2) Is the ICEDELIGHTS opportunity a good one? ICEDELIGHTS sold an Italian gelati type ice cream which was extremely rich and homemade looking and tasting and they had built and devolped a very impressive organization: standardization of production, training, accounting, and control systems, store management and store design and construction were successful and, as a consequence, gave an important contribution in order to evaluate the reasons to approach the business. All these first “tangible” elements created an attractiveness to invest in the business.
Moreover, even if ICEDELIGHTS seemed expensive for a new nd unproven franchise, it appeared to offer excellent profit potential: – maket prospectus was good – the pro forma cash flow statement was sustainable – the pro forma Income Statement and Balance Sheet were comforting – Financial ratios such as ROI and IRR were encouraging in the long terms Finally, the operation appeared to be extremely profitable in light of the investment required. For these reasons, ICEDELIGHTS can be considered like a reasonable opportunity of entrepreunership. However, where opportunities occur, risks become inevitable. ) Did they pull togheter a good management team? On the one hand, determination, hard work, same goals and financial planning demonstrate there were preconditions in order to build a good management team. However, on the other hand, it is essential to highlight the presence of both difficult business relationships between groupmates and relevant number of complications that preclude from saying they pull togheter a exceptional management team. No complementary skills Different personality and risk-adversity No leaders No conception of roles and inflexibility: they came from the same field of studies with a strict financial curricula.
Each of them should have a different position in the team. Moreover, they should develop management skills and and a deep understanding of the market Low contractual forces: dependence on ICEDELIGHTS and investors Focus on writing a business – financial – plan instead of concentration on human resources available and able to support them as far as management and staff are concerned. Moreover, no effective market research on the spot No final decision as far as the form of organization is concerned (decision between corporation, Sub-s, Limited Partnerships, LLC). icedelight By Marco-Borgato