1. What Is a Business Opportunity Chapter 6 Section 2 continued

2. Turning Ideas into Opportunities Four common ways to turn ideas into opp. Start a new business Buy an independant business Buy a franchise Become an inventor

3. Class Starter What is the difference between an idea and a business opportunity?

4. Turning Ideas into Opportunities Starting a New Business What are the advantages? What are the disadvantages?

5. Turning Ideas into Opportunities Buying an Independent Business ●Ground up is difficult and takes time ●Prefer to purchase a business that already exists Business Broker - someone who is licensed to sell businesses

6. Turning Ideas into Opportunities Existing business has much already in place ●trained employees ●operating equipment ●merchandise and supplies on hand ●established credit ●established procedures

7. Turning Ideas into Opportunities Buying a Franchise Franchisee - a franchise buyer has the right to sell the company’s products or services in a particular location Franchisor - franchise seller Franchises have a 90% or better chance of success

8. Turning Ideas into Opportunities Reasons for a better success rate of a Franchise Proven System Customer Awareness Multiple Benefits Provided by the Franchisor Exclusive Geographical Area Easier Financing

9. Turning Ideas into Opportunities Downsides of buying a franchise Initial and Ongoing Fees Royalty Fee - regular ongoing payment that is based on a percentage of the sales Less Entrepreneurial Freedom

10. Turning Ideas into Opportunities Becoming an Inventor What are some current inventions? What are they used for? Conduct a Search - www.uspto.govwww.uspto.gov Create a Prototype

11. Prototype - is a model on which future reproductions of an invention are based Nondisclosure Agreement - legal document in which a person or group agrees to keep certain information confidential http://www.youtube.com/watch?v=mOSBnmUVnN0 http://www.youtube.com/watch?v=IqArHwtvE9Y

12. Class Activity When choosing a business to start or buy, evaluating and planning is important. One way of evaluating a business opportunity is to ask whether it agrees with your ethical values. Think of a service or product that is legal according to the law but may conflict with your beliefs. Write one paragraph explaining your position. Then write at least one paragraph suggesting why others may view the service or product differently from the way you do