Case Study: New Business Venture
This case was borrowed from Kathy Schwalbe, Project Management 4th edition
Part 1: Initiating
You and several of your friends have been working for corporations for over five years, but several of you have a desire to start your own business. You have decided that you are ready to pursue your idea of starting a music academy for children ages 3-16. You all enjoy creating music, and you saw the advantages that some children had from participating in special music programs beyond those available in schools. In particular, you see the need for music training in your area for children interested in voice, guitar, keyboard, and percussion ...view middle of the document...
He is also a whiz at music technology, having recorded and edited CDs for several years. He works as a software developer for a large consulting firm. He is married and has one young child, and his spouse works part-time. Brian would not give up his full-time job until he knew he could support his family in this new business venture, but he could do a lot of part-time work.
3. Nicole, also one of your best friends since sixth grade, was the lead singer in your band. She has a great voice and really knows how to work a crowd, too. She is currently working as a part-time telemarketer, but she doesn’t like her job at all and is ready for something new. Her spouse has a great job and supports her in pursuing a new business opportunity. Her strengths are her vocal talent, professional voice training, and sales ability. She also loves working with children and would be willing to work full-time on this new business venture.
4. Andres was the last person to join your band in high school, having replaced your original drummer. He currently works as a music teacher at a local middle school. He has a lot of contacts with local schools and is dying to get this new music academy started. He is single and would want to keep his current job, but he could devote a fair amount of time to the business in the evenings, on weekends, and full-time in the summer. His strengths are his drumming expertise, teaching ability, music technology experience, and contacts with school-age children, parents, and school administrators. He currently gives some private lessons and knows other people who do as well, so he has potential clients and instructors that he could bring into the business.
The main goals of the New Business Venture Project are to prepare a business plan, get financial backing, handle legal issues, develop marketing materials, find a rental space for the music academy, purchase/develop curriculum, hire staff, and open for business by one year from now, September 1, to coincide with the school year. Your team has already analyzed the market, and you know you can make this business succeed. Your goal would be to cover your investment costs after two years in business.
Work with your teammates to perform all or just some of the following initiating tasks for this project.
1. To become more familiar with the children’s music instruction market, do some preliminary research to find out how big this market is, who the main companies are in the market, what the best-selling services are, pricing and marketing strategies, etc. If you do not want to focus on your own geographic area, pick one to focus on for this and future tasks. Write a two- to three-page paper (double-spaced) with your findings, citing at least two references. For example, the author’s son took lessons and performed in rock bands from Virtuosos Music Academy in Plymouth, Minnesota (www.virtuososonline.com). You can also include a paragraph or two with your team’s...