Questions and Answers of Entrepreneurship Starting Operating

Being a franchisor seems to be a mechanism for growth, but what are the growth prospects for entrepreneurs that are franchisees? Isn’t the entrepreneur limited in his or her ability to pursue all
To what extent does the use of software help and hinder the entrepreneur’s ability to perform the important tasks of record keeping and financial control?
If you were an entrepreneur in a “hot” market, would you invest the substantial amount of time, energy, and other resources necessary to try and go public before the bubble bursts? Or would you
What drives the market for IPOs? Why is it so volatile?
An investor provides an entrepreneurial firm with the capital that it needs to grow. Over and above the capital, in what other ways can the investor add value to the firm? What are the possible
Why don’t all firms use bootstrap financing? Are there any dangers with this approach? What are the benefits of having some financial slack (e.g., some extra cash in reserve)? What are the costs of
What is the cheapest source of funds? When all other sources turn down your request for funding, what source is most likely to say yes? Why is this the case? Is the entrepreneur exploiting a personal
How useful is a financial plan when it is based on assumptions of the future and we are confident that these assumptions are not going to be 100 percent correct? Does it make more sense for the
What volume of sales is required to reach breakeven for the following business: The variable cost of producing one unit of the product is $5, the fixed costs of plant and labor are $500,000, and the
Is it more important for an entrepreneur to track cash or profits? Does it depend on the type of business and/or industry? What troubles will an entrepreneur face if she or he tracks only profits and
Identify three corporations that are different in their legal form of organization (for example an S corporation, an LLC, and a C corporation). How are these companies different? How are they
Does the old saying “You get what you pay for” apply to a board of directors or a board of advisors?
Why do suppliers sometimes ask entrepreneurs of small companies to provide personal guarantees for a line of business credit? If an entrepreneur is asked (forced) to provide personal guarantees, then
Why would entrepreneurs open themselves up to personal financial losses by using a proprietorship rather than a company?
What are the three most effective advertisements on television? Why are they effective? What are the three least effective advertisements on television? Why are they ineffective? Are they really
Is marketing segmentation just a nice way of using “stereotypes” to sell your products? Can people really be classified so easily into groups that share common needs, wants, and demands?
Define a customer group and then invent a product and come up with a price, promotion, and distribution strategy. Have some fun in coming up with a particularly creative marketing mix. How would you
What is the purpose of the business plan if the audience is (a) the entrepreneur, (b) an investor, and (c) a key supplier? How might the plan be adapted for these different audiences? Or do you
If a business plan is to be used to raise capital, then why would the entrepreneur want to advertise the firm’s major risks by detailing them in the business plan?
What makes an excellent business plan?
To what extent should the government be involved in creating and enforcing safety laws and to what extent should companies (and industries) be responsible for creating their own standards and
Provide three examples of situations where a noncompete agreement would be necessary. In each of these three examples what should be included in the noncompete agreement to protect the venture?
Is going international something that only large and established firms should pursue after they have achieved success in their domestic markets “right off the bat”? Which sorts of products are
We typically focus on firms from well-developed economies entering markets of less developed economies. Do firms from less developed economies have a chance of success if they enter developed
Make sure, if possible, there is one foreign student in each small group. The group needs to discuss, and then report back to class on, the nature of business and entrepreneurship in the foreign
Do you think that the Internet can be a source of advantage for one firm over other firms or do you think that it is a necessity just to be able to compete? Be prepared to justify.
Is it a waste of time to detail the firm’s strategy in the business plan when the audience for that plan (e.g., venture capitalist) knows that things are not going to turn out as expected and, as a
Provide two examples of firms with a broad-scope, two with a narrow-scope, and two that started narrow and became broader over time.
Provide two examples of firms with a broad-scope, two with a narrow-scope, and two that started narrow and became broader over time.
Is increasing the entrepreneurial orientation of a firm always a good thing? Or are there circumstances or environments in which the further pursuit of opportunities can diminish firm
What excites you about being an entrepreneur? What are your major concerns?
Provide some examples of mental leaps that entrepreneurs have taken.
Do you really think that entrepreneurs think effectually? What about yourself do you sometimes think effectually? In what ways is it good? Then why are we taught in business classes to always think
List the content that you believe is necessary for an entrepreneurship course. Be prepared to justify your answer.
Describe how a small business owner could use social marketing for a competitive advantage.
Describe how a small business owner could use creating an identity for the business through branding for a competitive advantage.
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?3. What actions did
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 business was launched? What
1. Of the five facts that contributed to Kold’s failure, which one do you think was the most damaging? Explain your answer.2. Describe the feasibility analysis that Keurig Kold should have
1. In the context of this chapter, make a list of three “takeaways” from this feature that you can learn from and try to avoid if you set out to solve a problem by launching a business.2. To what
1. Refer to Figure 2.1. Are there differences between social ventures and for-profit organizations in regard to the essential qualities of an opportunity? If so, what are the differences?2 .For the
1. What advantages do business buyers such as the Higginses gain over starting a business “from scratch?” What disadvantages do they typically encounter?2. What steps do you recommend the
1. Identify possible causes that could explain Intertech’s declining profitability. What steps can the Stadlens take to reverse this alarming trend?2. What can the Stadlens do to manage their
1. Suppose that your best friend is considering purchasing a franchise such as Cousins Maine Lobster. What advice would you give him or her about the right way to go about purchasing a franchise?2.
1. What advantages does a subscription pricing model offer a business?2. Notice that several of Bark & Co.’s idea for new businesses have failed. Is this unusual? Why is it important for
What specific advice can you offer Carl and Tricia Staible about management succession?
One family business expert says that when it comes to management succession, a leader should pass the baton to the successor not when the leader is ready to leave but when the successor is ready to
Can Robinson Fans continue to be successful with two sometimes three competing leaders at the helm? Explain.
Are the issues that Carla and Tricia Staible face concerning management succession in the family business unusual? Explain.
Suppose your best friend is about to hire someone to work in his or her company. List at least three other tips that will enable him or her to avoid making a hiring mistake.
Why are hiring mistakes so expensive for companies, particularly small businesses?
Identify at least three lessons that other leaders of small businesses can learn from Kevin Hancock’s experience.
Summarize the key provisions of CAFTA-DR.
What lessons did each of these expat entrepreneurs lean that would be useful for others interested in this type of lifestyle? Explain.
What advice would you give to someone who wants to become an expat entrepreneur? Explain.
How are expat entrepreneurs’ assumptions about conducting business internally different from those of entrepreneurs pursuing more traditional international strategies? Explain.
What steps do you recommend that entrepreneurs such as John Aron take before they make the decisions to take their companies global?
Identify some of the barriers that companies such as The Pasta Shoppe encounter as they expand internationally. What steps can entrepreneurs take to overcome these obstacles?
Identify the risks and the benefits that The Pasta Shoppe faces by operating as a global business.
Notice that the founders of Zkipster used a direct, localized sales approach to enter new markets. What are the advantages and the disadvantages of setting up local sales operations? Why do most
Capital is any form of wealth employed to produce more wealth. Capital exists in many forms including cash, inventory, plant and equipment. Entrepreneurs have access to two different types of capital
What is the role and function of loan brokers?
What is peer-to-peer lending?
How do merchant cash advances work as a course of financing a small business?
Explain how an entrepreneur can use retirement funding to start a business using Rollovers as Business Startups (ROBS).
Explain the advantages and the disadvantages of using factors as a source of financing.
Describe a venture capitalist procedure for screening investment proposals.
Work with a team of your classmates to brainstorm ways these entrepreneurs could attract the capital they need for their businesses. What steps would you recommend they take before they approach the
What is capital?
What can entrepreneurs do to increase the probability that bankers will approve their loan requests?
Which of the funding sources described in this chapter do you recommend that Ralph Lucci and Aaron Hoffman consider for financing their businesses? Which sources do you recommend that they
What are some of the features that determine a good manufacturing layout?
What is ergonomics? Why should entrepreneurs apply the principles of ergonomics in the design of their facilities?
Why is it costly for a small firm to choose a location that is too small?
Do you agree with Bi’s idea of using temporary pop-up shops in certain cities to test their market potential for Blank Label’s custom-made clothing line? Explain. What are the advantages and
What criteria should Bi use to evaluate prospective cities?
What process should Bi use to identify the best cities for Blank Label ‘s retail expansion plans? How might the company use its database of information on its existing online and retail store
What advantages and disadvantages do pop-up stores such as the ones described here offer entrepreneurs?
List at least five steps, in addition to the ones described here, that entrepreneurs should take to prevent their businesses from becoming victims of employee theft and embezzlement.
Are small businesses more likely than large ones to be victims of employee theft? Explain.
Identify the factors that led Holt of California to become a victim of employee theft and embezzlement. What impact does this crime have on a company’s cash flow?
What other advice can you offer owners of seasonal businesses about coping with the effects of their companies’ highly irregular sales patterns? About managing cash flow in general?
What impact do highly seasonal sales have on a small company’s cash flow?
Do you recommend that Anita expand her business? Explain.
Compute the break-even point, assuming that Anita decides to expand her business.
Calculate Anita’s break-even point without the expansion plans. Draw a break-even chart.
What recommendations can you make to the Edens to improve their company’s financial performance in the future?
What might be causing the deviations you have observed?
Analyze the comparisons you have made of Eden’s Garden’s ratios with those from Bizminer. What red flags do you see?
Do you see any ratios that, on the surface, look suspicious?
Assume the role of Shelly Edison. Using the financial statements for Eden’s Garden, calculate the 12 ratios covered in this chapter.
Assume the role of a small business banker. Suppose that Kuhn were to approach you for a bank loan to refinance his debt. Which financial ratios would you be most interested in? Why? What advice
What lessons concerning the use of debt financing can entrepreneurs learn from Charles Kuhn’s experience?
Why is using ratio analysis to keep track of their companies’ financial performance over time so important for entrepreneurs?
What are the risks associated with debt financing?
What are the benefits to entrepreneurs who use debt capital (leverage) to finance their companies’ growth?
What is cost-plus pricing?
How is the markup for a product calculated?
What is a markup?
If you owned your own business and had the information required to engage in dynamic pricing, would you do so? Explain.

Showing 100 - 200 of 574