Lotus Chips Case Study

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Question #1- After evaluating the idea of these entrepreneurs against the seven “rules of thumb” outlined in Chapter 14 of the textbook, what do you believe is the level of risk for their business Any person who is venturing out to establish his or her own business will always be at risk. There is always a chance that the business will not succeed. Burns and Kinard had minimal risk when they decided to open their own business. Their lack of knowledge and experience with starting a business would be their largest risk. The start up fees was relatively inexpensive and they knew if it did not work out they could take their ingredients and their pots and go home. They did not have to they took the risk and with the help form professionals, family and friends they are now successfully running their own business for four years. Based on their innovative efforts, Burns was a creative cook and loved to entertain. She enjoyed experimenting with recipes. One day she stumbled upon a recipe for chips and after she tasted the chips she knew she could add her own ingredients to make them taste better. She took her chips to a bridge club meeting and everyone enjoyed them urging her to start her own business. Considering their business back round, neither Burns or Kinard have had much experience or knowledge for running a business. This was one drawback that they would encounter. Burns and Kinard focused largely on the individuals who would be willing to pay more for a bag of chips that had an interesting flavor. There are many types of chips on the market, but “Lotus Chips” was invented to be a gourmet chip that would satisfy anyone’s pallet. Burns and Kinard first started their marketing research by using specialty stores to see how many similar products sold for and asked the store owners to carry their product. By investigating the competition and interviewing store owners

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