CHAPTER 4
99 www.idealab.com
103 www.prenhall.com/ebusinessinaction
116 www.prenhall.com/ebusinessinaction
119 www.ownafranchise.com/self_test.html
121 www.entrepreneur.com/Franchise_Zone/FZ_FrontDoor
123 www.computerbug.com
Best of the Web: Get Smart, page 109
Exploring the Best of the Web: Get Smart, page 121
Smartbiz, www.smartbiz.com
It seems as if one-stop shopping is the way to go these days--everything under one roof,
or on one page if you're on the Net. Smartbiz puts the world of business resources at your
fingertips with business articles, resources, hot tips, franchise information, home office
ideas, Internet links, and more. Thinking about buying an existing franchise? Better
check out the franchisor first. Perhaps starting a home business sounds more appealing.
Where should you begin? What are some of the advantages or disadvantages? Be sure to
Browse SBS for some answers. Do you have a Web site? It takes only five minutes to
build one. Find out how by visiting Smartbiz, click Business on the Net, and scroll down
to the hot link The Home Page Maker. Don't forget to e-mail us your URL.
1. Find the Checklist for Evaluating Your Suitability as a Franchisee. Explain why
the following items appear on this checklist: (a) Are you prepared to give up some
independence of action in exchange for the advantages the franchise offers you? (b)
Is it possible for either you or your spouse to become employed in the type of
business you seek to buy before any purchase?
Question 1 directions: From the home page, click on the Browse SBS icon at the top of
the page. Highlight the category Franchising and click on Go to Selected Topic. Find the
checklist.
2. Find the Checklist of Information to Secure from a Franchisor. Why is it
important to know whether you will have the right of first refusal to adjacent areas?
Question 2 directions: From the home page, click on the Browse SBS icon at the top of
the page. Highlight the category Franchising and click on Go to Selected Topic. Find the
checklist.
3. Visit a related Web site, Fran Info, and take Self Test #1 to determine whether
you are suited to become a franchise owner. What did you learn by taking this test?
Question 3 directions: You can find the Fran Info Web site at www.franinfo.com. Scroll
down and click on Self Test #1.
Best of the Web: Increase Your Chances for Success, page 115
Exploring the Best of the Web: Increase Your Chances for Success, page 121
Small Business Association (SBA), www.sba.gov
Thinking about starting your own business? The U.S. Small Business Administration
(SBA) Web site puts you in touch with a wealth of resources to assist you in your startup. Perhaps you would like some professional business counseling, financial assistance,
or advice on developing a business plan. Starting a new business or buying an existing
one can be an overwhelming process. But you can increase your chances of success by
taking your first steps with the SBA’s Startup Kit. So log on to find out if
entrepreneurship is for you. Then do your research and discover some of the secrets of
success.
1. Take the quiz for success. After you’ve worked through the entire quiz, go back
and add up your points. Then compare your total with the Success Quotient
table to see how you compare with some of California’s most successful business
people.
Question 1 directions: Click on Starting and then Success Series. Take the Quiz.
2. Review the Startup Kit. Then decide whether entrepreneurship is for you by
answering the questions about entrepreneurs. Would you classify yourself as an
entrepreneur? Why or why not?
Question 2 directions: From the home page, click on Startup Kit, then on Ask Yourself: Is
Entrepreneurship For You?
3. Review the SBA Business Plan Outline. What information should you include in
a business plan when describing your business or products? What information
should you provide about your competitors? What questions should you answer
about your management team?
Question 3 directions: From the Startup Page, click on Business Plans. Review the SBA
Business Plan Outline.
Best of the Web: Learn the ABCs of IPOs, page 116
Exploring the Best of the Web: Learn the ABCs of IPOs, page 121
Hoover’s IPO Central, www.hoovers.com/ipo
Taking a company public is not for the faint of heart. But like a Broadway opening, a
successful debut can launch a relatively unknown company into stardom—or allow it to
quietly disappear from the public eye. Even today’s largest corporations were at some
point small start-ups looking for public financing. Which company is the next AOL,
Xerox, or Microsoft? How do IPOs work? How does a young company play the IPO
game? You can find the answer to these questions and more by checking out the
Beginners Guide to IPOs at Hoover’s IPO Central.
1. When is an IPO a done deal? What is a lock-up period? What is the difference
between an offering price and opening price?
Question 1 directions. Click on IPO Central from the home page; then click on
Beginner’s Guide. Scroll down and click on the ABCs of IPO’s, Part One: Speak the
Language. Browse the definition of terms to answer the questions.
2. In your own words, briefly summarize the IPO process.
Question 2 directions. From the ABCs of IPO’s, click on Part Two: Know the Process.
Read the information.
3. What general information does a prospectus contain? What are some warning
signs prospective IPO investors might be looking for?
Question 3 directions. From the ABCs of IPO’s, click on Part Three: A Look at the
Prospectus. Read the information.
Explore on Your Own, page 121
Review these chapter-related Web sites on your own to learn more about
entrepreneurship and small business.
1. The Small Business Advisor, www.isquare.com, is packed with tips, online guides,
and articles designed to assist individuals who are considering starting a business or
who are operating a small business.
2. Inc. Magazine maintains a Web site, www.inc.com, that is full of advice and
information for entrepreneurs. Click on the Research tab and read the articles under
Growing Your Business.
3. Entrepreneur.com’s Franchise Zone,
www.entrepreneur.com/Franchise_Zone/FZ_FrontDoor,
claims to be the online franchising authority. The site offers news and advice for
those looking to buy a franchise, an expert advice column, an “Entrepreneur’s Guide
to Franchising,” interactive discussions, over 900 franchise opportunities by category,
and much more.
A Case for Critical Thinking: Why Is Papa John’s Rolling in Dough?, page 122
Papa John’s, www.papajohns.com
Question 4. Get the latest pizza industry facts at the Pizzaware Web site. How many
pizzerias exist in the United States? How big is the pizza industry (in dollars)? What
is the long-term outlook for the industry? How much pizza does each person eat on
average per year? What is America’s favorite pizza topping?
Question 4 directions. Go directly to the Pizzaware Web site at
pizzaware.com/company.htm. Scroll down and Click on Pizza Industry Facts for answers
to the above questions.