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Assessment of opportunity
The business Beautiful Legs has several needs that it has to archive. The business starts by searching for clientele, and the marketing drive has bowed fruits for the company (Bygrave 1996, p. 2). The company also has considerable prospects for venturing the niche market. The response from the consumers is increasing by a tremendous rate. In addition, the business is able to raise finances so as the business could stay on track. The business has archived to get publicity after they were interviewed by the vogue one of UK finest fashion magazine (Bygrave 1996, p.1).
The business targets to provide professional women in Europe with high quality tights (Bygrave 1996, p.5). This target consumer has a higher disposable income. The mail order business comes to convenience the professional ladies since they have extremely little time to shop.
The business is a mail order business whereby they sell high quality tights to professional women in Europe via post. They specialise in tights because of the trend in women to use tights has picked up so well (Bygrave 1996, p.5).
The product of the company is highly competitive in the market. Considering they are outdoing clothing retail stores such as Marks and Spencer. The product is competitive because it is of high quality (Bygrave 1996, p.7). The business is attracting suppliers such as Golden Lady who is the best manufacturers of high quality tights. The company also enjoys a competitive advantage by being the first movers to venture into mail order business.
The story makes a lot of sense. The stake holders are benefiting significantly. The stakeholders who are the two directors benefit by owning the company on a 50% basis each. With the high prospects of future sales, the directors will earn back their invested cash. This will be an opportunity for the two directors to perfect their area of specialisation (Bygrave 1996, p.10).
There is a genuine opportunity for this business.
Assessment of fit for team
This business stands a strong chance to compete with other businesses in the industry (Bygrave 1996, p.5). The business enjoys high numbers of potential clients who are retained immediately they acquire their products and service (Hindle 2004, p. 271). The competitive advantage favours them since they are able to generate customer loyalty.
The team behind this business plan has attained excellence in marketing and sales. They hold a diversity of skills in this business field. They both have analytical, commercial background. Dickon Addis, is the director of finance and operations (Bygrave 1996, p.9). He has experience in financial logistics. Elizabeth Preis is the director of marketing and purchases (Bygrave 1996, p.10). She has experience in marketing. Dickon has worked for several companies as a qualified accountant, and his partner is regarded as the best sales lady generating sales of up to £800,000 at ‘European Designer Collection.’ Both directors have graduated with MBA from INSEAD (Bygrave 1996, p.10).
The business seeks to raise finances to meet the high demand of establishing clientele database. They require a total of £110,000 as capital to start-up business. Apart from the finances, they need to increase the supplies of the product. The marketing and purchases’ director is in talks to partner with more suppliers and manufacturing companies (Bygrave 1996, p.11).
With the high prospects predicted by the survey and research the business in bound to make massive profits after some time. The financial statements clearly indicate the profit margins interests and earnings. The statements show the investments and assets of the company. They also describe the cost, and expenses projected in the next three years (Bygrave 1996, p.32).
This team is most suitable for this business. They have the best experience in the field and fit the qualifications since Dickons has graduated with a B.Sc. in Economics from London school of economics. Elizabeth also holds a BA in Economics from Wellesley College. Their marketing skills and financial logistics skills compliment each other.
With the limit of time, the business is unable to accomplish all its needs (Stevenson 1990, p. 24). Using Timmons only 10% of the potential opportunity is likely to meet the acceptable level of income for the management team. However, the business has come out with outstanding anchors that will assist to make the business successful (Hindle 2004, p. 273). The business has created a unique value for the customer by meeting the needs of their targeted customers. They boast of having a robust market share and a high profit potential as well as high gross margin (Bygrave 1996, p. 29). Besides the anchors, the business managers are surviving with no investor on board. The business shows sufficient potential to meet bits anchors (Hindle 2004, p. 273). The quick screen analysis indicates the business has the capacity to attract more investors (Magretta 2002, p.33).
The venture opportunity screening exercise will enable to determine the contribution of each member. It also provides an audit trail of opportunities the company wants to pursue (Stevenson 1990, p. 24). This screening will bring in a new concept and strategy that will trigger creativity in the company. Furthermore, it is a planning stage for trials and checking consistency and reliability.
The business has several strong points. It has qualified and experienced directors who have been accredited by most companies as being the best in their respective fields. The business is the only business that ventures into mail-order business in Europe (Bygrave 1996, p. 7). The company has created substantial rapport with its suppliers, which guarantee the business constant supply.
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The weak points that the business faces are; the lack of funds, serious competition from well-established clothe stores such as Marks and Spencer. Moreover, the company is struggling to build up a stable database of clientele.
The Timmons Quick Screen analysis carried out ranks this venture to be 65% capable. This is an average overall potential (London 2002, p. 31).
This venture is viable and worth investing in it. The risk to be taken in channelling finances into this venture will be settled since the business will eventually bear fruits (Bygrave 1996, p. 32). This company is the only company that ventures in mail-order business. This means that it enjoys a large market share hence it generates high profit margins.
If this was my business, I would have invited more partners so as to increase the capital share (London 2002, p. 28). I would also seek to merge with the established cloth industries to do the supplies for them in the product section I would have added more cloth products apart from the tights.
The team should focus in increasing the client base and incorporating more products apart from the tights. The team should look for more finances such as bank loans so as to expand the business.
Bygrave, W D 1996, ‘Case study For Entrepreneurship: Beautiful Legs by Post’, Babson college pp. 1-50.
Hindle, K 2004, ‘A practical strategy for discovering, evaluating, and exploiting entrepreneurial opportunities: Research-based action guidelines’, Journal of Small Business and Entrepreneurship, vol. 17 no. 4, pp. 267-276.
London, C 2002, ‘Strategic Planning for Business Excellence’, Quality Progress vol. 35, No. 8 pp. 26-33.
Magretta, J 2002, ‘Why business models matter’. Harvard Business Review 2002, pp. 33-36.
Stevenson, H H & Jarillo, J C 1990, ‘A paradigm of entrepreneurship: Entrepreneurial Management’, Strategic Management Journal, vol. 11, pp. 17-27.