State and explain the various types of business opportunity ventures.

Self - Discovery
This entails creating a product for an unsatisfied need – There are a lot of unsatisfied needs in all
types of markets and although taking advantage of these business opportunities promises a lot
of rewards, the entrepreneur should keep in mind that they also represent greater risk. Also, he
should be sure that the product or service satisfy needs and not wants because the former is for
keeps while the latter simply come and go.

Re - invention
If the entrepreneur notices a particular product or service that is obviously unable to fully satisfy
its target market, that situation can be immediately transformed into a business opportunity if he
has an idea on how to improve it, that is. These business opportunities represent lower risks and
consequently lower rewards as well compared to those associated with creating a completely
new product.

Use an Existing Product for an Untapped Market – Sometimes, business opportunities are
discovered not by creativity but rather because of resourcefulness. These business opportunities
definitely exist, but the process of discovering them is almost akin to creating a new product to
satisfy an unwanted need. The rewards, however, are just as great. One good example for this
is how a Philippine company was able to make use of coconut husks – which was once the
least useful of all parts of the coconut tree – by grinding and turning them into a concrete mixing
compound. It soon became not only a more affordable alternative but a more environmentally
friendly one as well!

Joint Venture
As they always say, two brains work better than one. And in the world of business, there are twice
as many business opportunities available just as long as the entrepreneur opens his mind with
others of like thinking.

Distributorship.
This refers to an independent agent that has entered into an agreement to offer and sell the
product of another but is not entitled to use the manufacturer's trade name as part of its trade
name. Depending on the agreement, the distributor may be limited to selling only that company's
goods or it may have the freedom to market several different product lines or services from
various firms

Rack jobber.
This involves the selling of another company's products through a distribution system of racks
in a variety of stores that are serviced by the rack jobber. Typically, the agent or buyer enters
into an agreement with the parent company to market their goods to various stores by means of
strategically located store racks. The parent company obtains a number of locations in which the
racks are placed on a consignment basis. It's up to the agent to maintain the inventory, move the
merchandise around to attract the customer, and 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 which has the rack-less the
store's commission.

Vending machine routes.
This is very similar to rack jobbing. The investment is usually greater for this type
of business opportunity venture since the entrepreneur must buy the machines as well as the
merchandise being vended, but here the situation is reversed in terms of the pay procedure. The
vending machine operator must pay the location owner a percentage based on sales. The big
secret to any route deal is to get locations in high-foot-traffic areas, and of course, as close to one
another as possible. If the locations are spread far apart, you waste time and traveling expenses
servicing them.
In addition to the types of business opportunities listed above, there are four other categories we
should be aware of:

Dealer.
This is quite similar to a distributor but while a distributor may sell to a number of dealers, a dealer
will usually sell only to a retailer or the consumer.

Trademark/product licenses.
Under this type of arrangement, the licensee obtains the right to use the seller's trade name as
well as specific methods, equipment, technology or products. Use of the trade name is purely
optional.

Network marketing.
This is a generic term that covers the realm of direct sales and multilevel marketing. As a
network marketing agent, the entrepreneur will sell products through his own network of friends,
neighbors, co-workers and so on. In some instances, he may gain additional commissions by
recruiting other agents.

Cooperatives.
This business is similar to a licensee arrangement in which an existing business, such as a hotel
or hardware store, can affiliate with a larger network of similar businesses, often for the sole
purpose of advertising and promoting through a common identity.

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Kavungya answered the question on April 10, 2021 at 10:09