What Is A Home Based Business Opportunity

What are the business opportunities

business opportunity

If you are looking to buy into a business that does not fit into the category of a franchise or direct selling, the odds are that it is a business opportunity. Usually franchises and direct selling have a well-defined infrastructure and can be easily identified. Business opportunities come in all flavors, shapes and sizes. For this reason, you need to be extra careful when choosing a business opportunity as this field has its share of scam artists as well. In general, a business opportunity can be defined as an idea, product, system or service that someone else has developed and allows another entity or business to use that same product, system or business model to start a business on their own.

Usually the business opportunity belongs to one of these following categories.

  1. Broker – A broker is someone who buys or sells products or services for parent company often acting as agent. Examples include real estate and insurance brokers. Although brokers are independent contractors they are generally paid commissioned by the parent company for their efforts.
  2. Dealers and distributors. – Dealers and distributors is often an interchangeable term. However, there is a difference between the two. Dealers usually sell the consumer product directly to the consumer. For example, a dealer who sells carpets produced by several different companies to customers and uses his or her home for operating. Distributors get their supply from wholesalers and manufacturers and resell them to sales organizations, brokers and dealers. Distributors do not sell to consumers generally however some of them do through direct mail orders or online.
  3. Licensing – Licensees buy the right to sell, market, produce or use established product brand names, technology and systems. This business model is a little bit like a franchise but licensees have greater freedom to run their business according to their requirement.
  4. Mail Order Businesses – Mail order businesses take orders for product over phone and e-mail on the Internet and send those products directly to consumers. In some cases mail order businesses can have the products drop shipped as well which means that the product is shipped directly from the manufacturer removing the need to maintain the product inventory while dramatically improving cash flow.
  5. Vendors – Vendors sell material and supply for the companies for their own consumption for example office supplies, for use in their own production process, or for resale to consumers or other companies.
  6. Manufacturers – The manufacturers build and produce products that are eventually sold to consumers. Manufacturers can also sell to consumers by the same methods as mentioned above such as direct sales, mail order or the Internet. They usually sell to brokers, dealers, wholesalers and others.
  7. Wholesaler – Wholesalers buy products directly from the manufacturers, put the profit margin and sell them to retailers. Retailers are people who sell directly to the consumer. In most cases wholesalers do not sell directly to the public.

The business opportunity that you choose will be either one of these or a amalgamation of the above mentioned types. The kind of business opportunity you choose will dictate the kind of business you run and the kind of lifestyle you have. It will depend the kind of job that you need to do in order to run your business and make it successful. In order to make the right choice, make sure that you fully understand what the business opportunity requires you to. Do your due research and figure out if your strong points and interests match the requirement of the business opportunity.


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