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
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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?
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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