GAO-03-426 Spent Nuclear Fuel: Options Exist to Further Enhance
7 what options exist for starting up a business
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WHAT OPTIONS EXIST FOR STARTING UP A BUSINESS?
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Transcript of 7 what options exist for starting up a business
WHAT OPTIONS EXIST FOR STARTING UP A BUSINESS?
LEARNING OBJECTIVES
The principles of franchising as it applies to small business start-ups
The advantages and disadvantages of using a franchise as a means of starting a new business; assess franchising against other business start-up options
How to identify a suitable start-up location
FRANCHISE – WHAT IS IT?
A franchise is the right given by one business to other
businesses to sell goods or services using its name. People who
buy into the franchise remain as independent businesses.
Examples include:
FRANCHISOR
The business that gives the right for others to sell their products and/or service. E.g. McDonalds, Subway
What’s in it for the franchise owner? Enables a firm to expand its sales
quickly They receive a share of the sales
Burger King receives 5% of all sales. You can work on developing more
successful products
FRANCHISEE People or persons that agree to manufacture,
distribute or provide a branded produce, through a license from the franchisor.
Why do it? What do you get?
An established brand name
Training
Ongoing support
Equipment
Access to goods and services
Advertising and promotion
FRANCHISES
Advantages Disadvantages
Using your card sort, decide whether you card is a ad or disadvantage and create a table to show it
FRANCHISES
Advantages Brand already known Customers already
buying product Less risk during start-
up Training & support
provided Keep most of the profits
Disadvantages Less control as must do
what the franchisor wants
Must pay royalties to franchisor
Cannot introduce new products without agreement from franchisor
IDENTIFYING A SUITABLE START-UP LOCATION Which town / city? Which part of the city? What do you want to be close to? Is it the right match between shop size and cost? Is this the right place for your business?
Who used this area? Who would be your customers?
Socio-economic / approximate social grade http://www.censusprofiler.org/
WHAT FRANCHISE WOULD BE SUCCESSFUL HERE?
Habits and needs of the customers in
the area
The cost of the lease and fitting the property
Practical requirements such as
floor space
HOW TO IDENTIFY A SUITABLE START UP LOCATION Divide a full page into 4 equal sections
Using p35-36 Explain the 4 steps you go through to decide upon an
adequate location for your franchise
FRANCHISES
The UK Franchise Homework Naked Pizza
