Session 5

Trivia, Inc. Performance
• Bob Reiss made a total of $1,153,187 + $1,450,000 =
$2,957,250 – 507,500 (7% commission to sales reps) =
$2,095,687 on an initial investment of $26,250.
• Kaplan made $1,153,187 on an initial investment of
$26,250 (and a repaid loan of $300,000)
• TV Guide made $725,000 on an investment of $25,625 (or
$450,625 if include opportunity cost of ads)
• Alan Charles (designer) made $362,500 on an investment
of $15,000 (opportunity cost of 3 weeks time)
• Sales Reps made $507,500 for an investment of
incremental selling time
• Manufacturer made $140,000 for an investment of
~$10,000 startup costs
• Heller Factoring made $72,500
Advice from Bob Reiss
• Don’t be afraid to imitate successful strategies
• Sustainability may be overrated
– You don’t need to always emphasize long-term profits.
• Entrepreneurship need not involve large risks, nor are
entrepreneurs necessarily risk-seeking individuals.
• Experience and network can be a key resource
– Entrepreneurs having experience in an industry have many
advantages over those without experience
• Attracting the right partners / stakeholders can be critical
– Figure out what you are missing and find partners to fill those gaps
• Kenny Rogers was right!
– You gotta know when to fold ‘em!
• Entrepreneurship is about selling!!!
Prep Work
• Thursday Intro to Financial Ratios
• Homework – Calculate Anheuser Busch
financial ratios (Katalyst)
• Read Balanced Scorecard (Katalyst)