Question

Q.1) Why is writing a business plan a critical step in starting a new business?

Q.2) What are the advantages of buying a business rather than starting one from scratch?

Q.3) What things should you consider when evaluating a franchise agreement?

Answer 1

1:-) Business plan provide a detailed approach of the business plans . This helps in improving the chances of certain business ideas as it explores like market analysis, different customer segmentation, competitor analysis, various logisitcs and marketing plans etc. A proepr business plan helps in establishing vision . Business plan is an easy and systematic way of pitching it to potential investors . This also helps in estimating the financial feasibility and efffoet estimation fot setting up business.

2:- The major advantages of buying a business over starting from scratch are

• It avoids or reduce risk as already established business have more scope of success than something from scratch.
• Already established business have a proper market segmentation and customer base where for a new business everything needs to done from market segmentation and customer identification.
• Established business has proper resource back up, technology in place while new business needs to identify all of them

3:- Major things to be evaluated are

• Terms and conditions of franchsiee fees and operations
• Current market growth of the organization and scope of expansion using the franchsiee
• Terms and conditions of pricing
• Feasibility of operations
• Should check is there any financial liability of propertiaory issues or legal problems currently with the franchisor company.