Chapter 4: How to Become the Owner of a Small Business A. How to ...

Local CollegesPublic LibrariesStudying the Market for the ProductHow to Decide on a ProductChoosing a Business to EnterStudying the Market1. Methods of Obtaining Information about the Market2. Methods Used to Study the MarketEstimate the size of the marketEstimate the competitionEstimate your share of the marketDeciding to Start a Business or Buy an Existing OneReasons for starting a new businessDefine the nature of the businessCreate the preferred type of physical facilitiesObtain fresh inventoryHave a free hand in selecting and developing personnelDeciding to Start a BusinessReasons for not starting a new businessProblems in finding the right businessProblems assembling the resourcesLack of an established product lineProduction problems associated with starting a new businessBuying An Existing BusinessReasons for Buying an ExistingPersonnel are already workingThe facilities are already availableA product is already being producedThe location may be desirableRelations established with banks and tradeBuying An Existing BusinessReasons for Not Buying an ExistingFacilities may be old or obsoleteEmployees may have a poor production recordAccounts receivable may be past due/uncollectableLocation may be badFinancial condition and relations with lenders could be badThe inventory could be obsoleteWhy is the business for sale?What are the intentions of the present owners?Are they going to open a bigger store across the streetAre economic environmental factors changing?Is the physical plant suitable?To Buy a Franchise?