ways of owning a business. challenges of starting a new business requires more time and effort than...
TRANSCRIPT
Ways of owning a business
Challenges of starting a new business
• Requires more time and effort than an established business
• Start-up costs are often high• You have to convince lenders that your
business will work• It is risky.
The rewards of a new business
• You don’t inherit a previous owner’s reputation.
• You can build your business your own way.• You get personal satisfaction.
Existing Business
• You can take over leases with lower rents.• You get equipment and furniture.• You benefit from a business with a good
reputation.
Drawbacks
• Poor location• Competition • Market outlook may have changed• Building or equipment might need expensive
repairs• The business might have a poor reputation.
Franchise
• Pay to another company’s products• You pay a fee to buy into the company• Pay a percentage of your profits• While you are in charge you have to follow the
company’s guidelines.
Benefits
• Recognized product name• Established management system• Business reputation and customer goodwill• Training and support services• Advertising• financing
Drawbacks
• Sometimes less profit• You have to pay a portion of profits to parent
company• Could be less satisfaction
Homework
• Find the franchise fees for • McDonald’s• Smoothie King• Wendy’s • One choice bonus if you find a franchise that is
not food