Kalin searched for an opportunity, and on finding it, shaped the opportunity into a high-potential venture by drawing up a team and gathering the required resources to start a business that capitalized on the opportunity. In the process of starting the business, he risked his career, personal cash flow and net worth. The Timmons model bases itself on the premise that Kalin will earn rewards in commensuration with the risk and effort involved in starting or financing the business (e.g., Bygrave & Zacharakis, p. 37).
1.Apply the Timmons entrepreneurship framework (entrepreneur-opportunity-resources to analyze this case. Analyze and explain Kalin’s traits and how he gathered resources for his venture. According to the Timmons Model of Entrepreneurship the three critical factors of a successful venture are opportunities, teams, and resources. Kalin was a successful entrepreneur because he was able to balance these critical factors. To better express this, the follow chart as been inserted:
Once he identified this opportunity, he set to work putting together the necessary resources to make his business a reality. He had to find a good supplier to order large quantities of quality cheese and have it shipped to him. This also required a lot of research on the U.S. Customs Department import regulations, restrictions and fees associated with food imports. When he needed to raise the $40,000 to order the 28,000 pounds of cheese, he called all his contacts who expressed interest and encouragement in his business venture. He even called a family friend in Bulgaria to ask her to join into the business as well and to make sure his product was purchased and shipped to the U.S (e.g., Bygrave & Zacharakis, pp 39-40).
2.What business models are open to a food-product importer? What steps should Kalin take to position his company for the next phase of early-stage-growth? In order to take his business to the next phase of early stage-growth, Kalin should look for ways to develop. He must do this to avoid competitors from growing and taking the market share from him, which could weaken his position. Timing is critical to the success of any growth strategy. Kalin needs to access whether his business can cope with expansion, if he has the resources and systems in place to carry on the existing business while expanding elsewhere and if new initiatives are likely to disrupt existing performance. Working with the customer current customer following he has, he must find ways to please his current clientele while building resources to attract new ones.
* Create a Web site to advertise the company or sell products online. It was wise for Kalin to setup a website for expansion. This gave him the opportunity to add other gourmet products. Web-based boutique will allow him to reach millions of shoppers around the world without paying large amounts of overhead. * Expanding the product line to offer complementary products or services. Once he hits on a product or service that customers really like, Kalin should not miss the opportunity to bring out related items to diversify his product line. * Finding ways to increase sales to existing customers. This is cheaper than finding new customers. Even if you he expands his product line, Kalin can boost revenues by selling more existing product or service to the clients. * Hire, a freelancer, an intern, an independent contractor, even his girlfriend. This will allow him to cultivate a large network of talented people that Kalin probably could not afford to hire full time.
3.What would be the concerns of a potential investor? There will always be questions and concerns from potential investor. How Kalin answers these question could mean the difference between failing, surviving, or thriving. Kalin should be prepared to answer these example questions clearly and concisely.