Unit 12 Coop Business Plans Types of Businesses

Unit 12 Coop Business Plans

Types of Businesses • Existing Business-buying a current business from someone else. • Franchise-a written contract to sell someone else’s products. • Brand New Business-starting from scratch, brand new entity.

Existing Business • Advantage • Disadvantage • Established customers • Poor Location • Competition • Poor Reputation • Poor Equipment/Building • Established location • Established product

Franchise • Advantages • Disadvantages • Standardization of products/services • Easy to start • National Advertising • Proven Success • Large capital investment • Fees go to parent company • No control of business direction • No individualization of business

Brand New Business • Advantages • Don’t’s inherit previous owner’s mistakes. • Do it your own way • Personal satisfaction • Disadvantages • Start up costs are high • Risky • Borrow money

Business Plan • Basic Business • • • Mission Statement-why in business? Goals/Objectives-earmarks of where you want to be Philosophy-what kind of place? Industry-what type of business Ownership Type-sole, partner, corporation

Products/Services • What are you selling? • Items, services • Quality or quantity • Competitive strength/advantage

Customers • Who? • • • Age Gender Location of customers Income level Education Social class

Location • Where? • Downtown, strip mall, mall • What? • Size, type of place

Marketing Plan • Promotion • Print, Audio • Strategy/Research

Financial Organization • Costs/Expenses • Sales/Income

Analysis • Economic Trends • Competition • Growth • Review/Goals