Business Opportunity

Find your calling

By Ryan Headley

So you’ve developed a business idea and before drafting your business plan you need to figure out which business opportunity fits you best. Is it feasible to operate out of your home? Is renting a facility the optimal choice? Is operating an established franchise up your alley? Or do you see the online market as the place where you want to carve your niche?

These are all viable options, but which one is best depends on several factors. Right off the bat, market research must be conducted. This will initially narrow down your options by eliminating anything you have found to be simply impractical. You must also come to terms with your skill set, as compared with the skill set necessary to operate each of these types of businesses. What is your knowledge base, and what knowledge is necessary to conduct these businesses? Finally, you must address the pros and cons of each opportunity.

Home Business Opportunity

  • Skills needed: Time management, impeccable organizational skills, highly focused
  • Knowledge: Most home business owners have a specialized skill that they offer customers, such consultant services, writing or Web design.
  • Research: Local ordinances on home-based businesses

Pros

  • Tax write-offs for home office and supplies
  • Good for those balancing family life
  • Saves a lot on overhead costs

Cons

  • Home becomes a workplace
  • Hard to expand operations internally
  • Can become difficult to keep work and family tasks separate

Small Business Opportunity

  • Skills needed: Bookkeeping, business financing, planning, managing employees
  • Research: Established competition, new competition including franchises coming to your area, location, risks, expenses, expansion capabilities

Pros

  • More potential revenue than home-based businesses
  • Easier to market products / services
  • Better equipped to expand and harvest business

Cons

  • Higher liabilities
  • Higher overhead
  • Financing is necessary (borrowing from friends / family, founders money, loans, investors)

Franchise Business Opportunity

  • Skills needed: Management, accounting
  • Research: History of franchise, contractual agreements (royalties, buy-back options, territory, etc.), ROI

Pros

  • Established business
  • They provide some or all of the marketing
  • If you’re not a savvy business person, the structure of the business is laid out for you
  • They offer consulting and training

Cons

  • The business concept and the way it’s operated can’t be changed
  • You cannot bring your own creativity into the business
  • Large up-front investment
  • Can be taken from you if you do not follow mandated guidelines

Online Business Opportunity

  • Skills needed: Computer, Web design
  • Knowledge: Internet marketing (Google AdSense), software (Clickstream), online revenue models (affiliates, transaction fees), search engines (Google, Yahoo)
  • Research: Competition’s sites, most effective revenue model or combination for what you’re offering

Pros

  • Very low start-up costs
  • Market to a huge audience
  • Good for those wanting to start-out part time
  • Zero to low overhead

Cons

  • Extensive competition
  • Must be tech-savvy (or hire someone who is) in order to build your website and maintain it
  • Not easy to sell