1. Identify the three main pathways to entering business for a prospective
entrepreneur.
The three main pathways are creating a new venture, acquiring an existing venture, or
obtaining a franchise. The most effective way to start a new business is to create a new
and unique product or service. The next best way is to adapt an existing product or service
to extend an offer into an area wherein it is not presently available.
2. What is the new-new approach to starting a new venture? How does this
approach differ from a new-old approach?
The new-new approach is starting a business by creating a new and unique products or
services. It is only based on the innovative idea and does not permit an adaptation. While
the new-old approach is based on someone else’s idea by either improving a product or
offering an existing service in an area in which it is not currently available.
3. What are the advantages of buying an ongoing business? Explain them.
1. A head start
The first advantage you have when buying an existing business, is time. You can move
much quicker and directly, by having a legal and physical infrastructure in the country.
You also have access to a team of people, that are ready to move forward straight from
the start. Buying an existing business gives you a head start.
2. Existing customers
Being able to count on a reliable number of customers from the outset, is one of the
advantages of buying an existing business. Ideally, these customers will continue to use
your services or buy your products even under new ownership. The benefit is a solid
customer base.
3. Established brand
Brands are vital for establishing and expanding your customer base and market presence.
If you buy an established business, however, you’ll often inherit its brand and market
share, which can save you considerable time and money.
4. Greater likelihood of success
Because the enterprise is already in operation, its successful future operation is likely. A
successful business already has demonstrated the ability to attract customers, control
costs, and make a profit. Additionally, many of the problems a newly formed firm faces
are sidestepped.