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Planning and Financing A Business > Generating And Protecting Business Ideas > Flashcards

Flashcards in Generating And Protecting Business Ideas Deck (7):
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Sources of business ideas

-spotting trends and anticipating impacts on peoples lives.
-spotting a gap in the market.
-copying ideas from other countries.

1

Franchise

When a business (franchisor) gives the right to supply it's product or service to another business (franchisee)

2

Benefits to franchisee

-lower risk
-attracts finance from banks
-franchisor provides training
-franchisor usually has monopoly in local area.

3

Disadvantages to franchisee

-high start-up costs, expensive fees to franchisor.
-less independence.
-franchisor fee lowers profit margins.

4

Benefits to franchisor

-franchisor can maintain a level of control
-expansion paid for by franchisees.
-risk is shared

5

Disadvantages to franchisor

-actions of franchisee affects rep of franchisor.
-expensive
-profit shared with franchisees.

6

Methods of protecting business ideas

-copyright
-patents
-trade mark.