EXERCISE 1. Do you think the expertise of the entrepreneurial team gives them the background they need for the business? 2. How could the three have had a better rounded team? Could they fill identified gaps by hiring or contracting with people? Whom would they hire or contract and why? 3. The team clearly sees the potential for fabulous financial returns. Do you believe that it should move forward with the business idea?Regarding the manufacturing, the team found that many of the large operations that did custom woodworking and/or provided custom materials (Plexiglas, foam boards, glass inserts, fiberglass, etc.) had no interest in talking to the team. The entrepreneurial team's requests to talk were rebuffed or were simply ignored. The team recognized that manufacturing was going to be a problem, especially since the three had hoped that one or more manufacturers would simply drop- ship the finished products directly to the customer. They had an idea that there might be many very small, rural operations that had the needed equipment and would be willing to work with them, but they did not know then how to find those operations. Looking honestly at the situation, the three recognized that while they had extensive knowledge of customers and their overall needs, the team did not know the core elements of the business at all. Furthermore, none of the founders had any computer programming literacy and such skills seemed critical since so much of the business would be related to the Internet. Financially, the team recognized that the $300,000 they could raise among themselves would not be enough to get the business up and running. In order to fully develop the website, the app, craft the promotional materials, implement a visibility strategy, perhaps run a small manufacturing operation, and grow the business to the point that it was self-funding might take another $1 to $2 million. The three were confident that each could make enough money with current jobs to support themselves while the business developed, but the need for equity investors was going to come quickly since a staff or contractors would be required to develop the technology and promote it. Nonetheless, the opportunity for the new business looked quite intriguing. The entrepreneurs decided that at even 50 percent of the price current competitors were charging, the group would make 500 percent profit on each sale. The draw of quick turnarounds, an easy way to order online or via an app, and the lower price would draw in customers. After weighing all the factors, the three decided that they would commit to the business idea.HATCHBOARDS Rob, Clara, and James were very excited about the potential for the new business but still did not know whether they could really make it work or it was even a good idea. The three had significant knowledge about the operation of most boats but nothing about the boat supply industry and had never tried to sell a product before. Each independently went online to find out as much as possible about doors/hatch boards for small sailboats (those under 30 feet). Their research showed that the market opportunity for their initial idea was confirmed. There were only a few competitors but those competitors' processes, timing, and prices were simply very high. A more detailed look at ship stores in their area found that most just referred boaters to the Web. The team contacted the top three small sailboat manufacturing companies and were surprised that they had no interest in providing replacement doors/hatch boards. They referred the team to specific Informational websites for replacement parts-but there was no way to specifically order hatch boards/doors on these websites; they listed only phone numbers to call. Regarding the manufacturing, the team found that many of the large operations that did custom woodworking and/or provided custom materials (Plexiglas, foam boards, glass inserts, fiberglass, etc.) had no interest in talking to the team. The entrepreneurial team's requests to talk were rebuffed or were simply ignored. The team recognized that manufacturing was going to be a problem, especially since the three had hoped that one or more manufacturers would simply drop- ship the finished products directly to the customer. They had an idea that there might be many very small, rural operations that had the needed equipment and would be willing to work with them, but they did not know then how to find those operations. Looking honestly at the situation, the three recognized that while they had extensive knowledge of customers and their overall needs, the team did not know the core elements of the business at all. Furthermore, none of the founders had any computer programming literacy and such skills seemed