1. Starting Versus Buying a Business,
Entrepreneurship
Mr. Bernstein
Starting Versus Buying a Business,
pp 57-62
September 2017

2. Entrepreneurship Mr. Bernstein
Entering the Family Business
Only 33% survive to a second generation
Trust and togetherness (“chemistry”) can be a great asset
Clear lines of responsibility are needed
Consider potential areas of conflict

3. Entrepreneurship Mr. Bernstein
Buying a Franchise
Venn Diagram:
Franchisee
Franchisor
The Franchisor controls business practices, provides planning and management expertise, training, and product and name recognition
The Franchisee avoids most startup costs and uncertainties
The Franchisee pays an upfront fee and ongoing royalties, or percent of revenue

4. Entrepreneurship Mr. Bernstein
Buying an Existing Business
Goodwill – loyalty of existing customer base
Owner participation in transition period
Inventory
Plant and Equipment
Credit Arrangements
Trained Employees
Innovation usually comes from within an industry
Business Brokers facilitate buying and selling of small businesses