Any A- 1 Normal T Sin espa... Titulo 1 Titulo 2 Puesto Prrafo G Estilos This will be a discussion the percieved risks and rewards of leaving your current employment and starting a new business. As you read the case and consider the question put yourself in John's place and how you would feel about this big step. Leaving Solid Employment to Start a Business The following is a true story about a man that wanted to go into business for himself and what he had to do to finance the startup. I worked at the company for 3 years and today their sales are in the $ billions and they have been acquired but a large multinational medical company. The story is about the risk you may have to take to follow your dream and the failure and success that can be had. CASE: John was the Manager in charge of R&D and New Product Development at a major American company. The corporation was one of the largest in the US but John worked for a small division of the company that developed and sold medical equipment and products. In his position he was the head of the New Products Committee, charged with developing new product ideas and product improvements. One issue with committees is that they can tend to stifle innovation as a result of "group think". John found it very frustrating and yearned for a situation that would allow him to pursue his new product ideas. He decided the only way he could follow his dream was to start his own company John was in his mid-thirties, married with 2 children, one in 9 grade the other about to graduation and hopefully go to college. His wife was not working and although he was well compensated at the company he did not have the financial resources to fund the starting of a new company. He needed money and the only option was a bank loan. In order to qualify for the needed loan collateral was needed. He could pledge any TADOS UNIDOS BI Pararo www.py Estilos John was in his mid-thirties, married with 2 children, one in 9 grade the other about to graduation and hopefully go to college. His wife was not working and although he was well compensated at the company he did not have the financial resources to fund the starting of a new company. He needed money and the only option was a bank loan. In order to qualify for the needed loan collateral was needed. He could pledge any assets that would enable the bank to take to cover the loan amount if John was not able to make payments against the loan. This meant that John would have to use his home and automobiles pledged as collateral. He still owed money on the mortgage as well as the automobiles. He decided that he only option at the time was to start the business as a Sole Proprietorship. (See Chapter 9 for information on the various business forms that can be chosen.) 1. Describe the risks John is taking if he chooses to proceed to resign his current position and start his new business. 2. How might his wife and children feel about this decision? What would be their concerns and how could it affect them-positively or negatively? 3. Describe the best positive outcome for John's new initiative. 4. Describe the worst negative outcome for this new direction