Running head: BEST BUSINESS VENTURE 1

Best Business Venture

Name

Institution
BEST BUSINESS VENTURE 2

Best Business Venture

The three friends have plenty of options to come up with a business that is likely to

run for more than ten years. They can either register a company or franchise or even have a

joint venture business. For a company, there is the problem of employee turnovers (Needle,

2010). This is normally a drawback to the business when especially one factor in the time,

money, and resources that are invested in training employee and the leave after 3 to 6 months.

This can lead to the company making losses due to low productivity as well as the offering of

poor services. When it comes to a franchise, the employee turnover is minimized because

there is a certain level of staffing consistency. Once employees sign with the franchise, one is

sure they will be with the business for at least three years. Since the franchise owners directly

supervise their employees, they can achieve higher levels of consistency than a company’s

manager who often come and leave as their employees do.

A franchise is better because the employees are likely to stay longer and become

better with the training which shall improve the service delivery hence leading to higher

levels of profit and success of the business. When it comes to joint ventures, its major

advantage is that it can help a business generate greater profits, increase productivity, and

grow faster. The downside if a joint venture is that partnering with other business can be a

very complex process, especially when the other business which one will form a relationship

with has limited resources or abilities (Emery, 2013). For the three friends to form a joint

venture with other business, they need time which seems not to be on their side. That is why

they need to start a franchise since they will be overseeing employees, there increased

productivity due to low employee turnover, and it will lead to hiring profitability (Salar &

Salar, 2014).
BEST BUSINESS VENTURE 3

References

Emery, R. P. (2013). Advantages and disadvantages of a Joint Venture.

Needle, D. (2010). Business in context: An introduction to business and its environment.

Cengage Learning EMEA.

Salar, M., & Salar, O. (2014). Determining pros and cons of franchising by using swot

analysis. Procedia-Social and Behavioral Sciences, 122, 515-519.