Chap006 - Chapter 06 - Small Business Entry: Paths to...

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Chapter 06 - Small Business Entry: Paths to Full-Time Entrepreneurship CHAPTER 6: SMALL BUSINESS ENTRY: PATHS TO FULL- TIME ENTREPRENEURSHIP Chapter Summary Similar to chapter 5 on part time entrepreneurship, this chapter discusses the paths to full time entrepreneurship. The advantages and disadvantages of each path are discussed: founding, purchasing, franchising, family business and moving from hired manager to owner. Different methods of purchasing an existing business are also explored. Learning Objectives After studying this chapter, the student should be able to: 1. Describe five ways that people get into small business management. 2. Learn the rewards and pitfalls of starting a new business 3. Understand the opportunities and pitfalls of purchasing an existing business. 4. Explain four methods of purchasing an existing business 5. Understand the advantages and disadvantages of buying a franchise. 6. Understand the issues of inheriting a family owned business 7. Describe how hired managers become owners of small businesses. Focus on Small Business: Tucker’s Cozy Corner A back injury forced Michael Tease to re-evaluate what he was going to do. His activity in the local community made him well known and respected, so much so that he was approached to reopen a local icon, Tucker’s Cozy Corner. Tucker’s had opened in the late 1940s and ran successfully until its founder passed away in 1990. A number of his heirs attempted to run it, but eventually, it had to close. Discussion Questions 1. What was Michael’s motivation for attempting to re-open a failed night club? Michael’s back injury forced him to consider alternative lines of work. He remembered Tucker’s from his younger days and a friend’s encouragement got him interested 6-1
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Chapter 06 - Small Business Entry: Paths to Full-Time Entrepreneurship 2. Refer to the list of success indicators on page 141. Which of these indicators does Michael Tease have? He has a product/service with a proven demand. He selected a business with established customers. It could be argued that he has industry experience since he was affiliated with the hospitality industry, albeit in a different form and that his father ran a similar business. 3. What are the critical success factors for a bar, lounge, or nightclub business? There are a number of items that could be included: having the right location, having a good reputation/history, being able to keep fun from escalating into fights or other trouble. Extended Chapter Outline Note: Key terms are in boldface. Teaching tool Internet application International application Group activity Objective 1: Describe five ways that people get into small business management. 1.1 There are five major ways to get into small business management: 1.1.1 You may start a new business.
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Chap006 - Chapter 06 - Small Business Entry: Paths to...

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