In today’s entrepreneurial landscape, it’s essential to research and understand what business opportunities are out there, and which one will work best for you and your potential business plan.
While there are many ways to run a successful business, understanding the various business opportunities available to you will help you find direction and develop your own business, become your own boss, and make your goals a reality.
Running a successful business, at its core, means offering a product or service that someone needs, either through a brick-and-mortar store or online—or in some cases, a combination. There are various business opportunities—or avenues that entrepreneurs can take to get their products to consumers most efficiently and effectively—that you should first research before getting started.
There are 23 states in the U.S. that have business opportunity regulations that you will need to become familiar with while setting up your business plan. This will help you avoid any legal issues down the road.
Here are four types of business opportunities you should explore when deciding to start your own business.
One of the most well-known business opportunities comes in the form of a franchise. In this type of business model, individuals or groups can bring together monetary investments and labor to the franchisor and, in return, the franchisee will receive the rights/license granted by the company to market or sell the franchisor’s products in a specific region.
There are currently over 3,000 franchise concepts currently in operation within the U.S., including well-known fast-food franchises such as McDonald’s or Chick-Fil-A. This means that there are many opportunities to bring familiar businesses into areas where their products may not be readily available. This model allows a business owner to save money on marketing because the consumer is already familiar with the brand. Instead, your priority shifts to providing the high level of service that customers expect from that name.
As more consumers have access to the internet, and the cost of brick-and-mortar stores is on the rise, dropshipping has become a more prevalent business opportunity. Dropshipping allows business owners to sell products to consumers from a third-party vendor and then have the products delivered directly to the customer’s doorstep. This lowers the overhead and upfront costs, allowing the business owner to begin building capital quickly.
This is a great business opportunity if you are looking to add a side hustle into your life with lower overall costs. The growth, however, would depend on how much work and effort you put into it, as well as the demand for your product.
3. Servicing (Self-Service Business)
As more customers move away from stuff and focus more on services and experiences, this business opportunity is one that experts predict will blossom exponentially in the coming years.
Offering a service—such as plumbing, lawn care, housekeeping, or life coaching—gives the customer something that truly helps them but that they don’t have to find a place for in their homes that they will have to dust later.
Many businesses also use this as an opportunity to build on current customer loyalty, as well as to market to new potential customers by offering subscription boxes, managing services through the company’s app, sending out special coupons or sale flyers, and providing other promotions to encourage people to buy into their businesses.
Let’s say you are subscribed to a business’s e-mail newsletter, and you receive a special 30% off coupon that is only good for a certain time frame. While you may not have planned on going to the store, the coupon encouraged you to plan your next trip to the store. This is a successful service-based business opportunity.
Let’s say you have a great idea, but you don’t really have the time to make it a full-time business because you already have too much on your plate. In this case, you could use a licensing business opportunity to make money without doing all of the work.
In a licensing business opportunity, you can create a contract for other businesses to use your patented idea or trademark, design, copyrights, and any other assets related to your business in exchange for certain percentage of revenues and fees that they receive. It is important to make sure that you are comfortable with all aspects of the licensing agreement before signing any paperwork.
This may be a good option for business owners who are looking for ways to add income on the side while their brand continues to grow exposure. But, they also have to be willing to let go of some of the profits in exchange for less legwork.
The business sector offers a variety of ways to be successful, and there are multiple ways to get there. Researching and learning about the different business opportunities available to you will help you develop the best business plan and give you the proper framework to get your business off the ground.