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CASE 7.1
Preparing 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
Feasibility Analysis & Business Plan
 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
 Survey in target market
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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 and
minimize 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)