Advantages and Disadvantages of Business Ownership and Starting a Business

Read these sections for more detail about starting a business and some of the advantages and disadvantages in store for small business owners.

Starting a Business

EXERCISE

  1. (AACSB) Analysis

If business ownership interests you, you can start a new business, buy an existing one, or obtain a franchise. Evaluate the advantages and disadvantages of each option. Which option do you find most appealing, and why? Describe the business you would probably start.


  1. (AACSB) Analysis

How would you like to spend your summer collecting trash in a used pickup? Doesn't sound very appealing, does it? Would you quit college to do it full time? Probably not. But that's exactly what Brian Scudamore did. And he got very rich doing it. His summer job turned into the company known as 1-800-GOT-JUNK, one of the fastest-growing franchises in the United States and Canada. Go to http://www.1800gotjunk.com to link to the Web site and learn more about the company. After looking at the Web site, answer the following questions:

    1. What is the company's business model? What does it do? Where does it do it?
    2. Are you the kind of person the company wants to attract as a franchise partner?
    3. How much would it cost you to buy a franchise? How much total capital would you need?
    4. What kinds of support and services would you receive from the company?
    5. Assuming that you had enough money, would you buy a franchise? Why, or why not?

As a reward for working hard, take a break and click on the Junk Genie icon on the bottom of the company's home page (http://www.1800gotjunk.com). Can you figure out the trick? Pass it along to your friends.