Advanatages and Disadvatages of Business Decisions

AD

• A well know name
• A successful and proven business idea
• Training and financial support
• Marketing, Advertisment and promotion
• Buying is done centrally by Franchisor
• Expensive equipment can be leased from Franchisor

DIS

• They have to pay the Franchisee for the rights - may be very expensive
• They have pay part of the profit or agreed sum
• They have strict rules set to run the business
• It may be difficult to sell the business

AD

• Someone else runs their buisness, so less expenses such as wages
• They get paid for the rights, and they get a share of the profits
• The more franchises there are, the faster the business name can spread
• The risk is reduced

DIS

• They have to support all franchises
• They provide the idea, but have to share all rewards
• A bad reputation can be gained from one bad franchise

AD

• Freedom  and control on all business decisions
• All the profit is yours
• It is a more simple process to set up the business

DIS

• There is alot of risk
• Long hours will need to be worked to reach objectives
• Expertise is needed in all feilds
• Unlimited liability

AD

• More owners being more capital to invest at start-up
• Partners can bring more ideas and expertise to a partnership
• Partners can cover for each other's holidays/sick days

DIS

• Partners still have unlimited liability
• Each partner is liable for decisions
• There is a risk of conflict between partners

AD

• You are garunteed the money
• You only have to pay back the amount you borrowed and the interest
• The interest is usually lower than overdrafts

DIS

• They can be difficult to get, as the bank may say no
• You have to keep up with the repayments
• Charge may have to be paid if you decide to repay the loan early

AD

• They are quick and easy to set up
• They're felixable

DIS

• The interest rate is usually high
• The bank can demand back the money at any time

AD

• Can save the business money
• More flexible to handle workloads
• A better work/life balance for the staff
• Wide range of skills

DIS

• It can be difficult to find staff
• The staff can be less dedicated/loyal
• May not have as much as experience

AD

• It is easy to do
• Its quick
• Business can forecast how variations in sales will affect costs, revenue and profit
• Can help persuade the bank to give them a loan

DIS

• If the data is worng, then the results will be worng too
• Tells you the break even output
• Assumes the variable costs are steady, which may not be the case