What does turnkey mean in business

Popular Courses. Business Business Essentials. Business Essentials Guide to Mergers and Acquisitions. What Is a Turnkey Business? Key Takeaways A turnkey business is a for-profit operation that is ready to use as-is the moment it is purchased by a new owner or proprietor. The term "turnkey" is based on the concept of only needing to turn the key to unlock the doors to begin operations, or to put the key in the ignition to drive the vehicle.

Turnkey businesses include franchises, multi-level marketing schemes, and certain real estate investments, among others. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.

Related Terms Turnkey Cost Definition Turnkey cost is the total cost that must be covered before a product or service is ready to be sold and used. Turnkey Solution A turnkey solution is a type of system built end-to-end for a customer that can be easily implemented into a current business process. What Is a Business? A business is an individual or group engaged in financial transactions. Read about types of businesses, how to start a business, and how to get a business loan.

Learn how to become one and the questions you should ask before starting your entrepreneurial journey. Blockchain Explained A blockchain is a digital distributed, decentralized, public ledger that exists across a network.

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Related Articles. Startup: Which Way to Go. Investopedia is part of the Dotdash publishing family. Entrepreneurs considering buying a franchise business should always do their due diligence and be sure they know exactly what a particular turnkey operation includes. Not all franchise businesses are created equal, and to complicate things even more, franchise legislation differs from region to region—if it exists at all. Tim Horton's. Actively scan device characteristics for identification.

Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. It can be hard to identify a unique business niche that has little competition, as well as a strong success rate; a turnkey business can give new business owners the confidence to pursue their entrepreneurial endeavours with conviction.

There are a number of cheap turnkey business opportunities that can offer different kinds of returns over varying lifespans. Others, however, might be looking for something much more comparatively affordable. However, there will be a reason that these small businesses are valued at such a low price. The business could include tired or outdated equipment, or the customer database could be filled with duds. There are plenty of franchise opportunities open to those willing to pay ongoing fees to a 3rd party.

Some turnkey businesses are functioning businesses which are ready to be handed over to a capable person, whereas others are yet to be established businesses, with the seller offering all the training, equipment and marketing materials needed to get a headstart with their own business.

Auto Repair Shops, Pizzerias and Laundromats are all examples of turnkey businesses which could prove profitable, however, they each come with their own set of risks and benefits, which should be considered before any investment is made. Meanwhile, the profit potentials for cleaning businesses , along with their low barrier of entry, have proven successful for many.

With so much choice, it can be difficult to decide which route to go. You can finance a turnkey business in the same manner that you would do any other business. The best way to do this is through your own savings, however, the use of credit or using a loan from a bank can also be a means to an end.