Becoming the Owner of a Small Business
Planning, Organizing, and Managing a Small Business
How to Obtain the Right Financing for your Business
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Part 2: How to Planand Organize a BusinessBecoming the Owner of a Small BusinessPlanning, Organizing, and Managing a Small BusinessHow to Obtain the Right Financing for your BusinessChapter 5Becoming the Owner of a Small BusinessMcGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.Becoming The OwnerOf A Small BusinessSteps/Procedures For Going Into BusinessIdentify Your Niche’Start Or BuyFranchising5 - 3McGraw-Hill/IrwinBusinessFormation & OperationSteps ToGoing Into BusinessIdentify NeedStudy MarketStart, Buy Existing Or FranchiseSet Mission, Objectives, Strategies Make Operational PlansMake Financial PlansDevelop Business PlanImplement PlanFinding Your NicheSearch For Good/Service To SellNiche Marketing- FindingSmallProfitableSearching ForProduct/ServiceNewspaperBusiness For SaleProducts For SaleHobbies/RecreationTalk To PeopleObserve/Study & LuckPhotoLink/Getty ImagesQuestions To AskGovernmentSources Of Advice/HelpSmall Business Administration- Corps of Retired ExecutivesState Economic Development AgenciesU.S. Department Of Commerce- Office Of International TradeOtherSources Of Advice/HelpDirectory of Trade Associations in the U.S.Local CollegesPublic LibrariesChambers Of CommerceRoyalty-Free/CORBISBusinessSelection ChecklistStudy MarketMarket Research = PotentialLocation/Segment Being Satisfied?Select 1 Market Segment Or 1 ProductLimited Resources = Limited OptionsEstimatingMarket SizeIndustry Size?Where Is Market?How Large Is Market?Identify Target Market & It Size?Size & Distribution Of Population Income?Sales = Growing, Stable, Declining?Competitors = Successful?Industry Technology?Start, Buy,Or Franchise?Reasons To Start ABusiness = Owner’s FreedomDefine NaturePhysical FacilitiesInventorySelect/Develop PersonnelTechnology, etc.Competitive EnvironmentDoug Menuez/Getty ImagesReasons To NotStart A BusinessRight Business?Assemble ResourcesEstablished Product LineProduction ProblemsMarket & DistributionSystems & ControlsStart-Up vs. Existing vs. FranchiseAmos Morgan/Getty ImagesReasons ForBuying Existing BusinessExperienced EmployeesExisting FacilitiesExisting Product & MarketDesirable LocationBank Credit RelationshipsRevenues, Profits, & GoodwillC Squared Studios/Getty ImagesReasons For NotBuying Existing BusinessFacilities = Old/ObsoletePoor EmployeesA/R Past Due/UncollectibleBad LocationPoor Financial Condition/RelationsInventory = Poor/ObsoleteRoyalty-Free/CORBISQuestions Before BuyingWhy For Sale?Present Owner Intentions?Changing Environment?Facilities Suitable- Present/Future?Operating Efficiently?Financial Condition?Investment?Return On Investment?Price Right?Managerial Ability?Reasons ForBuying FranchiseSuccessful/Proven Operation & ImageExperience GuidanceMany To Chose FromCombines Your Talent & DesiresFranchise Questions?How Much Help?Franchise Help = Cover Costs?Professional AdviceLegalAccountingSource/Cost Of SuppliesPhotoLink/Getty ImagesCostInitial InvestmentRoyaltiesNew?Owner Fit?Independence“White Elephant”?Reasons For NotBuying FranchiseBenefits toFranchisee & FranchiserFranchising Opportunities2,552 Franchises75 IndustriesInternational Franchise Association - Reed/Getty ImagesFranchisingFranchise AgreementFranchiserFranchiseeFranchisorStartup AssistanceProven SystemStandardized AccountingSome Financial AssistancePurchase/ConstructionTrainingAdvertising ProgramCustomer Service StandardsChanging Market OpportunitiesQuantity DiscountsProduct &Trademark FranchiseBusinessFormat FranchiseFranchise PopularityAlready Identified Need, Product Created, MarketingFailure Rate LowerEstablished SystemsPhotoLink/Getty ImagesFuture Of FranchisingGrowth AreasRestaurantsMotelsConvenience StoresTechnologyAuto PartsTwo-Income FamiliesGlobalFranchises Teaming UpSynergyTypesCombinationMultiformatDual BrandingComplementary Branding2007 Top Global FranchisesChecklist ForFranchise Investment
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