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Ginny Jones currently works as the VP-Product Strategy for a well-established enterprise software company. She and her friend, Tom Robinson, currently CFO at a competing firm (and someone who has taken two companies public), have spoken at length over the past 2 years about starting up a new company based on a complementary product concept that Ginny has been investigating on the side. Based on consultation with her lawyer, Ginny has a high degree of confidence that she is the sole owner of the intellectual property in question. With her current employment contract set to expire in 6 months, she wishes to decide now whether or not to begin the process of renegotiating her employment or to embark on a new venture.
Key facts:
a) Should Ginny leave her current job to pursue this venture? Why?
b) Should Tom leave his job to pursue this venture? Why?
c) Whose opportunity cost of pursuing this venture is highest? Explain.
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