Entrepreneurship Successfully Launching New Ventures Fifth Edition Bruce R. Barringer Oklahoma State University R. Duane Ireland Texas A & M University Boston Columbus Indianapolis New York San Francisco Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Amel, D., & Mach, T. (2017).
The impact of the small business lending fund on community bank lending to small businesses. Economic Notes, 46(2), 307-328. Cole, R. A. (2012). How did the financial crisis affect small business lending in the US?.
Research Study. Course Textbook:
Write a 5 page. Essay must have in text citations, Title, Thesis, Findings, Recommendations and Conclusion. References/Scholarly sources must not be older than 2015 . . . w/in text citations.
Read the case You Be the VC 8.1 Company: Spindrift Soda on page 287.
Assume that you have sufficient money to invest in this company or that you may make a recommendation to them about partnering with another firm. Research the soft drink beverage industry. Find out about other small firms that produce soft drinks.
Research the pro forma financial statements of at least two other soft drink companies that are publicly traded such as Reeds Inc. (Ticker symbol REED), or National Beverage Corp. (Ticker symbol FIZZ), or Cott Corporation (Ticker Symbol COT). (TIP: When researching publicly traded companies, you may use a website like Yahoo Finance to compare financial statements. However, you may also visit the Investor Relations page of the company's home page [not their advertising site] and look for their annual reports.)
The articles below may assist you in your economic analysis (you may find these on scholar.google.com but you may also search for similar articles in the LIRN): Amel, D., & Mach, T. (2017). The impact of the small business lending fund on community bank lending to small businesses. Economic Notes, 46(2), 307-328. Cole, R. A. (2012).
How did the financial crisis affect small business lending in the US?.
Research Study.
1. Based on the material covered in Chapter 8, what questions would you ask the firm's founders before making your funding decision? What answers would satisfy you?
2. If you had to make your decision on just the information provided in the pitch and on the company's website, would you fund this company? Why or why not?
3. Based on your analysis of the pro forma financial statements of the competitors, what would you need to see in the financials of Spindrift Soda in order to consider an investment in this company?
4. Assume that you are the president of Spindrift Soda and you want to get a loan from a bank in order to expand your business and purchase a smaller competitor, what questions should you be prepared to answer.
5. Assume that you are the president of Spindrift Soda and you want to take your company public but you still want to retain some control, and you also want your employees to be protected. What considerations do you need to make?
6. If you worked for an entrepreneurial venture such as Spindrift Soda, what would you want to know about a large company before recommending that your firm form a partnership with that large, established company?
7. Finally, what role does the general economic environment play in your ability to obtain debt or equity financing?