All business ventures require a capital outlay at the outset. Product development, building construction, location permits, and inventory stockpiling are all costly undertakings. Even in the turnkey sector, depending upon the type of business a potential owner is interested in purchasing, the initial requisite funds may be add up to a significantly large figure. However large this sum may be, it is vastly smaller than the amount of capital necessary to start a business from the ground up.
Owner-managers are also responsible for the financial operations of their company. In large companies, chief executive officers and head managers often receive investment opportunities that are not offered to regular workers. In the small business setting, the owner-manager can invest money as he or she sees fit through re-investing in their business, or opting for publicly available stocks, bonds, or retirement funds. Investing wisely can mean that the profits of the business are able to work to create more wealth.
Turnkey businesses have a smaller initial capital outlay than true start-ups, which allows the owner of the company to turn a comparatively quick profit. Additionally, because turnkey businesses are by definition so small, the owner-manager has an opportunity to use these profits for investment purposes. In this way, not only can a small business entrepreneur begin seeing rapid profit, he or she can in turn use this money for savings and investment.
