Question

Isaac benefited from his experience working for an established private company that provided state-of-the-art lighting for music venues around town. Although confident that he could start his own lighting business, he had limited capital to buy the necessary equipment needed to successfully compete with established companies. Which strategy would best help Isaac achieve his goal of business ownership?

Answer 1

Answer:

The best business ownership strategy for Isaac would be a franchise.

Explanation:

A franchise is a form of business ownership which allows a franchisee to start a business by legally using the processes, ideas, and expertise of a franchisor. A franchise is the most common alternative of owning a business for entrepreneurs like Isaac who lack adequate capital to start a new business. Franchising provides an alternative method of capital acquisition as it allows an entrepreneur to own a business without the risk of cost of capital or debt.  

Moreover, it will be easy for Isaac to acquire finance from the franchisor and this will make it easy to operate the new business. Moreover, as a franchisee, Isaac will benefit from low risk, marketing support, and benefit from the existing brand recognition of the parent company.