9 Compelling Reasons to Buy a Turnkey Business
Turnkey businesses are bought outright, and the buyer's only responsibility is running the business.
The preference for turnkey businesses has been on the rise, and for good reason.
A turnkey business is one that already exists and consists of everything needed to start the business. They are bought outright, and the buyer's only responsibility is to manage the business.
Here are nine reasons why turnkey businesses are the best.
1. Research advantages
If you were to start a business from scratch, you would need to conduct extensive market research to understand your target audience and what they like. Luckily, a turnkey business saves you these hassles.
Since it is not new to the market and has been at the same location for a while, you have insight into the customers. Therefore, you can dive right into business using research results previously available.
When considering getting a turnkey business, you can start by reviewing the entire inventory of the business. These documents will provide information on the regular purchasing cost and how quickly the stock moves.
2. It's a model proven to be effective
As an entrepreneur, you need value for your money. You need to work with a reliable model, one that has been proven before. A turnkey business is a proven model that you, as a business person, can leverage to your advantage.
Turnkey businesses offer a setup that eliminates the guesswork common with new entrepreneurs who are unsure of which strategy to use to maximize profit. Turnkey businesses have a predetermined play that the new owner can follow.
Besides, turnkey business models are always replicable. They operate simply and easily in a way that you, as a new entrepreneur, can manage. On the upside, they come with already existing customer loyalty and built-in awareness.
3. They are fast and easy to set up
If you are considering starting up a business, there are numerous things you need to factor in, which might be complex and lengthy. However, turnkey businesses, especially those with mobile concepts, are quick and easy to start. This is because they don't need an extensive hiring process or a pricey build-up.
Most of these models hire one or two people, and the entrepreneur operates the business. As the business continues to thrive, the owner can choose to employ more people.
As a franchise, a turnkey business will save you time by skipping other procedures like selecting the optimal site for your business and building. Therefore, your business will pick up fast and begin making money sooner.
They also have an active sales unit with all the equipment and systems in place. Thus, they make it easy to begin a profitable business when you are ready.
4. Unlimited support and guidance
When selling out an existing business, most owners offer unlimited support to the new business person. The support can take different forms depending on your needs. For example, it can be in technology, marketing, training, operations optimization or anything else you might need help with.
The availability of support makes turnkey businesses the best. It is the unique factor that sets it aside from other businesses. By partnering with a supportive business franchisor, you have better chances of driving your business in the right direction and increasing your chances of success.
5. Established customer base
The hardest part about running a business is getting people to switch from a competitor's product to yours. You need to prove that your brand is the best in the market, which means hefty discounts.
Unlike an independent startup, turnkey businesses have an already established and loyal customer base. Thus, your product or service will have a ready market, which helps improve the success of your turnkey business.
6. There are barely any limitations
Most turnkey businesses do not come with any specific rules, guidelines or limitations, so you can grow as your business grows without feeling limited or constrained.
However, you should note that some turnkey franchise models have set regulations to protect the brand name. Therefore, if you encounter such a model, you will need to abide by the regulations included in the contract agreement.
7. Easy to grow and expand
Undoubtedly, turnkey businesses are quite an investment. Nonetheless, you will be getting value for every penny you have invested. So, if you can afford and pay the initial investment, it is easy for your business to expand quickly.
The ease of growth that comes with turnkey businesses is essential, especially if you are new to the business. It also comes in handy if you are considering multi-unit franchising, but you don't want to deal with paying the unending fees and manually setting up branches from scratch.
8. No hidden charges or ongoing fees
A turnkey business rarely has hidden fees or fees that you need to pay continuously. It is highly unlikely to have to pay marketing fees or land royalties.
9. Save greatly on costs
Turnkey businesses are often well-established businesses with a solid customer base. Starting a business from scratch entails a lot of marketing costs and offers to attract new customers.
As you can see, turnkey businesses are the best for a variety of reasons. They offer an easy way to grow your business while eliminating the hassles and unending fees of starting a business.
However, before settling for any turnkey business you come across, remember to conduct thorough research and schedule a consultation with the current business owners before signing a contract. Always consult experts to help with your search to ensure you choose the right turnkey business for you.
Entrepreneur Leadership Network Contributor