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minimum investment. maximum return.
Team #1
Jason Amidon
Michele Crispin
Marian Fean
Tatyana Kriushina
Joe Marsella
Presentation Outline
-Entrepreneurship
-Boomerang- Introduction
-Interviews
-Financial Analysis
-Problems
-Recommendations
Definition of Entrepreneurship
The most simple definition of entrepreneurship is an individual that
organizes, operates, and takes on the risks of a business.
Entrepreneurship
Vital to the U.S. EconomyEnsures job creation and economic growth
What does it take to be a successful entrepreneur?VisionPassionRisk taker
Subject Choice
Seth DeForest, 28, of Haddonfield, New
Jersey is the winner of the Young Entrepreneur of
Southern New Jersey Award 2005. DeForest is the
CEO & owner of Boomerang, which offers high-end
used office furniture and cubicles. His business
philosophy is unique and he believes in building
customer relationships by having fun at work.
Interview One- Seth DeForest
Seth DeForest founded Boomerang in 2001 with a warehouse & 5 employees
Started by purchasing the inventory of a going out-of-business used office furniture company
Pure cash-flow company/no financing
Distribution & Marketing Strategy
A look inside Boomerang…
What do these have to do with selling used office furniture?
Interview One- Seth DeForest
What does it take to be a successful entrepreneur?
People, product and passion Soul of the company Know your product, customer and distribution Challenges
Interview- Associates
What makes Seth a successful entrepreneur?Hard working and passionate
Understands the product, marketing
and distributionCaterers to his customersRewards his employeesStays within his financial means
Financial Analysis
The Boomerang Effect
The Financial Statements
The Impact
The Boomerang Effect
Minimal investment, maximum returnPre-owned office furniture @ 50-75%
savingsPurchaser obtains quality pre-owned office
furniture while:• Making the most of their furniture
budget• Saving time• Helping the environment
Estimated Income Statement Using Industry Averages
Sales – Increasing by $1.0 million+ per year Inventory - $10 Million Debt - $0 Based on known figures and industry averages:
Ind. Avg. 2004 YTD ’05
Total Revenue 100.00% 4,000 5,000 Total Expenses 79.88% 3,195 3,994 Net Income 20.13% 805 1,006
(000’s have been omitted)
The Impact Turned around a failing business Currently employs 15 people Gives back to the community Environmentally friendly
• Reduces discarded waste• Less pollution• Reduces waste of natural resources
A positive impact on the community
Problems Young Entrepreneur Having too much fun/relaxed relationship with
his employees Overly optimistic & confident
• Started a new venture without a proper business plan
• Pursuing an opportunity without a stated NEED for the product/service
Problems
Delegation of responsibility and authority Promotion of people to positions for which
they are not qualified Keeping people for convenience vs. skill
requirement Lacking a long-term business strategy Risk of purchasing the wrong product
Recommendations Continue to use creative “outside the box” thinking Continue to foster a team environment amongst
employees that promotes entrepreneurial ideas
Utilize planning (i.e. business strategy) and market research
Develop better skills for interviewing & cultivating potential employees
Questions???