1. Starting Versus Buying a Business
Chapter 3, Section 2

2. Vocabulary
Values – the beliefs and principles by which you choose to live that define who your are, shape your attitudes and choices, and help you identify your priorities
Goodwill – the favor and loyalty a business acquires by its good reputation
Franchise – a legal agreement to begin a new business in the name of a recognized company

3. Vocabulary
Franchisee – the buyer of a franchise who is given the right to its product, process, or service
Franchisor – the seller of a franchise who is giving the buyer its planning and management expertise
Business Broker – someone whose job it is to bring buyers and sellers of businesses together for a fee

4. Entering the Family Business
Rewards
Challenges
Trust & togetherness that family members share
Working as a team, can achieve more
Owners can never get away from business
Difficulty viewing being objective
Parents not being able to view their children as business people

5. Entering the Family Business
Questions to Ask Yourself
Do I have the ability to work for a member of my family
Do I get along well with the family members who will be involved
Do we share the same business goals
Do we share the same general and personal goals
Can we be clear & specific about our expectations
Can I leave business problems at work
Can we maintain a positive family relationship

6. Buying an Existing Business
Less risky
Employees are already hired & trained
Equipment is already in place
Company already has customers
Procedures are established
Substantial Inventory on hand
Creditors established
Owner may offer some expertise during the transition period

7. Before Purchasing a Business
Questions to Ask
Is the business interesting to me and to others
Why is the owner selling
What is the business’s potential for growth

8. Starting Your Own Business
Questions to Ask
Do I have the motivation to start a news business form nothing
Does the business align with my personality, abilities, values, and goals
Do I have sufficient knowledge of basic operation to undertake the business
Do I have the necessary managerial ability
Do I have the right partners to help me
Do I have enough financial resources to start from scratch
Am I willing to accept the risk

9. Tasks Involved in Starting a Business
Test the feasibilty of your concept in the market
Decide o a traditional business with a physical location or an online business or combination of both
Prepare a business plan to seek capital, partners, and employees
Secure professional advisors – accountants, lawyers, etc.

10. Tasks Involved in Starting a Business
Hire employees and initiate relationship with suppliers
Purchase equipment and set up distribution channels
Create awareness for the business