Friday, August 23, 2019
Case analise Study Example | Topics and Well Written Essays - 500 words
Analise - Case Study Example However, the presence of a larger company developed to cater to the same market ââ¬â You Bar ââ¬â presented a challenge as the company was still in a stage of infancy (Shein, 2011). Another huge issue is the nature of the business which operates in the food sector rather than being a technological startup which comparatively attracts more investment. The company which caters to the organic market possesses a great potential for growth. The market segment catering to health conscious consumers of food is untapped and offering organic foods will help the company develop a hold. Hence, the company has a great potential for growth as consumer preferences have affirmed the need for having organic food products in the market, especially organic energy bars. The best possible way for Miller to achieve financing is to convince venture capitalists of the value of the company. Asking a bank for a loan without material assets will not be good option. However, Miller could use his persuasive presentation skills in order to convince venture capitalists to invest in the company. Additionally, Miller could have the startup entered into an accelerator that could give capital in return for a certain percentage of equity. In this way, the business could also get mentorship to enhance the business that could help the business grow. The valuation of Element Bars is indeed a difficult task due to the lack of any company owned equipment. The fact that the company uses ovens from a wedding baker and does not won its own equipment makes the calculation difficult (Shein, 2011). Also, the fact that the company is not a technological startup and an fact a business dealing in tangible food products necessitates the presence of a sizeable inventory or some equipments that are required during production. I would therefore estimate the net worth of all the production inputs and additional effort by the founders involved. As such its net worth should be
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