Buying a Business Opportunity is much easier than buying a franchise. This is not to say that buying into a franchise is a bad thing; it isn’t. Franchise investment has its own advantages that you may want to consider. However, a Business Opportunity has a few specific advantages that a franchise can’t offer.
Above all a Business Opportunity in almost all cases has a lower threshold of investment than a franchise. You can get involved in some Business Opportunities at no cost, as I’ve outlined in a recent blog post. The average cost of a Business Opportunity is roughly $1,750 to $3,500. The average cost of a franchise is almost five to eight times more than that amount.
Lately, the number of “low-entry” franchises has been on rise and is especially true since the market collapse. Yet, the price to buy a Business Opportunity is still far less than buying into a franchise system. It should be noted that the FTC requires that a minimum of a $500 investment be made in order for it to be considered a true Business Opportunity. Yet, many are priced lower than this and still may be considered a Business Opportunity.
In most cases, a Business Opportunity offers better financing options. In addition, you can put your entry fees on a credit card to buy a wide range of Business Opportunities. Also, the Business Opportunity parent company may offer a range of financing options for you to consider.
Some other major benefits to consider when looking to buy a Business Opportunity, versus a franchise are as follows:
- Site selection assistance
- Possible free legal advice
- A proven system of operation
- Free & ongoing training
- Greater purchasing power
- Better and more improved advertising & marketing methods
- Ongoing support that most independent owner(s) can not afford on their own
- And most vital, no ongoing royalties
Generally speaking, a franchise requires ongoing royalty payments and this is certainly not the case with a Business Opportunity. When you earn a profit you keep it!
Make sure to read my next blog on Sunday. I’ll be discussing some of the disadvantages of buying a Business Opportunity.
Carpe Diem My Friends