WHAT IS A BUSINESS OPPORTUNITY: Meaning, Tips & Types

Definitions of the term “Business Opportunity” also known as “bizopp”, vary by context. One definition of business opportunity is; an investment package that enables the buyer to launch a firm (say a franchise). It can as well be used to explain a scenario that offers a person or organization a fantastic chance to grow their existing businesses, launch new offerings, and make profits in the process, or, the sale or lease of any good, service, piece of machinery, etc. that assists the buyer/licensee in starting a business.

Overview

Business opportunities can come in different forms, ranging from small business opportunities to home-based business opportunities and online-based business opportunities. To take advantage of them successfully, one frequently needs to be innovative, creative, and strategic.

Any viable business opportunity must contain these four basic elements; a need or demand, the procedure to meet the demand, a process for using the available resources to address the need, and a strategy for profit. The absence of any of these elements leads to the development of a business opportunity.

Types of Business Opportunity

Business opportunities can be grouped into several types. Some of these include;

#1. New Market Opportunity

This particular kind of business opportunity called “new market opportunity” is one that focuses on expanding an already-existing company into an undiscovered emerging market. Because of the risks associated with tapping into markets that the firm is inexperienced with, this kind of business opportunity is very attractive to businesses that desire the possibility of rapid expansion. This provides opportunities for firms to develop and put into practice concepts and innovations without much competition.

#2. Distributorships

In this type of business opportunity, the entrepreneur (in this case distributor) chooses to act as the central center for distribution. The business owner accepts the role of distributor in order to market the goods and services of another organization for which the production of the goods will be handled by the parent firm.

The entrepreneur agrees to provide and market the manufacturing company’s product without having the right to incorporate their trade name into that of the entrepreneur. Depending on the terms of the contract, the distributor may also be restricted to solely marketing products or services from that particular company, or they may be able to promote a variety of products or services from numerous companies.

#3. Competitive Opportunity

Introducing new goods or services that are more valuable than those of the competition while better addressing the needs of the target customer base is made possible by a competitive business opportunity. This business opportunity enables business owners to increase their revenue and outperform their rivals. Strategic planning, innovative advertising techniques, and the effective use of data and technology to drive expansion make this business opportunity, potentially more profitable.

#4. Franchising

The business potential of franchising offers a creative means of starting and growing a company. It enables a person or corporation to capitalize on the tested business strategy of another organization and expand their firm swiftly with often fewer risks.

One of the most common ways to start a business is through franchising. The business plan and road map will already be provided for these franchises. Adherence to the rules of the brand for which you have a franchise is a very crucial factor.

This business opportunity encourages the creation of novel business structures and offers more adaptable choices to aspiring entrepreneurs and current business owners who seek to expand their businesses.     

#5. Technology Opportunity

This particular type of business opportunity called “technology opportunity” enables companies to launch innovative technologies that can be applied to already-existing markets. This business opportunity is perfect for individuals who want to stay current with modern cutting-edge advances.

Due to its adaptable deployment, low cost, and flexibility to customize solutions precisely for the needs of specific enterprises, the technology business opportunity, presents a significant return on investment for entrepreneurs.

#6. Marketing

Prospective business owners should give the constantly changing field of marketing careful thought. Business owners have the potential to significantly boost their clients’ profit margins while also building a strong customer base and an appealing brand identity by employing strategies to understand consumer requirements, develop engaging and successful promotions, and evaluate the achievement of those campaigns.

#7. Home-based business opportunity

Entrepreneurs may launch and run their enterprises without ever leaving the convenience of their own homes thanks to the growing popularity of home-based business opportunities. Business owners can benefit from the numerous opportunities made available by a home-based business strategy, ranging from freelance writing to web design and so on taking control of your business operations and achieving financial success.

#8. Online business opportunity

Most online businesses require just an internet connection and a laptop or a smartphone. An entrepreneur can utilize online business possibilities from home to capitalize on their business ideas, create business plans, and introduce their brands to the worldwide market without incurring the usual overhead costs associated with leasing an office space. A typical example in this category would be setting up an online store or drop shipping.

Small Business Opportunity

Businesses classified as small businesses typically have below 50 employees under them and can either operate remotely as an online-based business opportunity or a home-based business opportunity, or from a specific area. They are quite easy to start and require little financial commitment and technical know-how. A small business opportunity is perfect for prospective business owners who wish to work from home or who just want to launch a company in a lucrative, quickly expanding sector.

A few of them include;

#1. Cleaning Service

You can easily start a cleaning service business based on your cleaning habits. With fairly little capital, a small team, a variety of cleaning materials, and transportation you can provide cleaning services to private individuals, complexes of apartments, and commercial buildings.

Cleaning services are simple enterprises with minimal overhead; all you need is preparation, commitment, and great promotion to draw clients.

Some cleaning service businesses one can easily get into include;

• Residential and Office cleaning services.
• Vehicle cleaning.
• Carpet cleaning.
• Graffiti cleaning.

#2. Pet Sitting

Pet sitting business can be a great small business opportunity for those with a fondness for pets. In this situation, you must either board the pet while its owners are away on vacation or pay them regular visits. To encourage flexibility you can consider adding grooming services as well, where you visit pet owners’ homes to groom their pets and get paid for your services.

As part of your duties, you’ll be expected to play with the pets of your client, feed and water them, and (if they have dogs) walk them whenever required as such you’ll need to have prior experience handling pets. Additionally, you need to frequently inform customers about the health of their pets in order to maintain their satisfaction.

#3. Food Truck Services

There are various types of food trucks that serve a variety of foods and cuisines. Without the expense of operating a permanent restaurant, food trucks are a great method to demonstrate your culinary skills. Additionally, you can promote your brand by taking your food to various events and festivals.

Before opening or making an investment in a conventional restaurant site, providing a food truck service can be a terrific method to learn about state food and restaurant licensing requirements, as well as see what customers enjoy and dislike while amassing a loyal customer base.

#4. MakeUp & Hair Styling

A lot of people feel the need to always look their best during special occasions, such as; graduations, weddings, birthdays, and so on. Therefore hair styling is one small business opportunity that will continuously remain evergreen.

You can work as an independent makeup artist and stylist and carry out your services in the homes of your clients, or open your own saloon or spa. Though, working independently gives you much more flexibility.

#5. Coffee Shop

Start a coffee shop to turn your passion for brewing coffee into a lucrative business. Although this business often needs a little more money upfront, starting a franchise or purchasing an existing store are lower-risk means of getting into the coffee business. It takes more preparation and labor to open a shop from scratch, but doing so increases the potential for revenue in the long run.

Barista training, knowledge of international coffee sources, and exemplary customer service abilities are required if you want to create and operate a coffee shop on your own full-time. Although it will be more efficient to hire one or two experienced baristas to assist in customer service and deliveries.

Home-Based Business Opportunity

Starting a home-based business in this age is becoming relatively easy. Be it as a side hustle or a full-time job, there are several opportunities to choose from when deciding on a particular home-based business to start.

Some options include;

#1. Freelancing

A growing number of businesses need fresh copies for their websites and other promotional materials, thanks to the popularity of the internet. Besides that, there’s a host of services you can easily offer and get paid for from the comfort of your home as a freelancer. Some people might say that selling services is much easier than selling goods. Professionals in the creative industries, such as designers, marketers, or writers, can work as consultants or freelancers for other businesses maintaining multiple clients, frequently from the comfort of their home offices. As a freelancer, you can easily get gigs online or through recommendations from your previous clients.

Some skills you can offer as home-based freelancing services include;

• Freelance writing.
• Virtual assistance.
• Marketing.
• Designing.
• SEO consulting.
• Web design and development.
• Graphic design.
• Translation.
• Video and audio transcription, etc.

#2. Print-On-Demand Business

This business model offers you the opportunity to create your own customized line of graphics T-shirts, hats, bags, and other apparel. Graphic design expertise is helpful in order to succeed in this home business concept. Though, there is always an option of hiring someone to do the designs.

Due to the fact each item is printed when they are purchased, the business owner does not need to maintain inventory. This eliminates the inconvenience and expense of purchasing and keeping goods for sale because they are created to order.

#3. Event planning/ Event Catering

Weddings, corporate conventions, birthday celebrations, and office holiday soirees are just a few examples of events that event planners organize. These events also need delicious cuisines to serve the palates of the attendants.

A wonderful place for prospective event planners to start is in the hospitality industry. Aside from that, you’ll need reliable contacts, good planning skills, an eye for details, and the drive to make things happen.

As for the event catering, along with a passion for cooking, you’ll need to build up a menu and price list, as well as acquire the required permits and licenses before you can begin.

#4. Start a Dropshipping business

In a dropshipping business, you sell products that are listed on your online e-commerce store but depend on a different company to process the purchase and send the product to the buyer. There are a variety of products you can easily dropship ranging from; clothing, clothing apparel, clothing accessories, mobile phone accessories, electronics, everyday use products, and much more.

People often think that dropshipping businesses are cheap to start because there is no stock. A drop shipper who sells the goods you intend to sell at a price you can mark up and turn a profit on, as well as an online store where you can list your goods, like Shopify, are both required to launch a dropshipping business.

#5. Home-based Daycare or Babysitting

If you are good with children, you can easily start a daycare business in your home. It can be exciting, fulfilling and doesn’t need much financial commitment upfront to get started.

With your prior experience with children and the necessary supplies readily available in your home, as well as compliance with state regulations concerning licensing, and inspection requirements, you can start babysitting on a small level for close family and neighbors and then expand your daycare gradually.

Business Opportunities to Try in 2023

There are a host of business opportunities to venture into in 2023. You could start a business based on; your passion, or provide high-demand services. Either way, here are 10 business opportunities you can look into in 2023;

• Freelancing.
• Dropshipping.
• Affiliate marketing.
• Social media influencing.
• Print-On-Demand business.
• Cryptocurrency Investment/Flipping NFTs.
• Cleaning services.
• Real estate Agent
• Personal trainer.
• Massage therapist.

Investment Business

An investment business is a company or trust whose main job is to put money from investors into financial securities. These investment businesses are usually registered with the Securities and Exchange Commission (S.E.C.) to ensure that they are properly regulated. Typically, both private and public funding are held in trust by investment businesses for future sales and marketing. Additionally, they frequently manage and hold securities for numerous people and businesses and offer a variety of solutions that make monitoring these funds easier and more effective.

Types of Investment Businesses

There are three types of investment businesses. These various types of investment businesses possess distinct characteristics that distinguish them from each other. The types of Investment businesses include;

#1. Mutual funds

Mutual funds investment business, also known as open-end corporations offers open-end funding. For this type of investment business, there is no cap on the overall amount of shares that can be issued. This hereby lowers entry barriers and facilitates investment.

#2. Closed-End funds

These businesses, which are also known as investment trusts, offer a small number of fixed shares that are traded freely on the stock market and have the potential to make payments to all investors.

#3. Unit Investment Trust (UIT)

Undivided interests in a certain, predetermined portfolio of assets are represented by the fixed amount of units issued by a unit investment trust (UIT). They have a defined termination date, and upon termination, investors are given a proportional part of the UIT’s net assets.

What Are 3 Types of Business Opportunities?

Three types of business opportunities include;

• New Market Opportunity.
• Distributorship.
• Competitive Opportunity

What Are 4 Examples of Business Opportunities?

Four examples of business opportunities include;

• Senior care.
• Consulting services.
• Personal trainer.
• Real estate agent.

How Do You Identify Business Opportunities With Examples?

You can identify business opportunities through the following ways;

• Listen to your potential clients and past leads.
• Listen to your customer’s feedback.
• Studying your competitors.
• Observing industry trends and insights.

How Do You Create a Business Opportunity?

You can follow these steps to create a business opportunity;

• Focus on your core product.
• Keep your pitch simple.
• Stay true to who you are.
• Map your capabilities with your target client.
• Utilize marketing tools that work best for you.
• Implement a plan of action.
• Exercise the plan.

Conclusion

Business opportunities are all around us. They offer individuals the opportunity to develop business ventures having great profit margins with little to no start-up costs. Keep in mind that any business opportunity, small business opportunity, or home-based business opportunity, needs thorough strategy, investigation, and execution, as well as professional insights every now and then.

Knowing your target market in detail, developing a strategy to draw them in and keep them as customers, and creating enticing goods or services are also very important aspects of any business opportunity. You can locate a business opportunity where you can earn money and have a flexible schedule regardless of your field of expertise.

Business Opportunity FAQs

Related Articles

1. OPPORTUNITY COST: How to find Opportunity Cost
2. Why You Should Start Your Own Business and The Best Virtual Phone Number for Small Business 
3. EMPLOYEE DEVELOPMENT PLAN: Ultimate Guide on How to Create One With Examples
4. HOW TO MAKE MONEY IN ONE HOUR ( 7+ Proven Tips & Ideas)
5. HOW TO EMAIL SOMEONE ABOUT A JOB