Turnkey businesses are enterprises that can provide service immediately, without any preparation or additions to the business. The idea is that you can unlock the doors and start working, hence the term “turnkey.” A business that wants to market itself as turnkey must prove that it can provide a service or product without any outside assistance other than capital. Ready-to-go businesses are attractive investment opportunities because, in theory, all they require are labor and capital.
Turnkey operations can include franchises, real estate investments and marketing programs. It also might be a service such as turnkey plant relocations Los Angeles or turnkey machinery repair. If you can purchase an asset and immediately put it to use, it is a turnkey operation.
Examples of Turnkey Businesses
When it comes to marketing, it may seem like operating a turnkey business would be challenging to manage because of the specific nature of different marketing campaigns. However, certain agencies have developed marketing campaigns that can apply to several industries and sectors with only a limited amount of consulting. This type of service might be more expensive in the short term but cost-saving in the long term due to the time and resources you can expend on other productive activities.
A turnkey property is attractive if you are a landlord because it only takes capital to purchase the property and start renting. Usually, a real estate company will market itself as a turnkey property provider, but as a buyer, you must do your research before committing to a seemingly worry-free investment. To maximize your time saved and earn truly passive income, you might want to hire a separate company to manage the property.
Typically, franchises are turnkey businesses. For most investors who purchase a franchise, part of the appeal is that you do not need to put in the time to renovate the property and develop a business strategy. The most successful franchises are turnkey operations because they adhere to a strict standard that can quickly and easily be replicated. If you have higher ambitions for your business and want to implement your innovations, then a turnkey franchise might not be ideal for you.
If you are an investor and want to start earning profits right away, buying a turnkey operation is effective. However, very few businesses are genuinely turnkey, and the initial investment might be higher in the short term. As with any investment, you need to do your research before committing.