Anime Business Plan

Exam 2 1. How a clearly define vision helps a line of credit A. survey produces direction companies who spell step forward the vision for their company focus everyones attention on the rising and detail the path a telephone line will take B. Vision determines close C. Vision motivates people- a clear vision excites and ignites people to work on D. Vision al misfortunates for perseverance in the organisation of adversity. 2. Define strength, weakness, opportunity, and threats a.Strength- are sensibleatory internal factors that inhabit a companys ability to bring through its missions goals and objects b. Weakness- are negative internal factors that subdue a companys ability to accomplish its missions goals and objectives c. Opportunitys- positive external forces that a flying 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 rivalr y Direct, bell ringerificant competitors, and indirect competitors.Direct Competitors offer the same products and function Customers often match prices Deals among these competitors when they shop. Significant Competitors offer some of the same services or interchangeable products or services Product or service lines overlap save not completely. Indirect offers same or similar products only in as elfin number of areas. 4. Three types of strategies- a. Cost leadership- Strives to be the low toll provider relative to its competition in the industry b.Differentiation- A Company seeks to build customer loyalty by military strengthing its goods or services in a unique or different way. c. focussing (niche) a strategy in which a company selects one or more market segments, identitys customer special of necessity wants & interests & offers them with excellent service designed to meet their of necessity. 5. Define complete advantage- the compendium of factors that sets a small credit line apart from its comptetiors and births 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 transformed into a valid business. 7. Elements in 5 forces model- * Rivalry among competitors in the market(strongest force) Barraging former of suppliers to the industry, bargaining part of buyers, threat of young entrants to the industry, threats of substitute products or services. 8. Definition of business prototyping- a process in which enterprisers test their business models on a small scale before committing serious resources to launch a business that energy not work. . Three aspects considered in financial feasibility analysis- * Primary look into- randomness that the entrepreneur collects first hand and analyses * Secondary research- information that has already been compiled and is examine for design often at a very reasonable cost or sometimes even free. * Focus groups- a market research technique that involves enlisting a small number of effectiveness customers (normally 8-120) to set in 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 telephone line of action and devising a strategy for success. * Provides a battery of tools kick statements, goals, objectives, market analyses, budgets, financial forecasts, target markets, strategys to help entrepreneur lead the company. 11. Most common form of business possessorship- Sole proprietorship. 12. Advantages/Disadvantages of restore proprietorship Advantages Simple to create, least costly to being, profit incentive, total decision making authority, No special legal restrictions, easy to discontinue Disadvantages * limitless individualised responsibility, limited skills & capabilities, feelings of isolation, limited access to cap, lac k of continuity in business. 13. Types of Corporations * Domestic- a corporation that does business in the state it was founded in. * Foreign a company doing business in a state other that where it was founded. noncitizen a corporation found in another country except doing business in the U. S * Closely held a corporation whose shares are controlled 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 exchange. 14. Advantagesdisadvantages of corporations- Advantages Limited indebtedness of stock holders, ablitlty to attract capital , ability to continue indefinitely, Transferable ownership.Disadvantages Cost and time involved in the incorporation process, double tax, and potential for diminished managerial incentive, legal requirements and restrictive red tape, potential loss of control by founders. 15. Types of partnerships General federation Partners who share in owning a business and who have unlimited personal liability for partners dept. Limited Partnership 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 make up to become identified with its trademark, to betray its products or services and often to use its business format and system. 17. Benefits of Franchise A business system that is be , manager training and support, brand name appeal, standardized quality of gods and services, bailiwick advertising program, financial assistance, proven produces and business formats, combined buying power site selection and territory protecting, greater chance of success. 8. Three types of certify * Trade name involves a brand name without distributing particular product s but under the franchiser name * Product Distribution Involves a franchises licensing 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 ample territory with in a specific time period. 21. Franchise apocalypse Document (FDD) a document that every franchisor is required by right to give potential franchisees before any offer or sales event of a franchise outlines 23 important pieces of information. 2. Advantages /Disadvantages of buying an existing business * Advantages a winning business may continue to be successful a successful business may already have the outst rip location employees and suppliers are already established, equipment is already installed and productive capacity is cognize 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 realize 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. Prepare a list of potential candidates c. Investigate and evaluate candidate business to move up the best one d. Explore financing options . Ensure smooth pitch contour by communication with employs. 24. Acquiring procedures * Identify and approach candidate * Sign the nondisclosure statement * Sign letter of in tent * Buyers due diligence investigation * Draft the purchase agreement * Close the final deal * depress the transition 25. 5 Ps of negotiation * Preparation examine the needs of both parties * Poise Remain calm during the negotiation. * Patience dont be in such a hurry * Persuasiveness- know what around important positions are articulate them. * Persistence dont give in a first sign of resistance to your position.