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SmallBusinessDevelopmentproject2014
SmallBusinessDevelopmentproject2014
SUMMARY
Mission, Vision, Values
Market Research
Legal
Financing
Initial Investment
Human Resources
Marketing Strategy
Income Statement
Future Planning
Risks
Exit Strategy
MISSIONSTATEMENT
MISSION STATEMENT
We are a company that is delivering entertaining and amusing activities
to anyone who is either visiting or living in Nice, France.
We are located in Nice as it is one of the most touristic cities of France,
and France is also one of the most visited places of Europe.
We have noticed that Nice suffers a lack of activities and/or is very
difficult for a tourist to find them; so, we will deliver a bunch of different
kinds of activities and price ranges that will be easily accessed by
visitors.
Mission,Vision&Values
•Mission : We are a company that organizes fun activities in Nice, mainly for
tourists and international students. (locals as well).
•Vision: We want to be successful in this local market in order to expand to
more cities around France and all over Europe. In the long term we would like
to make a franchise out of it to expand world wide ,
•Values:
o Price: Low/Medium/High (depending on activity)
o Services: - Giving diverse and entertaining activities
- Providing immaculate customer service
o Design: Our web design must be accessible and minimalistic.
o Ethics: - Trustful
- Punctual
- Amusing
- Enjoyable
MARKETRESEARCH
MARKET RESEARCH
MARKETRESEARCH
MARKET RESEARCH
 Survey in Ipag
 Online survey with people
from different countries
 Our results brought us our
first activities
 Future activities will be
selected by new surveys
LEGALENTITY
LEGAL ENTITY
o PUBLIC
o Société par Commendite en Action
o Société Anonyme
o Formation
o Taxation
o Liability
o PRIVATE
o Sociétéen Commandite Simple
o Formation
o Taxation
o Liability
o MIXED
o Société Nes Responsabilité
o Société Par Action Simplifieé
o Formation
o Taxation
o Liability
LEGALENTITY
LEGAL ENTITY
• LITIGATION ISSUES:
• Activity Risk
• Physical Issues
• Injuries
• Insurance
• Legal Contract
• Sanitary Issues
• Cooking Class
• Insurance
• Legal Contract
• Certification
• Security Issues
• Credit Card Information
• PayPal Account
FINANCING
• Start Up Capital
– Technological Expenses
– Activities Expenses
– Legal Expenses
FINANCING
INITIALINVESTMENT
INITIAL INVESTMENT
5355 €uros
(*) Incluiding Office costs and initial marketing
FINANCING
FINANCING
• Acquiring Start-Up Funds
– Loans
• Advantages
• Disadvantages
• Decision
– Venture Capitalists
• Advanatages
• Disadvantages
• Decision
– Self-Sufficiency
• Advantages
• Disadvantages
• Decision
FINANCING
FINANCING
• Cash Flow Management
• Profit Margin
INCOMESTATEMENT
INCOME STATEMENT
(*) Explained in detail on the dossier
HUMAN RESOURCES
Horizontal
division of tasks
Equality
between the
different parts
Frequent
reports
Total
transparency
of
informations
Each one is in
charge of his
activities
Basic wage: 1.400 euros/month/employee
HUMANRESOURCES
MARKETINGSTRATEGY
DEFINE THE MARKET
Nice is:
• Remarcably touristic
• 5th largest city of France
Nice has:
• An Incredible location
• Spectacular weather
• Lack of activities / entertainment
Customer profile:
• International Students
• People on Holidays
• Locals from Nice
MARKETINGSTRATEGY
WHAT DRIVES THE PURCHASING PROCESS
o Who buys?
- International students, tourists, locals
o When they buy?
- Prior to arrival
- Directly in Nice
o How they buy?
- Internet , Telephone, In Person
o Where they buy?
- Internet or Office
o Why they buy?
- Lack of speaking local language / communicaton problems
- Ignorance of activities arround Nice
- Locals searching new emotions / Lack of friends with
similar tastes
- Specialized in Spanish, English, Chinese speaking customers
MARKETINGSTRATEGY
Culture
• Minimun culture level
• Minimun fitness shape
Social
C. Status
Age
• All ages
Lifestyle
• Active and enthusiastic
• Willing to learn new things
• (We can only influence: motivation, perception, learning,
beliefs and attitudes)
• Medium to high class
• All kind (married, single, couples, families…)
MARKETINGSTRATEGY
COMPETITORS
 No DIRECT competitors
 Posible hazard:
- Our partners
- Night partys organizers
 Main Risk: Travel agencies / Easy to copy
RESOURCES AUDIT
• Financial: 10,000€ (2000€ per partner)
• Human: 5 Workers + JV with partners
• Intangible: The know-how and personal experience
(poker. parfum, wine, skate, SUP, surf, snow, longboard)
• Physical:
- 5 Computers & 1 printer
- 2 ipads & 2 smartphones
- 5 longboards, 2 skates, 1 S.U.P, 3 wetsuits
- 2 Snowboards equipments
- Poker table
- Cooking tools
- Parfum & wine utensils
- 7 seat van
Strengths
•First Movers
•Covers an actual need
•Young people. Creative, initiative
•We make many activities
•Minimun capital to start
•Strong marketing campaign
•User friendly web design
•Working experience of members
Opportunities
•People search for new activities
•Big touristic market
•Changing promotions of international
students
•First movers
Threats
•New entrants
•Competitors
•New French regulations
Weaknesses
•Lack of experience in Business creation
•Ignorance of french market
•Insufficient capital to face adversities
S W
TO
Internal Analysis
SWOT ANALYSIS
MARKETINGSTRATEGY
CORE COMPETENCIES
Know-How
• Own
activities
• Skilled HR
First Movers
• Exclusiveness
• Better
comissions
Experience
• Customer
relationships
• Multilingual
COMPETITIVE
ADVANTAGE
MARKETINGSTRATEGY
HOW TO SELL OUR PRODUCT
Strong Internet Positioning
 Easy and cheap to positionate
 1st page when you type What to do in Nice, Activities in
Nice or Things to do in Nice…
 Hire a SEO to maintain positioning and reach more
customers
 150 Euros/month
 Focusing all kind of customers
Descriptive booklets in Tourism offices
 Nice, Menton, Cannes, Monaco, Antibes …
 Complete description of our activities
 We design them and distribute them
 20 cents per flyer
 Focusing tourists
MARKETINGSTRATEGY
HOW TO SELL OUR PRODUCT
Flyers on touristic locations
• Promenade d’ Anglais
• Airport / Train station
• Conventions in the Acropolis
• International events (Montecarlo Masters, Formula
One, European Poker Tour …)
• 10 Cents per flyer
• Focusing tourists
(*) Distribution by ourselves with striking costumes
• Description of our activities, all kind of publics
• 20 Cents per flyer
• Focusing on tourists
Flyers on hotels and hostels
MARKETINGSTRATEGY
• Shocking designs
• We design them and distribute them
• Partnerships with bars (Waynes bar)
• 1,5 Euros per poster
• Focusing International students
Posters on Universities and Pubs
• Community manager in charge of SN
• Keep informed of activities in Nice (Cinema, weather,
theatre, activities…)
• Focusing on locals from Nice
Social Networks
HOW TO SELL OUR PRODUCT
SALESSTRATEGY
SALES STRATEGY
LONGBOARDING Diego
o We have the material (8 longboards) & set of cones
o We need 7x protection packs (25€) = - 210 €
Material Renting:
 Longboard: 5 €/hour – 25€ day
 Protections: 5 € /day
Activities:
 Initiation Camp: 8 hours + material = 90€
 Tours: 4 hours tour + snack & drink = 30€
 Lesson: 10 € / hour / person
SALESSTRATEGY
SALES STRATEGY
SOCCER GAMES & LESSONS Thomas
o Soccer field rental = FREE (rent in advance)
o Soccer ball = - 20 € Soccer Team T-shirts = - 50€
o Variable cost = - 1,5 € transport to field / person
Activities:
 1h30 match : 10€ (including bottle of water)
 Minimun 10 people (5vs5)
 Personal coach = 20€ / hour
TENNIS GAMES & LESSONS Matthieu
o Tennis court rental = - 3 € / hour (rent in advance)
o We already have 8 tennis raquets
o Balls: -2,5€ Can (Valid for 30 hours aprox)
Activities:
 Individual: 20€ / hour
 2 people : 15€ / hour
 3 or + : 10€ / hour
SALESSTRATEGY
SALES STRATEGY
STAND UP PADDLE SURF Diego
Material Rental cost : SUP + paddle + leash = -7€ / h. or -20€ / day
Wetsuit = - 5€ / day
Activities:
 Initiation Camp: 8 hours + material = 90€
 Tours: 4 hours tour + snack & drink = 60€
 Lesson: 10 € / hour / person
POKER / BLACKJACK Diego
o Costs - Localization : In our poker room (our big house / office0)
- Poker table and decks (already in stock)
Activities:
 Initiation : 4 hours + strategy book = 60€
 Advanced: 20€ / hour
 Tournaments: Depending on suscriptors
SALESSTRATEGY
SALES STRATEGY
FRENCH CUISINE - Mehmet & Francis
o Location : In our kitchen (with 4 separated stoves)
o Cost of the stoves : 95€ x 4 stoves = -380€
o Kitchen Utensils : -180 €
What it is?
Price:
 Ingredients cost: -8€ / meal
 Price: 60€ / person
A maximun of 4 people will learn how to cook a
complete French menu. We will go to the
market to buy fresh ingredients, cook them at
house, eat your own creation and receive a
receipt booklet to make it in your own country.
3 hours of activity. (Lunch or dinner)
SALESSTRATEGY
OUTSOURCED ACTIVITIES
 Partnership with Nice Diving
 www.nicediving.com
 Price per person : 75€ / 2 hours – +25€ Commission
 Partnership with Airkite - (Cannes)
 www.airxkite.com
 Price per person :
- 90€ / 2 hours in land
- 390 € / Full initiation course with waterstart – 9 h
- 450€ / Full weekend initiaion – 15 h
 Commission: +30% per activity
 Partnership with Paintbal06
 www.paintball06.fr
 Price per person : - 45€ / 4 hours with 750 balls
- Commission: +15€ per people
- We offer a pack with meal for +55€ (-3€ cost)
MARKETINGSTRATEGY
OTHER POSIBLE ACTIVITIES
1. Jet skiing
2. Jet motos
3. Sky diving
4. Dance classes
5. Capoeira
6. Sailing
7. Wakeboarding
8. Yoga/Pilates
9. Fitness Training
10. Football trips
11. Para Sailing
12. Climbing
13. Wine degustation
14. Ice skating
15. Laser Gaming
16. Karting
17. Biking / Mountain biking
18. Special tours
19. Night events management
20. Handmade sushi lessons
21. Etc…
FUTURE PLANNING
• Open an office
• Have enough equipment to rent our own
• Only hire the instructors
• Reduce outsourcing of the activities
• Get more independance, organize more and more events by
ourselves
• Expansion to other places (cities in France or abroad)
• Franchise
FUTUREPLANNING
MARKETINGSTRATEGY
RISKS
- Chance of Failure
- Physical Destruction
- Loss of Income
- Losing Money
- Financial Risk
- Legal Risk
- Staff Risk
- Personal Sacrifice
MARKETINGSTRATEGY
MITIGATION
- Assume/Accept: Acknowledge the existence of a particular risk,
and make a deliberate decision to accept it without engaging in
special efforts to control it. Approval of project or program
leaders is required.
- Avoid: Adjust program requirements or constraints to eliminate
or reduce the risk. This adjustment could be accommodated by
a change in funding, schedule, or technical requirements.
- Control: Implement actions to minimize the impact or
likelihood of the risk.
- Transfer: Reassign organizational accountability, responsibility,
and authority to another stakeholder willing to accept the risk.
- Watch/Monitor: Monitor the environment for changes that
affect the nature and/or the impact of the risk.
MARKETINGSTRATEGY
EXIT STRATEGY
- The Modified Nike Maneuver:
- Pros:
- Who doesn't like seven figures of take-home pay?
- Private jets are fun.
- There's no need to think hard about getting out: Just pull out the
money when you need it.
- Cons:
- The way you pull the money out may have negative tax
implications. For example, a high salary is taxed as ordinary
income, while an acquisition could bring money in the form of
capital gains.
- Without careful long-term planning, you may end up pulling out
money now you'll need later.
MARKETINGSTRATEGY
EXIT STRATEGY
- Liquidation:
- Pros:
- It's easy and it's natural. Everything comes to an end.
- There are no negotiations involved.
- There's no worrying about transfer of control.
- Cons:
- At most, you get the market value of your company's assets.
- Things like client lists, your reputation, and your business
relationships may be very valuable, and liquidation just destroys
them without an opportunity to recover their value.
- Other shareholders will not be happy about how much you're
leaving on the table.
MARKETINGSTRATEGY
EXIT STRATEGY
- Selling to a Friendly Buyer
- Pros:
- There's less due diligence required because you know them.
- Your buyer will most likely preserve what's important to you about
the business.
- They have more of a commitment to making it work.
- Might be able to keep it in the family.
- Cons:
- You might leave too much money on the table.
- They might be more upset about unpaid taxes.
- Emotions can get way ahead of business needs.
MARKETINGSTRATEGY
EXIT STRATEGY
- Acquisition
- Pros:
- They may pay far more than you're worth to anyone else, if you
offer them strategic value.
- You can gain a higher offer if you get more than one bidder trying
to outdo each other.
- Cons:
- Acquisitions are messy and often difficult when cultures and
systems clash in the merged company.
- Acquisitions can come with no complete agreements and other
strings that can make you rich, but make your life unpleasant for a
time.
MARKETINGSTRATEGY
EXIT STRATEGY
- IPO
- Pros:
- You’ll, potentially, gain some publicity.
- You’ll make money through your stock.
- Workers might work harder to ensure the stock price doesn’t get hurt.
- Cons:
- Only a very few number of small businesses actually have this option
available to them since there are very few IPOs completed annually in the
United States.
- You need financial and accounting rigor from day one far above what many
entrepreneurs generally put in place.
- Some forms of corporations have to reorganize in order to release an IPO.
- Investment bankers take 6 percent off the top, and the transaction costs on
an IPO can run in the millions.
THANKSFORYOURATTENTION!!!

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What to do in nice

  • 2. SmallBusinessDevelopmentproject2014 SUMMARY Mission, Vision, Values Market Research Legal Financing Initial Investment Human Resources Marketing Strategy Income Statement Future Planning Risks Exit Strategy
  • 3. MISSIONSTATEMENT MISSION STATEMENT We are a company that is delivering entertaining and amusing activities to anyone who is either visiting or living in Nice, France. We are located in Nice as it is one of the most touristic cities of France, and France is also one of the most visited places of Europe. We have noticed that Nice suffers a lack of activities and/or is very difficult for a tourist to find them; so, we will deliver a bunch of different kinds of activities and price ranges that will be easily accessed by visitors.
  • 4. Mission,Vision&Values •Mission : We are a company that organizes fun activities in Nice, mainly for tourists and international students. (locals as well). •Vision: We want to be successful in this local market in order to expand to more cities around France and all over Europe. In the long term we would like to make a franchise out of it to expand world wide , •Values: o Price: Low/Medium/High (depending on activity) o Services: - Giving diverse and entertaining activities - Providing immaculate customer service o Design: Our web design must be accessible and minimalistic. o Ethics: - Trustful - Punctual - Amusing - Enjoyable
  • 6. MARKETRESEARCH MARKET RESEARCH  Survey in Ipag  Online survey with people from different countries  Our results brought us our first activities  Future activities will be selected by new surveys
  • 7. LEGALENTITY LEGAL ENTITY o PUBLIC o Société par Commendite en Action o Société Anonyme o Formation o Taxation o Liability o PRIVATE o Sociétéen Commandite Simple o Formation o Taxation o Liability o MIXED o Société Nes Responsabilité o Société Par Action Simplifieé o Formation o Taxation o Liability
  • 8. LEGALENTITY LEGAL ENTITY • LITIGATION ISSUES: • Activity Risk • Physical Issues • Injuries • Insurance • Legal Contract • Sanitary Issues • Cooking Class • Insurance • Legal Contract • Certification • Security Issues • Credit Card Information • PayPal Account
  • 9. FINANCING • Start Up Capital – Technological Expenses – Activities Expenses – Legal Expenses FINANCING
  • 10. INITIALINVESTMENT INITIAL INVESTMENT 5355 €uros (*) Incluiding Office costs and initial marketing
  • 11. FINANCING FINANCING • Acquiring Start-Up Funds – Loans • Advantages • Disadvantages • Decision – Venture Capitalists • Advanatages • Disadvantages • Decision – Self-Sufficiency • Advantages • Disadvantages • Decision
  • 12. FINANCING FINANCING • Cash Flow Management • Profit Margin
  • 14. HUMAN RESOURCES Horizontal division of tasks Equality between the different parts Frequent reports Total transparency of informations Each one is in charge of his activities Basic wage: 1.400 euros/month/employee HUMANRESOURCES
  • 15. MARKETINGSTRATEGY DEFINE THE MARKET Nice is: • Remarcably touristic • 5th largest city of France Nice has: • An Incredible location • Spectacular weather • Lack of activities / entertainment Customer profile: • International Students • People on Holidays • Locals from Nice
  • 16. MARKETINGSTRATEGY WHAT DRIVES THE PURCHASING PROCESS o Who buys? - International students, tourists, locals o When they buy? - Prior to arrival - Directly in Nice o How they buy? - Internet , Telephone, In Person o Where they buy? - Internet or Office o Why they buy? - Lack of speaking local language / communicaton problems - Ignorance of activities arround Nice - Locals searching new emotions / Lack of friends with similar tastes - Specialized in Spanish, English, Chinese speaking customers
  • 17. MARKETINGSTRATEGY Culture • Minimun culture level • Minimun fitness shape Social C. Status Age • All ages Lifestyle • Active and enthusiastic • Willing to learn new things • (We can only influence: motivation, perception, learning, beliefs and attitudes) • Medium to high class • All kind (married, single, couples, families…)
  • 18. MARKETINGSTRATEGY COMPETITORS  No DIRECT competitors  Posible hazard: - Our partners - Night partys organizers  Main Risk: Travel agencies / Easy to copy RESOURCES AUDIT • Financial: 10,000€ (2000€ per partner) • Human: 5 Workers + JV with partners • Intangible: The know-how and personal experience (poker. parfum, wine, skate, SUP, surf, snow, longboard) • Physical: - 5 Computers & 1 printer - 2 ipads & 2 smartphones - 5 longboards, 2 skates, 1 S.U.P, 3 wetsuits - 2 Snowboards equipments - Poker table - Cooking tools - Parfum & wine utensils - 7 seat van
  • 19. Strengths •First Movers •Covers an actual need •Young people. Creative, initiative •We make many activities •Minimun capital to start •Strong marketing campaign •User friendly web design •Working experience of members Opportunities •People search for new activities •Big touristic market •Changing promotions of international students •First movers Threats •New entrants •Competitors •New French regulations Weaknesses •Lack of experience in Business creation •Ignorance of french market •Insufficient capital to face adversities S W TO Internal Analysis SWOT ANALYSIS
  • 20. MARKETINGSTRATEGY CORE COMPETENCIES Know-How • Own activities • Skilled HR First Movers • Exclusiveness • Better comissions Experience • Customer relationships • Multilingual COMPETITIVE ADVANTAGE
  • 21. MARKETINGSTRATEGY HOW TO SELL OUR PRODUCT Strong Internet Positioning  Easy and cheap to positionate  1st page when you type What to do in Nice, Activities in Nice or Things to do in Nice…  Hire a SEO to maintain positioning and reach more customers  150 Euros/month  Focusing all kind of customers Descriptive booklets in Tourism offices  Nice, Menton, Cannes, Monaco, Antibes …  Complete description of our activities  We design them and distribute them  20 cents per flyer  Focusing tourists
  • 22. MARKETINGSTRATEGY HOW TO SELL OUR PRODUCT Flyers on touristic locations • Promenade d’ Anglais • Airport / Train station • Conventions in the Acropolis • International events (Montecarlo Masters, Formula One, European Poker Tour …) • 10 Cents per flyer • Focusing tourists (*) Distribution by ourselves with striking costumes • Description of our activities, all kind of publics • 20 Cents per flyer • Focusing on tourists Flyers on hotels and hostels
  • 23. MARKETINGSTRATEGY • Shocking designs • We design them and distribute them • Partnerships with bars (Waynes bar) • 1,5 Euros per poster • Focusing International students Posters on Universities and Pubs • Community manager in charge of SN • Keep informed of activities in Nice (Cinema, weather, theatre, activities…) • Focusing on locals from Nice Social Networks HOW TO SELL OUR PRODUCT
  • 24. SALESSTRATEGY SALES STRATEGY LONGBOARDING Diego o We have the material (8 longboards) & set of cones o We need 7x protection packs (25€) = - 210 € Material Renting:  Longboard: 5 €/hour – 25€ day  Protections: 5 € /day Activities:  Initiation Camp: 8 hours + material = 90€  Tours: 4 hours tour + snack & drink = 30€  Lesson: 10 € / hour / person
  • 25. SALESSTRATEGY SALES STRATEGY SOCCER GAMES & LESSONS Thomas o Soccer field rental = FREE (rent in advance) o Soccer ball = - 20 € Soccer Team T-shirts = - 50€ o Variable cost = - 1,5 € transport to field / person Activities:  1h30 match : 10€ (including bottle of water)  Minimun 10 people (5vs5)  Personal coach = 20€ / hour TENNIS GAMES & LESSONS Matthieu o Tennis court rental = - 3 € / hour (rent in advance) o We already have 8 tennis raquets o Balls: -2,5€ Can (Valid for 30 hours aprox) Activities:  Individual: 20€ / hour  2 people : 15€ / hour  3 or + : 10€ / hour
  • 26. SALESSTRATEGY SALES STRATEGY STAND UP PADDLE SURF Diego Material Rental cost : SUP + paddle + leash = -7€ / h. or -20€ / day Wetsuit = - 5€ / day Activities:  Initiation Camp: 8 hours + material = 90€  Tours: 4 hours tour + snack & drink = 60€  Lesson: 10 € / hour / person POKER / BLACKJACK Diego o Costs - Localization : In our poker room (our big house / office0) - Poker table and decks (already in stock) Activities:  Initiation : 4 hours + strategy book = 60€  Advanced: 20€ / hour  Tournaments: Depending on suscriptors
  • 27. SALESSTRATEGY SALES STRATEGY FRENCH CUISINE - Mehmet & Francis o Location : In our kitchen (with 4 separated stoves) o Cost of the stoves : 95€ x 4 stoves = -380€ o Kitchen Utensils : -180 € What it is? Price:  Ingredients cost: -8€ / meal  Price: 60€ / person A maximun of 4 people will learn how to cook a complete French menu. We will go to the market to buy fresh ingredients, cook them at house, eat your own creation and receive a receipt booklet to make it in your own country. 3 hours of activity. (Lunch or dinner)
  • 28. SALESSTRATEGY OUTSOURCED ACTIVITIES  Partnership with Nice Diving  www.nicediving.com  Price per person : 75€ / 2 hours – +25€ Commission  Partnership with Airkite - (Cannes)  www.airxkite.com  Price per person : - 90€ / 2 hours in land - 390 € / Full initiation course with waterstart – 9 h - 450€ / Full weekend initiaion – 15 h  Commission: +30% per activity  Partnership with Paintbal06  www.paintball06.fr  Price per person : - 45€ / 4 hours with 750 balls - Commission: +15€ per people - We offer a pack with meal for +55€ (-3€ cost)
  • 29. MARKETINGSTRATEGY OTHER POSIBLE ACTIVITIES 1. Jet skiing 2. Jet motos 3. Sky diving 4. Dance classes 5. Capoeira 6. Sailing 7. Wakeboarding 8. Yoga/Pilates 9. Fitness Training 10. Football trips 11. Para Sailing 12. Climbing 13. Wine degustation 14. Ice skating 15. Laser Gaming 16. Karting 17. Biking / Mountain biking 18. Special tours 19. Night events management 20. Handmade sushi lessons 21. Etc…
  • 30. FUTURE PLANNING • Open an office • Have enough equipment to rent our own • Only hire the instructors • Reduce outsourcing of the activities • Get more independance, organize more and more events by ourselves • Expansion to other places (cities in France or abroad) • Franchise FUTUREPLANNING
  • 31. MARKETINGSTRATEGY RISKS - Chance of Failure - Physical Destruction - Loss of Income - Losing Money - Financial Risk - Legal Risk - Staff Risk - Personal Sacrifice
  • 32. MARKETINGSTRATEGY MITIGATION - Assume/Accept: Acknowledge the existence of a particular risk, and make a deliberate decision to accept it without engaging in special efforts to control it. Approval of project or program leaders is required. - Avoid: Adjust program requirements or constraints to eliminate or reduce the risk. This adjustment could be accommodated by a change in funding, schedule, or technical requirements. - Control: Implement actions to minimize the impact or likelihood of the risk. - Transfer: Reassign organizational accountability, responsibility, and authority to another stakeholder willing to accept the risk. - Watch/Monitor: Monitor the environment for changes that affect the nature and/or the impact of the risk.
  • 33. MARKETINGSTRATEGY EXIT STRATEGY - The Modified Nike Maneuver: - Pros: - Who doesn't like seven figures of take-home pay? - Private jets are fun. - There's no need to think hard about getting out: Just pull out the money when you need it. - Cons: - The way you pull the money out may have negative tax implications. For example, a high salary is taxed as ordinary income, while an acquisition could bring money in the form of capital gains. - Without careful long-term planning, you may end up pulling out money now you'll need later.
  • 34. MARKETINGSTRATEGY EXIT STRATEGY - Liquidation: - Pros: - It's easy and it's natural. Everything comes to an end. - There are no negotiations involved. - There's no worrying about transfer of control. - Cons: - At most, you get the market value of your company's assets. - Things like client lists, your reputation, and your business relationships may be very valuable, and liquidation just destroys them without an opportunity to recover their value. - Other shareholders will not be happy about how much you're leaving on the table.
  • 35. MARKETINGSTRATEGY EXIT STRATEGY - Selling to a Friendly Buyer - Pros: - There's less due diligence required because you know them. - Your buyer will most likely preserve what's important to you about the business. - They have more of a commitment to making it work. - Might be able to keep it in the family. - Cons: - You might leave too much money on the table. - They might be more upset about unpaid taxes. - Emotions can get way ahead of business needs.
  • 36. MARKETINGSTRATEGY EXIT STRATEGY - Acquisition - Pros: - They may pay far more than you're worth to anyone else, if you offer them strategic value. - You can gain a higher offer if you get more than one bidder trying to outdo each other. - Cons: - Acquisitions are messy and often difficult when cultures and systems clash in the merged company. - Acquisitions can come with no complete agreements and other strings that can make you rich, but make your life unpleasant for a time.
  • 37. MARKETINGSTRATEGY EXIT STRATEGY - IPO - Pros: - You’ll, potentially, gain some publicity. - You’ll make money through your stock. - Workers might work harder to ensure the stock price doesn’t get hurt. - Cons: - Only a very few number of small businesses actually have this option available to them since there are very few IPOs completed annually in the United States. - You need financial and accounting rigor from day one far above what many entrepreneurs generally put in place. - Some forms of corporations have to reorganize in order to release an IPO. - Investment bankers take 6 percent off the top, and the transaction costs on an IPO can run in the millions.