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Alison barnard
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- 2. CASE HISTORY - YoungEntrepreneur - Interests - Degrees and experience - Struggle in getting the idea in operation - Managing the challenges - Growth curve
- 3. START UP PROCESS •“ The business start up process can be broken up in five main stages ”, Deakins & Freel (2003). • At each stage, a number of factors can influence the process, having positive or negative effects. • These include the nature of the business environment, access to finance, local support networks or more ‘internal' influences like the psychology of the entrepreneur, personal characteristics such as tenacity and perseverance.
- 4. Stage 1 –Formulation of Business Ideas • The process of solidifying a business idea into an executable business plan. • Focus is on market research and gathering data to steer the new business startup into a differentiated market niche where resistance to market entry will be the lowest and sales can be achieved most easily. • Influenced by: - Human capital - Creativity • Ideas are enriched from discussion with others, peer evaluation, research and feedback. • Young entrepreneurs may have less ALISON BARNARD - young entrepreneur - utilized personal interests - research and opinion (friends) - Obtained relevant work experience
- 5. Stage 2 –Evaluation the Opportunity • Entrepreneurs recognize that opportunities are created by changes in the PEST factors. • Influenced by: - role models - risk attitude - profit potential - expansion opportunities - durable profitability ALISON BARNARD - $6.3bn women denim market - Average spending capacity of women in this sector - Targeting women's concern for the right fit - Premium jeans market - Undergoing research in MBA program
- 6. Stage 3 –Developing Business Concept • Research on the potential markets, competition, sources of finance, finding right partners and business environment. • Influenced by: - barriers to entry - customers availability - suppliers dependability - buyers strength ALISON BARNARD - Discussed the plan with a boutique owner - Searched for the right location (keeping territory protection, customer availability in mind) - Financing issues (bank, loan, equity) - Developed business model (finance numbers)
- 7. Stage 4 –Assessing Required Resources • Every venture requires minimum set of critical skills, resources, and relationships to succeed. • Influenced by: - existing resources possessed - missing resources to gain - critical resources - uniqueness of business ALISON BARNARD - Keen interest in retailing - Bryan’s assistance for location (festivals) - Dad’s link in banks - Interior designing expertise outsourced - Personal involvement - Shelf designing with Bryan’s father
- 8. Stage 5 –Acquiring necessary resources • Acquiring resources does not necessarily mean owning as well (rent, royalties, etc.) • Influenced by: - mechanisms for control (contractual agreements, supply arrangements) - motivations for providers - adequate returns obtained to meet resource providers needs ALISON BARNARD - Secured lease agreement - Discussions with banks for loans - Coming up with equity & debt issuance solutions (slot formation of $25,000) - Inventory system - Visited brands for the stocks using mothers credit cards
- 9. Stage 6 –Managing the Venture • Deploy the resources and begin the business. • Influenced by: - Critical internal (people, process, etc.) and external elements (suppliers, distributors) - employees hiring - evolvement of entrepreneurial role ALISON BARNARD - Assistance of mother and sister - Hired a friend - Involved personally with customers to provide satisfaction - Attracted wealthy customers from Maine and Rhode Island. - Press coverage with the message “You’re going to get help, and we’re going to work with you to find jeans that fit. We have jeans for everybody.”
- 10. Stage 7 –Harvesting and Distributing Value • Venture has a defined business model that expands to address larger business opportunities • Considering timings and market conditions harvesting methods are decided • Triggers of harvest (expansion, profit potential, economic cycle) • Prevention factors of harvest to be solved (management or operating issues) ALISON BARNARD - Alison wanted to spend more time in strategic and management challenges - Challenged by employee resignation - Challenged by customer knowing the brand In-jean-ius because of Alison
- 11. - Daughter ofserial entrepreneur and enterprising mother . - Customer Service - Welcoming environment - Passionate about her store - High actual Sales - Quality of Product - No professional Accountant - Not enough employees - Opening hours - No Security System - Bought an inventory system without having the knowledge how to use it - Best Boutique in the country - Brand Ambassador - Other categories ( men & children ) - Open new stores in different locations - Many competitors - Sustainability - Managing supply chain - Security issues InternalExternal ControllableNonControllable W O T SWOT Analysis
- 12. Limitations • Limited Capital •Not enough inventory – shelving space • Very hand on – overly occupied CEO • No adequate background knowledge on inventory system • Unsecured area • Limited target segment • Not well promoted • Theft issues • Not well known store • Lack of training manual • Rely on her relatives for business issues
- 13. challenges , Accomplishments& outcome • Challenges : - Lack of advertising - Lack of fully trained employees - Lack of financial/Accounting skills - Lack of security system - Still to learn the new inventory system - Every specific job needs specialist to max efficiency - Sets of standards
- 14. challenges , Accomplishments& outcome • Accomplishments - Found investors - Fit over brand - Found good location / cozy store - Build a base of satisfied customers - Very success sales in the first six months - Good investment strategy
- 15. challenges , Accomplishments& outcome • Outcome : Create Secured environment Avoiding unnecessary loss Long term investment
- 16. Future Tasks andGoals • Focus her effort on hiring suitable staff • Showing exhibits an extreme amount of control over her employees • She should look to cultivating more investors • Better locations for second store • More options in her store • Customer priority plan • Appropriate security system • Varity in prices • Bulk discounts
- 17. Equity investor Return •Primary purpose of investing is to gain profit • Investing in small business is risky • Return on investment (ROI) is the benefit to an investor resulting from an investment of some resource. • A high ROI means the investment gains compared to investment cost. • As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. • In purely economic terms, it is one way of considering profits in relation to capital invested.
- 18. Return on investment •How to get ROI: 1. Get your total investment 2. Get your total gains 3. Subtract total investment from total gain 4. What you get in step 3 divide it by total investment to get ROI • NPV & Payback
- 19. Lease agreement • Shortterm lease 1. Advantage: • Flexibility: easy to move • Less risk 2. Disadvantage: • Relocation expense • Lack of location security • Losing customer due to changing location
- 20. Business Location • Selectingyour location is key to business success and growth • Things to look: Easy to access & safe( Parking, road, crime history) Close to target customers Building infrastructure (support high tech, lighting, cooling, tel service)
- 21. Location & businessSuccess • Push & Pull factors • Demographic of your location • Competition • Location depend on what type of bus. • Reachable easy along online sells