Small Business, Entrepreneurship , and Franchises

1. Small Business, Entrepreneurship, and Franchises Excellence in Business, Revised Edition

2. The Small Business • Independently owned and operated • Not dominant in its field • Relatively small annual sales • Fewer than 500 employees Excellence in Business, Revised Edition

3. Economic Roles of Small Business • Provide jobs • Introduce new products • Service large corporations • Engage in specialization Excellence in Business, Revised Edition

4. Run by Individuals • Run by Teams • Limited Products/Services • Multiple Products/Services • Limited Resources • Investment Capital • Limited Marketplace • Large Marketplace Types of Small Business Lifestyle High-Growth Excellence in Business, Revised Edition

5. How Entrepreneurs Spend Their Time • Dealing with employees • Keeping records • Direct selling • Production • Maintenance • Dealing with suppliers • Arranging financial matters • Planning growth and change • Other services Excellence in Business, Revised Edition

6. Traits of Entrepreneurs • Highly disciplined • Like to control their destiny • Listen to their intuition • Relate well with others • Eager to acquire new skills • Learn from their mistakes Excellence in Business, Revised Edition

7. Characteristics of Entrepreneurs • Stay abreast of market changes • Willing to exploit new opportunities • Seldom follow trends • Driven by ambition • Think positively • Prefer risk taking over security Excellence in Business, Revised Edition

8. Factors Contributing to Small Business Growth • Technology and the Internet • Women and minorities • Downsizing and outsourcing Excellence in Business, Revised Edition

9. Women Starting Businesses • Entrepreneurial idea • Glass ceiling • Bored in job • Downsized • Fell into it • Family event • Born entrepreneur • Reenter workforce Excellence in Business, Revised Edition

10. Starting a Small Business • Starting a new business • Buying an existing business • Obtaining a franchise Excellence in Business, Revised Edition

11. Control your destiny Reach your potential Unlimited profits Recognition Doing what you enjoy Uncertainty of income Risk of loss Long hours & hard work Complete responsibility High stress levels Starting a New Business Advantages Disadvantages Excellence in Business, Revised Edition

12. Customer base Business systems Product or service Location Financing Alienated customers Obsolescence Location Personality clashes Outstanding receivables Buying an Existing Business Advantages Disadvantages Excellence in Business, Revised Edition

13. The Franchise Alternative • Franchisee • Franchisor • Types of franchises • Product • Manufacturing • Business-format Excellence in Business, Revised Edition

14. The Pros and Cons of Franchising Advantages Disadvantages • Get a viable business • Instant name recognition • Built in support group • Marketing & advertising • No guarantee of success • Expensive to obtain • High monthly royalties • Limited independence Excellence in Business, Revised Edition

15. How to Evaluate a Franchise • What does the initial franchise fee cover? • How are periodic royalties calculated and when are they paid? • Are all trademarks and names legally protected? • Who provides and pays for advertising and promotion? • Who selects the location of the business? Excellence in Business, Revised Edition

16. How to Evaluate a Franchise • Is the franchise assigned an exclusive territory? • Does the franchisee have the right of first refusal on additional nearby franchises? • Is the franchisee required to purchase equipment and supplies from the franchisor? • How can the franchise agreement be terminated? • Can the franchise be assigned to heirs? Excellence in Business, Revised Edition

17. Importance of a Business Plan • Guides company operations • Outlines a strategy • Attracts lenders and investors Excellence in Business, Revised Edition

18. A Formal Business Plan • Summary • Mission and objectives • Company and industry • Products or services • Market and competition • Management • Marketing strategy Excellence in Business, Revised Edition

19. A Formal Business Plan • Design and development plans • Operations plan • Overall schedule • Critical risks and problems • Financial forecasts and requirements • Exit strategy Excellence in Business, Revised Edition

20. Why New Businesses Fail • Management Incompetence • Diminished Customer Base • Lack of Industry Experience • Uncontrolled Growth • Inadequate Financing • Inappropriate Location • Poor Business Planning • Poor System of Controls • Unworkable Goals • Lack of Entrepreneurial Skills Excellence in Business, Revised Edition

21. Sources of Small Business Assistance • SCORE • Incubators • The Internet • Small Business Administration Excellence in Business, Revised Edition

22. Private Sources of Financing • Friends and family • Commercial lenders • Corporate financing • Venture capitalists • Angel investors • Credit cards Excellence in Business, Revised Edition