CASE 7.1Preparing a Proper Legal Foundation:A Start-Up Fable

Elise & Huyen

Introduction

Jack Peterson & Sarah Jones iUser Accessories

Place kiosks in malls & high-traffic areas

Product accessories for Apple iPods & iPhones

Promotion (value-added) videos for better use of iPods & iPhones

Distribute concept statement positive & instructive responds "Not only will this approach save you money but it

will drive traffic to your Web site and provide you with additional e-commerce opportunities."

Feasibility Analysis & Business Plan

Feasibility Analysis & Business Plan

Survey in target market 410 people (15- to 35-year-olds) design by marketing professor 52% own or plan to get iPod/iPhone majority don't know existed accessories participants showed high degree of interest

Start-Up Capital

Commitments funding $66,000 friend and family

Meeting with Attorney

Making a plan to exploit the time andminimize the expense

Making the list of issues to discuss with the attorney (ex: legal issues, forms of business, ect)

Making recommendations with the attorney Send the list of issues along with their

recommendations a week prior to the meeting

Discussion question 1

Complete Jack and Sarah’s list for them, including the issues you think they will place on the list along with their recommendations. Which of the issues do you think will stimulate the most discussion with the attorney, and which issues do you think will stimulate the least?

Discussion question 1

The issues The ownership of the business Intellectual property

Discussion question 2

Make a list of the things you think Jack and Sarah did right in preparing for their meeting with the attorney.

I think all things presented in my part are right in preparing for their meeting with attorney.

Discussion question 3

Comment on the product feasibility analysis that Jack and Sarah completed. Do you think the way Jack and Sarah approached this task was appropriate and sufficient?

Discussion question 3

Jack and Sarah used sound approach. They distributed their videos to their potential customers and collected valuable feedback.

Discussion question 4

What advantages do Jack and Sarah have starting iUser Accessories together, rather than one of them starting it as a sole entrepreneur? What challenges do you think Jack and Sarah will have keeping their partnership together?

Discussion question 4

Advantage share ideas, talents, resources

Challenge disagreement on making decision how to share ownership (who takes charge)