Develop and improve products. List of Partners vendors. A turnkey business is a business that is ready to use, existing in a condition that allows for immediate operation.
The term "turnkey" is based on the concept of only needing to turn the key to unlock the doors to begin operations. To be fully considered a turnkey solution, the business must function correctly and at full capacity from the moment when it is initially received. A turnkey business is an arrangement where the provider assumes responsibility for all required setup and ultimately provides the business to the new operator only upon completion of the aforementioned requirements.
A turnkey business often already has a proven, successful business model and merely requires investment capital and labor. The term refers to a corporate buyer just having to "turn" a "key" to commence business activity.
A turnkey business is thus a business that is ready to use, existing in a condition that allows for immediate operation. To be fully considered turnkey, the business must function correctly and at full capacity from when it is initially received. The turnkey cost of such a business may involve franchising fees, rent, insurance, inventory, and so on. Often used in franchising, a firm's high-level management plans and executes all business strategies to ensure that individuals can buy a franchise or business and start operating immediately.
Most franchises are built within a specific pre-existing framework, with predetermined supply lines for the goods required to begin operations. Franchises may not have to participate in advertising decisions, as those may be governed by a larger corporate body. The advantage of purchasing a franchise is that the business model is generally considered to be proven, resulting in a lower overall failure rate.
Some corporate entities ensure that no other franchise is set up within the territory of an existing franchise, limiting internal competition. The disadvantage of a franchise is that the nature of the operations may be highly restrictive. A franchisee may be subject to contractual obligations, such as items that can or cannot be offered, or where supplies may be purchased. Direct sales and multi-level marketing MLM businesses, such as Mary Kay, can also be seen as turnkey businesses based on how little it takes to have them up and running.
See turnkey system. Ready to use without further assembly or test ; supplied in a state that is ready to turn on and operate typically refers to an assembly that is outsourced for manufacture. To supply a turnkey product; to supply something fully assembled and ready to use. Origin of turnkey. Turnkey Sentence Examples. Also Mentioned In. Words near turnkey in the Dictionary.
Accessed 12 Nov. More Definitions for turnkey. See the full definition for turnkey in the English Language Learners Dictionary. Britannica English: Translation of turnkey for Arabic Speakers.
Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free! Log in Sign Up. Save Word. Definition of turnkey Entry 1 of 2. A possible drawback of this method, as opposed to designing a process in-house or a custom-built system, is that specifications that are important to a particular company may not be sufficiently integrated into the solution.
In-house or custom-built versus turnkey decisions take the complexity of a business process into consideration. With rapid advances in technology software and hardware, turnkey solutions are popular for businesses that desire speed to market. Traditionally, turnkey, as a term, is commonly applied to construction projects, such as warehouses, other purpose-built buildings, or houses. The idea is that the building contractor finishes a product that the buyer can utilize immediately.
A turnkey property is usually a newly renovated and updated apartment building or home that is move-in ready for buyers or renters. Real estate companies, property sellers and buyers, and real estate investors often describe new buildings or homes as "turnkey" ready.
A turnkey business may refer to a business that can be purchased without having to make any changes to the business model or products sold. For example, a franchise like Taco Bell is a type of turnkey business. A turnkey solution may be the most affordable way to construct something end-to-end that is beneficial to multiple users.
However, turnkey solutions may not take into account the individual needs of a company. A turnkey solution for content management software offered by a third-party company may be cheaper to purchase, but it may not cover all the needs of the purchaser. A company looking to implement an online billing feature on its website can use third-party providers to process each transaction and handle all the technical issues surrounding this process.
The use of a turnkey solution, in this case, allows the company to avoid the headaches of programming the tool in-house and the approvals associated with developing a billing system from scratch.
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