Karen Sharp lives in a town of approximately 10,000 in Western Kentucky. There isn’t a furniture store in the town. Karen is thinking about starting one. She has good business and marketing skills and is confident she can operate the store successfully. But, she isn’t certain that a retail furniture store is an attractive industry. What would you recommend Karen do to consider this matter?
> What is a target market?
> Ken and Jackie Smith just purchased a small winery in the Napa Valley of northern California. One thing they noticed when they were investigating the winery is that the owners never placed the “100% Napa Valley” certification mark on their bottles. Now t
> According to the chapter, a trademark registered with the USPTO can theoretically remain registered forever as long as it stays in use. Does the owner of a trademark have to take affirmative action to demonstrate to the USPTO office that a trademark is r
> Tyler Simms just invented a new product that he is convinced is unique and will make him wealthy. The product is a toothbrush with a tube of toothpaste attached to the handle. Tyler is anxious to file a patent application on the product, but when he tell
> Access the USPTO Web site and look up U.S. Patent Number 5,433,036. Describe the purpose of the patent. Do you think this patent describes an invention that has commercial potential? On a scale of 1 to 10 (10 is high), how significant do you think the po
> Imagine you are about to attend a one-day seminar dealing with intellectual property law, and you contact a friend of yours who is in the process of starting a business to urge her to attend the seminar with you. She says to you, “I’m really busy because
> Read the “You Be the VC 11.2” feature that deals with Eatsa. What actions would you suggest that this firm take to develop a guerilla marketing campaign?
> Shannon Garza has developed a new type of space heater that is quieter and safer than previous generations of space heaters and is specifically geared to people who live in small spaces, such as apartments or dorm rooms. Shannon doesn’t know how to price
> What are the advantages of preparing a business plan for a new venture?
> Spend some time looking at Red Bull’s website (www.redbull.com). Comment on each element of Red Bull’s marketing mix (product, price, promotion, and place in terms of distribution and sales). If you need additional information, conduct Internet or librar
> If you decided to start a small-business consulting service in Columbus, OH, how would you approach the following topics: market segmentation, selecting a target market, and developing a positioning strategy?
> Reread the Opening Profile. After doing this, make a list of all the things that you think that Andrew Pohle, Jake Schaufeld, and Jordan Levy have done well in building an effective marketing program for Real Time Cases.
> Of the three primary reasons people become entrepreneurs, which one is given most commonly and why?
> Joshua Sherman, who lives near Vancouver, Canada, is preparing to pitch an idea for a social gaming website to a group of angel investors. The site has some new and novel aspects to it. He made a practice presentation in front of his advisory board, and
> Ed Sayers just returned from a meeting with his banker with a frustrated look on his face. He tosses his keys on the kitchen counter and tells his wife, “I just can’t understand where my banker is coming from. I have a great idea for a new firm, but the
> Jim Carter, a classmate of yours, is preparing to launch an e-commerce company to sell home repair guidebooks, tools, how-to videos, and related material for home repair and remodeling projects. He just told you that he talked to his paternal grandmother
> Samantha Smith, a friend of yours, was recently telling you about a company that her father is starting in the solar power industry. Samantha’s father is using a technology he developed, which has received favorable write-ups in several technical publica
> Jose Peacher is an executive with a large manufacturing company. A former coworker of his recently started a company and raised $1 million from a well-known angel investor even though he did not need the money to launch the business. Jose thinks his frie
> Cindy Combs, a professional investor, was having lunch with a colleague recently and said, “Do you remember Peter Kennedy, the entrepreneur we met the other day who created an iPhone app that helps busy families keep track of their activities? I checked
> What is the purpose of a sources and uses of funds statement?
> Currently, Ann Schafer is a sales representative for The Pampered Chef, a direct sales organization which sells kitchen utensils and related products. Ann, who lives near Houston, Texas, is thinking about leaving her current job so she can open her own f
> Suppose a colleague of yours is gearing up to write a business plan for a business she intends to start. She told you she plans to prepare the financial statements first, to get that job out of the way before she tackles the rest of the plan. What the fl
> What items on the left side (or top) and what items on the right side (or bottom) of a firm’s balance sheet should receive the greatest scrutiny? In regard to each of these items, what are the most important factors that a new venture should focus on to
> Casey Cordell is the owner of a digital photography service in Madison, WI. The company has been profitable every year of its existence. Its debt ratio is currently 68 percent, its current ratio is 1:1, and its debt-to-equity ratio is 72.2 percent. Do th
> How can finding a gap in the marketplace create a business opportunity?
> Jorge Martinez is thinking about buying an existing printing business and has been carefully studying the records of the business to get a good handle on its historical financial performance. Jorge heard that you are taking a class in entrepreneurship an
> Chipotle Mexican Grill is a publicly traded company. Calculate the firm’s price-to-earnings ratio (P/E). What does Chipotle’s P/E ratio tell you about investors’ expectations regarding the company’s growth? How do Chipotle’s financial ratios compare to r
> Kate Snow just retired from a career with Walmart, cashing out a sizable retirement fund at the time of doing so. To start a second career, she is looking at the possibility of buying three different businesses. She has three years’ historical financial
> Suppose a friend of yours showed you the pro forma income statements for his start-up and exclaimed excitedly that during the first three years of operations his firm will make a net income of $150,000 per year, which is just the amount of money ($450,00
> Laura Simpson just took a job with Cisco Systems in San Jose, CA. One of the attractions of this job is the stock option plan Cisco offers to its employees. What is meant by the term stock option? Why would Cisco, as well as other companies, choose to of
> What is the difference between the industry analysis section and the market analysis section of a business plan?
> Nancy Wills is purchasing a business named Niagara Laser Optics that is located near Buffalo, New York. The business has had several brushes with the law during the past several years, dealing with claims of false advertising and wrongful termination of
> Dip Jar is the focus of the “You Be the VC 7.1” feature. Assume that this firm’s founders have asked you to help them write a code of conduct for their firm. Given your understanding of how DipJar operates as an entrepreneurial venture, put together a t
> Tom Andersen owns an electronics firm in Wichita, Kansas. He has told you that he has been suffering some cash flow problems recently, but has avoided having to borrow money by letting some of his firm’s bills run late. When you raised your eyebrows in r
> Under what circumstances should ethical considerations be part of a company’s business plan? Should a company periodically measure its ethical performance? If so, what are the best ways for a firm to do this?
> Patty Carroll is thinking about opening a high-end fashion boutique in an affluent suburb of Minneapolis. She contacts an angel investor she knows has previously invested in this type of firm and asked if he would read her business plan. She received the
> What four environmental trends are most instrumental in creating business opportunities? Provide an example of each environmental trend and the type of business opportunity that it might help create.
> Recently, Megan, Jennifer, and Mark, the cofounders of a medical products company, presented their business plan to a group of investors in the hopes of receiving funding for their venture. One of the investors asked the three, “How much of your personal
> Michael Graves and Jill Simpson just left their jobs with Microsoft to launch a business that will sell a new type of fax machine. They wrote a full business plan that they’ve asked you to review. When reading the plan, you noticed that several key secti
> The entrepreneurship class you are taking meets for four hours once per week. A break of 10 minutes or so takes place after the first two hours of each class. During a recent break, you overheard one of your classmates say to another person that in her o
> Imagine you just received an e-mail message from a friend. The message reads, “Want to let you know that I just finished writing the business plan for my new venture. I’m very proud of what I’ve written. The plan is comprehensive and just a bit over 100
> What are the four primary factors that play a role in determining the nature and intensity of the bargaining power of suppliers?
> Kevin Andrews and Karen Platt are college seniors. They’re in the process of launching an unsweetened, fruit-flavored bottled water start-up named Compete H2O. The start-up will be unique in that Compete H2O will be sold via small kiosks located in fitne
> A good friend of yours, Andrew Waters, has decided to leave his corporate job in order to launch a private SEO (search engine optimization) consulting firm. He is putting together a business plan for this venture and says the following to you, “I’ve read
> Travis Ryan is one of four cofounders of a skateboard company. The cofounders have decided to write a business plan to obtain funding for their venture. During a recent meeting, Travis said, “I know that we’re all really busy, so I’d like to volunteer to
> Although there are many retail stores in the United States, there are only a handful of big box stores such as Walmart, Target, and Costco. These stores stock products from thousands of suppliers. As a result of the sheer size of Walmart, it is able to s
> Your friend has developed what he believes is a novel floor cleaning product. The advantage of this product, he tells you, is that because of the unique chemicals used to create the cleaning fluid, people are able to use a fraction of the amount of fluid
> Think about and find some information about trends in the motorcycle industry. In particular, identify the effects of economic, demographic, and regulatory changes that may affect the motorcycle industry at the time you are reading this book. Write a pa
> In what ways is an entrepreneur who just launched a restaurant different from someone who just took a job as the general manager of a restaurant owned by a major restaurant chain?
> As mentioned in this chapter, White Wave Inc. produces Silk Soymilk, a product that has done surprisingly well in the mature milk industry. Based on the material we’ve covered so far, why do you think Silk Soymilk has been so successful?
> Which focuses on Panera Bread. What are some of the entry barriers a firm would have to deal with and try to overcome if it tried to compete against Panera Bread in the casual dining segment of the restaurant industry?
> What are the six major sources of barriers to entry that can restrict a firm’s entry into a market?
> Eric Andrews has been investigating the possibility of starting a service that will partner with grocery stores to provide a delivery service for their customers. The idea is that after purchasing their groceries, customers could go to a kiosk in the sto
> Linda Henricks is thinking about starting a firm in the home health care provider industry. When asked by a potential investor if she had studied the industry, Linda replied, “With the aging of the population and the fact that people are living longer th
> Re-read the opening profile about IndieU. What are the most significant threats to this firm’s currently successful business model? What actions should the firm take to successfully deal with the threats you identified?
> PatientsLikeMe: Allowing People with Serious Diseases to Connect with One Another and Exchange Support and Advice 1. Of the reasons articulated in Chapter 1 that motivate people to start businesses, which of the three reasons was the primary motivation b
> School of Rock: Filling a Gap in Music Education and Growing via Franchising 1. What types of characteristics do you anticipate School of Rock looks for in franchisees? 2. Look at Table 15.2. Of the ways mentioned in this table for franchisors to develop
> What are some examples of instances in which location is an important part of a firm’s business model?
> Justin’s Nut Butter: Why do Large Companies Acquire Start-Ups and Why do Start-Ups Agree to be Acquired? 1. Why do you think Hormel acquired Justin’s to add to the strength of its peanut and nut butter offerings and to add a product to its portfolio that
> Airbnb: Passing through the Stage of Growth in an Exemplary Manner 1. Make a list of things that you think Airbnb did “right” in growing its business. 2. Comment on the propensity of Airbnb’s founders to solicit customer feedback. Based on the informati
> You Make the Call: Can a Company Patent How It Makes a Peanut Butter and Jelly Sandwich? 1. Go to the U.S. Patent & Trademark Office’s Web site (www.uspto.gov) and look up Patent No. 6,004,596. Read the patent. After reading the patent are you more incli
> Proactive: How Three Critical Marketing Decisions Shaped a New Venture’s Future 1. How has Proactiv gone about establishing its brand? To what degree do you believe Proactiv is important in its customers’ lives? 2. Discuss the things that Rodan and Field
> How can the threat of substitute products suppress an industry’s profitability?
> Kickstarter: An Increasingly Important Forum for Raising Seed Capital 1. Do you think Kickstarter is a viable alternative to raising equity funding or debt financing? If so, under what circumstances? 2. Kickstarter is not the first crowdfunding platform
> Zappos: Making Human Resources the Key to Customer Service 1. What steps did Zappos take early in its life as a company to overcome the liability of newness? 2. What can entrepreneurs learn from Zappos’ experience about motivating employees and building
> Fundbox: Designed to Help Small Businesses Minimize Cash Flow Shortfalls 1. Toward the beginning of this case, the following statement appears: “Almost all small businesses experience cash flow shortfalls.” What is cash flow? Why is cash flow so critical
> Peloton Cycle and Donors Choose: How For-Profit and Nonprofit Start-Ups Build Credibility and Trust. 1. Why is building credibility, legitimacy, and trust particularly important for a start-up venture, regardless of whether it is a for-profit or a nonpro
> How bringing Its Business Plan to Life Helped a Social Enterprise Get Off to a Strong Start 1. Why is the problem of bringing light to people who don’t have access to reliable electricity not being tackled in a meaningful way by a large lighting company,
> How Casper Woke Up the “Sleepy” Mattress Industry 1. To what degree do you think Casper has disrupted the mattress industry? To what degree did Casper’s research about the mattress buying process resonate with you? Would you buy a Casper mattress? Why
> Resources and core competencies are both important parts of the Barringer/Ireland Business Model Template. What are the differences between resources and core competencies and why must an entrepreneurial firm have both resources and core competencies in
> TOMS’ One-for-One Business Model: Is It Sustainable for the Future? 1. Given TOMS’ mission and the way its business model is constructed, would you characterize TOMS’ business model as a standard business model or a disruptive business model? What impact
> Embrace Infant Warmer: Sometimes a Business Start Is a Matter of Life and Death. 1. What target market does Embrace seek to serve and how attractive is that market? 2. What examples of primary research that Embrace’s founders completed appear in the case
> Rover.com: Don’t Chuckle: This Is One Impressive Business Idea. 1. In the United States, what environmental trends are supporting the development of Rover.com’s business? 2. In this chapter, we noted that a true business opportunity is attractive, durabl
> What are the four distinctive parts of the entrepreneurial process and what is the relationship among the parts?
> 1. Which of the characteristics of a successful entrepreneur, discussed in the chapter, do you see in Julie Rice and Elizabeth Cutler? To what degree do you think these characteristics have contributed to SoulCycle’s success? 2. How does SoulCycle’s basi
> Quiznos: Will It Regain a Leadership Position in the Sandwich and Sub Shop Franchise Industry? 1. To what degree do you think Quiznos’ brand has been permanently damaged by its missteps? Is Quiznos doing everything it can to repair its brand? What, if an
> Warby Parker: Pursuing an Omni-Channel Strategy for Firm Growth 1. How is Warby Parker able to sell eyewear at such a low price? 2. Explain the rationale behind Warby Parker’s omnichannel strategy. Provide an example of another company that is pursuing a
> Sir Kensington’s: Pursuing a Measured, Yet Promising Path to Growth 1. There is a discussion early in this chapter about the need to prepare for growth. What actions did Scott Norton and Mark Ramadan take that demonstrate their commitment to trying to fu
> GoldieBlox vs. Beastie Boys: The Type of Fight That No Start-Up Wants to Be a Part of 1. If the case hadn’t been settled by GoldieBlox and the Beastie Boys and you had been asked to render a judgment in the case, would you have rendered a judgment in fav
> 1. Critique Nest’s segmentation strategy, its selection of a target market, and its positioning strategy. To what degree are these elements of Nest’s market strategy complementary and effective? 2. Describe Nest’s brand. In what ways does Nest practice b
> Revolights: Using Multiple Sources of Funding to Bring Its Innovative Bicycle Lighting System to Life 1. The following sentence appears early in this chapter: “There are three reasons that most entrepreneurial ventures need to raise money during their e
> Debra McGahan, a close friend of yours, mentioned to you that to complete a project in one of the courses she is taking this semester, she needs to describe a firm that is using an effective business model. Your immediate response is to recall that you j
> Basecamp: Implementing Novel Work Design and Human Resource Management Practices 1. Share your general reaction to this case study. Do you think Basecamp’s approaches to work design and HRM are transferable to other organizations, or do you think they’re
> Mary Lynn Schroeder: Building a Successful Business with Limited Money and Limited Business Experience 1. What can a first-time entrepreneur, who may have a good idea but not much money or business acumen, learn from Mary Lynn Schroeder’s experience? 2.
> What are the differences among direct competitors, indirect competitors, and future competitors?
> Preparing a Proper Legal Foundation: A Start-Up Fable 1. Complete Jack and Sarah’s list for them, including the issues you think they will place on the list along with their recommendations. Which of the issues do you think will stimulate the most discus
> Birchbox: Leveraging the College Experience to Write a Business Plan and Launch a Growing Start-Up 1. How effectively do you think Katie Beauchamp and Hayley Barna used their time in college to advance their business idea? 2. In what ways is Birchbox’s b
> Panera Bread: Occupying a Favorable Position in a Highly Competitive Industry 1. How has Panera Bread established a unique position in the restaurant industry? 2. How has Panera Bread’s unique position in the restaurant industry contributed to the firm’s
> Etsy: Breaking Down a Business Model 1. How does Etsy create, deliver, and capture value for its shareholders? 2. Is Etsy’s business model a standard or a disruptive business model? Explain your answer. 3. How is Etsy’s business model different from eBay
> How Feasibility Analysis Shaped Rent the Runway into the Business it is today. 1. Make a list of the ways in which Hyman and Fleiss vetted their business idea prior to launch. How long was it between the initial idea for Rent the Runway and when the busi
> PledgeMusic and Zinepak: Creating New Businesses in the Music Industry by Directly Engaging Fans 1. What environmental trends are working in favor of PledgeMusic and Zinepak? What environmental trends are working against each company? 2. What gap or gaps
> KaZAM, the company producing a bike that teaches kids how to ride without training wheels in a safe, enjoyable, and confidence-building manner, is the subject firm described in the “You Be the VC 9.2” feature (from Chapter 9). Reread that feature. What t
> Imagine you’re opening a tutoring service near the campus of the college or university you attend. What would be the characteristics of a comprehensive social media strategy that you can employ to build your brand, engage customers, and generate leads an
> Twitter (http://twitter.com) is a free networking and micro-blogging service that allows its users to send and read other users’ updates, called “tweets.” This business model continues to be criticized for not being viable in the long-term. Spend some ti
> What is entrepreneurship?
> What are the two most common strategies pursued by firms in global industries?
> What is the evidence that debunks the myth that entrepreneurs are born, not made?
> What are the five common myths of entrepreneurship?
> What is it about “tenacity” that makes it such an important characteristic for entrepreneurs?
> Why is product/customer focus an important characteristic of successful entrepreneurs?
