Description
Overview: This assignment will involve details on acquiring an existing business, buying a franchise, and starting a business. Instructions:
• Read and engage with the readings and resources for the Unit.
• List at least 2 advantages and 2 disadvantages of each of the following:
o Acquiring an existing business
o Buying a franchise
o Starting a new business on your own
• Then discuss which business model you would choose and why you would choose one over the other two. List at least three references, with our text as one.
Requirements:
• Your paper should take the form of a structured essay.
• It should have a clear introduction with thesis, body, and conclusion.
• Focus on quality, as opposed to length.
• You should have clear transitions between paragraphs.
• It must be in proper APA form.
• There must be a minimum of two APA references (in addition to the course textbook.)
• The anticipated length of the paper should be a minimum of two pages with more thorough and thoughtful work extending beyond that guideline. It is not expected that the paper would exceed four pages in length.
Explanation & Answer
Essay progress.
The Best Strategy to Start a Business in 2020
(Name of the student)
(University)
(Course Name)
(Professor’s Name)
November 6th, 2020
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THE BEST STRATEGY TO START A BUSINESS IN 2020
The Best Strategy to Start a Business in 2020
It is evident that the spread of the Coronavirus Disease 2019 (COVID-19) brought a negative impact on
the business world during 2020. Despite the Small Business Administration reported a drop in the
percentage of start-up loans compared to the levels registered the last year, there were almost 500,000
applications for an employer identification number since the middle of March according to the Census
Bureau. Then, is the economic hardship generated by the virus a good reason to start a business? The
answer could be yes. High-profile American companies including Disney, Microsoft, Uber, and Slack
were not conceived necessarily during economic expansion. Entrepreneurs must analyze what the best
strategy is to start a business under the pandemic context. Three are the main options individuals who
plan to become small business owners can choose: buying an existing business, purchasing a franchise,
or starting a business independently. Franchising is the safest strategy to enter the business world in
2020 because it allows inexperienced entrepreneurs to take advantage of the products, trademarks, and
prestige of a well-established firm, eliminating the high costs of setting up a new business or purchasing
it and the risk of discontinuity in the short-term.
Franchising refers to accessing the proprietary assets of a settled entity through a contract by which the
franchisor grants such access and the franchisee, or the entrepreneur committing to the large company
standards and business model, accepts to pay royalties for the use and commercialization of the assets.
One of the advantages of franchising is the assessments the franchisor most often provides to the
franchisee not only on how to promote the products but also on how to manage the franchise. The
latter is highly valuable especially for new businessmen without experience to secure that optimal
approaches will be implemented to operate the franchise or to request for help whenever the business
is not providing the results planned. Fast-food restaurants, hotels, and services-oriented businesses, in
general, are typically franchised, being McDonald’s the leading company in that field. Another
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THE BEST STRATEGY TO START A BUSINESS IN 2020
advantage of franchising, particularly in the U.S. is that the number of franchised establishments has
been stable for the past 10 years as depicted in the char...