What Did Mr Niemann Do Wrong

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Discussion Questions assignment: a) How many of the criteria in the "Insider 's Guide" did Mr. Niemann follow in purchasing the business? What did Mr. Niemann do right? What did Mr. Niemann do wrong?” The only criteria suggested by “The Insider 's Guide” that I feel Mr. Niemann followed was to prepare to sell himself to the seller. He thought that purchasing a business would be better than establishing a new one and didn’t consider all the possibilities. He had absolutely no idea what he was looking for and was in the mindset of I 'll know it when I see it. He ended choosing to purchase the business because “there just wasn 't anything any better. And time was running out.” His research focused on financials and the word of current employees. …show more content…

Niemann operate the business? What did he do wrong? Mr. Niemann didn’t operate the business well at all. He basically was robbing Peter to pay Paul and it never panned out. He should have been actively seeking ways to cut costs from the beginning. When he finally decided to let employees go and/or cut wages it was already too late. c) What were the major mistakes that Mr. Niemann made during the search, purchase, and operation of this business? How many of these mistakes could he have avoided? Mr. Niemann could have avoided these mistakes by analyzing his desire for running a business, and gathering enough information on the business/industry to tell if he was going to like what he was doing. Another issue that Mr. Niemen mishandled was dealing with the employees, he spoke to the employees and took their complacency as the employees just not respecting old owner and that with him purchasing the company that would change. However, the bridges were already burned and the employees never quite worked well together. He should have assessed the employee situation more thoroughly, he purchased a disjointed group of employees instead of a well-oiled …show more content…

This is hurting workers because they are not getting as many hours. Comprehensive tax reform is another issue currently facing the franchise industry. Tax reform that addresses both the corporate and individual rates have continued to be a top legislative priority. IFA is continuing to work with policymakers to guarantee that the interests of both franchisees and franchisors are being represented in the new tax code. ("Government Relations & Public Policy - franchise.org", n.d) 4. Not all kinds of businesses and industries are well suited to establishing a franchise. What kind of business could not be expanded by developing a franchise system and selling it to others? Look through the many listings of different franchises and consider what businesses and industries do not appear to be represented. How do these industries and businesses seem to be different from industries and businesses with a high percentage of franchise

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