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Introduction to Business

Working the Net

Introduction to BusinessWorking the Net
  1. Consult Entrepreneur at http://www.entrepreneur.com. Search for “business legal structures” to read articles about S corporations and LLCs. If you were starting a company, which would you choose and why?
  2. Research how to form a corporation and LLC in your state using search engines to find relevant sites. Here are two to get you started: http://www.incorporate.com and http://www.usa-corporate.com. Find out what steps are necessary to set up a corporation in your state. How do the fees compare with other states? If you were incorporating a business, what state would you choose and why?
  3. The Federal Trade Commission is the government agency that monitors and regulates franchises. Visit the FTC site (http://www.ftc.gov), and explore the links to its resources on franchising, including details on the legal responsibilities of franchisors and franchisees. What kinds of problems should a prospective franchisee look out for when considering a franchise? What kinds of scams are typical in the franchise industry?
  4. Select three franchises that interest you. Research them at sites such as the Franchise Handbook Online (http://www.franchisehandbook.com), Entrepreneur magazine’s Franchise 500 (http://www.entrepreneur.com), and Be the Boss (www.betheboss.com). Prepare a chart comparing your selections, including history, number and location of units, financial requirements (initial franchise fee, other start-up costs, royalty and advertising fees), and any other information that would help you evaluate the franchises.
  5. Inc. magazine (http://www.inc.com) has many franchising articles in its section on Startup. It offers insights into how franchisors and franchisees can better manage their businesses. Using the site’s resources, discuss ways the owner of a franchise can motivate employees. What specific revenue items and expenses should you monitor daily in a franchise restaurant business to ensure that you are profitable?
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