Executive Summary

Statement of problem, opportunity, objectives

Analysis of situation
Identification and evaluation of alternatives; and
Decision, course of action, implementation
What are the strategic business considerations in this case?
What has Jim done well?
What could he do better?
What are Jim's primary dilemmas at the end of the case?
How would you handle them?

Timmons Model
Opportunity
Market demand
Can you define the customer specifically?
Is the customer reachable?
Growth potential > 20% annually
Is the market durable (vs. fad)?
Customer payback <1 year?
Market structure and size
Emerging or fragmented
Proprietary barriers to entry
$50 mm+ with $1 billion potential
Margin Analysis
Gross margin >40%
Gm%= (price-direct cost to produce)/price
Low start-up capital requirements
Team
Entrepreneurial Leader
Voracious questioner &great listener
Resilient & persistent
High integrity
Persuasive & charismatic
Time is of the essence
Action oriented
Entrepreneurial Team
Relevant experience
Driven & persistent
Opportunity obsessed
Tolerant of ambiguity
Willing to take calculated risks
Culture is team centered
Complimentary balance
Resources
People (consultants, advisors, investors, friends)
Things(tangible & intellectual)

Financial
Prioritize the critical needs
Control vs. own