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Business Expansion: An Overview

There are three main alternatives available to businesses that want to expand. These are:

1. Opening of company owned and operated outlets,
2. Creating of partnerships or joint ventures, and
3. Forming contractual relationships with independent third parties through "Business Opportunities".

Opening company-owened locations, often requires large capital expenditures. This consumes profits and/or may create significant debt.

Entering into partnerships or joint ventures demands surrendering some equity and thus partial or total loss of independent managerial control.

Formng ontractual relationships with independent thrid parties is the most desirable alternative for businesses that do not want to share managerial control, grant equity, or go into debt.

The term "Business Opportunities" simply classifies various business affiliations created by successful companies for distributing products and services. "Business Opportunitites" include franchising, licensing, distributors, delearships, agencies, and multi-level marketing.  In today's regulatory environment franchising is by far the most popular and practical expansion method of all of these types of affiliations, .