McGraw-Hill/Irwin 4-1 © 2006 The McGraw-Hill Companies, Inc All rights reserved Chapter Becoming The Owner Of A Small Business Steps/Procedures For Going Into Business Identify Your Niche’ Start Or Buy Franchising 4-2 Business Formation & Operation McGraw-Hill/Irwin 4-3 © 2006 The McGraw-Hill Companies, Inc All rights reserved Steps To Going Into Business Identify Need 2) Study Market 3) Start, Buy Existing Or Franchise 4) Set Mission, Objectives, Strategies 1) McGraw-Hill/Irwin 5) 6) 7) 8) Make Operational Plans Make Financial Plans Develop Business Plan Implement Plan 4-4 © 2006 The McGraw-Hill Companies, Inc All rights reserved Finding Your Niche Search For Good/Service To Sell Niche Marketing- Finding Small Profitable McGraw-Hill/Irwin 4-5 © 2006 The McGraw-Hill Companies, Inc All rights reserved Searching For Product/Service Newspaper Business For Sale Products For Sale Hobbies/Recreation Talk To People PhotoLink/Getty Images Observe/Study & Luck McGraw-Hill/Irwin 4-6 © 2006 The McGraw-Hill Companies, Inc All rights reserved Questions To Ask McGraw-Hill/Irwin 4-7 © 2006 The McGraw-Hill Companies, Inc All rights reserved Government Sources Of Advice/Help Small Business Administrationhttp://www.sba.gov Service Corps Of Retired Executives State Economic Development Agencies U.S Department Of CommerceOffice Of International Trade McGraw-Hill/Irwin 4-8 © 2006 The McGraw-Hill Companies, Inc All rights reserved Other Sources Of Advice/Help Directory of Trade Associations in the U.S Local Colleges Public Libraries Royalty-Free/CORBIS Chambers Of Commerce McGraw-Hill/Irwin 4-9 © 2006 The McGraw-Hill Companies, Inc All rights reserved Business Selection Checklist McGraw-Hill/Irwin 4-10 © 2006 The McGraw-Hill Companies, Inc All rights reserved Reasons For Not Buying Existing Business Facilities = Old/Obsolete Poor Employees A/R Past Due/Uncollectible Bad Location Poor Financial Condition/Relations Royalty-Free/CORBIS Inventory = Poor/Obsolete McGraw-Hill/Irwin 4-17 © 2006 The McGraw-Hill Companies, Inc All rights reserved Questions Before Buying Why For Sale? Present Owner Intentions? Changing Environment? Facilities Suitable- Present/Future? Operating Efficiently? Financial Condition? Investment? Return On Investment? Price Right? Managerial Ability? McGraw-Hill/Irwin 4-18 © 2006 The McGraw-Hill Companies, Inc All rights reserved Reasons For Buying Franchise Successful/Proven Operation & Image Experience Guidance Many To Chose From Combines Your Talent McGraw-Hill/Irwin & Desires 4-19 © 2006 The McGraw-Hill Companies, Inc All rights reserved Franchise Questions? How Much Help? Franchise Help = Cover Costs? Professional Advice Legal Accounting PhotoLink/Getty Images Source/Cost Of Supplies McGraw-Hill/Irwin 4-20 © 2006 The McGraw-Hill Companies, Inc All rights reserved Reasons For Not Buying Franchise Cost Initial Investment Royalties New? Owner Fit? Independence “White Elephant”? McGraw-Hill/Irwin 4-21 © 2006 The McGraw-Hill Companies, Inc All rights reserved Franchising Benefits Franchisee & Franchiser McGraw-Hill/Irwin 4-22 © 2006 The McGraw-Hill Companies, Inc All rights reserved Franchising Opportunities 2,552 Franchises 75 Countries International Franchise Association Jason Reed/Getty Images http://www.franchise.org McGraw-Hill/Irwin 4-23 © 2006 The McGraw-Hill Companies, Inc All rights reserved Franchising Franchise Agreement Franchiser Franchisee Royalty-Free/CORBIS McGraw-Hill/Irwin 4-24 © 2006 The McGraw-Hill Companies, Inc All rights reserved Franchisor Startup Assistance Proven System Standardized Accounting Some Financial Assistance Purchase/Construction Training Advertising Program Customer Service Standards Changing Market Opportunities Quantity Discounts McGraw-Hill/Irwin 4-25 © 2006 The McGraw-Hill Companies, Inc All rights reserved Product/Trademark Franchise McGraw-Hill/Irwin 4-26 © 2006 The McGraw-Hill Companies, Inc All rights reserved Business Format Franchise McGraw-Hill/Irwin 4-27 © 2006 The McGraw-Hill Companies, Inc All rights reserved Franchise Popularity Already Identified Need, Product Created, Marketing Failure Rate Lower Established Systems PhotoLink/Getty Images McGraw-Hill/Irwin 4-28 © 2006 The McGraw-Hill Companies, Inc All rights reserved Future Of Franchising Growth Areas Restaurants Motels Convenience Stores Technology Auto Parts Two-Income Families Global McGraw-Hill/Irwin 4-29 © 2006 The McGraw-Hill Companies, Inc All rights reserved Franchises Teaming Up McGraw-Hill/Irwin 4-30 © 2006 The McGraw-Hill Companies, Inc All rights reserved Checklist For Franchise Investment McGraw-Hill/Irwin 4-31 © 2006 The McGraw-Hill Companies, Inc All rights reserved ...Chapter Becoming The Owner Of A Small Business Steps/Procedures For Going Into Business Identify Your Niche’ Start Or Buy Franchising 4-2 Business Formation & Operation McGraw-Hill/Irwin... Plans Develop Business Plan Implement Plan 4-4 © 2006 The McGraw-Hill Companies, Inc All rights reserved Finding Your Niche Search For Good/Service To Sell Niche Marketing- Finding Small Profitable... © 2006 The McGraw-Hill Companies, Inc All rights reserved Government Sources Of Advice/Help Small Business Administrationhttp://www.sba.gov Service Corps Of Retired Executives State Economic