Entrepreneurship Test 1 Study Guide CASE STUDY Rug Bug Summary Place Office location at Barn Bicycle on East 61st Street Tulsa Oklahoma Manufacturing and assembling plant at Inter Ocean Oil Company 2630 Mohawk Boulevard Tulsa Oklahoma No charge for use of facilities Only utilities and telephone costs Distribution systems 1 Call on hospitals and other organizations 2 Retail outlets such as medical supply stores bicycle shops and drugstores Product Manufacture and distribute vacuum molded plastic motorized wheelchair with several safety features Promotion Quality brochures will be developed and distributed at points of purchase Price 1 850 retail Problems Not confident in the business plan could be from lack of enough feedback Incomplete SWOT analysis focused on strengths and opportunities Few competitors might be because there is not a market for the product this is a large investment and kids grow too quickly Only had one form of the business plan should be edited and reformatted for different viewers Young did not know what to expect from investors additional research might be required Solutions SWOT Analysis Seek feedback Updating the business plan Change the design Adapt Recommendation Updating His Business Plan Update No information was available about Rug Bug Corporation today so it can be assumed that they are no longer in business What We Learned Importance of an evolving business plan You must find a niche Feedback can help There must be a need in the market for a product to succeed Nature Bros Summary The Nature Bros case study was based on a man named Dale Morris that started a Salt seasoning company Dale was a chef by hobby and developed the low salt seasoning for his mother who was high blood pressure Before Dale went into business he used a church fundraising to be his target market it was a big success To gain capital he made to associates and his mother each 15 owners of his company for 65 000 One of the marketing strategies was to use taste testing it was a big success The Nature Bros company was planning on expansion and two new products and needed more capital The 2004 sales objective was to gain 5 market share for their low salt seasoning mix 10 market share on their new product a salt substitute mix and 5 market share in their additional new product the MSG product The 2005 sales objective was to expand the operation to eight new markets that included Los Angeles Phoenix Portland Sacramento Salt Lake City San Francisco Seattle and Spokane This would encourage an additional 2 5 growth that year and would solidify their current markets by aggressive marketing attractive packaging high quality products coupons and co op advertising Nature Bros also had the idea of developing an additional new product It would be produced by a private label manufacturer and One of the keys to the company being profitable was the ability to raise around 4 000 000 in sales while keeping a low overhead of would be very profitable 37 000 for production payroll By 2006 the company must choose if they want to expand to a new location Problems Capital needed to support the current markets and expand markets and products Getting the product to the retail market Building a trust Separation from other seasoning brands Reaching a broader market online No Barrier of Entry Solutions Competitor Analysis Niche Knew who all of his competitors were how they are advertised and price and ingredients of their product 10 salt content Salt free and MSG based flavor enhancers Able to create new flavors that received a positive feedback easily Used the American Heart Association on ads to promote the healthy aspect of his product Advertisement Promotion Provided coupons and Tasting Sessions Family and Neighborhood friends were a big part of his sales Relied upon word of mouth Intend to provide products in 8 additional markets and add more flavors Planned to buy equipment to increase output to in turn increase revenue Using multiple test markets to test the new states his company was about to enter Mr Morris should have hired more employees to assist expansion Mr Morris should have tried to buy back some of the company that he sold to his mother and two associates Expansion Recommendation What Did We Learn Hard work persistence and Belief will ultimately drive you to success His initial start up happened almost 10 years before the product hit the stores which shows how persistent he was keeping the idea alive even while working another job Where are they now According to extensive research and trademarkia com they no longer exist There is no stated reason for leave or any further indication of their existence on the web Dual Pane Company Summary John Grayson designs a new revolutionary product removes windows from the window pane Installs dual pane windows in their place Eco Friendly Business heavily depends on current economy Safely Problems Solutions John doesn t understand how to start a franchise Should he franchise and for how much How does he reach the right owner Who is the target market and how do we reach them Marketing How to effectively reach your audience Take a business seminar on franchising Understand the rules and regulations Ordering Supplies Franchises can purchase supplies in large quantities Advertising Reach your target market effectively and inexpensive Recommendations What We ve learned Proper research leads to a greater understanding of the rules Service Type Franchise is the best in Johns situation Attract Attention Prove how successful your product is Understand the risk Elevate the business to new levels Greater knowledge leads to a more successful experience Know the rules and regulations of your business Effectively make decisions Understand marketing DELEGATE Feeling overwhelmed with so many tasks No time to spend with family and to relax and have FUN Micromanaging has been successful RED FLAGS Everybody wants to see you or have you involved in their meetings It s becoming physically and emotionally impossible to make all the business decisions Your bankers are asking financial questions you can t answer and you don t know where the money is going You feel like you re reacting and constantly fighting fires rather than setting proactive goals You wake up at night worrying about projects You see new growth possibilities but not sure which ones to pursue Work smarter not harder Separate Urgent matters from Important ones Establish business goals by the year then by each month