New and unfamiliar terms can be intimidating, and even more importantly, specialized jargon can often prevent those unfamiliar with it from experiencing new and exciting opportunities. Anxiety about feeling unprepared or uneducated makes many people stop before they even begin, and nowhere is this pressure more palpable than in the field of business. Specialized terminology and language is a prerequisite for dealing effectively in business situations, and because of this, it is vital to have a clear and precise understanding of what turnkey means in the context of a business setting.
The word turnkey comes from the idea that the business in question is already completely set up. The buyer need only “turn the key” to the company door to begin operation. Purchasing a turnkey business is not the same as buying a business model or a plan for a company. Rather, purchasing a turnkey business means buying the building or office in which the company is located, purchasing the inventory, stock, product, and even the reputation that has been built up by the company’s previous owners.
Generally speaking, there are no licenses, permits, or registrations necessary, and no further tasks to finish when purchasing a turnkey company, and in many cases, the business will not even stop running for the change of ownership. As a buyer, simply “turning the key” is all that is necessary from the moment the essential papers are signed.
There is much more to the turnkey industry, however, than a definition. Though the previous definition is applicable to all types of turnkey industries, there are various categories of turnkey businesses.
