Becoming the Owner of a Becoming the Owner of a Small BusinessSmall Business

The ProcessThe Process

Find Your Niche by Identifying a Needed Find Your Niche by Identifying a Needed ProductProduct Niche MarketingNiche Marketing

Deciding on a ProductDeciding on a Product SCORESCORE

Studying the Market for the ProductStudying the Market for the Product Product & business selectedProduct & business selected Where to get marker information?Where to get marker information? Methods used to study the marketMethods used to study the market

Starting a New BusinessStarting a New Business

ProsPros ControlControl

SizeSize InventoryInventory PersonnelPersonnel LocationLocation MaterialsMaterials

Select competitive Select competitive environmentenvironment

ConsCons Resource assemblyResource assembly Increased risk of Increased risk of

failurefailure Lack of market and Lack of market and

distribution channelsdistribution channels Problems with MGTProblems with MGT Production problemsProduction problems Lack of an Lack of an

established product established product lineline

Buying an Existing CompanyBuying an Existing Company

ProsPros PersonnelPersonnel FacilitiesFacilities Product and marketProduct and market CreditorsCreditors LocationLocation Revenues, profits, Revenues, profits,

and goodwill existand goodwill exist

ConsCons Old/obsolete Old/obsolete

facilitiesfacilities Poor employeesPoor employees A/R uncollectableA/R uncollectable Bad locationBad location Low quality Low quality

inventoryinventory FinancesFinances

Buying a FranchiseBuying a Franchise

ProsPros ContractsContracts Sales activities already Sales activities already

existexist Brand recognitionBrand recognition MGT assistanceMGT assistance Economies of large-Economies of large-

scale buyingscale buying Financial assistanceFinancial assistance Local & national Local & national

promotionspromotions

ConsCons CostlyCostly Lack of independenceLack of independence PaperworkPaperwork Franchisors hold Franchisors hold

advantagesadvantages

What is Franchising?What is Franchising?

DefinitionDefinition FranchiseFranchise FranchiseeFranchisee FranchiserFranchiser

TypesTypes Product & trademark franchisingProduct & trademark franchising Business format franchisingBusiness format franchising

FranchisingFranchising

Why are they increasing in Why are they increasing in importance?importance? Identification of products and customersIdentification of products and customers Lower failure rate than independentLower failure rate than independent Provide experienceProvide experience

Drawback= Paperwork Drawback= Paperwork

Individual Interests & Individual Interests & FranchisesFranchises

What Franchise Can DoWhat Franchise Can Do Loss of independenceLoss of independence Franchise feeFranchise fee Royalty feeRoyalty fee

Investigate the FranchiseInvestigate the Franchise Industry statisticsIndustry statistics ProspectusProspectus Obtain professional adviceObtain professional advice Know legal and ethical adviceKnow legal and ethical advice

The Future of FranchisesThe Future of Franchises

Growing AreasGrowing Areas RestaurantsRestaurants MotelsMotels Convenience storesConvenience stores TechnologyTechnology Automotive parts, accessories, and Automotive parts, accessories, and

servicingservicing OthersOthers

Global FranchisesGlobal Franchises