How To Access Business Opportunities
A business opportunity is when you lease a product, equipment or service that will enable the purchaser-licensee to start a business with it. To access a business opportunity, you need to be able to find and recognize business opportunities.
(A) In accessing a business opportunity, the first thing you need to do is evaluate business opportunities around you and to evaluate business opportunities, you should:
• Evaluate yourself and your ability: You should know who you are, what you can do and what you cannot do before you access a business opportunity because of you don’t know your limits, you might end up choosing and accessing a business opportunity you are not capable of handling.
• Have Knowledge of the Business: You should have knowledge of the products and services you know that you will handle well if given the opportunity. Before the seller will lease his or her products to you, he or she will ensure that you know what you are doing and the only way to show that you know what you are doing is to have the knowledge required for that business. You might even look into the operating manual of the business if they have one.
• It is also necessary that you know the required training and experience to run the business, you can’t just do a business you are not qualified for to avoid ignorance and failure. You should know the right curriculum and background of the required training and if you fit the business or you don’t. Doing a business you are not fit for might be a disaster.
Also, you should know the company’s history, evaluate those doing the business presently and how they are making out, the financial strength and credit of the business opportunity, the company policies, conducting an in-depth study of the company (this can be done by a hired accountant or business consultant.
(B) After evaluating business opportunities and have selected the best one with sound investment and appropriate for you, then you should now access that particular business opportunity you have chosen by:
• Having a legal representative that will be present during your negotiation with the seller, and will determine if the contract is good enough to be signed.
• Surveying other owners of business opportunities sold by the company i.e. seller’s company to know if the company gave them any trouble or not and to know if the company is good enough to buy business opportunity from.
• Having a financial representative [accountant] who will examine the financial statement of the parent company and also decide if the company is good financial and also the financial investment aspect.
• Knowing your obligations to the company and the company’s obligation to you and also if you will be trained by the company or by yourself.
• You should also get a disclosure statement to everything about the business opportunity, the seller and the parent company. A disclosure statement includes the licensor, obligations of the licensee & licensor, the licensor’s promises, the company’s financial statement and so on.
• Finally, you should analyze the financial statement to know most especially the profit and loss statement of the company.
There are different business opportunities you can access, some of these business opportunities are:
(1) Dealer: You can be a dealer who deal with and sell to only retailer or consumer, and you can’t be dealing with both. You have to choose who you will be dealing with between retailers and consumers unlike distributor who can distribute and sell goods to both retailers and consumers.
(2) Product Licenses/Cooperatives: Product licenses and cooperatives are similar but the only difference is that in product licensing, you obtain a license which allows you to use the seller’s brand or trade name, methods, equipment, products, technology and so on.
The purchaser might even decide not to use the same trade name with that of the seller. Cooperatives on the other hand is when an existing business with another business in the same line of work which is bigger, stronger and has larger network than the existing business especially for advertisement and promotion purposes.
(3) Distributor: Being a distributor is also another business opportunity. What a distributor does is to sell the product of another manufacturer after certain agreement but the distributor is not allowed to use the trade name of the manufacturer and there are times when the distributor is not allowed to sell products of other manufacturers which depend solely on the agreement between the manufacturer and the distributor.
(4) Network Marketer: A network marketer sells goods through his or her network of friends, coworkers, associates, relatives, etc. There are even situations where the marketer gets extra commission by recruiting people who wants to be network marketers also into the company or organization.