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Entrepreneurship. Mr. Bernstein Starting Versus Buying a Business, pp 57-62 March 5, 2014. Entrepreneurship Mr. Bernstein. Entering the Family Business Only 33% survive to a second generation Trust and togetherness (“chemistry”) can be a great asset
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Entrepreneurship Mr. Bernstein Starting Versus Buying a Business, pp 57-62 March 5, 2014
EntrepreneurshipMr. Bernstein Entering the Family Business • Only 33% survive to a second generation • Trust and togetherness (“chemistry”) can be a great asset • Clear lines of responsibility are needed • Consider potential areas of conflict
EntrepreneurshipMr. Bernstein Buying a Franchise • Venn Diagram: • Franchisee • Franchisor • The Franchisor controls business practices, provides planning and management expertise, training, and product and name recognition • The Franchisee avoids most startup costs and uncertainties • The Franchisee pays an upfront fee and ongoing royalties, or percent of revenue
EntrepreneurshipMr. Bernstein Buying an Existing Business • Goodwill – loyalty of existing customer base • Owner participation in transition period • Inventory • Plant and Equipment • Credit Arrangements • Trained Employees • Innovation usually comes from within an industry • Business Brokers facilitate buying and selling of small businesses
