1. Omar and his three college friends, William, Sara and Robert, were considering going into the student painting business during the summer before the start of their final year at college. They had heard that these were great opportunities to make a lot of money.
2. Making money was very important to Omar. His professors at college described him as one of the brightest students they’d met. He was full of energy, always achieved high grades, was popular with his classmates and was a natural leader.
3. Omar and William had had long conversations about pursuing this opportunity.
4. They wanted to bring Sara and Robert in as they liked how they worked.
5. Omar had decided that pursuing a student painting franchise would be the fastest way to get into business.
6. He has come to you to get your advice.

Tasks and Questions	Your Response
Assess Omar’s potential as an entrepreneur or business owner. Explain your answer by applying your Research Checklist about the important skills and attributes successful entrepreneurs have.

Tasks and Questions	Your Response
What personal skills is he going to have to improve upon? Explain your answer, referring to your notes from your Research Activity.

Tasks and Questions	Your Response
Explain to Omar five (5) things he will need to include in his Business Plan from an Investor’s point of view, and the reasons for including them. Explain what each of these items is; don’t just make a list. It’s a good idea to number your points.

Case Scenario 2

Omar’s Cost/Revenue Model is shown below:

1. They would require an initial investment of $3,500 for equipment and $1,500 in materials (paints, gloves, solvents, etc.)
2. The average price for a standard painting job was $1,000
3. They estimated that the labour cost per job was $350.
4. Average cost of materials required to complete a standard painting job was around $200.
5. The Franchisor’s royalty fee was 15% of sales.
6. Omar and each of his friends were hoping to make around $5,000 each through their venture over the four months they planned to run the business.

Tasks and Questions	Your Response
Question #4 (5 points) Explain the formula for Breakeven point in Units.
Question #5 (10 points) Calculate the number of painting jobs Omar will have to do each month to break even. Show your work.

Tasks and Questions	Your Response
Question #6 (15 points) Using your notes from your Research Activity, help Omar develop a value proposition for his business idea.

Tasks and Questions	Your Response
Question #7 (15 points) Explain five (5) risks that Omar may face if he tries to launch his business. It’s a good idea to number these.