The bio fruit experiences shows us that, in this case of solo proprietorship , it is absolutely important to be effective. If there is no effectiveness and so no revenue, you are the only who is 100% liable in order to pay back the debts. Your liability is unlimited! Fortunately Jones didn’t invest his whole wealth in his business idea. From the way I understood it, it is highly advisable to keep some savings to insure unexpected downturns. From my point of view, Jones had to be more patience and give his business time to improve (one day is far to short to see if the business could be successful or not). He probably had to invest more money or ask for a higher bank loan in order to cover the initial net loss until the quality and reputation of the business is not well known by the people. Probably after x time the effectiveness and the consequent daily expected income (only of his business operates with efficiency) would have been reached. There could be another explanation too. The market survey showed that there is a strong interest of people for bio fruits. That explains us that there is a need and that the problem is how to satisfy those needs. Here there can be many reasons why this business failed. The prices were to high (effective but not efficient), the market needs changed unexpectedly, an unexpected competitor which is more effective, etc.
Like Fabio Ballasina said, if you are running a business with legal form of sole proprietorship you must be effective in each and every single moment of your business, of course you have to be so every time even with the other legal forms of business entities. But in this particular situation being ineffective destroys your business. Giving up after just one day of business activity is very unprofessional, I think.
Anyways, from the 'Bio-fruit experience' I learned how difficult is to manage by your own a business. Jones could study well the situation of the area, and of course the demand of his targets/customers. He could be more careful on choosing the ways to finance his assets/inputs. It failed because maybe his products or the way he distributed them didn't meet up the demand of his customers/students or, as Fabio said, maybe the demand changed unexpectedly, a better competitor might be entered his way. Lots of reasons could be mentioned for the why of this business failed. But the main reason why Jones failed is his inability to sell. I mean you cannot survive if you don't sell even for your first day. He could do something to inform the people of the area of the existence of his products.
Bio fruit business fundamentally is not a bad idea, but its creator didn’t take into consideration guys' taste. Yeah, fruit is essential for human body, but unfortunately it is not eaten often by youngers, maybe they prefer drinking a fruit juice: it’s handier. From this experience I learn that everyone who wants to run an optimal business has to focus at least on average’s interest.
His business idea failed because he was unable to sell bio fruit. Why was unable to sell the fruit? Because he wanted to meet a need that apparently did not exist. The organic fruit, being less beautiful than chemically treated, perhaps it may not be appreciated by the age in which he went to place his business. Maybe he has not chosen a strategic position, or did not do advertising. He might have made a mistake choosing to sell fruit on the truck, an unhygienic place. Maybe it does not have the ability to sell or many other reasons may be behind the failure of his business. In this case, no revenues mean failure. I learned that, before opening a business, it is important to do a market survey: we need to ensure the existence of a strong and real need, that guarantees us the success of our business. After that you can begin to assess and examine all the aspects that can affect it, such as the choice of the area in which to act, the age group, the team, etc.
1)Business is not simple. Trying to satsfy needs that doesn't exist is not easy expecially if you want to create a new want. Bio fruit satisfied only a little part of people, but it didn't create a new want or a specially need, so that failed.
Starting a business idea is not always easy. Everyone can decide to manage his own business but what about the potential costumers? People would like it? In my opinion is always a risk to start a business even if you are sure that you will have success.In this case people don't really need the bio fruit products but the entrepreneur didn't consider what were the needs of the market before opening his stand of bio fruit. The first thing I learned from this failure is that everyone should consider the needs of people and of course of the potential costumers, it is also important to take in consideration the location where the business idea should take place. This experiment with the bio fruit idea failed because in my opinion the project has not satisfied the needs of the costumers; the location in Tor Vergata was wrong because young people live there and they are not interested in this kind of product and they prefer for example fast food; the entrepreneur should have done a search in the market before spending all his money and then close his activity as soon as he opened it.
1) From the bio fruit experience I realized how risky it could be to invest in a sole proprierorship business idea. And all above I learned how important it could be to ensure the effectiveness of own business idea before putting it into pratics. 2) Probably the idea failed because it did not interpret correctly the needs of potential customers. It needed to be done, in advance, a more thorough investigation of the market.
I believe it is important to be able to satisfy other people's needs also by targeting a specific niche where there may be less competition and more opporttunities to succeed
I think that the business entity failed because it wasn't effective and the customers required different kind of products. So, I learn from this experience that the most important objective of a company is to satisfy human needs.
My opinion is that everyone thinks that to build a business you must only have money and a new idea but in reality you have to be able to manage all the aspects of the business. Yes, we can say that people are attracted from the unknow and new but then after one or two months this ''new'' become ''normality'' and people start to look for something newer and this for everything as a cycle. BIO FRUITS can seem a good business but in reality how much costumers like fruits ? And how much will prefer fruit paying it more than its real price?... it can satisfy just a little part of costumers and this isn't enough to continue the business in the time
I have learned in a sole proprietorship business that only one person (owner) has the all liability, and in this case we have to keep some personnel savings in case of loss or failure we should bear that cost. Also I learned that how we can get loan from banks and in which aspects. In sole proprietorship business we don't have to be so quick to get good profit.
In my point of view reasons of its failure are: not a good initial market survey, quick want of +ve response of business, judgement of the business after a little time, not good selection of location for sale of the product, lack of effective and efficiency.
The idea wasn't so bad..I think it failed because the market demanded the satisfaction of other needs. So, from this experience, I learned that even if we have a great idea we should see what the market demands.
The bio fruit business idea was a good plan at the start, but it had to be expanded. Expanded in the sense that a substantial investment such as 101000 euro's had to be done after certain information acquired in the market, for example the owner of the business should have carried out a survey or should of used a marketing audit to undertake a specific and accurate research on the kind of sector that he was going to invest in the market. I think that part of his failure does not only arise from not gathering enough information but also because it is a market which is rich of competitors, which may benefit from economies of scale something of which this owner didnt have.
In my view the business of bio fruits was not too bad but the way of doing business was bad Jone's way of doing business was bad. Firstly to sell fruits near the university is not so brilliant as the younster don't like too much eatimg fruit; selling fruits would be better if sold near a sporting club, a gym , or a polulated area because sportsmen like to eat healthy food & the fruit is the foremost healthy food , along with this the fruit were healthy so knowing this would attracted many sportsmen . Secondly his way of doing busines wasn't much effective . However not utilizing the whole capital that he had was brilliant , so by doing this he ahd some money for the future.
The failure of "Bio fruit experience" is the perfect example of consequence of an uneffective business. We can tell that since the revenues for the first day were equal to zero, so no one bought John's fruit, not even for curiosity; there's even a bit of bad luck. So I learned that before starting a business, one must verify if there really is a need to satisfy, otherwise the business is condemned to failure. Anyway, I appreciate John's foresight in not investing all his capital in the startup, earning in this way a margin of security for the future.
From the bio fruit experience I have learned that there is no point of opening this truck without informing yourself if the students would even buy bio fruits. First you need to do a survey if there is even a want or need for this bio fruit truck and if there is a need you would need to find out how much there are willing to pay for it. I think the bio fruit shop failed since he didn’t do a market survey before hand, because if he would have done that it couldn’t have failed sind he would know that there was a want and need for this truck and that the area he located it in is perfekt.
From the bio fruit experience I learned that when you have an idea, a business idea, before putting it into practice you have to know if it is actually a human need or want. And i think that the reason why if failed is because there were invested money for something that didn't do a market survey and didn't put in the first place what the needs really are.
2) Why is it failed? = In the First instance it is failed because we assume that none has needs to buy biofruits at that price. I think that it is important to point out that he did a survey before starting the business and his survey tells him that people have a strong interest for bio-products. Then the problem can be either the survey was wrong or the price for his bio fruits was too high. Furthermore in my opinion he did some big mistake, like not having count any hindrance. Because if you plan to start a business that need of a truck (100.000€) and bio fruits for one day(1.000€) and your Capital (Equity+Debt) is just 101.000€ you are hoping your business run well from the start. So it is sufficient a little mistake or some bad luck to crash down your business. 1) what did you learn from bio fruits experience? = Surely i have learnt first that the students of Tor Vergata don't like the Bio-Fruit and second before undertaking a business you have to plan deeply your business itself, because sometime you can put too risk into your business, especially if your business is the first to offer a kind of service in that area. Our entrepreneur trusted his survey but probably a survey can be wrong or maybe just wrong for you, because you can't offer that product to a competitive price.
From the "Bio fruit experience" i learn the disadvantages and risks of starting a new business activity adopting a sole proprietorship: Jones had unlimited liability and was fully responsible for all losses. Fortunately in this case Jones had a personal wealth non invested that he used to repay debts; but, in a sole proprietorship, if you cannot pay off your debts, you creditors can claim your personal assets. It is failed because Jones did not operate with effectiveness, for example he did not publicized his products. Maybe he would have also to choose another location because not many people are interested in Bio fruit, it is a product sought after. Another reason could be that nobody comes to Tor Vergata to shopping.
The Bio fruit experiences showed us that start a production activity or the sale of a product by yourself (sole proprietorship) can be very risky. In fact, the responsibilities are endless, costs, sales, and other activities are the responsibility of the owner and therefore the risk of failure is high. This can happen because the financial resources are limited, unlike a property with multiple partners (partnership) where there are more sources of money, plus you must consider that if you are not able to sell in a business as this is very hard to get a net profit. Another important thing is knowing how to work with efficiency and effectiveness. The place of the activity does not guarantee success because it is difficult for customers such as student buy fruit at a cost greater than normal because it is organic fruits and because generally they prefer another kind of food, so in this case we are in the absence of effectiveness in fact the owner chose a wrong market place. It is very important to weigh well the investment choices because once you start investing money the risk raise and if you have made the wrong choices (e.g in case of failure) you might run into debts and shortage of funds for subsequent investments: Jones now has only 9000 € compared to the initial 80,000 Euro and barely he will have the opportunity to reinvest and start a new business. Also I think I can say that in undertaking a new business you have to be patient because at the beginning you will have a situation of net-loss> net-profit and only with time the situation can be reversed.
The bio fruit experience taught us that although there is a strong demand sometimes this is not sufficient for the survival of our business. In fact we have to consider many different aspects that initially could appear not important or external from our business. In being a sole proprietorship you are the sole responsible of the failure and the sole person that have, eventually, to repay the debts. You have to be both efficient and effective, you must have a strategy to improve your competition and to attract the great possible number of customers, using all your skills and knowledge. Probably the failure is due to his inexperience; he didn’t satisfy the customer’s needs in the right way, he wasn’t able to appraise his business so he didn’t see the expected revenues. Otherwise, according to my opinion, the chosen place wasn’t easily reachable and surely was one of the factors that has accelerated the failure.
From the "Bio fruit experience" I learned that starting up and managing a sole proprietorship involves unlimited liabilities and business skills.
The business idea and the Balance Sheet were good to start : the man took into consideration the possibility of a failure and saved money in order to pay back his debt. Nevertheless, his market survey and his immediate ( after one day) liquidation of the business contributed to determine the activity's end: the market survey showed a strong people's interest for bio-products but, since the man decided to manage his business close to a University, the survey had to figure out if near that area and among university's students there was an effective need of bio-products. Moreover, one day was not a sufficient time to understand if the business activity would have managed to survive and succeed.
Finally, we have to remember that in terms of business, talent and ability were limited because of the sole proprietorship form. As a consequence, focusing our attention on the "Bio fruit experience", we can say that the sole proprietor may have not operated with efficiency and effectiveness determining his activity's end.
What I have learned from the "Bio fruit experience" is that before starting to run a sole proprietorship we should take into consideration several factors. Jones as a sole proprietor decided to invest, after a market survey, in biological fruits close to the University of Tor Vergata calculating the possibility of failure and therefore saving some of his wealth ( about 25 %). In fact he decided to invest a total amount of 101.000 euros borrowing about the 40 %, of that amount, from the bank and using his personal wealth to cover the rest of the costs to build the business. He bought the truck for 100.000 euros and he used the last part to buy the bio-fruits that daily, on his idea, he supposed to replace for the same amount. Unfortunately the idea was not good, thus the sole proprietor decided to liquidate the business the first day. Why is it failed? Personally the sole proprietor did not promote his activity through advertisement and therefore he did not attract potential customers before his idea was built. He made a market survey but, he did not consider the high prices that a biological products can get in the market, specially if the first consumers are students, that have limited monetary resources. He had a very simple idea, that was really easy to build quickly in the market, having the total autonomy and control but, he didn't consider the unlimited liability that a sole proprietorship was getting and he also forgot to analyze the area where the business would had an impact. For those reasons Jones and his idea ended-up after the first day.
From the experience of the failure "Bio fruit" we can learn how to avoid or eliminate the risks to which it was exposed the owner. The first mistake was starting this business on his own, without partners, thus generating massive losses for himself, the lack of originality representing another mistake because low price and quality does not represent a differentiation from the other businesses of the same type and last but not least , choosing a wrong target audience in the absence of market analysis
From Bio fruit experience I have learned that before starting the business one should consider all the risks, make careful marketing research. Consider who will be the perspective costumers and if one is capable of entering the marketing and if it has competitive advantage over competitors. It failed because owner of the business did not consider all the mentioned above and made wrong assumptions.
The Bio fruit experience taught us that a business to survive must be effective and efficient in order to satisfy the need it was born for. Jones's business failed because even thought the market need of bio fruits was high he wasn't able to satisfy it, he probably should have used some advertisement in order to attract students' attention, and improve day by day, you can't say if a business will survive from the first day. Jones wanted the profit from the beginning, while starting a business is about hard work, dedition and motivation, otherwise everybody would be an entrepreneur.
It is possible to learn from this experience that it is very risky to have a definite asset that only covers the expenses and do not plan anything for the future expenses. Buy and sell bio fruit is the core business of the proprietorship. It would have had to plan a few months of the purchase of the fruit. Usually it is needed always to add a percentage of money for contingency. Also, instead of buying a truck, he could rent it out until he had the money to buy it without compromising profitability. Sell a truck does not mean having exactly the same money for its purchase. There is always a percentage of loss (VAT and second-hand)
In my opinion the Reasons for the collapse of this business are: - Wrong Strategy of building a business - Lack of buyers - Wrong allocation of the resources
From the bio fruits experience we can learn how easily it’s possible to fail, even if we think that our business idea is great, and how risky a sole proprietorship is. each entrepreneur should know the main reasons startups fail. Bio fruit business failed because 1. Jones did not consider the need of young people, who are not very interested in organic fruit, 2 he chose a wrong way to sell his products (buying fruit from a truck doesn’t seem so dependable and hygienic). He could have increased his business, trying to sell sandwiches or snacks at the University and choosing another position to sell organic fruit. He should have rent the truck, to move from one place to the other, and bought it after seeing how profitable his business was
From the bio fruit experience I deduce that before investing a big amount of money, especially when you are dealing with a sole proprietorship, you should analyze carefully your business idea taking into account all the advantages and disadvantages that could arise from this investment. In the case of a sole proprietorship lots of cases, like this one, teach that all debts are debts of the owner, thus the investor must be absolutely sure on what he is going to do, that is: he must be cautious about the equity invested but in particular about the liability that should be then remunerated on time, he should be parsimonious on things to buy and from which you should get, reselling them, a reasonable amount of money in case of liquidity and some other aspects. So, what I learnt in particular from this experience is that we never have to be hasty for realizing a business idea just for the urgency of earning money, because sometimes you should get the contrary effect.
From this case I understood that sometimes offering a product in the market should be done through a very careful way. It means that the owner should first study the market and group of clients that require the product it offers and then starting with the production and delivery process. So, if the customers are not the right ones, the company even though has a good product with high quality, can fail. Offering bio fruits to young people is good for their health and it should be promoted, but are we sure they are conscious about it? The way he decided to distribute his product and promote it, made possible the failure of his business. This is one of the disadvantages that this type of proprietorship has. Being alone he didn't consider other scenarios of failure, thinking his idea would had worked. Studying the market and the customers needs are the first things to be done before offering the product.
1. I can learn something from the bio fruit experiences. First of all, we should think about having partners. Jones is 100% liable in order to pay back the debts when his company bankrupt because he is sole proprietorship. Second, good business idea is not enough to success. We need a good strategy for long-term as well as good market appreciation.
2. The bio fruit case has a good idea but he did not have good strategy. Jones did not calculate revenue and profit when he invested too much money to buy fruit in market as well as transportation. Moreover, he lacked of patience to improve condition. The bankrupt occur to him too fast, and he also accepted it.
I learned that sometimes start a experience as “bio fruits experience” is a risk ,specially if you decide to invest your money in a sole proprietorship beacause the management of the business is entirely in the hand of owner. Jones (owner) did not calculate the disadvantages of sole proprietorship like limited resources and the difficulty of attracting qualified resources. Of course, the balance sheet of the business was very good to start. In fact Jones saved the money to pay back the debt in case of business’s failure. It following that the man did not create a sustainable value and did not satisfy the needs of students.
From bio fruits experience ,i learned one thing that is sell things that really need. for example before to starting the business we must know thia 3 pointa. first who we are going to sell those prodcut , what are we going to sell, and why are we going to sell .this is must important things . Why he failed the most important thing is he was not effective.
I think that the bio fruit business failed because it was created as a sole-proprietorship and so was difficult to conduct from the start. It failed also because probably he hasn't the right customers (students are not so interested in buying bio fruit as lunch). I think that the most important lesson to learn from this experience is that we have to satisfy the human needs but also we have to give to the business the right placement.
1. I realized that even if you have enough money to begin the business, but you don't have a good business strategy, not manage the capital carefully that you can failed easily. 2. In my opinion he doesn't know what are the customers want, can't satisfied the customers. many of students don't have the interest on BIO fruit in contrast if he sold sandwich or the fast food it will be popular and he will run the business successfully.
The bio fruit experiences shows us that, in this case of solo proprietorship , it is absolutely important to be effective. If there is no effectiveness and so no revenue, you are the only who is 100% liable in order to pay back the debts. Your liability is unlimited! Fortunately Jones didn’t invest his whole wealth in his business idea. From the way I understood it, it is highly advisable to keep some savings to insure unexpected downturns.
ReplyDeleteFrom my point of view, Jones had to be more patience and give his business time to improve (one day is far to short to see if the business could be successful or not).
He probably had to invest more money or ask for a higher bank loan in order to cover the initial net loss until the quality and reputation of the business is not well known by the people. Probably after x time the effectiveness and the consequent daily expected income (only of his business operates with efficiency) would have been reached.
There could be another explanation too. The market survey showed that there is a strong interest of people for bio fruits.
That explains us that there is a need and that the problem is how to satisfy those needs. Here there can be many reasons why this business failed. The prices were to high (effective but not efficient), the market needs changed unexpectedly, an unexpected competitor which is more effective, etc.
Like Fabio Ballasina said, if you are running a business with legal form of sole proprietorship you must be effective in each and every single moment of your business, of course you have to be so every time even with the other legal forms of business entities. But in this particular situation being ineffective destroys your business.
DeleteGiving up after just one day of business activity is very unprofessional, I think.
Anyways, from the 'Bio-fruit experience' I learned how difficult is to manage by your own a business. Jones could study well the situation of the area, and of course the demand of his targets/customers. He could be more careful on choosing the ways to finance his assets/inputs.
It failed because maybe his products or the way he distributed them didn't meet up the demand of his customers/students or, as Fabio said, maybe the demand changed unexpectedly, a better competitor might be entered his way. Lots of reasons could be mentioned for the why of this business failed. But the main reason why Jones failed is his inability to sell. I mean you cannot survive if you don't sell even for your first day. He could do something to inform the people of the area of the existence of his products.
Bio fruit business fundamentally is not a bad idea, but its creator didn’t take into consideration guys' taste. Yeah, fruit is essential for human body, but unfortunately it is not eaten often by youngers, maybe they prefer drinking a fruit juice: it’s handier. From this experience I learn that everyone who wants to run an optimal business has to focus at least on average’s interest.
ReplyDeleteHis business idea failed because he was unable to sell bio fruit.
ReplyDeleteWhy was unable to sell the fruit?
Because he wanted to meet a need that apparently did not exist.
The organic fruit, being less beautiful than chemically treated, perhaps it may not be appreciated by the age in which he went to place his business.
Maybe he has not chosen a strategic position, or did not do advertising.
He might have made a mistake choosing to sell fruit on the truck, an unhygienic place.
Maybe it does not have the ability to sell or many other reasons may be behind the failure of his business.
In this case, no revenues mean failure.
I learned that, before opening a business, it is important to do a market survey: we need to ensure the existence of a strong and real need, that guarantees us the success of our business. After that you can begin to assess and examine all the aspects that can affect it, such as the choice of the area in which to act, the age group, the team, etc.
1)Business is not simple. Trying to satsfy needs that doesn't exist is not easy expecially if you want to create a new want. Bio fruit satisfied only a little part of people, but it didn't create a new want or a specially need, so that failed.
ReplyDeleteStarting a business idea is not always easy. Everyone can decide to manage his own business but what about the potential costumers? People would like it? In my opinion is always a risk to start a business even if you are sure that you will have success.In this case people don't really need the bio fruit products but the entrepreneur didn't consider what were the needs of the market before opening his stand of bio fruit. The first thing I learned from this failure is that everyone should consider the needs of people and of course of the potential costumers, it is also important to take in consideration the location where the business idea should take place. This experiment with the bio fruit idea failed because in my opinion the project has not satisfied the needs of the costumers; the location in Tor Vergata was wrong because young people live there and they are not interested in this kind of product and they prefer for example fast food; the entrepreneur should have done a search in the market before spending all his money and then close his activity as soon as he opened it.
ReplyDelete1) From the bio fruit experience I realized how risky it could be to invest in a sole proprierorship business idea. And all above I learned how important it could be to ensure the effectiveness of own business idea before putting it into pratics.
ReplyDelete2) Probably the idea failed because it did not interpret correctly the needs of potential customers. It needed to be done, in advance, a more thorough investigation of the market.
I believe it is important to be able to satisfy other people's needs also by targeting a specific niche where there may be less competition and more opporttunities to succeed
ReplyDeleteI think that the business entity failed because it wasn't effective and the customers required different kind of products. So, I learn from this experience that the most important objective of a company is to satisfy human needs.
ReplyDeleteMy opinion is that everyone thinks that to build a business you must only have money and a new idea but in reality you have to be able to manage all the aspects of the business. Yes, we can say that people are attracted from the unknow and new but then after one or two months this ''new'' become ''normality'' and people start to look for something newer and this for everything as a cycle. BIO FRUITS can seem a good business but in reality how much costumers like fruits ? And how much will prefer fruit paying it more than its real price?... it can satisfy just a little part of costumers and this isn't enough to continue the business in the time
ReplyDeleteI have learned in a sole proprietorship business that only one person (owner) has the all liability, and in this case we have to keep some personnel savings in case of loss or failure we should bear that cost. Also I learned that how we can get loan from banks and in which aspects. In sole proprietorship business we don't have to be so quick to get good profit.
ReplyDeleteIn my point of view reasons of its failure are: not a good initial market survey, quick want of +ve response of business, judgement of the business after a little time, not good selection of location for sale of the product, lack of effective and efficiency.
The idea wasn't so bad..I think it failed because the market demanded the satisfaction of other needs. So, from this experience, I learned that even if we have a great idea we should see what the market demands.
ReplyDeleteThe bio fruit business idea was a good plan at the start, but it had to be expanded. Expanded in the sense that a substantial investment such as 101000 euro's had to be done after certain information acquired in the market, for example the owner of the business should have carried out a survey or should of used a marketing audit to undertake a specific and accurate research on the kind of sector that he was going to invest in the market. I think that part of his failure does not only arise from not gathering enough information but also because it is a market which is rich of competitors, which may benefit from economies of scale something of which this owner didnt have.
ReplyDeleteIn my view the business of bio fruits was not too bad but the way of doing business was bad Jone's way of doing business was bad. Firstly to sell fruits near the university is not so brilliant as the younster don't like too much eatimg fruit; selling fruits would be better if sold near a sporting club, a gym , or a polulated area because sportsmen like to eat healthy food & the fruit is the foremost healthy food , along with this the fruit were healthy so knowing this would attracted many sportsmen . Secondly his way of doing busines wasn't much effective . However not utilizing the whole capital that he had was brilliant , so by doing this he ahd some money for the future.
ReplyDeleteThe failure of "Bio fruit experience" is the perfect example of consequence of an uneffective business. We can tell that since the revenues for the first day were equal to zero, so no one bought John's fruit, not even for curiosity; there's even a bit of bad luck.
ReplyDeleteSo I learned that before starting a business, one must verify if there really is a need to satisfy, otherwise the business is condemned to failure.
Anyway, I appreciate John's foresight in not investing all his capital in the startup, earning in this way a margin of security for the future.
From the bio fruit experience I have learned that there is no point of opening this truck without informing yourself if the students would even buy bio fruits. First you need to do a survey if there is even a want or need for this bio fruit truck and if there is a need you would need to find out how much there are willing to pay for it.
ReplyDeleteI think the bio fruit shop failed since he didn’t do a market survey before hand, because if he would have done that it couldn’t have failed sind he would know that there was a want and need for this truck and that the area he located it in is perfekt.
From the bio fruit experience I learned that when you have an idea, a business idea, before putting it into practice you have to know if it is actually a human need or want. And i think that the reason why if failed is because there were invested money for something that didn't do a market survey and didn't put in the first place what the needs really are.
ReplyDelete2) Why is it failed? = In the First instance it is failed because we assume that none has needs to buy biofruits at that price. I think that it is important to point out that he did a survey before starting the business and his survey tells him that people have a strong interest for bio-products. Then the problem can be either the survey was wrong or the price for his bio fruits was too high. Furthermore in my opinion he did some big mistake, like not having count any hindrance. Because if you plan to start a business that need of a truck (100.000€) and bio fruits for one day(1.000€) and your Capital (Equity+Debt) is just 101.000€ you are hoping your business run well from the start. So it is sufficient a little mistake or some bad luck to crash down your business.
ReplyDelete1) what did you learn from bio fruits experience? = Surely i have learnt first that the students of Tor Vergata don't like the Bio-Fruit and second before undertaking a business you have to plan deeply your business itself, because sometime you can put too risk into your business, especially if your business is the first to offer a kind of service in that area. Our entrepreneur trusted his survey but probably a survey can be wrong or maybe just wrong for you, because you can't offer that product to a competitive price.
From the "Bio fruit experience" i learn the disadvantages and risks of starting a new business activity adopting a sole proprietorship: Jones had unlimited liability and was fully responsible for all losses. Fortunately in this case Jones had a personal wealth non invested that he used to repay debts; but, in a sole proprietorship, if you cannot pay off your debts, you creditors can claim your personal assets.
ReplyDeleteIt is failed because Jones did not operate with effectiveness, for example he did not publicized his products. Maybe he would have also to choose another location because not many people are interested in Bio fruit, it is a product sought after. Another reason could be that nobody comes to Tor Vergata to shopping.
The Bio fruit experiences showed us that start a production activity or the sale of a product by yourself (sole proprietorship) can be very risky. In fact, the responsibilities are endless, costs, sales, and other activities are the responsibility of the owner and therefore the risk of failure is high. This can happen because the financial resources are limited, unlike a property with multiple partners (partnership) where there are more sources of money, plus you must consider that if you are not able to sell in a business as this is very hard to get a net profit. Another important thing is knowing how to work with efficiency and effectiveness. The place of the activity does not guarantee success because it is difficult for customers such as student buy fruit at a cost greater than normal because it is organic fruits and because generally they prefer another kind of food, so in this case we are in the absence of effectiveness in fact the owner chose a wrong market place. It is very important to weigh well the investment choices because once you start investing money the risk raise and if you have made the wrong choices (e.g in case of failure) you might run into debts and shortage of funds for subsequent investments: Jones now has only 9000 € compared to the initial 80,000 Euro and barely he will have the opportunity to reinvest and start a new business.
ReplyDeleteAlso I think I can say that in undertaking a new business you have to be patient because at the beginning you will have a situation of net-loss> net-profit and only with time the situation can be reversed.
The bio fruit experience taught us that although there is a strong demand sometimes this is not sufficient for the survival of our business. In fact we have to consider many different aspects that initially could appear not important or external from our business. In being a sole proprietorship you are the sole responsible of the failure and the sole person that have, eventually, to repay the debts. You have to be both efficient and effective, you must have a strategy to improve your competition and to attract the great possible number of customers, using all your skills and knowledge. Probably the failure is due to his inexperience; he didn’t satisfy the customer’s needs in the right way, he wasn’t able to appraise his business so he didn’t see the expected revenues. Otherwise, according to my opinion, the chosen place wasn’t easily reachable and surely was one of the factors that has accelerated the failure.
ReplyDeleteFrom the "Bio fruit experience" I learned that starting up and managing a sole proprietorship involves unlimited liabilities and business skills.
ReplyDeleteThe business idea and the Balance Sheet were good to start : the man took into consideration the possibility of a failure and saved money in order to pay back his debt. Nevertheless, his market survey and his immediate ( after one day) liquidation of the business contributed to determine the activity's end: the market survey showed a strong people's interest for bio-products but, since the man decided to manage his business close to a University, the survey had to figure out if near that area and among university's students there was an effective need of bio-products. Moreover, one day was not a sufficient time to understand if the business activity would have managed to survive and succeed.
Finally, we have to remember that in terms of business, talent and ability were limited because of the sole proprietorship form.
As a consequence, focusing our attention on the "Bio fruit experience", we can say that the sole proprietor may have not operated with efficiency and effectiveness determining his activity's end.
What I have learned from the "Bio fruit experience" is that before starting to run a sole proprietorship we should take into consideration several factors.
ReplyDeleteJones as a sole proprietor decided to invest, after a market survey, in biological fruits close to the University of Tor Vergata calculating the possibility of failure and therefore saving some of his wealth ( about 25 %). In fact he decided to invest a total amount of 101.000 euros borrowing about the 40 %, of that amount, from the bank and using his personal wealth to cover the rest of the costs to build the business. He bought the truck for 100.000 euros and he used the last part to buy the bio-fruits that daily, on his idea, he supposed to replace for the same amount.
Unfortunately the idea was not good, thus the sole proprietor decided to liquidate the business the first day.
Why is it failed?
Personally the sole proprietor did not promote his activity through advertisement and therefore he did not attract potential customers before his idea was built. He made a market survey but, he did not consider the high prices that a biological products can get in the market, specially if the first consumers are students, that have limited monetary resources.
He had a very simple idea, that was really easy to build quickly in the market, having the total autonomy and control but, he didn't consider the unlimited liability that a sole proprietorship was getting and he also forgot to analyze the area where the business would had an impact. For those reasons Jones and his idea ended-up after the first day.
From the experience of the failure "Bio fruit" we can learn how to avoid or eliminate the risks to which it was exposed the owner.
ReplyDeleteThe first mistake was starting this business on his own, without partners, thus generating massive losses for himself, the lack of originality representing another mistake because low price and quality does not represent a differentiation from the other businesses of the same type and last but not least , choosing a wrong target audience in the absence of market analysis
From Bio fruit experience I have learned that before starting the business one should consider all the risks, make careful marketing research. Consider who will be the perspective costumers and if one is capable of entering the marketing and if it has competitive advantage over competitors.
ReplyDeleteIt failed because owner of the business did not consider all the mentioned above and made wrong assumptions.
The Bio fruit experience taught us that a business to survive must be effective and efficient in order to satisfy the need it was born for. Jones's business failed because even thought the market need of bio fruits was high he wasn't able to satisfy it, he probably should have used some advertisement in order to attract students' attention, and improve day by day, you can't say if a business will survive from the first day. Jones wanted the profit from the beginning, while starting a business is about hard work, dedition and motivation, otherwise everybody would be an entrepreneur.
ReplyDeleteIt is possible to learn from this experience that it is very risky to have a definite asset that only covers the expenses and do not plan anything for the future expenses. Buy and sell bio fruit is the core business of the proprietorship. It would have had to plan a few months of the purchase of the fruit. Usually it is needed always to add a percentage of money for contingency. Also, instead of buying a truck, he could rent it out until he had the money to buy it without compromising profitability. Sell a truck does not mean having exactly the same money for its purchase. There is always a percentage of loss (VAT and second-hand)
ReplyDeleteIn my opinion the Reasons for the collapse of this business are:
ReplyDelete- Wrong Strategy of building a business
- Lack of buyers
- Wrong allocation of the resources
From the bio fruits experience we can learn how easily it’s possible to fail, even if we think that our business idea is great, and how risky a sole proprietorship is.
ReplyDeleteeach entrepreneur should know the main reasons startups fail.
Bio fruit business failed because 1. Jones did not consider the need of young people, who are not very interested in organic fruit,
2 he chose a wrong way to sell his products (buying fruit from a truck doesn’t seem so dependable and hygienic).
He could have increased his business, trying to sell sandwiches or snacks at the University and choosing another position to sell organic fruit. He should have rent the truck, to move from one place to the other, and bought it after seeing how profitable his business was
From the bio fruit experience I deduce that before investing a big amount of money, especially when you are dealing with a sole proprietorship, you should analyze carefully your business idea taking into account all the advantages and disadvantages that could arise from this investment.
ReplyDeleteIn the case of a sole proprietorship lots of cases, like this one, teach that all debts are debts of the owner, thus the investor must be absolutely sure on what he is going to do, that is: he must be cautious about the equity invested but in particular about the liability that should be then remunerated on time, he should be parsimonious on things to buy and from which you should get, reselling them, a reasonable amount of money in case of liquidity and some other aspects.
So, what I learnt in particular from this experience is that we never have to be hasty for realizing a business idea just for the urgency of earning money, because sometimes you should get the contrary effect.
From this case I understood that sometimes offering a product in the market should be done through a very careful way. It means that the owner should first study the market and group of clients that require the product it offers and then starting with the production and delivery process. So, if the customers are not the right ones, the company even though has a good product with high quality, can fail. Offering bio fruits to young people is good for their health and it should be promoted, but are we sure they are conscious about it? The way he decided to distribute his product and promote it, made possible the failure of his business. This is one of the disadvantages that this type of proprietorship has. Being alone he didn't consider other scenarios of failure, thinking his idea would had worked. Studying the market and the customers needs are the first things to be done before offering the product.
ReplyDelete1. I can learn something from the bio fruit experiences. First of all, we should think about having partners. Jones is 100% liable in order to pay back the debts when his company bankrupt because he is sole proprietorship. Second, good business idea is not enough to success. We need a good strategy for long-term as well as good market appreciation.
ReplyDelete2. The bio fruit case has a good idea but he did not have good strategy. Jones did not calculate revenue and profit when he invested too much money to buy fruit in market as well as transportation. Moreover, he lacked of patience to improve condition. The bankrupt occur to him too fast, and he also accepted it.
this case told me if you want to get all profit.you can make a individual company but if your company have shortage.it is your responsibility.
ReplyDeleteI learned that sometimes start a experience as “bio fruits experience” is a risk ,specially if you decide to invest your money in a sole proprietorship beacause the management of the business is entirely in the hand of owner. Jones (owner) did not calculate the disadvantages of sole proprietorship like limited resources and the difficulty of attracting qualified resources. Of course, the balance sheet of the business was very good to start. In fact Jones saved the money to pay back the debt in case of business’s failure. It following that the man did not create a sustainable value and did not satisfy the needs of students.
ReplyDeleteFrom bio fruits experience ,i learned one thing that is sell things that really need. for example before to starting the business we must know thia 3 pointa. first who we are going to sell those prodcut , what are we going to sell, and why are we going to sell .this is must important things . Why he failed the most important thing is he was not effective.
ReplyDeleteI think that the bio fruit business failed because it was created as a sole-proprietorship and so was difficult to conduct from the start. It failed also because probably he hasn't the right customers (students are not so interested in buying bio fruit as lunch). I think that the most important lesson to learn from this experience is that we have to satisfy the human needs but also we have to give to the business the right placement.
ReplyDelete1. I realized that even if you have enough money to begin the business, but you don't have a good business strategy, not manage the capital carefully that you can failed easily.
ReplyDelete2. In my opinion he doesn't know what are the customers want, can't satisfied the customers. many of students don't have the interest on BIO fruit in contrast if he sold sandwich or the fast food it will be popular and he will run the business successfully.