Write an evaluation of three types of entrepreneurial opportunities for starting a business venture. Then identify an actual new business or a franchise opportunity (in a new location) that you would consider starting and operating and explain the reasons why. Include the type of legal structure you would use to start your new venture.
This assessment examines the foundations of entrepreneurship, legal structures for new ventures, and types of new ventures to consider. You will evaluate the advantages and disadvantages of:
Starting a new business.
Buying an existing business.
Buying a new franchise.
You will also identify an actual new venture opportunity you would consider starting and operating.
An entrepreneur is defined as a person who creates a new business in the face of risk and uncertainty for the purpose of financial gain and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them (Scarborough & Cornwall, 2019). One of the first considerations for an entrepreneur is deciding what type of business to create for a new venture. There are disadvantages and advantages to the various types of new venture opportunities, and selecting the type that is right for you has considerable implications for the success and outcomes of your new venture. One key area that can help you decide what type of new venture to start is a solid understanding of the legal structures for different types of new ventures.
Overview
Write a 5–6 page paper evaluating the advantages and disadvantages of:
Starting a new business.
Buying an existing business.
Buying a new franchise.
Then identify an actual new business or a franchise opportunity (in a new location) you would consider starting and operating, explain the reasons why, and specify which legal structure you will use to structure your new venture.
Instructions
Use the Evaluate New Business or Franchise to Consider Template [DOCX] for this assessment.
Using the template, address ALL of the following issues:
Provide at least three (3) benefits and three (3) risks associated with each option.
Evaluate which model suits your personal preference and explain why. (Note: While you may be interested to buying an existing business, for the purposes of this course and the subsequent assessment related to this new venture, you must focus exclusively on a new business or new franchise in a new location.)
Identify an actual new business or new franchise opportunity you would consider starting and what kind of product(s) and/or service(s) you would like to sell. Explain the reasons why you focused on this specific market area and venture type. Please only consider a new for-profit business (or franchise) for purposes of this course. There are upcoming assessments that require feasibility, competitive, financial, and profitability analyses related specifically to a new for-profit business or franchise.
Specify which legal structure you will use to structure the new venture and explain the reasons why.
Note: Assume this is an actual new venture you will plan for, setup, launch, and operate. To make this assessment meaningful, interesting, and relevant to you, select something you are really interested in and/or are passionate about. Treat it as a real endeavor, something you are responsible for making happen.
The specific new venture you identify and select (new business or new franchise) will be used as the basis for the remaining course assessments you will complete going forward.
