October 2

more in-depth market analysis

• draw the geographic area

• buying power of the people, more in-depth demographic analysis

  • median income

  • ex: dan’s burgers

• for a public sector (county, city, state, etc.), everything submitted becomes a matter of public sector.

  • 6 months - go through every demographic analysis, then compared to tax revenue.

  • city’s source of income: airline fees, landing fees, refueling fees (gas taxes associated), sales tax

  • ticket includes all fees - collect taxes

• dollar figure, b2b, etc.

business types, structure, management

• organizational structure of a business

• entirely possible to change business structure

• free market type of country and economy, not 100% (mixed)

• ultimately about selling a product or service, so spending time debating is wasting time.

advantages & disadvantages of starting a new business

• control

  • hire, operations, marketing, management, product

  • decide everything about your business - lots of power!

• flexibility

  • crowdsource, funding, set a price

  • hiring

• income

  • profits

  • income potential

-

• start-up costs

  • own loans, assets

  • barrier to entry

• labor intensive

  • all on you until funds to hire

  • no holidays, no sick breaks, otherwise work doesn’t get done

• human resources

  • de facto boss

  • all hiring and firing

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advantage to franchises

• model set-up

• no marketing

• supply chain solved

• operations like HR are present

• brand recognition

• low risk

• infrastructure

• startup costs varies (typically high)

disadvantages to franchises

• costs

• restrictions

• limited products

• the main store will take royalty

franchise

• hotels

• gas stations

• restaurants

-

buying a business advantages

• already set up - systems

• customers already aware

• employees

disadvantages

• cost

• unforeseen problems

• transition

merges & acquisitions

• selling a business is like dating

  • look for someone to agree (to buy)

  • put your absolute best foot forward

  • minimize things that aren’t good, maximize things that are good

forms of business ownership

• sole proprietorship

  • “doing business As” (dba)

• partnership

  • limited partnership (lp)

  • limited liability partnership (llp)

• limited liability company (LLC)

• corporation

  • c-corp

  • s-corp

  • benefit corporation

  • close corporation

  • nonprofit corporation

• cooperative

sole proprietorship

• business owned and operated by a single individual

• most common form of business ownership in the us

• advantages: inexpensive to form, authority, owner keeps all profits

• disadvantages: unlimited liability, limited capacity, difficult to find investors, not a separate business entity

  • completely at risk, no tangible asset, can’t buy ownership in sole-proprietorship, no assets to collateralize

  • angel investors still want you to change other form of business or write a contract that species returns on investment

doing business as (dba)

• allows you to call your business something else

• can also be called “assumed name certificate” in texas

• many sole proprietorships get one

• can be done for other business structures, too

  • new product or service laugh

  • division

• name filing

• gives banks ability to accept payments made out to dba

• put your business account funds and personal money in separate bank accounts

• for example, IBM can operate as Lenovo

• launch a new product line and get a new dba

  • nike & air jordans