P’KOLINO CASE STUDY 4 competitive advantage? How can you finance the filing of IP? How do you predict/ guarantee your sales of 690 at year one? The strongest parts of the business plan is how the first sentence lay emphasis on how potential opportunity is big and grabs the readers’ attention. One sentence summary is used for each main paragraph, making it easy to remember those important factors. The Graphic illustrations that were employed of the product make it easier for investors to understand. P’kolino business plan has a Clear depiction of target customers and good use of charts and tables. The areas that needs improvement in P’kolino business plan, is that they need to implement in their plan a touchstone, it better to have a plan that provides a touchstone and a point of reference, so the business can measure their progress against. For if a business falls short of expectations and goals it is not that critical, but when a business falls short of the knowledge and understanding of identifying why they did not meet their goals and expectations. Then it becomes a huge problem, as being able to estimate a situation is the main reason of business planning. Business planning allow entrepreneurs to understand the answer of potential questions stakeholders will ask investor on upside potentials, employees on future of the venture, customers/suppliers on framework, etc. Moreover, a tagline that summarizes the essence of the business will do well for P’kolino as it will work in serving as the theme of a unifying story - and every other sentences, paragraphs, and diagram should adhere to that theme.
Malincho and ajay essay
Apply the Timmons entrepreneurship framework (entrepreneur-opportunity-resources to analyze this case. Analyze and explain Kalin’s traits and how he gathered resources for his venture.
Malincho case study reveals the fact that the development of the business by Kalin was the combination of the business opportunity for Kalin, the entrepreneur, who wanted to start his business being very constrained with resources. To put it more precisely, Kalin had a good business idea and he had an opportunity to start a potentially successful business. However, he relied too much on his entrepreneurial skills because he often took decisions, when he was running out of resources or when he had not enough resources to fund his project, for instance (Gwynn, 2004). In such a situation, his actions were quite daring and relied on his intuition and good luck mainly rather than on his carefully planned business project. At the same time, he gathered resources relying on his own income, the help from the part of friends and other available resources.
- What business models are open to a food-product importer? What steps should Kalin take to position his company for the next phase of early-stage-growth?
In fact, Kalin had two main options to import food-product, feta cheese from Eastern Europe to the US. First, he could use cow cheese which would be costly due to the high import fiscal barriers established in the US. Second, he could choose sheep cheese that was costly in Bulgaria and Eastern Europe but could be imported without fees to the US. In this regard, Kalin has chosen the sheep cheese because it was of the higher quality, while the ultimate price of the product in the US would be quite competitive, whereas the cow cheese would be of the lower quality, while the price of the product would be too high because of the existing fiscal regulations that protect American farmers from the import of dairies from abroad (Breneman & Taylor, 2006). In this regard, Kalin should also consider the possibility of the diversification of the supply of dairy products using sheep milk as the basis because such products would not be exposed to high fees as cow dairy are. In addition, Kalin should focus on the minimization of transportation costs that includes not only cheaper transpiration services but also safer and accurate ones. For instance, he received the first cargo with about 5% of cheese damaged that meant 5% loss for him. The reduction of such losses would allow Kalin to increase revenues from the trade.
- What would be the concerns of a potential investor?
Potential investors would be concerned with a long-run plan of the business development of Kalin, who faces considerable challenges at the early stages of the development of his business. He relies too much on his entrepreneurial skills but he has a few reliable customers and his target customer group is limited to Americans of the Bulgarian origin, who are nostalgic about the food imported from their homeland. Therefore, potential investors would be concerned about prospects of the further business growth, if the target market is saturated. In addition, investors could be concerned with the transportation costs because they could increase, if the oil price grew. Therefore, potential investors would be concerned with the possible removal of production facilities closer to the US.
Ajay Case Study
- What traits does Ajay exhibit that have helped him to get this far? Are these the knowledge, skills, and abilities needed by good entrepreneurs?
Ajay has the deep understanding of the product he was offering to consumers in the market. He was also fully aware of its prospects in the market and its business opportunities. Ajay was hard working since he was able to work 18 hours per day. More important, he was success-oriented since his firm belief in his product led him to Babson College and contributed to the development of his connections and positive interpersonal relations with many people working in the same field (Breneman & Taylor, 2006). Moreover, he has managed to identify key customers, such as one of the largest companies in the POS industry which was the main target customer for Vayusa. In such a way, he was bold enough to refer to key customers directly and he was apparently convinced in the overall success of his product. More important, he has managed to convince his business partner, Walter, and other people that his products could be and will be successful. When he was running out of money, he has managed to win grants that allowed him to support his business project. He studied not only computer engineering but also business administration that was essential for his entrepreneurial activities. In such a way, Ajay had basic knowledge and skills that were essential for a good entrepreneur since they helped him to tackle difficult situation and allowed him to come through major challenges successfully.
- Define and explain the purpose of a rocket pitch. Imagine a potential investor has heard his rocket pitch. What concerns would a potential investor have? Is it a good investment?
The purpose of the rocket pitch was to simplify the payment for customers since the new technology offered them an opportunity to conduct the payment and other transactions using their mobile phones and any payment terminal available to them in the market at the moment (Gwynn, 2004). In fact, this technology allowed consumers to use mobile as the truly universal tool to make payments and other transactions whenever and wherever they needed. The new technology developed by Ajay outpaced major rivals and substitutes that have already operated in the market, when Ajay has decided to introduce the technology and launched his business. However, potential investors may be concerned with the existence of similar products in the market (Volti, 2005). In addition, investors could be concerned with transactions security. However, the investment into the project developed by Ajar would be a successful and effective investment because the project introduces the universal tool that makes mobile phone a new tool of payment.
- If Ajay decides to move forward, what more can he do to build credibility and improve his chances of securing venture capital?
First, Ajay should reveal the full extent to which Vayusa outpaces its rivals. The revelation of advantages of the new product compared to existing ones may persuade investors that the product is worth investing, while success of similar products, will show them that the new, better product can take a large share of the market. Furthermore, Ajay should stress the technical advancement of the product since investors and consumers should be aware of its reliability and safety.