What do you know about the definition of business opportunity? For your information, a business opportunity is a packaged business investment that will allow the buyer to begin a business.
In most business opportunity programs, there is no continuing relationship between the seller and the buyer after the sale is made.
After you know a little bit about the definition of business opportunity, it is time for you to know the general criteria. Although not every state defines the term in the same manner, most of them use the following general criteria:
- A business opportunity involves the sale or lease of any product, service, and equipment that will enable the purchaser-licensee to begin a business.
- The licenser or seller declares that this term will 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.
- 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.
- 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 trading name or a trademark.
The last thing that you need to know besides the definition of business opportunity is the common types of business opportunity ventures.
There are distributorships that involve entering into an agreement to offer and sell the product of another.
There is also rack jobbing that involves selling another company’s products through a distribution system of racks.
The last one is the vending machine routes that are very similar to rack jobbing but the investment is usually greater.