Character Analysis: Othello
What are the risks and rewards of the different career paths outlined in the case for having your own business?
Risks:
• Individual debt from College/Graduate school would be added onto by the purchase of Icedelights franchise for Florida
• Time commitment that might take all three individuals away from completing their MBA’s at Harvard
• Additional opportunity costs of missing out on a almost-guaranteed job with a good company, salary, and title - post-graduation
• Icedelights is more expensive for a new and unproven franchise
• Giving up more than 25% percent of the company just to get investors interested
• Choosing the correct form for their organization (corporation, Sub-S, Limited Partnership, or LLC)
• Legal counsel from Ernest Brooke who did not have expertise in securities or corporate law
• Inconclusive data about Florida being a good state for this business
• Did not have the credibility, contacts or track record to get the prime real estate that was needed – relied completely on Icedelights to find and construct first location
• Franchisees cannot control product, brand name, or real estate – all the key ingredients to making a successful business
Rewards –
• Quick entrepreneurial opportunity
• Possible high returns
• Sustainable returns o With the café model, they are able to sell at all times of day with coffee and pastries in the morning and “gelati” with light snacks in the afternoon and evening o Icedelights impressive organization with ongoing standardization of production, training, accounting and control systems, store management and store design, and construction
What do you think of Paul, Mark, and Eric’s search strategy?
With only a few months of searching for a viable business to invest in, there wasn’t much of a search strategy. My first impression is that the three gentlemen are very eager to start their own business. If this excitement is sustainable, then it can do great good, but it can also cause you to jump
Risks:
• Individual debt from College/Graduate school would be added onto by the purchase of Icedelights franchise for Florida
• Time commitment that might take all three individuals away from completing their MBA’s at Harvard
• Additional opportunity costs of missing out on a almost-guaranteed job with a good company, salary, and title - post-graduation
• Icedelights is more expensive for a new and unproven franchise
• Giving up more than 25% percent of the company just to get investors interested
• Choosing the correct form for their organization (corporation, Sub-S, Limited Partnership, or LLC)
• Legal counsel from Ernest Brooke who did not have expertise in securities or corporate law
• Inconclusive data about Florida being a good state for this business
• Did not have the credibility, contacts or track record to get the prime real estate that was needed – relied completely on Icedelights to find and construct first location
• Franchisees cannot control product, brand name, or real estate – all the key ingredients to making a successful business
Rewards –
• Quick entrepreneurial opportunity
• Possible high returns
• Sustainable returns o With the café model, they are able to sell at all times of day with coffee and pastries in the morning and “gelati” with light snacks in the afternoon and evening o Icedelights impressive organization with ongoing standardization of production, training, accounting and control systems, store management and store design, and construction
What do you think of Paul, Mark, and Eric’s search strategy?
With only a few months of searching for a viable business to invest in, there wasn’t much of a search strategy. My first impression is that the three gentlemen are very eager to start their own business. If this excitement is sustainable, then it can do great good, but it can also cause you to jump