Generating and Protecting Business Ideas

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Sources of Business Ideas

- Spotting Trends and Anticipating their impact

- Identifying a market niche

- Copying ideas from other countries

- Taking a scientific approach

Franchising:

Franchise: when a business (the franchisor) gives another business (the franchisee) the right to supply its product or service.

Benefits of Operating as a franchise:

- Involves the least amount of risk for start up businesses- as a result- a high percentage of them are successful.

- Franchise businesses usually have established brand names.

- Financing the business may be easier because banks are often more willing to lend money to someone wishing to buy a franchise with a proven reputation, to a new, unknown business.

- The franchisee is likely to incur lower advertising and promotional costs as the business is likely to benefit from national advertising or promotion from the franchisor.

- The franchisee usually has exclusive rights in his or her area

- Relationships with suppliers are likely to have been established by the franchisor.

- The franchisor offers support and training- usually funded by an ongoing management service fee paid by the franchisee.

Pitfalls of a Franchise:

- There is always a possibility that the franchisor has not researched the business carefully.

- Costs may be higher than expected- a franchisee must continue paying royalties to the franchisor after the initial costs of buying the franchise.

- Other franchisees could give the brand a bad reputation and this may have an adverse affect on all franchisees.

- The franchise agreement usually

Comments

Toya

This just looks like you've copied it directly from the book?

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