1. FRI. DECEMBER 12, 2014

2. BUSINESS OWNERSHIP – PART II MARKETING CO-OP

3. REVIEW Last Class…  Four Kinds of Businesses  Types of Business Ownership Did You Know?  Small businesses provide 55% of jobs.  There are ½ million businesses started each year.  Only 15 – 20 percent of all businesses in the U.S. are corporations.  Corporations are responsible for 80% of all business conducted in the U.S.

4. TASK 48 COMPARE MAJOR TYPES OF BUSINESS OWNERSHIP.

5. TYPES OF BUSINESS OWNERSHIP  Limited Liability Company  Limited Liability Partnership  S-Corporation  Franchise

6. LIMITED LIABILITY COMPANY (LLC)  Relatively new form of business ownership  Hybrid between a partnership and a corporation Limited Liability No double taxation

7. LIMITED LIABILITY PARTNERSHIP (LLP)  Different kind of hybrid between a partnership and a corporation! One partner is not responsible (liable) for another partner’s misconduct or negligence

8. S-CORPORATION  Hybrid between a partnership and a corporation Taxed like a small business Up to 35 shareholders

9. EXPLAIN THE DIFFERENCE BETWEEN LIMITED LIABILITY & UNLIMITED LIABILITY. THINK ABOUT IT!

10. FRANCHISE Definition  Legal agreement to use the name and sell the products of an established parent company  Assigned designated geographic area  Annual fee plus royalty fees

11. FRANCHISE Advantages  Using a tested management system  Receive extensive training  Guaranteed a geographic area  Widely recognized brand Disadvantages  High initial start-up cost  Strict rules & regulations  Judged by the performance of peers

12. FRANCHISING YOUR BUSINESS IN ASHBURN PARTNER ACTIVITY IN THE LAB

13. SHARK TANK MARKETING CO-OP : OPENING YOUR FRANCHISE  Franchise Activity: Partners from Last Class  You and your partner will create a short presentation with a hook and pitch similar to Shark Tank!  Objective: Pitching to the ‘Sharks’ to Open Your Franchise Over the Others  What You Need to Include in Your Pitch:  Intro and Hook to Sharks  Type of Franchise and Brief Description  Major Product/Service  Location Site in Loudoun (where would you propose to put the Franchise)? –  Market Analysis: Target Market, Demographics, Geographics, Psychographics  Financing: Start-up Cost  Brief Narrative Describing Your Planned Growth of the Proposed Business and How Much Capital Investment You’d Need to Open Your Franchise