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Small Business Success Strategies

This document discusses different types of businesses and business structures. It begins by defining small businesses and outlining their contributions to the economy through job creation, innovation, and new industries. However, small businesses also commonly fail due to management shortcomings, inadequate financing, and government regulation. The document emphasizes the importance of creating a business plan that includes components like marketing strategies and financial projections. It also describes franchising as an alternative business model, noting both its advantages like name recognition but also disadvantages such as high fees. Finally, it outlines the three main forms of private business ownership: sole proprietorships, partnerships, and corporations.

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9 views10 pages

Small Business Success Strategies

This document discusses different types of businesses and business structures. It begins by defining small businesses and outlining their contributions to the economy through job creation, innovation, and new industries. However, small businesses also commonly fail due to management shortcomings, inadequate financing, and government regulation. The document emphasizes the importance of creating a business plan that includes components like marketing strategies and financial projections. It also describes franchising as an alternative business model, noting both its advantages like name recognition but also disadvantages such as high fees. Finally, it outlines the three main forms of private business ownership: sole proprietorships, partnerships, and corporations.

Uploaded by

ben crabb
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

Chapter 5

Structuring Contemporary Business

Nazia Choudhury
Lecturer
School of Business
ULAB
Most Businesses Are Small Businesses
What is a Small Business?
A firm that is independently
owned and operated, not
dominant in its field, and
meets industry-specific size
standards for income or
number of employees.

Small business ideas in


Bangladesh:
[Link]
ch?v=UKXo1hoLMiY
2
Contributions of Small Business
to the Economy
Creating New Jobs
Creating New
Industries
Innovation
Why Small Businesses Fail
Management Shortcomings
Inadequate Financing
Government Regulation

3
Increasing the Likelihood of Business Success
Creating a Business Plan
Business plan—written document that provides an
orderly statement of a company’s goals, the methods by
which it intends to achieve those goals, and standards by
which it will measure achievements.
Typically includes following components:
Executive summary
Introduction
Marketing
Financials
Resumes of principals

4
The Franchising Alternative
 Franchising—contractual agreement that specifies the
methods by which a dealer can produce and market a
supplier’s good or service.
Franchising Agreements
Franchisee: small business owner who contracts to sell
the goods or service of the franchisor in exchange for
some payment
Franchisor: owner of the franchise
Franchisor typically provides name recognition, building
plans, site selection help, accounting systems, and other
services

5
The Franchising Alternative
Benefits and Problems of Franchising
Advantages include:
A prior performance record
Recognizable company name
Business model that has proven successful
Tested management program
Business training

6
The Franchising Alternative
Benefits and Problems of Franchising
Disadvantages include:
Expensive franchise fees and future payments
The fact that the franchisee is linked to the reputation
and management of the franchise
The potential unsuitability of the franchisee

7
Alternatives for Organizing a Business
Comparing the Three Major Forms of Private
Ownership

8
Alternatives for Organizing a Business
Sole Proprietorships
Sole proprietor—form of business ownership in which
the company is owned and operated by one person.
Partnerships
Partnership—form of business ownership in which the
company is operated by two or more people who are co-
owners by voluntary legal agreement.
Corporations
Corporations—business that stands as a legal entity with
assets and liabilities separate from those of its owner(s).

9
10

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