Rug Bug Corporation
RUG BUG CORPORATION I. Background
Mr. and Mrs. Young established the Rug Bug Corporation as Delaware Corporation. The sole purpose is to manufacture and distribute a revolutionary motorized wheelchair designed for children under the age of ten. The Rug Bug motorized wheelchair weighs almost 50 percent less than the standard motorized wheelchair and approximately one half of the cost of any other motorized wheelchair for this group. In addition it has numerous safety features that are not found on any other available motorized wheelchair. His lightweight, relatively inexpensive model has no direct competition in a field dominated by companies that produce scaled down versions of adult models that are inappropriate to the needs of children. The only problem Young encountered is that he lacks capital for his business. He was contacted by group of investors to who had seen a summary of his proposal. He thinks that this is his only hope. Young was seeking for an advice regarding this matter. II. Problem
I think Mr. and Mrs. Young’s problem is that their business plan was not very well stated or some part of it lacks something, like additional explanation or additional information. Their pro forma income was based only in 1 model of a book. I don’t think it is enough. III. Objectives * To improve their business plan and their marketing strategy * To acquire the target investors to invest in their business IV. Alternative Courses of Action 1. Mr. and Mrs. Young must consider revising their business plan, they put additional information about their venture as a whole. They must it complete and very well stated. 2. They must also change their pro forma income and cash flow. They must not only consider 1 example on the book but they must consider many scenarios that also correspond to them. 3. They must persuade the investors to invest in their venture by presenting complete business plan and correct pro forma income and cash
Mr. and Mrs. Young established the Rug Bug Corporation as Delaware Corporation. The sole purpose is to manufacture and distribute a revolutionary motorized wheelchair designed for children under the age of ten. The Rug Bug motorized wheelchair weighs almost 50 percent less than the standard motorized wheelchair and approximately one half of the cost of any other motorized wheelchair for this group. In addition it has numerous safety features that are not found on any other available motorized wheelchair. His lightweight, relatively inexpensive model has no direct competition in a field dominated by companies that produce scaled down versions of adult models that are inappropriate to the needs of children. The only problem Young encountered is that he lacks capital for his business. He was contacted by group of investors to who had seen a summary of his proposal. He thinks that this is his only hope. Young was seeking for an advice regarding this matter. II. Problem
I think Mr. and Mrs. Young’s problem is that their business plan was not very well stated or some part of it lacks something, like additional explanation or additional information. Their pro forma income was based only in 1 model of a book. I don’t think it is enough. III. Objectives * To improve their business plan and their marketing strategy * To acquire the target investors to invest in their business IV. Alternative Courses of Action 1. Mr. and Mrs. Young must consider revising their business plan, they put additional information about their venture as a whole. They must it complete and very well stated. 2. They must also change their pro forma income and cash flow. They must not only consider 1 example on the book but they must consider many scenarios that also correspond to them. 3. They must persuade the investors to invest in their venture by presenting complete business plan and correct pro forma income and cash