case 1

Jim Boothe Case Learnin" rel="nofollow">ing objectives • Comparin" rel="nofollow">ing an in" rel="nofollow">inventor with an entrepreneur and to discuss whether Jim Boothe has the character to launch him to become a successful entrepreneur. • Distin" rel="nofollow">inguishin" rel="nofollow">ing between various types of risks in" rel="nofollow">involved in" rel="nofollow">in launchin" rel="nofollow">ing an entrepreneurial venture. • Understandin" rel="nofollow">ing the importance of family support for entrepreneurs. • Listin" rel="nofollow">ing the elements of a complete busin" rel="nofollow">iness plan ready to be submitted to a bank Detailed questions to case: 1. Entrepreneurial risks Risk for the entrepreneur in" rel="nofollow">involves more than just fin" rel="nofollow">inancial risk. What types of risk would someone like Jim assume if he/she decided to develop this in" rel="nofollow">invention in" rel="nofollow">into a busin" rel="nofollow">iness venture? Also please describe those risks in" rel="nofollow">in more detail. (3 poin" rel="nofollow">ints) a) Fin" rel="nofollow">inancial risk – This is the most obvious and can in" rel="nofollow">include not only the $100,000 that he in" rel="nofollow">intends to borrow but also the money that he would have earned with his current position as an engin" rel="nofollow">ineer. b) c) d) 2. Jim’s market research Jim relied on surveys of his friends that own 10 speed bikes. How reliable do you fin" rel="nofollow">ind this data? Why? (1 poin" rel="nofollow">int) Who would be the target market for Jim’s in" rel="nofollow">invention? What group of consumers would represent an ideal target for this product? (2 poin" rel="nofollow">ints) Where can you/him get data about this market? What would be some options/ ideas? (1 poin" rel="nofollow">int) How will Jim get the derailleur on a bicycle? Is he goin" rel="nofollow">ing to manufacture the whole bicycle with the derailleur, is he goin" rel="nofollow">ing to purchase the bikes and attach his derailleur himself, or will the derailleur be manufactured separately and sold to be attached on the bikes by the customers? Does he know already how this will work? Please explain" rel="nofollow">in. (2 poin" rel="nofollow">ints) 3. Family support Do you thin" rel="nofollow">ink that Jim has the necessary family support to work on this entrepreneurial project? Why yes, or why not? (2 poin" rel="nofollow">ints) 4. What are the missin" rel="nofollow">ing parts in" rel="nofollow">in Jim’s busin" rel="nofollow">iness plan? (6 poin" rel="nofollow">ints) List at least 3 additional for the full credit. 1. Fin" rel="nofollow">inancials for at least three years with monthly projections in" rel="nofollow">in the first year. The fin" rel="nofollow">inancials need to in" rel="nofollow">include more than just a profit and loss statement. 2. 3. 4. 5.