TYPES OF
BUSINESS
VENTURES
Presented by Group 1
TYPES OF BUSINESS
VENTURES
In starting a business venture, an entrepreneur must be
familiar with the types of businesses to know what suits
him/her the best.
There are three (3) types of business based on management:
Start-up business, Franchising, and Acquire (Buy-out) business:
Start-up Business
A start-up business is the kind of business that is just about to
be put-up or just starting.
TYPES OF START
FIRMS
Salary-substitute firms- This type of business will give the same level
1 of income to the entrepreneur/s as what they are getting from a
conventional job or employer without spending the whole day working.
Lifestyle firms - This is the type of business established because of
2 the longing to pursue a certain and earn from it.
Entrepreneurial firms - This one is the kind of business that aims to
3 bring new products and services with value making the most of every
opportunity with whatever resources are available.
FRANCHISING
BUSINESS
Franchise means privilege or freedom. This is the type of
business where two (2) individuals or partners agree to a
venture. The franchisee will pay the franchisor, the
rightful owner, that allows the franchisee to use their
trademark to sell the product, service, and/or business
they are known for.
THERE ARE TWO (2) TYPES
OF FRANCHISE SYSTEM:
A Product and Trademark Franchise - This is the franchise where the
1 franchisor guarantees the franchisee to buy its product and use its
trade name.
Business Format Franchise - This is the kind of franchise that is widely
2 used by entrepreneurs where the franchisor aids the franchisee in
training and advertising to let his/her business grow
Here are some of the industries belonging to the tourism and hospitality
industries that use this kind of franchise. (Barringer & Ireland, 2019)
• Commercial and Residential Service
• Lodging
• Quick Service Restaurants
• Real Estate
• Retail Food
• Retail Products and Services
• Table/Full-Service Restaurants
ACQUIRING (BUY-OUT)
BUSINESS
This goes with big companies, as buy-out means acquiring
the controlling interest in a business. the word acquisition
is being used to emplify the biggest right acquired of an
individual to make large decisions.
TWO TYPES OF BUY-OUT
Management buy-out (MBO) - happens when
1 the current managers of a company buy a
big part or all of the company from its
owner or parent company.
A leveraged buy-out- this happens when the
2 buyer or purchacer controls a company with
their assets through bonds or loans.
MISCONCEPTIONS ABOUT
BUSINESS VENTURES
Many people aspire to become a businessman. There is a lot of advice that can
get or receive to start a business: The following are misconceptions about
business ventures:
Business is a safe investment - The business ensures success-
This misconception often This assumption often creates
attracts entrepreneurs to disappointment and
1 push through starting one
without even thinking of any
possible drawbacks.
2 discouragement to many
starting entrepreneurs
because they think that doing
business is an assurance of
success.
Business grows rapidly - - A lot of aspiring
entrepreneurs think that business rapidly grows that
3 they are becoming eager to create a business after
business. Sometimes, this same mindset stops most of
them after not seeing expected results.
ANY
QUESTION?
THANK
YOU
