Question: Suppose a colleague of yours is gearing

> What are the two primary purposes of conducting an intellectual property audit? What risks does a company run if it doesn’t periodically conduct an intellectual property audit?

> How would you describe the four areas that a properly executed feasibility analysis explores?

> What are the two primary reasons for those starting a new venture to write a business plan?

> Suppose you became interested in opening a School of Rock franchise (see Case 15.2 for more information about this company). You fly to Philadelphia and visit the company’s headquarters. After learning more about the opportunity, you tell the School of R

> A friend of yours owns a carpet and installation business, which is a full-time job. To increase his income, he’s thinking about buying a 1-800-Water-Damage franchise, which is a franchise that helps homeowners and businesses restore property that has be

> A growing number of franchise organizations, including Wings Over, Great Harvest Bread Company, and Beef O’ Brady’s, are allowing their franchisees to tweak their menus and change the appearances of their facilities, to better compete with local business

> Bill Watts has decided to buy a sub shop franchise called Super Subs. He lives in Cedar Falls, Iowa, and will be the first Super Subs franchisee in the state. Along with buying a Super Subs franchise, Bill would also like to purchase the rights to offer

> A friend of yours heard her roommates talking about different kinds of franchises. Before she could ask questions, they left for a team meeting to work on a class project. Your friend knows that you are taking an entrepreneurship course. She asks you: “W

> A friend of yours owns a chain of 25 fitness centers in Florida and Georgia. The fitness centers cater primarily to young professionals, ages 21 to 40. Your friend is worried because his centers have declined in terms of overall membership. Your friend t

> Brian Brunner is an entrepreneur who has invented several devices that are used in the telecommunications industry. He has patented the devices and manufacturers them in a job shop in Oklahoma City. Brian sells the devices directly to AT&T and Verizon. L

> Google reportedly offered to buy Groupon for $5 billion to $6 billion in November 2010—an offer that Groupon turned down. Why do you think Google wanted to acquire Groupon, and why do you think Groupon declined Google’s offer?

> Cisco Systems, Microsoft, and IBM often acquire small, technology-based entrepreneurial firms. Why would Cisco Systems, Microsoft, and IBM, which each employ hundreds of product development specialists and engineers, buy other firms to acquire technology

> Zynga is a social network game developer that develops browser-based games that work both as stand-alone games and as application widgets on social networking sites such as Facebook. What are the pluses and minuses of Zynga’s approach to launching games

> When is the appropriate time to write a business plan?

> What is entrepreneurial alertness and why is it important to entrepreneurs?

> Do you anticipate that entrepreneurship will continue spreading throughout the world, or do you think its appeal will subside over time?

> Think of a company that you’re familiar with that has grown via a product line extension strategy. Provide an overview of the company and how it’s rolled out its product line extension strategy.

> Spend some time studying Zero Motorcycles, the focus of the “You Be the VC 14.2” feature. Is it more likely that Zero Motorcycles will grow through internal or external growth strategies? What internal growth strategies and/or external growth strategies

> Collin Ryan owns an electronics firm in central Michigan. As a result of some innovative new products that his company plans to roll out over the next two to three years, he expects a substantial increase in sales. To gear up for the increase in sales, C

> Meredith Colella is a food products engineer who has developed an innovative approach for the packaging of meat. Her approach will extend the shelf life of most meat products by about 30 percent. Meredith is getting ready to try to sell the idea to inves

> Sarah Jeffers lives in Austin, Texas, where she has owned a graphics design company for three years. She spends 12 hours a day at work micromanaging every aspect of her business, yet she still can’t get the business to grow. Using materials included in t

> Kyle Simms just succeeded his father as the CEO of a consumer products firm in Mission Viejo, CA. Prior to returning to the family business, Kyle spent 11 years at Procter & Gamble in Cincinnati. Kyle’s dad built a solid company, but over the past five y

> Three years ago, Chris Dees launched a medical products company that specializes in providing products for people with diabetes. His company is number one in its industry. Recently, a couple of competitors have entered the picture, and Chris is wondering

> Patty Stone owns an industrial equipment company named Get Smart Industrial that sells three products in the oil services industry. Get Smart’s products are sold via a direct sales force. Patty wants to grow the firm by adding new products but has run in

> What is the number one rule in making an investor presentation?

> What is a product line extension strategy? Provide an example of a product line extension strategy and describe how its effective use might increase a firm’s sales.

> Seven months ago, Sam Peters launched a chain of kiosks located in malls that sell smartphone accessories. His first kiosk was in a mall in Washington, D.C., and he is now expanding into Maryland, Virginia, and Pennsylvania. Sam’s company has grown quick

> Pete Martin just purchased a copy of Inc. magazine’s annual issue that ranks the top 500 fastest-growing privately owned companies in America. Pete was amazed by some of the stories that were told in different articles appearing in the magazine and as a

> 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

> 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?

> 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.

> 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