The Definition Of Turnkey Business

A turnkey business is an already run business that you can easily operate under the same structure as the owner. These businesses are usually marketed and sold as a franchise or pre-existing organization with supporting materials and services available for use.

The main difference between owning a turnkey business and running your own business is the level of investment needed to get started. With most turnkeys, you receive everything you need to start working right away – no expensive renovations or updates necessary!

Turnkeys often include all of the equipment, supplies, and financing required to open up shop immediately. This helps franchise owners limit the risk they take by offering a ready made business model. It also gives them more time to focus on building their business without having to invest in additional resources.

There are many types of turnkeys, but the two major categories are technology and service oriented businesses. A technology turnkey will provide you with all of the tools you need to launch your business instantly, while a service oriented business will give you the source material to begin doing work.

What is a franchise?

turnkey business definition

A franchise is an business model that allows you to be your own boss, with the help of the franchisor. The franchisor provides the framework for the business, including marketing materials, recipes or products, and even some initial money to get started. Then they sell the name and brand you will use in the business so people can associate you with that product or service.

The second part of the partnership is working together to promote and develop the franchise you have picked. You get paid less than what you would as an independent entrepreneur, but there are many resources available to you through the franchisor. This includes helping you grow your business, advertising for your franchise, etc.

There is also additional income generated from royalties, bonuses, and returns on investment if you expand into other franchises owned by the same company. Your success depends on their effectiveness, however!

Some studies show that only about one third of all franchisees survive past five years due to poor quality of life issues or lack of profitability. Make sure you do your research before jumping in, just like you would any new business idea.

What is a license?

turnkey business definition

A license is an agreement where someone gives you permission to do something. For example, if I own a restaurant, I have a business license that allows me to run my restaurant. Without this license, I could not open up my doors for diners.

A software license is similar to having a business license but instead of opening a restaurant, you are giving other people permission to use your software. This is done through what’s called a license term or distribution license.

There are two main types of licenses used in creative industries- non-transferable-use (NTUA) and transferrable-use (TU). NTU means you can only use the software one time and you cannot give it away to anyone else. Transferrable use means you can share it with up to three additional individuals.

What is a retail business?

turnkey business definition

That is, what does it mean to say that you are running a grocery store? You have products that you sell and marketing materials to promote those sales.

That’s not very descriptive is it? It doesn’t tell anyone anything about how your business works!

To be clear, having a retail business isn’t at all like owning a normal grocery store where you can describe what the job of the owner is.

A turnkey business is one that has everything needed to run the company already in place. The owners don’t need to spend time doing things like finding a space for the business, gathering inventory, or hiring employees because they have done all of that work for them.

This helps keep ownership free from administrative tasks so that they can focus more on growing the company.

What is an online business?

turnkey business definition

Starting your own business doesn’t have to be very complicated, nor does it require lots of money. In fact, there are many types of businesses that can easily be run from anywhere with access to the internet. These days, anyone with a smartphone has access to the internet and can create an easy way to earn extra income.

By offering a service or product you know about through your site or app, you can make some additional cash by running what we call a turnkey business. A turnkey business isn’t one where you have to invest in expensive equipment or facilities, it’s mostly done for you already! All you need to do is get yourself a domain name and start hosting or designing your website or app, and then people will come flooding in to buy whatever you're selling.

It's not always as simple as just letting someone else hold out their hands and asking them if they want to eat, but being willing to help others find solutions to their problems is a powerful thing.

What is a recipe business?

turnkey business definition

A recipe business sells recipes or tips to make foods or products that require that ingredient or process. These are usually cost-effective to start up since you do not need large capital investments or heavy marketing strategies to get going with your business.

A lot of people begin cooking due to passion for creating new dishes or learning how to create new recipes they want to try. By offering these recipes in a place where many individuals can access them, you have built an additional stream of income.

By adding ingredients and components to those recipes, you offer potential customers more options to learn about and/or add things into their own recipes.

What is a service business?

turnkey business definition

A service business does not have you buying their product or offering them your services, instead they offer professional services that help other businesses run more efficiently. These services are typically related to marketing, finance, organization, communication, etc.

Most people know what a technology company is — a software or mobile app provider. But what about an IT consulting firm that helps companies stay organized with office management apps? Or an online marketing agency that creates campaigns for you?

These types of businesses do one thing but it’s very well done. They provide expert services to other organizations so that they can operate more effectively.

A service business doesn’t get paid when its client uses their services, which is why these professionals spend most of their time in front of computers doing nothing! (Not really.) Instead, they earn commissions from how many services they supply to customers.

It's also important to note that even though these services may be helpful to others, they're not necessarily designed to make money for the providers.

What is a retail business?

turnkey business definition

That's a pretty basic question, but it can be tricky to define! Most people associate the term "retail business" with shops that sell products, but there are some things about that definition that you should look into.

First of all, the word "business" implies that the shop has an income source and staff members that work full time at the location. This isn't always the case for large corporations like Target or Walmart, but it is for most small businesses!

Another important part of the definition of retail business is the word "store." Some people use this as a reason why their business cannot be considered a retail business because they only have one item at a time. However, just because someone has never heard of another way to describe something doesn’t make it correct!

A quick Google search will prove that being able to describe something does not take away from its legitimacy.

What is a franchise business?

turnkey business definition

A franchise business is an established business entity that allows you to purchase the rights to use their intellectual property, or “franchise”, along with supporting services and marketing material.

By investing in a franchise business model, you get the tools to run your own business – without having to develop these yourself.

The franchise system creates access to resources and expertise that are beyond what you would produce on your own. They take care of the hard work so you don’t have to!

There are many types of franchises out there, but one of the most common formats is for individuals or groups of people to buy a stake in a company…

These companies offer you the chance to become an owner of the franchise business by buying into its capital stock. You then receive the right to use the trademarks and proprietary systems provided by the franchise business so that you can continue to sell products under their name.

About The Author

Tiara Ogabang
Tiara Joan Ogabang is a talented content writer and marketing expert, currently working for the innovative company With a passion for writing and a keen eye for detail, Tiara has quickly become an integral part of the team, helping to drive engagement and build brand awareness through her creative and engaging content.
Juice Beta is ending July 1st! Subscribe before end of month to lock in Juice Plus for 50% off!
$49 $25
Sign up now
Juice Beta is ending soon! Subscribe now to lock in Juice Plus for $49 $25
Sign up now