Business Opportunities

Everyone seeks business opportunities

A business opportunity, in the simplest terms, is a packaged business investment that allows the buyer to begin a business. (Technically, all franchises are business opportunities, but not all business opportunities are franchises.) Unlike a franchise, however, the business opportunity seller typically exercises no control over the buyer’s business operations. In most business opportunity programs, there’s no continuing relationship between the seller and the buyer after the sale is made.

Although business opportunities offer less support than franchises, this could be an advantage for you if you thrive on freedom. Typically, you won’t be obligated to follow the strict specifications and detailed program that franchisees must follow. With most business opportunities, you would simply buy a set of equipment or materials. Also, you can operate the business in any way and under any name you want. There are no ongoing royalties in most cases, and no trademark rights are sold.

Business Opportunities, business opportunity, entrepreneur, entrepreneurship
Business Opportunities
What Are Business Opportunities?

Business opportunities are difficult to define because the term means different things to different people. In California, for example, small businesses for sale – a liquor store, dry-cleaning operation etc – are all termed business opportunities. Therefore, individuals handling their purchase and sale must hold real estate licenses.

Making matters more complicated, 23 states have passed laws defining business opportunities and regulating their sales. Often these statutes are drafted so comprehensively that they include franchises as well. Although not every state with a business opportunity law defines the term in the same manner. However, most of them use similar criteria

These Include:
  • A business opportunity involves the sale or lease of any product, service, equipment and so on. This is what will enable the purchaser license to begin a business.
  • The licenser or seller of a business opportunity declares that it will secure or assist the buyer in finding a suitable location or provide the product to the purchaser-licensee.
  • The licenser-seller guarantees an income greater than or equal to the price the licensee-buyer pays for the product when it’s resold and that there’s a market present for the product or service.
  • The initial fee paid to the seller to start the business opportunity must be more than $500.
  • The licenser-seller promises to buy back any product purchased by the licensee-buyer in the event it can’t be sold to prospective customers of the business.
  • Any products or services developed by the seller-licenser will be purchased by the licensee-buyer.
  • The licenser-seller of the business opportunity will supply a sales or marketing program for the licensee-buyer that many times will include the use of a trade name or trademark.

These are some common types of business opportunity ventures

Distributorships

Distributorship involves entering into an agreement to offer and sell the product of another. This is without being entitled to use the manufacturer’s trade name as part of the agent’s trade name. The distributor many be limited to selling only that company’s goods. This depends on the agreement that was reached initially. Also, he may have the freedom to market several different product lines or services from various firms.

Rack Jobbing

This involves selling another company’s products through a distribution system of racks in a variety of stores. These racks serviced by the rack jobber. In a typical rack-jobbing business opportunity, the agent or buyer enters into an agreement with the parent company. The agreement is usually to market their goods to various stores by means of strategically-located store racks. Under the agreement, the parent company obtains a number of locations in which it places racks on a consignment basis. It’s up to the agent to maintain the inventory and move the merchandise around to attract the customer. The agent is also respomsible for 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 that has the rack, less the store’s commission.

Vending Machine Routes

These are very similar to rack jobbing. The investment is usually greater for this type of business opportunity venture. Because the businessperson must buy the machines as well as the merchandise being sold in them. But here, the situation is reversed in terms of the payment procedure. The vending machine operator typically pays the location owner a percentage based on sales. The secret to a route’s success is to get locations in high-traffic areas. Also, the locations should be as close to one another as possible. If your locations are spread far apart, you waste time and traveling expenses servicing them. Furthermore, such expenses can spell the difference between profit and loss.

Stay tuned for the completion of this series…

Vice President says business support services, MSMEs must be sustained

The Vice-President, Prof.Yemi Osibanjo, has called for the sustenance of the Business Support Services and financing of 15,000 Micro, Small and Medium Enterprises (MSMEs) in the Federal Capital Territory (FCT).

The News Agency of Nigeria (NAN) reports that the Abuja Enterprises Agency (AEA) manages the MSMEs in the territory.

The Vice President Prof. Yemi Osibanjo, stated during the inauguration of the FCT MSME ”One Stop Shop’ in Abuja on Thursday through the Minister of State, Industry, Trade and Investment, Hajiya Aisha Abubakar. He said that the FCT MSME ”One Stop Shop’ was in line with governments agenda aimed at boosting the business sector, adding that the intervention had created 12,517 jobs from 2015 to date.

The Vice President said that the initiative was also designed to further facilitate synergy between the MSMEs and Business Support and Regulatory bodies and eliminate bureaucratic bottlenecks faced by the MSMEs in the country.

The Managing Director of AEA, Mr Muhammad Arabi, said over 8,500 businesses were being sensitised on regulatory issues, government support programs and projects.

He said that MSMEs had been afforded the opportunity to directly interact with Business Regulatory and support institutions.

He said that the agency was committed to delivering the ease of doing business, initiative development by the administration which gave special attention to MSMEs Sub-Sector.

The Executive Director, Bank of Industry (BoI), Toyin Adeniyi, said that the bank was partnering with the Federal Government to empower more than two million petty traders across the country in the first batch; she said that the project, wholly driven by the government, would be expected to give N10, 000 grants each to the traders to boost their businesses.

The Executive Director said that the bank was targeting at least 39,000 beneficiaries, from every state to benefit from these grants.

According to her, the bank hopes to increase the amount to N15, 000. Note the project is a Federal government project, “We are only here to supervise, after this phase, we will go ahead to ask beneficiaries to open account with the banks before we start further disbursement”.

Nigeria To Disburse N220 Billion To Medium And Small Scale Enterprises

                                                                          Central Bank of Nigeria, Abuja

The Central Bank of Nigeria (CBN), says it has disbursed N220 billion as loan, for Small and Medium scale Enterprise.

The Director, Corporate Communications Department of the Apex bank, Isaac Okorafor, disclosed this in an interview with news men in Gombe north-east of the country, on Monday,  during the bank’s programme on Promoting Financial Stability and Economic Development.

He said the loan which was tagged Small and Medium scale Enterprises Development Fund (MSMEDF) was set aside to encourage people who were into businesses like Vulcanizing, Hair dressing, Barbers who would also employ others to work with them.

“If you empower these groups of people, the economy will grow faster because they will become employers of labour.

He said people were discouraged to apply for loans because they do not have collateral, hence the provision of this loans, easy to access through their cooperative organizations, they would open accounts in banks, and interest rate is only 9 %.

He stated clearly “In CBN, we do not give grants to people, but we show you how to access funds.”

AfDB Plans $3.3bn For Women, Youth Entrepreneurs

The President of the African Development Bank, Dr Akinwumi Adesina, is currently on a tour to seek global support for the bank’s programme to raise $3.3bn for African women and youths in enterprise.

This was disclosed in Abuja on Sunday in furtherance of Dr Akinwumi Adesina’s conviction that the future of food in the world depended on what Africa could do with agriculture.

“To expand opportunities for youth, women, and private sector players, Adesina is on a global mission to promote and seek support for the bank’s Affirmative Finance for Women in Africa programme” the bank said.

The global mission is targeted at mobilising $3bn to support women entrepreneurs who historically lack access to finance, land, and land titles; a $300 million enable youth programme to develop the next generation of agribusiness and commercial farmers for Africa; and a new global investment marketplace, the African Investment Forum,  which will be held in Johannesburg on November 7-9.

“With over 800 million people worldwide suffering from hunger and more than two billion affected by malnutrition, food insecurity remains a real threat to global development”. Adesina, who is making a global pitch for renewed visionary leadership and strategic alliances, is of the strongly believes that the future of food in the world will depend on what Africa does with agriculture.

The AfDB said it envisioned a food secure continent which would use advanced technologies, creatively adapt to climate change, and develop a whole new generation of ‘agripreneurs’ – empowered youths and women expected to take agriculture to the next level.

According to the statement, Adesina said, “Africa receives only two per cent of the $100bn annual revenues from chocolates globally. Adding value to what nations produce is the secret to their wealth. Producing chocolate instead of simply exporting cocoa beans does not require rocket science.”

In a separate meetings with the Minister for Foreign Trade and Development Cooperation in The Hague, Sigrid Kaag; the Chief Executive Officer of the Dutch Entrepreneurial Development Bank, Peter van Mierlo; key private sector players, and members of the Dutch Foreign Affairs Advisory Council, Adesina said Africa and its partners must seize unprecedented opportunities for innovative partnerships and increased development impact.

In a statement, Mierlo was quoted to have said at the meeting, “A huge benefit for Africa is that it can skip development cycles that often almost all developed countries had to go through, by deploying new technologies such as artificial intelligence and robotics in agriculture.”

 

We Are Committed To Supporting SMEs- Ecobank

Ecobank Nigeria had reiterated its commitment to supporting SMEs in Nigeria. The Managing Director designate, Patrick Akinwuntan disclosed this during the introduction of Ecobank Nigeria Emerald Business Club held in Lagos.   He said “This is an exclusive product for our key local corporate and the SME clients”.

Mr Patrick said this development is founded on bank’s long-term commitment to supporting indigenous businesses within the country and in line with the bank’s vision to contribute to the economic development and financial integration of Africa.” He said the bank had developed initiatives to support trade business and lending to its target customers.

Ecobank has resolved to expand its scope in its commercial banking businesses and had designed products specifically tailored to meet the needs of target customers (largely local corporate, SME and key public sector participants). “We are willing to work with the peculiarities of each customer’s business so as to grow the economy, Mr Patrick said. In the same vein, the Emerald Business Club is being proposed as an implementation platform for this Ecobank focus approach.”

In his own statement, Mr. Rotimi Morohunfola, Head, Commercial Banking said the club is an initiative of commercial bank business across Ecobank Group in Africa. “We have looked at the market space, specifically looking at the commercial businesses that drive the economy and we clearly know that the SME and the major local corporates are the key drivers of the economic activities in Nigeria and across Africa,” he said.

He said it would form a formidable partnership that would make it the preferred banking partner because Emerald club comes with certain value adding offerings, in terms of banking service solutions, and concessions in terms of prices of certain services it provides.