...Onos Igho Intro to Entrepreneurship Prof Hofgan Dec. 4th, 2012 Case Study: MooBella Inc The categories of costs that I would expect to see in a list of MooBella start-up costs are as follows: Equipment, furniture, and fixtures Leasehold improvements Installation of equipment and fixtures Computers and other technology Owner time Professional services Promotion and advertising Insurance Debt service Taxes Franchise fees Supplies /products cost per machine Inventory Wages and benefits Reflecting on the emotional and other nonmonetary factors that were likely involved for Bruce Ginsberg, one critical component of getting an accurate startup cost estimate is to determine the length of time it's going to take to open your startup business. MooBella had almost taken 20 years for the idea to market and develop. Even though it seemed to be a simple concept it was technically complex and nearly cost the company $85 million to bring to market. There were so many challenges with the research, development and start-up processes. The machines were very costly and it took 5 years to complete the computer portion of the project. There is the development of major systems in Solid Works software which include two refrigeration systems, a pneumatic system, a consumer interface, a pumping system, and a dry-goods distribution system. With Solid Works Premium, they will have all the modeling capabilities they need to design each different type of component, whether it’s made...
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...entrepreneurial ecosystems not only because they provide a petri dish for innovation, but because they create jobs. In an article on AllThingsD today, Jed Christiansen contends that the fundamental value of seed accelerators lies in their ability to both drive economic growth and foster an entrepreneurial culture within local communities. Why important Startups, small businesses and accelerators are critical pistons in the engine of job creation; there are a few who would argue with that. However, research from the Kauffman Foundation puts into perspective just how important they are. It suggests that, between 1980 and 2005, all net job growth emanated from companies fewer than five-years-old. When it comes to how to best reverse an economic downturn, about the only thing you might find politicians agreeing on is the importance of supporting small businesses. For accelerators, it doesn’t matter whether or not all of their startups raise big rounds of venture capital, it matters how well their graduates can build a network of support for their peers and for future companies. The deeper and more robust it becomes, the more success startups find and the more jobs they collectively create. One of the more interesting results was that the funding they received was the least important aspect of the program. What mattered more was the community they were accepted...
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...Comparing Two Magazines For my compare and contrast essay, I have decided to compare two magazines in the financial business. The name of the first magazine is” The economist” and the second magazine is “Forbes” The theme of the first magazine is to highlight, how and what type of businesses to start and make money without putting in much of the hard work. The very first page of the magazine shows an absolute image of the man and women dressed up with lots of money and a road of success. The magazine rapidity claims” Sure ways to make money”. It seems like editor is personally involved in guaranteeing the success of the business with highlighting text displaying “Make $40 Million with eco-friendly herbs and sprouts” or “Make 15 million in the first year with Dollar Varity stores” As I am turning and reading pages more and more, I realize that this magazine is not meant to show issues, techniques, pros and cons of starting up a business but it is more like infomercials showing the top returns one can reap from his investments. The magazine forces me to realize that I am missing an essential experience in my life by not starting up the business. The magazine displays beautiful color and picture schemes. The magazine also highlights few of the success stories of the entrepreneurs. Overall this magazine makes business as a seamless transition of normal day today activity to a profit generating machine, but to some extent it also highlights few realistic...
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...3/18/2014 Angel Investors A number of small start-up companies need external funding to operate and expand. When entrepreneurs have drained money from friends and family, personal savings, bank loans, and credit cards for their startups, they may search for angel investor’s aid to strive in these competitive environment to grow. According to the Center for Venture Research at the University of New Hampshire, approximately 2/3 of funding for new businesses is achieved from angel investors. Therefore, one commonly-deployed strategy for raising capital at the early stages of an enterprise by entrepreneurs is finding an Angel to invest in their business, idea or in their strong business plan. Angle investors are typically a high net worth folks who are or were successful entrepreneurs and business people. There are many types of Angel investors. The main three types are Core Angels, High-tech Angels and Return on Investment (ROI). Core Angels are investors who have accumulated years of experience from running and operating their own successful business. They work hard and are dedicated to their job of angel investing. They carry on to high risk investments without looking back at their losses. Usually, they are not focused on a particular industry and invest in verity of industries, including public and private equity such as real state. They assist and get involved in companies they invest in by mentoring and giving wise advices. High-Tech Angels are typically or have less...
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...Case No. 1 page 37 1) How can second life provide value to business? Answer: Companies can use Second Life as a business tool foe online conferencing, online collaboration, knowledge management and prototyping. Also companies can test new products using Second Life’s 3-D rendering. 2) What kinds of businesses are most likely to benefit from a presence on Second Life? Why? Answer: Retail businesses that are already used to doing business online may find it easy to establish a viable presence on second life. This is because they are used to advertising and marketing to customers online and already have systems in for taking orders, accepting payments, and shipping products. 3) Considering what you have learned about Second Life, how could you, as an individual, create a modest start-up business on the Grid? What goods would you sell? Why would this be a good choice of product? What, in simple terms, would your business plan be? Why would it work? Answer: Considering what I have learned about Second Life, I, as an individual, will first start up my business by figuring what products are mostly used in Second Life. The product that will sell in Second life will be furniture. This will be a good choice because customers or people in second life will need furniture will need furniture for their new homes and offices. My business plan will be to invest in other products and services and wait till my investment grows before cashing out. 4) Visit eBay on the Web and...
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...I left banking to pursue a career in private equity/venture capital. For some time I had wanted to be involved in this challenging and entrepreneurial environment. I’m more rewarded by working alongside small companies responsible for creating jobs and commercializing new technologies. I also know that to become more efficient and effective in the industry I need to advance my skills in certain areas. One of my goals for the program is to improve my analytical and quantitative skills. My undergraduate degree in Business Management touched on different areas of business, from operations to human resources, and to some degree, finance and accounting; however it left a lot of room for development in these two areas. The major itself was very broad in nature. Subsequently, the positions that I’ve held in my professional career have had a heavy focus around sales, banking, investment finance and asset management. My success relied on knowledge of the capital markets, growing assets and effective portfolio management. Skills around specific areas of finance and accounting were never essential. However, these are skills that will be necessary as I look to move up within my organization and position myself for future advancements throughout my career. Courses dedicated to statistics and data analysis will be influential in my development. My firm works with companies and investors in later stage venture capital transactions. The very nature of this industry consists of...
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...MusicJuice.net Lecture 6 Case Submission Ahlben Phillipus: 509802 Question 1 What are the major opportunities and challenges involved in Internet (as opposed to brick and mortar) startups? Answer Both Brick-and-Mortar companies and internet startups each face their own unique opportunities and challenges characteristic to their type of business and industry. Opportunities which internet startups have over brick and mortar are detailed below; • Immediate access to a global market place, a platform from where internet companies can mass market products, or use a more intelligent marketing approach through search engines, based on specific search results of users on Google, yahoo, AOL, etc. • Reduced warehousing and distribution costs, if products sold are tangible, through achieving economies of scale by having the portfolio of products on offer available and visible on the website (e-catalogue) and doing all deliveries from one central location. Most companies incorporate a lead time on their products (similar to Apple) and only manufacture once order and payment confirmed, and thereby reducing warehouse costs, almost in totality. • Simple, streamline and efficient business processes are vastly enabled through web functionality and capability. • Access to customer data and their shopping preferences through your e-catalogue records, allows for greater customer relation management possibilities, and also generating higher cross sell and upsell ratios if...
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...were all the rage in the late 1990’s through the Internet Market Heyday. Even major venture capital firms set up their own incubator operations or partnered with existing incubators, to recognize that many of the dot-com startups they wanted to represent, required more hand holding than they were used to providing. During the first wave of e-commerce, Idealab was quite successful. Many of its incubated companies eventually failed, but enough of them succeeded , that Idealab was able to fund several generations of new businesses through its operations. During its first year, it supported at least 10 new businesses, including City Search Website. Idealab, in its second year, helped create another ten businesses including Shopping.com, Tickets.com, and WeddingChannel.com. In later years, Idealab incubated other companies such as cooking.com and GoTo.com. Not all of Idealab’s companies were successful. In 2000, critics had started to look at incubators suspiciously, seeing them as more of the dot-com craze. Following the bust of the technology stock market, incubators rapidly disappeared as investors rushed to liquidate their capital investments. By 2001, the incubator model had basically drifted away, with few investors ready to sink money into such a risky startup. The primary survival method for many of these firms was to try and merge their...
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... than 10 percent.” of those actually playing. An analysis of this industry’s components using Porter’s Six Forces sheds light on the likelihood of Zynga’s continued success following what is “, sure to be a blockbuster initial public offering.” Threat of Entry: Threat of entry in this industry is huge, largely due the low cost to developers and the huge interest from venture capital firms. Tech startups have but to look and the funding availability is nearly limitless as “Firms such as Union Square Ventures, O'Reilly AlphaTech Ventures and XG Ventures are devoting an increasing amount of time and money to financing wireless apps.” And it’s not just start-ups looking to get in on the action “, Yahoo wants to be the company that brings apps to the wider world,” with the revenues being realized; there is increasing interest from the well established companies to get involved with the research and development of social gaming apps. At present the “,torrid growth has attracted money…,Kleiner, Perkins, Caufield &Byers… launched a $100 million investment fund specifically to back startups creating software applications for the iPhone…Research In Motion (RIMM) unveiled a $150 million venture fund, with investments from Thomson Reuters (TRI) and RBC Venture Partners, to develop apps and services for its BlackBerry and other phones. And…U.S. mobile operator Verizon Wireless (VZ) announced an initiative to...
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...Inthe startup ofnewprocess plants or inthe introductionofnewprocess technology, even minor installation work can cause plant downtime. On the other hand, the increased income from compressing time schedules for the introduction of new process technology or launching of associated newproducts on themarket surely offers an incentive for securing efficient startups,which is the purpose of this study. A review of publications in the area of startup of process plants shows that organizational issues are scarcely discussed. A new conceptual framework has therefore been developed for organizing startups and themodelling of alternative startup organization structures. Four types of organizational models have been depicted,derived frominformation fromthe literature survey and the author’s own first-hand experience of startups. They include a “fully integrated” type of organizational model for startups together with a profiling of startup contexts. How to organize a startup is, however, only one aspect that will determine the outcome of a project, and other influencing factors ought to be further explored. The frameworkmust be tested and validated in real-life startup situations and in further empirical research.The informationfromthe literature survey, the alternative types of startup organizationalmodels and determinants can already be deployed by firms in the Process Industries, triggering discussion and providing guidelines in their selection of preferred startup organization...
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...have recently decided to invest in my own business and have finally decided that I will buy an established business. I personally believe an established business would be the best thing for me to invest in. An existing business is an alternative to starting a business from scratch. It is a business which has been operating for three to five years. There are many advantages and disadvantages and have I have considered all other options and believe this is the best. There are many positives to buying an established business such as you will already have a strong customer base, which will support you and help you as you make your changes to the business. This makes buying an established business a less risky venture and survival will be guaranteed. As a new owner of an established business you will already have well known established Suppliers and a license in place. One of the main reasons people buy an established business is that you will not have to pay out to buy equipment as it already comes installed with all the fixtures and fittings. Sometimes the seller may offer to work with you for a period of time which will help you as you get used to and acquainted with the business. However this there are also some disadvantages to this such as you will never know if you are buying into a business which is already at the end of the life or they may be flaws within the business which is why the seller is selling the business. Another disadvantage would be that customers may not stay...
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...How to Raise Money Want to start a startup? Get funded by Y Combinator. September 2013 Most startups that raise money do it more than once. A typical trajectory might be (1) to get started with a few tens of thousands from something like Y Combinator or individual angels, then (2) raise a few hundred thousand to a few million to build the company, and then (3) once the company is clearly succeeding, raise one or more later rounds to accelerate growth. Reality can be messier. Some companies raise money twice in phase 2. Others skip phase 1 and go straight to phase 2. And at Y Combinator we get an increasing number of companies that have already raised amounts in the hundreds of thousands. But the three phase path is at least the one about which individual startups' paths oscillate. This essay focuses on phase 2 fundraising. That's the type the startups we fund are doing on Demo Day, and this essay is the advice we give them. Forces Fundraising is hard in both senses: hard like lifting a heavy weight, and hard like solving a puzzle. It's hard like lifting a weight because it's intrinsically hard to convince people to part with large sums of money. That problem is irreducible; it should be hard. But much of the other kind of difficulty can be eliminated. Fundraising only seems a puzzle because it's an alien world to most founders, and I hope to fix that by supplying a map through it. To founders, the behavior of investors is often opaque—partly because...
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...How to Raise Money Want to start a startup? Get funded by Y Combinator. September 2013 Most startups that raise money do it more than once. A typical trajectory might be (1) to get started with a few tens of thousands from something like Y Combinator or individual angels, then (2) raise a few hundred thousand to a few million to build the company, and then (3) once the company is clearly succeeding, raise one or more later rounds to accelerate growth. Reality can be messier. Some companies raise money twice in phase 2. Others skip phase 1 and go straight to phase 2. And at Y Combinator we get an increasing number of companies that have already raised amounts in the hundreds of thousands. But the three phase path is at least the one about which individual startups' paths oscillate. This essay focuses on phase 2 fundraising. That's the type the startups we fund are doing on Demo Day, and this essay is the advice we give them. Forces Fundraising is hard in both senses: hard like lifting a heavy weight, and hard like solving a puzzle. It's hard like lifting a weight because it's intrinsically hard to convince people to part with large sums of money. That problem is irreducible; it should be hard. But much of the other kind of difficulty can be eliminated. Fundraising only seems a puzzle because it's an alien world to most founders, and I hope to fix that by supplying a map through it. To founders, the behavior of investors is often opaque—partly because...
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...High Potential (+) | 1. Initial capital investment | High | Moderate | Low | 2. Number of revenue drivers (ways in which the company makes money) | One | Two or three | More than three | 3. Time to break even | More than two years | One to two years | Less than one year | 4. Financial performance of similar businesses | Weak | Modest | Strong | 5. Ability to fund initial product (or service) development and/or initial startup expenses from personal funds or via bootstrapping | Low | Moderate | High | 1. Company is still in early stages. Initial capital investment can potentially come from owners and family relatives. The investment can remain low during our product development. However, since the product is quite complicated and high tech, the capital investment may continue to scale and the company need to find the right investors. Chapman, Lizette. "GoPro Going for IPO, Venture Investors Go for Gold." Venture Capital Dispatch RSS. N.p., 7 Feb. 2014. Web. 09 Feb. 2015. Clark, Bill. "How Much Capital Should You Raise for Your Startup?" MicroVentures Blog. N.p., 25 Nov. 2014. Web. 09 Feb. 2015. 2. We will begin by creating a prototype and visually show people how the product works through screens in Photoshop. Once we get a good amount of potential customers, we will then build a functional prototype and attract people through blogs, emails, and launch parties. Kickstarters and Indiegogo are two great sites for crowdfunding that can help us finance in...
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...I. Time context: 1997 II. Viewpoint: Hilary De Leon – Founder and CEO III. Major Policy statement Micrologic is one of the most technologically competent firms in the country and a research development firm known for designing high-technology product. IV. Current Business Policies a. Management Policies i) Micrologic management people are well educated in Management of Technology. ii) Hilary de Leon established the new firm and it is called Micrologic. iii) As a CEO, Hilary is active in discussing and resolving issues related to technology. b. Marketing policies i.) Micrologic consider trading of technology in choosing foreign partner. ii.) Micrologic participates in industry trade fairs. c. Operation Policies i.) Using of logic analyzers,oscilloscopes and PC computers for operation. ii.) Micrologic is an R&D for creative designs and development. iii.) More on product development than manufacture. d. Finance Policy i.) No such finance policy in the case. e. Human Resource i.) R&D has 3 engineers ii.) Micrologic has 13 employees. iii.) Hilary De Leon hires people from only top 4 engineering schools. V. Social Responsibility Application i.) Encourage people to improve their lives. ii.) Give employment iii.) Payment of taxes to the government VI. Statement of the Problem How can Micrologic excel in Technological industry? VII. Statement of Objectives a. Long...
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