BUS-A 200 Chapter Notes - Chapter 9: Franchising, Business Plan
Document Summary
Entrepreneurial process - influenced by the social, economic, and technological factors in the environment. Three key elements in the entrepreneurial process - 1. the entrepreneur: the opportunity, the resources. Entrepreneurs must identify an opportunity and access resources. Where do business ideas originate - idea originate from events relating to work or everyday life. Screening - weeding out the dead-end ventures before they incur significant costs. Sales forecast - an estimate of how much of a product or service will be purchased by prospective customers over a specific period. Exit costs - if a venture is not expected to make a profit for a number of years, its exit costs are high. On the other hand, if a venture is expected to make a profit quickly, its exit costs will be lower, making the idea more attractive. Franchise - an arrangement that gives franchisees(buyers) the right to sell the product of the franchiser(seller)
