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Read Chapter 9 (Building a New Venture Team). This chapter talks about how to find the right management for your new business. If you remember I had said in my opening welcome note that the reason why 90% of small businesses fail after opening is because of management issues. It is no wonder, that finding the right management team is so important. If you would like to take a peek on what lies ahead, you can start reading Chapter 11 on Marketing for Small Businesses.
DQ1:Based on Chapter 9
Evelyn Smith, the new president of Texas Wings Inc., had been recruited to the company in 2004 by a disgruntled investor who had lost faith in the business's management team and profitability prospects. "There wasn't any reliable accounting system in place," she recalls. "Even though some of the restaurants in the chain were doing more than a million dollars' worth of business a year, the company was losing money -- although nobody knew how much." One of the biggest problems was an advisory board that lacked sophisticated financial expertise and was unable to challenge the company's two founders. "We were on the verge of a major cash-flow disaster," says Smith. What would you recommend Smith do to help the situation?
DQ2: Based on Chapter 9
Two friends met at a culinary school. They want to start a restaurant - both have about $10,000 to invest in this venture. They are looking for a third partner who could also invest about the same amount. There are two potential candidates. The first is a friend who writes for a food magazine. She also has 5 years of marketing experience. The second is an excellent baker, whose pies are well known in the local community. Which of these two friends would you recommend to the prospective entrepreneurs as a potential partner - the writer or the baker? Explain your choice after reading Chapter 9 - Building A New Venture Team.
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