What is a BizOpp?
Updated: Jun 5, 2020
Never before in the history of America has there been such a wave of entrepreneurial opportunity. Before COVID-19 the economy was booming, the stars lined up and entrepreneurs stood in line as alternative lenders handed out funding like candy for startups. Starting a new business was as easy as apple pie. We predict that the economy will pickup where it left off and quickly move into overdrive and go beyond what we can imagine possible. So, if you’ve been contemplating starting a business, here is a brief description of a few different types of BizzOpps to help you decide what’s right for your personality and lifestyle.
A distributor is a person or business that buys products or services in bulk from a manufacturer at discounted wholesale prices. A good example is a distributor that buys a popular line of hair care products from a manufacturer to resell to salons and barbershops (dealers) in a particular area or region, who then sells them at a retail price to their customers. The closer you are to the manufacturer in this sales chain, the more leverage and flexibility you’ll have to write your own pay-check. Network and Multilevel Marketing
In addition to distributing products or services offered by a parent company, a network marketer also recruits other distributors creating a “network” of distributors. Depending on the sales matrix, you can earn income through direct sales, residual commissions, volume bonuses, contest prizes and spiffs. This matrix structure is designed to help members in the network quickly meet their team sales and recruitment goals for each level, thereby pushing them up the multiple levels of the commission ladder. Hence the name ‘multilevel marketing’. There are so many NW and MLM opportunities available on the internet today that you could spend days looking for the one that peaks your interest. Here's a few you may recognize: Arbonne, Beach Body, Melaleuca, Plexus, and Xango Juice just to name a few.
A franchise is basically a business-in-a-box. When you purchase a franchise, you’re leap-frogging months and sometimes years ahead of a startup business. You’re taking on an instant reputation, brand recognition and solid business plan and process already in place that pays an initial fee and ongoing royalties to a franchisor. In return, you gain the use of a trademark, ongoing support from the franchisor, and the right to use the franchisor's system of doing business and sell its products or services.
The very nature of this business structure takes all the guess-work out. The Parent company usually provides training as well as an ongoing support to get you up and running as quickly as possible putting your success in their best interest.
The entrepreneur has the advantage of operating their new business under a recognized brand name thereby acquiring instant credibility in their community. They can then receive ongoing support from the franchise headquarters with marketing, promotional materials, new business products or services, etc. Good examples of popular franchises are McDonalds and Subway restaurants, Molly Maids cleaning service, Dollar Tree Store, or Planet Fitness.
Licensing You may also find highly profitable business opportunities through licensing. Purchased brand-licensing rights and sharing the sales revenue is a tried and true method of monetizing your product or service associated with that famous name brand, icon, or trademark with built-in scalability.
Just imagine how quickly your product or service could become a big seller with a brand name recognition like: Avon, Arbonne, Black & Decker, Ford, Disney or Nike Orkin, Melaleuca or Whirlpool attached to it.
Filling a Niche
While Franchise and other fast start BizOpps are very lucrative, other opportunities also exist for motivated entrepreneurs to simply find a Business to Consumer (B2C) or a Business to Business (B2B) need and discover a way to solve it.
Here’s a good example of a B2C BizOpp. Perhaps you are a new mother who has a need for a baby product not on the market. So, you collaborate with a manufacturer to develop and test that product. Once it’s complete, list it on a popular e-commerce shopping site, like Amazon, then send it to their distribution fulfillment center where they handle all the orders. Also, home-based businesses are the fastest growing BizzOpp today. As a virtual assistant, you could offer your organization skills as a B2B outsource service to other small home-based businesses to help them stay focused on more important business building tasks.
Hit the Ground Running
So, don’t get too hung-up on analyzing which BizOpp is right for you. Many 'would-be entrepreneurs' get stuck at analysis paralysis before they even get their feet wet. There’s no rule that says you have to stay committed to a BizOpp that you don’t enjoy. It’s ok to change your mind and go another direction. It’s more important to just get started. Need some suggestions? Go check out our other SideHustle, BizOpp or Franchise blogposts. There's something for everyone. :o)