A well thought out business opportunity, be it the entrepreneur’s own brilliant idea, a franchise or a license to operate under a parent company’s name will prove less costly as the foundation will have been laid and room for backing out will be available before the entrepreneur commits himself entirely. Any hidden cots will be made known in the process of laying out the overall plan.
2. Reduced Risks of failure
A well thought out business opportunity provides the entrepreneur with a firm foundation on which to establish his enterprise. This follows a thoroughly executed research into the requirements of running the business, risks involved, personal strengths and weaknesses that the entrepreneur may have to deal with
3. Ready Market
Part of the ground work involves preparing the public for the product or service that is yet to be introduced into the market. The entrepreneur will be marketing himself following preliminary studies into the customer pattern; their likes and dislikes regarding the product.
4. High level of competence
In any new business, a lot of time and money are consumed during the learning period. In a well prepared business opportunity, the entrepreneur will have taken steps to arm himself with the relevant knowledge for his line of business hence enhancing his competence.
5. Better financing options.
A business plan will be the basis for a lucrative business opportunity. The entrepreneur will have prepared a business plan which he will use to secure funds from investors. In a situation where he is dealing with a parent company, he is assured of financial support in one way or another, inform of low interest loan, for instance.
6. 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. A proper way of promoting the products of a business is through advertising carried out extensively following a market analysis into the trends and consumer patterns. The entrepreneur will have this as his main strength as he attempts to make his product known
7. 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.