Entreprenuer Small Business Mgmt
Entreprenuer Small Business Mgmt
Able Planet Case 2
SBE-560-19660: Entrepreneurship/Small Business Mgmt.
Professor Wendy Finlay
October 5, 2013
Keller Graduate School of Management
Jacob Denise
Abstract
Kevin Semcken, Able Planet’s CEO discovered Able Planet in Wheat Ridge, Colorado, that produces headphones with an imbedded magnetic coil to enhance sound quality at a technology conference in Denver Colorado. Kevin Semcken, who lost hearing in one ear, was intrigued and tested the product by listening to his favorite music. Kevin Semcken had a bigger vision for Able Planet. Kevin Semcken produced earphones that can fit into a person’s ear canal which would stay during strenuous activity and block-out ambient noise. He lined up thirty (30) potential customers who were interested in his innovated earphones, and convinced them to sign disclosure agreements. Kevin Semcken, Able Planet’s CEO and chairman is seeking capital to finance existing operations for its current products, build a prototype for a new product and market both products to new and current customers (Scarborough, 2012). Furthermore, the bank had changed the terms; Able Planet line of credit 2.5 million would no longer be financed by the bank for upfront cost of raw materials and manufacturing.
Questions and Responses
Q1. Experts say that entrepreneurs who need between $100,000 and 3 million often face the greatest obstacles when raising capital for their businesses. Why? Entrepreneurs find it very difficult to obtain a working capital between $100,000 and $3million because that is a large sum of money to obtain as a loan from any financial institution. All manner of persons being entrepreneurs, or businessmen are all in high demand for loans from financial institutions and therefore the banks find it much prudent to deal with already established businessmen and not an entrepreneur who is just about to enter into the business fray.
For instance like Kevin Semcken who is a starter is of no different
Able Planet Case 2
SBE-560-19660: Entrepreneurship/Small Business Mgmt.
Professor Wendy Finlay
October 5, 2013
Keller Graduate School of Management
Jacob Denise
Abstract
Kevin Semcken, Able Planet’s CEO discovered Able Planet in Wheat Ridge, Colorado, that produces headphones with an imbedded magnetic coil to enhance sound quality at a technology conference in Denver Colorado. Kevin Semcken, who lost hearing in one ear, was intrigued and tested the product by listening to his favorite music. Kevin Semcken had a bigger vision for Able Planet. Kevin Semcken produced earphones that can fit into a person’s ear canal which would stay during strenuous activity and block-out ambient noise. He lined up thirty (30) potential customers who were interested in his innovated earphones, and convinced them to sign disclosure agreements. Kevin Semcken, Able Planet’s CEO and chairman is seeking capital to finance existing operations for its current products, build a prototype for a new product and market both products to new and current customers (Scarborough, 2012). Furthermore, the bank had changed the terms; Able Planet line of credit 2.5 million would no longer be financed by the bank for upfront cost of raw materials and manufacturing.
Questions and Responses
Q1. Experts say that entrepreneurs who need between $100,000 and 3 million often face the greatest obstacles when raising capital for their businesses. Why? Entrepreneurs find it very difficult to obtain a working capital between $100,000 and $3million because that is a large sum of money to obtain as a loan from any financial institution. All manner of persons being entrepreneurs, or businessmen are all in high demand for loans from financial institutions and therefore the banks find it much prudent to deal with already established businessmen and not an entrepreneur who is just about to enter into the business fray.
For instance like Kevin Semcken who is a starter is of no different
References: Scarborough, Norman M. (2012) Effective Business Management: An Entrepreneur Approach. Upper Saddle River, NJ: Pearson Education Inc. USHE Production. (n.d) ".Sources of Financing and Equity." Putting the Business Plan to Work. Retrieved on October 5, 2013 Retrieved from: http://www.com/design/8020/downloads/4a.pdf