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Venture Initiation Methods for Entrepreneurs

The document discusses three main pathways to starting a new venture: creating a new venture, buying an existing business, or obtaining a franchise. It provides information on how to examine financials when creating a new venture and how to evaluate an existing business when acquiring it, including asking about inventory, assets, employees, competition, and finances. The document also covers dos and don'ts of buying a business, how franchising works, its advantages like training and brand appeal, and disadvantages like fees and control. Case studies and activities are also mentioned.

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Syed Umar Shirazi Hashmi
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1K views13 pages

Venture Initiation Methods for Entrepreneurs

The document discusses three main pathways to starting a new venture: creating a new venture, buying an existing business, or obtaining a franchise. It provides information on how to examine financials when creating a new venture and how to evaluate an existing business when acquiring it, including asking about inventory, assets, employees, competition, and finances. The document also covers dos and don'ts of buying a business, how franchising works, its advantages like training and brand appeal, and disadvantages like fees and control. Case studies and activities are also mentioned.

Uploaded by

Syed Umar Shirazi Hashmi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
  • Methods to Initiate Ventures
  • Examination of Financial Picture
  • Acquiring an Established Entrepreneurial Venture
  • Franchising: The Hybrid
  • Case Studies
  • Activity

Class 6

Methods to Initiate Ventures


The pathways to New Venture for Entrepreneur

Create a New Venture

Buy an existing business

Obtain a Franchise
Creating New Venture
How does a discover or invent new products?

New-New Approach
How does a discover or invent new products?

New-old Approach
Introducing already existing in an area where it was not
available before
Examination of Financial Picture

Make a list of activities that show,

Cash inflow

Cash out flow

Start-ups Costs
Acquiring an Established Entrepreneurial Venture
Obtaining already running business

• Personal Preferences

• Examination of Opportunities

• Advantages of Acquiring an Ongoing Venture

• Evaluation of the Selected Venture

• Key Questions to Ask

• Negotiate the Deal


Acquiring an Established Entrepreneurial Venture
Obtaining already running business
• Why is the business is being sold?
• What is the current physical condition of the business?
• What is the condition of the inventory?
• What is the state of the company’s other assets?
• How many of the employees will remain?
• What type of competition does the business face?
• What does the firm’s financial picture look like?

Negotiate the Deal


Do’s and Don’ts of Buying a Business

• Have a seller retain a minority interest in the business


• Never rely on oral statement
• Have an accountant examine the books and check the cash flow
• Investigate, investigate, investigate.
• Interview employees
• Find-out the real reason the company is for sale.
Franchising: The Hybrid
How a franchise works
Advantages of a franchise • Training and Guidance
• Brand-Name Appeal
• A Proven Track Record
• Financial Assistance

Disadvantages of a franchise
• Franchise Fees
• Franchisor Control
• Unfulfilled Promises
Case Studies
Activity

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