Entrepreneurial Start Up Routes Flashcards
What are the three major options for going into business?
New start up venture
Purchase an existing firm
Enter a franchise arrangement
What are some advantages to starting your own business?
Able to determine business direction
Flexibility
Cost minimisation
Lifestyle goals
What are some disadvantages to starting your own business?
Raising capital
Lack of customer base
Cash flow shortages
Learning curves
What is a franchise system?
An arrangement where the originator of the business product or operating system permits another business owner to sell goods and trade on the originators behalf
What is a product franchise?
A franchise to sell a particular product or service
What is a business system franchise?
an arrangement where the franchisor supplies the product and gives comprehensive guidelines on how the business is to be run
