A Definition Of
Turnkey Businesses

TURNKEY BUSINESS SYSTEMS

The basic idea is that the business relies on tried and tested procedures, or systems, that produce predictable results - usually without the business owner having to do the donkey work.

The key attraction for many people is to develop a source of passive income - money that you receive even though you do not have to keep on working to get it. For example, Robert Kiyosaki tells a story in Cashflow Quadrant about an entrepreneur who organises the building of a pipeline between a lake and a village. Once the tap is switched on, the water flows. In this particular story, the entrepreneur is paid for providing the water supply and so the tap turns on the money as well as the water.

In the same way, the thinking with a turnkey opportunity is that you buy a ready made business. You only need switch on the tap - or turn the key - and the money flows.

Is this possible?

KEY PARTS OF A BUSINESS

Can you turnkey all aspects of a business?

If you opened up the bonnet of a business, you would see that the engine consists of a number of interconnected parts:

• Product development
• Marketing and advertising
• Making sales
• Delivering the product or service
• Money
• Back office paperwork
• Leadership

If you buy into a home based franchise or join a network marketing (MLM) company as a distributor, you should find that some of these aspects are already in place - particuarly the product and the back office paperwork.

However, there are key aspects that will almost certainly be missing - making sales and leadership. Making sufficient sales to earn the profits you want is normally the toughest part of building a successful home based business.

No, the point for most home based business entrepreneurs is that a turn key business is not like an engine you simply switch on. There's something missing. Hard work is still needed to bring in the money.

So, from a practical viewpoint, a better definition of turnkey businesses relates to proven business systems which can cover certain activities in the business. You buy into a success formula which still requires your efforts to produce results - but you know that turnkey business sytems can give you a much improved chance of long term financial security.

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