Contrary to popular opinion, business opportunities are abound in all kinds of economies; you just have to know where to look for it. And sometimes, you should consider creating business opportunities instead of waiting for them to come knocking at your door.
There are various types of Business Opportunity ventures:
There are all sorts of business opportunities to explore which are already present in the market, but not all of them will make a perfect match for an entrepreneur. Careful choice of an opportunity is important. Taking advantage of the wrong business opportunity can only cause the entrepreneur
more financial burden
Self – Discovery
This entails creating a product for an unsatisfied need – There are a lot of unsatisfied needs in all types of markets and although taking advantage of these business opportunities promises a lot of rewards, the entrepreneur should keep in mind that they also represent greater risk. Also, he should be sure that the product or service satisfy needs and not wants because the former is for keeps while the latter simply come and go.
Re – invention
If the entrepreneur notices a particular product or service that is obviously unable to fully satisfy its target market, that situation can be immediately transformed into a business opportunity if he has an idea on how to improve it, that is. These business opportunities represent lower risks and consequently lower rewards as well compared to those associated with creating a completely
new product.
Use an Existing Product for an Untapped Market – Sometimes, business opportunities are discovered not by creativity but rather because of resourcefulness. These business opportunities definitely exist, but the process of discovering them is almost akin to creating a new product to satisfy an unwanted need. The rewards, however, are just as great. One good example for this is how a Philippine company was able to make use of coconut husks – which was once the
least useful of all parts of the coconut tree – by grinding and turning them into a concrete mixing compound. It soon became not only a more affordable alternative but a more environmentally friendly one as well!
Joint Venture
As they always say, two brains work better than one. And in the world of business, there are twice as many business opportunities available just as long as the entrepreneur opens his mind with others of like thinking.
Distributorship.
This refers to an independent agent that has entered into an agreement to offer and sell the product of another but is not entitled to use the manufacturer’s trade name as part of its trade name. Depending on the agreement, the distributor may be limited to selling only that company’s goods or it may have the freedom to market several different product lines or services from various firms
Rack jobber.
This involves the selling of another company’s products through a distribution system of racks in a variety of stores that are serviced by the rack jobber. Typically, the agent or buyer enters into an agreement with the parent company to market their goods to various stores by means of strategically located store racks. The parent company obtains a number of locations in which the racks are placed on a consignment basis. It’s up to the agent to maintain the inventory, move the merchandise around to attract the customer, and do the bookkeeping. The agent presents the store manager with a copy of the inventory control sheet which indicates how much merchandise was sold, and then the distributor is paid by the store or location which has the rack-less the store’s commission.
Vending machine routes.
This is very similar to rack jobbing. The investment is usually greater for this type of business opportunity venture since the entrepreneur must buy the machines as well as the merchandise being vended, but here the situation is reversed in terms of the pay procedure. The vending machine operator must pay the location owner a percentage based on sales. The big secret to any route deal is to get locations in high-foot-traffic areas, and of course, as close to one
another as possible. If the locations are spread far apart, you waste time and traveling expenses servicing them.
In addition to the types of business opportunities listed above, there are four other categories we should be aware of:
Dealer.
This is quite similar to a distributor but while a distributor may sell to a number of dealers, a dealer will usually sell only to a retailer or the consumer.
Trademark/product licenses.
Under this type of arrangement, the licensee obtains the right to use the seller’s trade name as well as specific methods, equipment, technology or products. Use of the trade name is purely optional.
Network marketing.
This is a generic term that covers the realm of direct sales and multilevel marketing. As a network marketing agent, the entrepreneur will sell products through his own network of friends, neighbors, co-workers and so on. In some instances, he may gain additional commissions by recruiting other agents.
Cooperatives.
This business is similar to a licensee arrangement in which an existing business, such as a hotel or hardware store, can affiliate with a larger network of similar businesses, often for the sole purpose of advertising and promoting through a common identity.
