The Decision Maker Is Sid Stevens

What seems to be the main issue is actually getting to build the prototype. Without it, lot of potential investors turned it down. For venture capitals and future potential clients to show further interest, Shane needs to show them a working prototype. However the prototype itself requires an investment of $250,000, this has proven to be difficult to raise. Without the prototype no one is willing to invest in the business, and without the investment Shane is unable to build a prototype. He is stuck in a vicious cycle and needs to find a different way to raise capital for his prototype.

Requires additional training cost, space, business strategy and building customers recognition, hire professional help which may cause additional fund or used available line of credit

Q.1) Compute the following quantities for the current production process as well as for Mike’s and Ike’s plans, assuming the plans are implemented as described in the case.

Which of the following is not one of the typical questions to ask prior to inviting a supplier into the design process as presented in the book?

Myrtle McGee is a woman who uses serenity as a form of spiritual guidance through the use of dolls, candles, and other things alike. Myrtle wants to share her inner joy with the rest of her small town of Hasley. Myrtle has very little to no experience running a small business yet she still has a dream of opening a shop that sells peace and joy. Myrtles entire business rests in the hands of herself and her cousin “Moonglow” who also lacks several forms of entrepreneurial skills. These facts help lead to the conclusion of denying her business loan, and below I will explain why.

He was still faced with the problem of raising close to $10 million on an equity base

Each week there are 300 pounds of material 1; 400 pounds of material 2; and 200 hours of labor. The output of product A should not be more than one-half of the total number of units produced. Moreover, there is a standing order of 10 units of product C each week.

b) Why does a business that has profit $30,000 per year need a bank loan?

Heather Evans is a very recent graduate from Harvard Business School and has been working on getting her venture off the ground for quite some time. She has the know-how and skill in her industry but not the funds. This is why she is seeking out investors. This is proving to be more difficult and time consuming than she had anticipated. I think most people have this experience at one time or another especially if they are starting their own business. The great ideas of the world do not always get all the support in the world.

* He needed initial capital for investment, which he got from his long term friend Kaplan

Opportunities: Has formed a number of alliances with other organizations, Has big connections to provide funding,

There was another problem of setting up capital required by the company for starting the production.

Another issue was the finance from the conventional sources which were reluctant to invest. They would need at least £235,000 to add to their own invest of £45,000 to cover the costs and operational losses for 12 months period. But, if it works out, then they would at £1 million profit by year five. Despite their enthusiasm and impressive CVs, the business angels deterred by their lack of experience in this market sector. However, they managed to get an appointment with Maurice Pinto, a private investor, who agreed to invest £235,000 for a 20 percent share in the company.

d) The opportunity cost should be calculated as the resource cost of producing the input.

initiative is to attract outside capital, given the lack of collateral and sufficient cash flows and the