Understanding Entrepreneurship and Business Ownership

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Understanding Entrepreneurship and Business
Ownership

• Presenters
• Joshua Oman omanjs_at_uwec.edu
• Dean Rich richdj_at_uwec.edu

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Key Topics

• Joshua
• Franchising
• Business Success and Failure
• Dean
• Non-corporate Business Ownership
• Corporations

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Franchising

• A franchise is
• A franchise is not

Top Ten U.S. Franchises
www.entrepreneur.com/Franchise_Zone
1.
6. 2.
7. 3.
8.
4.
9. 5.
10.
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Some of you may be questioning the top 10 list.
However
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Franchise Advantages

• Rapid franchiser growth potential
• Access to big business management skills
• Instant business
• Failure less likely

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Franchise Disadvantages

• The Start-Up Cost (top ten)
• Competition with other franchisees

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Success and Failure

• 63 of all new small business will not
• celebrate a 6th anniversary.
• Reasons for failure
• 
  Reasons for success

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Reasons for Failure

• Managerial incompetence/inexperience
• Neglect
• Weak Control Systems
• Insufficient Capital

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Reasons for Success

• Hard work drive and dedication
• Demand for the products/services
• Managerial competence
• Luck

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NONCORPORATE BUSINESS OWNERSHIP

• Sole Proprietorships
• Partnership

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Sole Proprietorships

• Advantages
• Freedom
• Tax Benefits
• Disadvantages
• Unlimited Liability
• Continuity
• Financial

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Partnership

• Advantages
• Skills
• Easier to borrow
• Add partners
• Agreement Document

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• Disadvantages
• Unlimited Liability
• Continuity
• Transfer of Ownership
• Alternatives
• Limited Partnership
• Only liable to extent of investment
• At least on active partner

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Corporations

• Definition
• Sue and Be Sued
• Buy, Hold, and Sell Property
• Make and Sell Products
• Commit Crimes, and Be Punished

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• Advantages
• Limited liability
• Continuity
• Raising money
• Stock
• Disadvantages
• Tender Offer
• Start Up Cost
• Double Taxation
• Corporate
• Ownership

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Types of Corporations

• Closely Held Corporations
• Publicly Held Corporations
• S Corporation
• Limited Liability Corporation
• Professional Corporation
• Multinational Corporation

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Corporate Governance

• Established by firms bylaws
• Stock
• Board of Directors
• Officers

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• Stocks
• Preferred Stocks
• No Vote
• Common Stocks
• One vote per share
• Board of Directors
• Govern the Corporations
• Officers
• Hired by Board
• In charge of operations
• CEO

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Types of Corporations

• Joint Venture
• Strategic Alliance
• Employee Stock
• Institutional Ownership
• Mergers and Acquisitions
• Divestitures and Spin-offs
• Sell Section
• New Corporation

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Want Your Own Business!!

• What kind of business
• Make a plan
• Follow the plan
• Think of the future