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An eight-year-old company is in the midst of growth. This case follows the company from its inception through its growth stages. Teaching objectives are to understand the problems of growth, partnership, and operations-driven companies.

Following the acquisition of a new business, the manager is approached for the "continuation" of a regular payment for services to "insure labor peace" and maintain a parking lot. The case allows discussion of ethical, legal, and practical issues involved.

Presents interviews and conversations with a woman who recently started a publishing house. Primarily concerns her immediate future regarding harvesting options: IPO, sell out, step up to chairman, venture capital, etc. Also deals with the excitement and thrill of having your own business dream; i.e., the thrill of doing.

The matching principle says, "Don't finance long-term needs with short-term capital." Small businesses, however, rarely use strict matching. By not adhering to the matching principle, small businesses incur three risks. First, when loan-renewal time comes, interest rates can be higher. Second, a lender may decide to terminate the agreement. Last, a lender might begin to make operating "suggestions" that limit the company's autonomy if payments are not met in time. To deal with these risks, small businesses that use some amount of short-term capital to finance long-term requirements need to be flexible enough to eliminate the debt in a reasonable period of time without disturbing operations.

Contains a description of the events surrounding the financing of Centex Telemanagement, Inc. by Sierra Ventures, a venture capital fund. The case is written from the perspective of the venture capitalists and is designed to teach students about the process of venture capital funding.

Contains a description of a situation confronting the co-founder of a company planning to produce software for microcomputers. The company has just completed raising money from some wealthy investors by forming an R&D Limited Partnership. Development of the program (an integrated business productivity tool) can now begin. The focus is on the structure of the deal and the process of venture formation. Among the issues to be discussed are: Should the company have raised money from these investors under these terms? What can go wrong? What can go right?

The case describes the startup circumstances for Three Buoys Houseboats. It is an example of several young individuals stumbling into an opportunity and deciding to run with it without much evaluation, assessment or planning. The Three Buoys Houseboat case 9A86F005 is a detailed description of what actually happened.

Spreadsheet supplement for case 386-019.

Outlines alternative mechanisms for getting into business. Shows the means by which an experienced entrepreneur can gain control over the necessary resources in order to lower the fixed costs of business entry. Provides a mechanism for discussing the role of experience, credibility, and contacts in the development of a nonbusiness venture.

Describes the thought process an entrepreneur should undergo before committing to a course of action. Covers understanding the opportunity--assessing the critical skills, resources, relationships, and approvals--developing an action plan; forming a business entity; controlling the venture; harvesting the venture; and then a brief summary. Provides a useful framework to be used by entrepreneurs starting their own venture.

Contains a description of a decision confronting an employee of IBM in late 1981. Should he leave IBM to become head of a new venture capital fund which will specialize in technology investments? The case is designed to expose students to the nature of the opportunity confronting venture capitalists. The students will have to assess the fit between Peter Wendell, the particular opportunity, and the terms being offered.

Entrepreneurs draw up business plans for new ventures to make marketing, pricing, financial, and other projections. More often than not, though, their estimates bear little relationship to reality. Planning for new enterprises differs fundamentally from planning for existing companies, given the inherent instability of start-ups. Entrepreneurs should summarize milestone events in a project's plan in order to learn about the enterprise's viability and make adjustments in strategy and goals as necessary. Examples of ten milestones a new product or service might experience are included.

Contains a description of some issues confronting management of CML Group. They have decided to go public, have selected an underwriting team, and must make final decisions about the size, composition and pricing of the issue. Because stock prices have fallen since the decision to go public was made, the company is faced with the prospect of lowering the number of shares to be sold, lowering the offering price, or withdrawing the issue altogether. Can be handed out at the end of class discussion of CML Group, Inc.: Going Public (B).

Describes the problems faced by a company that has experienced remarkable growth, but growth which is below projections. The management must evaluate the company's position in the turbulent software industry. The two partners must then decide whether to cut back to obtain more quick profitability or else to continue on a growth plan which can either lead to dominance or bankruptcy. The cash requirements will require outside funding.

Describes Lou Gerstner and his approach to managing entrepreneurship and organizational change at American Express Travel Related Services Company. Mr. Gerstner is chairman and CEO of the firm.

Contains a description of some issues confronting management of CML Group as the company progresses toward making an initial public offering. Among the issues and topics addressed in the case are: considerations in choosing an underwriting team, the initial public offering market; IPOs as a mechanism for private investors to harvest their investment; and short-term management reactions to changing conditions in the stock market.

Entrepreneurship is a trait that is confined neither to certain types of individuals nor to organizations. A society can do much to stimulate or inhibit the development of entrepreneurship. Government policy decisions in recent years to lower the capital gains tax and deregulate certain industries have been instrumental in encouraging establishing new businesses. College and university business programs are also instrumental in stimulation. But it's up to individual organizations to foster conditions that allow entrepreneurship to flourish.

Contains a description of a set of related decisions confronting the management and directors of Business Research Corp. (BRC) in April of 1984. BRC needs more capital to finance continued development of the market for a full-text database comprised of Wall Street research and to finance a new business opportunity entailing electronic delivery of Wall Street research to institutional investors. However, in order to attract new money, the capital structure of the company must be changed. The pedagogic objectives in the case include: exposing students to the consequences of certain early stage financing decisions; raising the issue of conflict of interest among various stakeholders; and exposing students to the necessity for convergent iteration and flexibility in business plans.

Contains a description of the history and venture capital financing of Lotus Development. Focuses on issues related to the possible terms of investment in Lotus by a major venture capital firm. The pedagogic objectives in the case are: to explore the elements of the people/opportunity/deal analytical framework; to expose students to issues in venture capital financing of high potential ventures; to explore the causes of success; and to explore the distinctions between creativity, innovation, implementation, and entrepreneurship.

Contains a description of a decision confronting an entrepreneur: which of two investment proposals should he accept to fund the creation and marketing of a database that comprises the full text of research reports produced by Wall Street investment banking firms? The teaching objectives are: to expose students to the people/opportunity/deal analytical framework; to focus on understanding the financial and other implications of deal terms; and to force the students to make a decision based on their analysis.