This 5 page paper considers a case provided by the student. The case shows a company that starts up with insufficient finance. The writer shows how we can analyse the case, what went wrong and some potential solutions.
Name of Research Paper File: TS14_TEflitim.rtf
Unformatted Sample Text from the Research Paper:
idea and the establishment of a market where there is a need. However there is a very common mistake made. The business is under financed due to the lack of
planning prior to start-up. The business was a service that was in effect a broker for individuals and companies that wanted to charter an aircraft, and the providers of the
aircraft. The service was aimed at businesses and tour operators. The costs were kept low with the realisation of a commission of either 5% or 10% depending on what type
of aircraft was required. The directors had relevant experience, enough to ascertain that there was a need for this type of service, and initial market research also supported this
perception. The women take some advice, and here the idea is deemed to be commercially viable, even though the advisers do not have experience in the aviation industry.
The idea is the primary focus at this time, and the women appear very keen to go ahead. However, in this keenness there are some major, but important steps missed
out. In the case we are told that the women go to the lawyers to establish the company even though they have not developed a business plan. Indeed, the first
time that this appears to occur is when an accountant is brought in to make the projections for the business loan that they were refused. The start up was based
on a sound idea, however for a business to succeed there is the need for more than a good idea. This may be a key to the success. However, there
is a need for financing. The idea should have been costed, and the consideration of the needs of the cash flow should have been projected. The decision on the initial