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ENTERPRISE STYLES - LIFESTYLE AND UPWARDLY MOBILE
Entrepreneurs organize, operate, and assume risk for enterprises with the
intention of transforming innovative ideas into products and/or services as
businesses for profit, or meeting the needs of communities through not-
for-profit associations. Enterprises are formed with the intention of being
either lifestyle – serving the needs of local communities, or upwardly
mobile – serving the needs of large markets. By applying the duplicable
principle, a lifestyle enterprise can become upwardly mobile.
Lifestyle enterprises are the heart of Main Street. Lifestyle enterprises are
focused on serving the needs of local communities. They are founded by
an entrepreneur who either becomes a lifestyle business enterprise owner
or eventually sells to one. They are closely held by a single owner, family,
friends, or close business associates. They operate in traditional industries
such as, but not limited to agriculture, automotive, contracting, food
service, hospitality, light manufacturing and distribution, professional
services, retail, travel and entertainment, and wholesale. They can operate
from a single location, or several locations in a close geographic area, such
as a municipality, county, state, or group of neighboring states.
Whereas the start-up risk can be high, it lowers as the enterprise gains a
presence in local communities. Lifestyle transactions are predictable and
repeatable in local communities because they relate to everyday activities -
people are creatures of habit. However, location does matter. Business
activity can change due to local, regional, national, and global economic
conditions. Lifestyle enterprises are particularly prone to changes in
transportation systems and demographics, and the impact of new or
deteriorating neighborhoods. New residential, retail, office, and industrial
developments can bring business if located nearby, or take it if located far
away. Declining neighborhoods can be challenging if crime rates increase.
Competition from scale providers, such as "big box" retailers or franchise
systems can be challenging. Hence, a major differentiator for lifestyle
enterprises is quality of service.
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Upwardly mobile enterprises are the core of the activities of angel
investors, venture capitalists, and Wall Street.
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For example, Starbucks grew through the process of duplication from a
local lifestyle enterprise, owned by businesses associates, to an upwardly
mobile public enterprise with global aspirations. It has expanded through
its own and licensed locations, and with joint venture partners in selected
markets.
For example, many car rental companies, fast food restaurant systems, and
hotel chains operate as franchises around the world, such as Thrifty,
Subway, and Holiday Inn.
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For more information...
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About Nigel A.L Brooks...
www.nigelalbrooks.com
www.bldsolutions.com
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THE BUSINESS LEADERSHIP DEVELOPMENT CORPORATION
13835 NORTH TATUM BOULEVARD 9-102
PHOENIX, ARIZONA 85032 USA
www.bldsolutions.com
(602) 291-4595