfect fit for your goals and skillset. Whether you’re interested in buying an existing business or investing in a franchise, the International Franchise Professionals Group (IFPG) can help you make an informed decision and support your success.
When deciding if business ownership is right for you, you may have a lot of questions—and that’s okay! To get started on the right foot, it’s important to carefully consider your objectives, research different types of opportunities, think through risks and rewards, and develop a plan to fund your business. The IFPG has 1,300 franchise consultants and vendor members who can help you get the answers you need.
Types of Business Opportunities
If you’re considering business ownership, it’s important to understand the type of opportunity you’re looking for. Your financing and resources may limit certain types of investments, so it’s helpful to be aware of available options. Here are five common types of business opportunities:
1. Buying an Existing Business. Buying an existing business can be a great option for those who want to quickly enter the business ownership space. You can buy a business outright or take over something like a family business. However, it’s important to research a business thoroughly and understand all the risks and expenses prior to buying.
2. Investing in an Established Franchise. Investing in a franchise means you will own a piece of that business and typically receive licensing and operational support from the franchise. Franchise businesses require a significant financial investment, so it’s important to do your research and understand the details before taking the plunge.
3. Leveraging Business Opportunities. Business opportunities often include purchasing products at a discounted rate and then reselling them with a markup. While this type of investment is lower in risk, it is also lower in reward and may not meet your long-term goals.
4. Starting a Business from Scratch. Starting a business from scratch requires an initial investment in developing a business plan and finding a suitable location, as well as in marketing, staffing, and product development. While the risks are high, starting a business from scratch can also have significant rewards if done correctly.
5. Arranging Business Partnerships. Business partnerships are common in the US, and they can be a great way to take advantage of different skills and resources. When forming a partnership, it’s important to carefully research potential partners and draw up an agreement that is mutually beneficial.
Once you understand the type of business opportunity you’re seeking, you can begin exploring options. Whether you’re looking to acquire an existing business, invest in a franchise, or start your own business, the IFPG’s experienced team of franchise professionals will provide the expertise and support you need to make an informed decision.
Evaluating Business Opportunities
When evaluating business opportunities, it’s important to investigate several factors, including the initial investment, overall capital needs, cash flow potential, and industry dynamics.
Initial Investment. On the surface, the cost of a business opportunity can seem very attractive, but you need to consider whether the initial investment is really a good deal. Be sure to factor in travel and marketing expenses, as well as any additional fees and taxes that may apply.
Overall Capital Needs. Estimate how much capital you’ll need to cover regular operational costs, such as payroll and inventory. Talk to other business owners in the same industry to get an idea of how much money it takes to get started and keep a business running.
Cash Flow Potential. Although owning a business typically involves more risk than earning money from a job, it also brings a potential for higher returns. Research the targetthe industry you’re interested in and create realistic expectations for the cash flow you can expect.
Industry Dynamics. Learn as much as you can about industry trends, potential customer base, competition, and expected changes. Consider any potential regulatory laws or economic shifts that could affect profitability.
These tips can help you start exploring business opportunities near you. That said, it’s also important to understand the commitments and rewards involved when investing in a business. Taking the time to do your research and speak to experienced franchise professionals can help you make an informed decision and increase your chances of success.
As an IFPG member, you can benefit from a network of franchise experts who can provide sound advice and honest guidance every step of the way. So, if you’ve been considering business ownership, take the plunge and start exploring your options. Then, join the IFPG for additional support and resources throughout the process.