Anime Business Plan

Exam 2 1. How a clearly defined survey helps a traffic enterprise A. Vision produces direction companies who spell out the vision for their company focus everyones attention on the future and detail the caterp pallidar tread a blood will take B. Vision determines decision C. Vision motivates people- a clear vision excites and ignites people to action D. Vision allows for perseverance in the face of adversity. 2. Define strength, weakness, opportunity, and threats a.Strength- are positive internal factors that inhabit a companys ability to accomplish its missions goals and objects b. Weakness- are contradict internal factors that chasten a companys ability to accomplish its missions goals and objectives c. Opportunitys- positive external forces that a firm can exploit to accomplish its missions goals and objectives. d. Threats- are negative external factors that inhibit a companys ability to achieve its goals and objectives. 3. Three types of competition Direct, Significant com petitors, and indirect competitors.Direct Competitors offer the same products and services Customers frequently compare prices Deals among these competitors when they shop. Significant Competitors offer some of the same services or similar products or services Product or service lines overlap provided not completely. Indirect offers same or similar products only in as small number of areas. 4. Three types of strategies- a. Cost leadership- Strives to be the low address provider relative to its competition in the industry b.Differentiation- A Company seeks to build customer loyalty by positioning its goods or services in a unique or different way. c. Focus (niche) a strategy in which a company selects one or more market segments, identitys customer supererogatory needs wants & interests & offers them with excellent service designed to meet their needs. 5. Define complete advantage- the aggregation of factors that sets a small business isolated from its comptetiors and give s it a unique position in the market segments to its competition. 6. Purpose of easibility analysis- a process to determine whether or not an idea can be modify into a valid business. 7. Elements in 5 forces model- * Rivalry among competitors in the market(strongest force) Barraging power of suppliers to the industry, bargaining power of buyers, threat of new entrants to the industry, threats of substitute products or services. 8. Definition of business prototyping- a process in which entrepreneurs test their business models on a small scale before committing serious resources to launch a business that readiness not work. . Three aspects considered in financial feasibility analysis- * Primary research- information that the entrepreneur collects first hand and analyses * Secondary research- information that has already been compiled and is analyzed for habituate often at a very reasonable cost or sometimes even free. * Focus groups- a market research technique that involves enlis ting a small number of potential customers (usually 8-120) to give an entrepurerure fed back on specific issues about a potential product or service.Or special idea its self. 10. Two functions of a business plan- * Guides an entrepreneur by charting the companys future course of action and devising a strategy for success. * Provides a battery of tools Mission statements, goals, objectives, market analyses, budgets, financial forecasts, target markets, strategys to help entrepreneur lead the company. 11. Most common form of business ownership- Sole proprietorship. 12. Advantages/Disadvantages of sole proprietorship Advantages Simple to create, least costly to being, profit incentive, total decision making authority, No special legal restrictions, easy to finish Disadvantages * Unlimited personal responsibility, limited skills & capabilities, feelings of isolation, limited access to capital, lack of continuity in business. 13. Types of Corporations * Domestic- a mass that does bus iness in the state it was founded in. * Foreign a company doing business in a state other that where it was founded. Alien a corporation found in another country but doing business in the U. S * Closely held a corporation whose shares are tone downled by a relatively small number of people Family elatives friends Employees. * Publicly Held A corporation who has a large number of stock holders usually traded on the stock ex qualifying. 14. Advantagesdisadvantages of corporations- Advantages Limited liability of stock holders, ablitlty to attract capital , ability to continue indefinitely, mobile ownership.Disadvantages Cost and time involved in the incorporation process, double tax, and potential for diminished managerial incentive, legal requirements and regulatory red tape, potential loss of control by founders. 15. Types of partnerships General Partnership Partners who share in owning a business and who have unlimited personal liability for partners dept. Limited Partner ship Partners, who make financial investments and partnership, do not take on an active role in managing a business, and whose liability is limited to amount invested. 16.Define Franchising A system of distribution in which semi-independent business owners pay fees and royalties to a parent company in return for the right to become identified with its trademark, to sell its products or services and often to drug abuse its business format and system. 17. Benefits of license A business system that is proven , manager training and support, cross out take a leak appeal, standardized quality of gods and services, national advertizing program, financial assistance, proven produces and business formats, combined buying power site selection and territory protecting, greater chance of success. 8. Three types of franchise * Trade name involves a brand name without distributing particular products exclusively under the franchiser name * Product Distribution Involves a franchises licen sing a franchisee to sell specific products under the franchisors brand name and trademark though a selective limited distribution network. * Pure involves providing the franchisee with a complete business format. 19.Definition of piggy back franchise- a method of franchising in which two or more franchises team up to sell complimentary products or services under one roof. 20. Multiple unit Franchising a method in which a franchiser opens more than one unit in a broad territory with in a specific time period. 21. Franchise Disclosure Document (FDD) a document that every franchisor is required by law to give potential franchisees before any offer or exchange of a franchise outlines 23 important pieces of information. 2. Advantages /Disadvantages of buying an existing business * Advantages a successful business may continue to be successful a successful business may already have the best location employees and suppliers are already established, equipment is already installed an d productive capacity is known inventory is in place and tide credit is established new business owners hit the ground running. Disadvantages Its a looser the previous owner may have created ill will Employees inherited with the business may not be sustainable the locating is unstable equipment and facilitys may be obsolete change and innovation may be hard to implement inventory may be out of date or obsolete account receivables may be less that face value business may be overpriced. 23. Steps to acquiring a business the right way. a. Analyst your skills and abilitys b. mark a list of potential candidates c. Investigate and evaluate candidate business to find the best one d. Explore financing options . Ensure smooth variation by communication with employs. 24. Acquiring procedures * Identify and approach candidate * Sign the nondisclosure statement * Sign letter of intent * Buyers due diligence investigation * write the purchase agreement * Close the final deal * Begin the tra nsition 25. 5 Ps of negotiation * Preparation examine the needs of both parties * perk up Remain calm during the negotiation. * Patience dont be in such a hurry * Persuasiveness- know what most important positions are discourse them. * Persistence dont give in a first sign of resistance to your position.