Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Starting and
Growing a
Business
McGraw-Hill/Irwin
CHAPTER 4
CHAPTER 5
5-2
Learning Objectives
LO 5-1
LO 5-2
LO 5-3
LO 5-4
LO 5-5
LO 5-6
LO 5-7
LO 5-8
Has no drive-thru, refuses to delivery, and relies on word-ofmouth communication rather than advertising
? What were some of the risks involved with turning Five Guys into a
franchise?
? What differentiates Five Guys products from other fast-food burger
franchises?
? Describe some of the ways in which Murrell and his family retain
control over the Five Guys franchise.
5-4
5-5
5-6
5-7
Importance of
Small Businesses to Our Economy
5-8
Women-owned
Businesses
5-9
Hispanics
8.3 %
African-Americans
7.1 %
Asian
5.7 %
0.9 %
0.1 %
5-10
5-11
Heart valve
Optical scanner
Personal computer
Internet
Zipper
5-12
Innovation
While Buffalo Wild Wings
did not create Buffalostyle chicken wings, it
became known for its
tasty chicken wings
smothered with the
franchises own signature
spices and sauces
Manufacturing
High technology
5-14
Sporting-goods stores
Dry cleaners
Boutiques
Drugstores
Restaurants
Caterers
Service stations
Hardware stores
5-15
Services
5-16
High Technology
Businesses that depend
heavily on advanced
scientific and engineering
knowledge
43% of high-tech
jobs are with small
businesses
High-technology
businesses require
greater capital and
have higher initial
startup costs than
do other small
businesses
Many of the
biggest firms
started out in
garages,
basements,
kitchens, and dorm
rooms
5-17
5-18
Small-Business Ownership
Advantages
Disadvantages
Independence
Costs
Flexibility
Undercapitalization Lack of
funds to operate a business
normally
Focus
Managerial inexperience or
incompetence
Reputation
5-19
5-20
5-21
Many fail
5-22
Going Green
EcoScraps Blends Profit with Sustainability
Starting a Business
Start with a concept or general idea
Create a business plan
Devise a strategy to guide planning & development
Make
Decisions
Form of ownership
Financing
Acquiring existing business or
start new business
Buy a franchise
5-24
5-25
Sole
Proprietorship
Partnership
Corporation
5-26
Financial Resources
Often, the small-business owner has to put up a
significant percentage of the necessary capital
Cash money
Obtain capital
Financing options:
Loans
Stocks
Equity financing
5-27
Equity Financing
Referred to as equity financing because
the owner uses real personal assets
rather than borrowing funds from outside
sources to get started in a new business
5-28
Venture Capitalists
Venture Capitalists
Persons or organizations that agree to provide some
funds for a new business in exchange for an ownership
interest or stock
5-29
Debt Financing
Borrowing financial resources typically from a bank or
lending institution
Debt Financing
Small businesses may obtain funding from their
suppliers in the form of a trade credit
Suppliers allow the business to take possession of the
needed goods and services and pay for them at a later
date or in installments
5-31
Debt Financing
Franson Nwaeze and Paula Merrell wanted to open a restaurant, but
most lenders were skeptical about their lack of experience and
money
Opened up a successful
restaurant in one-half of it.
5-32
5-33
Franchising
Franchise
A license to sell anothers products or to use
anothers name in business, or both
Franchiser
The company that sells a franchise
Franchisee
The purchaser of a franchise
5-34
Franchises
Advantages
Disadvantages
Brand-name appeal
Standardized operations
Standardized quality of
goods & services
Restrictions on purchasing
National advertising
Financial assistance
Proven products
5-36
In its first four months the company earned $3.8 million via
franchise sales
? It often takes years before entrepreneurs achieve success. Why
do you think Fresh Healthy Vending has become successful so
quickly?
? Why is a franchise model beneficial for Fresh Health Vending?
? Which businesses do you think would be most accepting of
vending machines stocked with health food?
5-37
o
o
5-38
5-39
Technological
and
Economic
Trends
5-40
5-41
5-42
Intrapreneurs
Individuals in large firms who take responsibility for the
development of innovations within the organizations
5-43
Jack Gray and his best friend, Bruce McVay, decided to start their
own small business
Jack had developed recipes for fat-free and low-fat cookies and
muffins; Bruce had extensive experience in managing food-service
establishments
5-44