CHAPTER 10:

ENTERPRISE
ENTRY
STRATEGIES

Reporter 2: Renelle Habac

Continue...

1.BUYING AN EXISTING
BUSINESS
2.OBTAINING FRANCISE
3.RUNNING A BUSINESS
FROM HOME
 QUESTION
Would you rather
Being the one to give birth to an
enterprise maybe more thrilling
fatten your EGO
than buying an ongoing business
BUT…
or your WALLET?
BUYING AN EXISTING
BUSINESS
When you buy a business, you take
over an operation that's already
generating cash flow and profits.
Less risky than building a business
from zero
ADVANTAGE
 ADVANTAGE

Market demand already exists

Available experienced personnel
Sources of raw materials are already established
Equipment and facilities are available
 ADVANTAGE

Easy access to financing

Return on investment has been realized

Has a bargaining power with suppliers and

customers
DISADVANTAGE
 DISADVANTAGE

Adjustment of business goals

Policies and procedures of existing business

maybe difficult to change

Improvement of inefficient layout, replace or

remodel deteriorated equipment
 ADVANTAGE

Dealing from previous transactions of

existing business

Old customers may shift patronage

COMPLETE YOUR DUE DILIGENCE
“A BUSINESS THAT LOOKS
DO YOU
GREAT AT FIRST GLANCE
COULD HAVE SERIOUS
BELIEVE?
ISSUES HIDING UNDERNEATH
THAT WOULD MAKE IT A
POOR CHOICE FOR SALE”
OBTAINING A
FRANCHISE
Franchise 
type of license that a party (franchisee)
acquires to allow them to have access to a
business's (franchisor) proprietary
knowledge, processes, and trademarks in
order to allow the party to sell a product or
provide a service under the business's name.
CAN YOU
GIVE ME
EXAMPL
E?
ADVANTAGE
 ADVANTAGE

Open business even without experience

Already known in the market

Management systems are already in place

 ADVANTAGE

Training, advertising and promotion support

from franchisor

Facilities and equipment have been

establish
 ADVANTAGE

Establish system maintenance of standards and

control

Easy access to financial assistance as well as for

locating sites

Probability of success is higher than when building

a business from scratch
DISADVANTAGE
 DISADVANTAGE

Relatively higher capital investment

Franchisee has a limited autonomy

Franchisee's personal management system

may not be compatible with the established
system
 DISADVANTAGE

Extensive records-keeping is
required

There is danger that the franchisor

may not deliver on promises in terms
of guidance and assistance
RUNNING A BUSINESS
FROM HOME
Operating business from home
Influence:
 Computers
 Software programs
 Phones
 Internets
EXAMPLES
ADVANTAGE
 ADVANTAGE

Capital requirements are relatively low

Allows you to have more attention to your

family

Risk are lower because of less capital

invested
 ADVANTAGE

Time flexibility and freedom

Less stress and expenses for

transportation cost and travel time
DISADVANTAGE
 DISADVANTAGE

Location may not be strategic

It may prove difficult to keep work and home-life

separate, and there may be domestic distractions
and interruptions
You may feel a sense of isolation if you are working
alone at home with few social interactions on a day-
to-day basis