Reference no: EM13840861
Jim Boothe Case
Learning objectives
• Comparing an inventor with an entrepreneur and to discuss whether Jim Boothe has the character to launch him to become a successful entrepreneur.
• Distinguishing between various types of risks involved in launching an entrepreneurial venture.
• Understanding the importance of family support for entrepreneurs.
• Listing the elements of a complete business plan ready to be submitted to a bank
Detailed questions to case:
1. Entrepreneurial risks
Risk for the entrepreneur involves more than just financial risk. What types of risk would someone like Jim assume if he/she decided to develop this invention into a business venture? Also please describe those risks in more detail.
a) Financial risk -
This is the most obvious and can include not only the $100,000 that he intends to borrow but also the money that he would have earned with his current position as an engineer.
b)
c)
d)
2. Jim's market research
Jim relied on surveys of his friends that own 10 speed bikes. How reliable do you find this data?Why?
Who would be the target market for Jim's invention? What group of consumers would represent an ideal target for this product?
Where can you/him get data about this market? What would be some options/ ideas?
How will Jim get the derailleur on a bicycle?
Is he going to manufacture the whole bicycle with the derailleur, is he going 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.
3. Family support
Do you think that Jim has the necessary family support to work on this entrepreneurial project? Why yes, or why not?
4. What are the missing parts in Jim's business plan?
List at least 3 additional for the full credit.
1. Financials for at least three years with monthly projections in the first year. The financials need to include more than just a profit and loss statement.