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R & R

R & R. Trivia, Inc. Performance. Outcomes. Bob Reiss made a total of $1,153,187 + $1,450,000 = $2,957,250 – 507,500 (7% commission to sales reps) = $2,095,687 on an initial investment of $26,250. Kaplan made $1,153,187 on an initial investment of $26,250 (and a repaid loan of $300,000)

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R & R

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  1. R & R

  2. Trivia, Inc. Performance

  3. Outcomes • Bob Reiss made a total of $1,153,187 + $1,450,000 = $2,957,250 – 507,500 (7% commission to sales reps) = $2,095,687 on an initial investment of $26,250. • Kaplan made $1,153,187 on an initial investment of $26,250 (and a repaid loan of $300,000) • TV Guide made $725,000 on an investment of $25,625 (or $450,625 if include opportunity cost of ads) • Alan Charles (designer) made $362,500 on an investment of $15,000 (opportunity cost of 3 weeks time) • Sales Reps made $507,500 for an investment of incremental selling time • Manufacturer made $140,000 for an investment of ~$10,000 startup costs • Heller Factoring made $72,500

  4. Advice from Bob Reiss • http://video.hbs.edu/playVideo.jhtml?clip=reiss_interview

  5. Takeaways • Don’t be afraid to imitate successful strategies • Sustainability may be overrated • You don’t need to always emphasize long-term profits. • Entrepreneurship need not involve large risks, nor are entrepreneurs necessarily risk-seeking individuals. • Experience and network can be a key resource • Entrepreneurs having experience in an industry have many advantages over those without experience • Attracting the right partners / stakeholders can be critical • Figure out what you are missing and find partners to fill those gaps • Kenny Rogers was right! • You gotta know when to fold ‘em! • Entrepreneurship is about selling!!!

  6. Prep Work • Thursday Intro to Financial Ratios (casepack) • Homework – Calculate Anheuser Busch financial ratios (Katalyst) • Read Balanced Scorecard (Katalyst)

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