Business Idea and Establishment Options Worksheets[ 24432 ]- due today PDF

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Business Ideas: 1. Research on the some of the most profitable businesses to open in Australia. Suggest some reasons why these business ideas have been successful 2. Read https://www.smartcompany.com.au/finance/funding/five-australian-business-ideas-thatmade-millions/ and explain why these business have become successful.

Establishment Options There are 2 main ways of going into business: 1. start from scratch 2. buy an existing business 1. Starting A Business from Scratch You would generally start a business from scratch of you have a unique product/service, notice a gap in the market that needs to be serviced, or current businesses cannot meet consumer demands. There are many reasons for and against starting a business from scratch. Complete the table below by including THREE (3) for each column. Page 349 of your textbook should provide you with some assistance! Advantages-starting from scratch   

You have the freedom to set up however you want. Its brand new. You can grow the business as you want it.

Disadvantages-starting from scratch   

High risk of failure. Takes time to develop a custom base. Takes time to develop positive cashflow.

3. Buying An Existing Business Disadvantages-Starting From Scratch If you decide to buy an existing business, it might be a good idea to find out why the business is for sale in the first place. As a general rule, have your accountant go over the financial records to make sure that your purchase is a good one! Advantages- buying an existing business   

You already have a customer base which means you have steady cash flow coming in. You have stock that is already for sale. You have employees that know what they’re doing.

Disadvantages- buying an existing business   

Its hard to change the existing reputation of the business. The existing employees may be resistant to change. Just because it was a successful business doesn’t mean your going to have the same success as the previous owners.

2a. Buy A Franchise For a set fee, the owner receives the benefits of a successful business recipe, a recognised name and established trademarks. This results in fewer problems when starting out compared to starting a business from scratch There are many reasons for and against buying a franchise. Complete the table below by including THREE (3) for each column. Page 350 of your textbook should provide you with some assistance! Advantages- buy a franchise

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The franchisor gives you training, and you don’t need previous training experience. There’s a low investment risk because it’s such a well-known company. They provide you with support on how to advertise and plan for marketing.

Disadvantages- buy a franchise

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The franchisor controls operations which means they tell you what you can and can’t do. Any profits you make must be shared with the franchisor. You need to buy the stock from the franchisor.

Additional resources: 1. Use the following articles to assist with your tables below including your flips and textbook. . a. https://www.entrepreneur.com/article/240606 b. https://www.seekbusiness.com.au/business-resources/why-buying-a-business-isbetter-than-starting-one-from-scratch 2. Find out the 10 ten franchises to buy in Australia and their estimated franchise cost.         

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Poolwerx: estimated franchise cost = $100000-$500000 Battery world: estimated franchise cost = $250000 Mad Mex: estimated franchise cost = $375000-$450000 The coffee emporium: estimated franchise cost = $379000 Oporto’s: estimated franchise cost = $50000 Bakers delight: estimated franchise cost = $450000-$550000 Gelatissimo: estimated franchise cost = $250000 Roll’d: estimated franchise cost = $350000-$500000 Gutter-Vac: estimated franchise cost = $79400 Chicken Treat: estimated franchise cost = $450000-$500000...