Write-Up Assignment – Paul Olsen (A)
What do we learn from our discussion of the case?
There were multiple things that we have learned from our discussion of the case. First of all, there were a variety of things that Paul Olsen should consider before he proceeded. As we realized later in class that Paul Olsen was successful with raising the $250,000 and opened a piano bar and restaurant in Station Square on schedule and with sales and profits exceeding Paul's projections. We learned that Paul took risk at opening this business. Back in the day, people probably didn't have as much money to go to a bar in Station Square. Also, we learned that they weren't as experienced in the bar or restaurant business but, they still choose to move forward with the bar. Couple other points that we learned from the discussion is that this case ...view middle of the document...
As an entrepreneur, this is important to make sure your legal form of the organization is correct. This decision is driven by the objectives of the entrepreneur and the firm’s investors. A limited partnership is a partnership which has both limited and general partners. We learned that Rose was going to be the general partner who was going to assume the management responsibility and unlimited liability for the business. It does seem that Paul did choose the correct legal form.
Also, Paul decision to go ahead and choose this location despite the construction was fairly good. His timing that he chose was good because if he selected his another later time, he might not have been able to get into this area due to higher prices. If he had wanted for this location to become more popular, it will probably been out of reach. For example, if someone was trying to open a restaurant in Fisherman Warf, it would be extremely expensive. There are other risks that needed to be assessed. We learned that location is very important for an entrepreneur. Another item to consider is that there is risk-return tradeoff in this case. Paul should have considered the true cost of using student loan as primary investment vehicle for the restaurant. Paul had decided to invest all of his money up front even though he had student loans. I think it would have been wise for him to think about how he would be able repay that back. Managing risks to his personal investment of $12,500 would be a good start.
What do you think happened to Paul Olsen?
As we learned that Paul got a call from Mafia and he needed to make a decision about what to do with his business. If I had to make a decision for Paul, I would hire my own protection. I think that Paul should continue pursuing the business since it was so successful. This will help protect him from the Mafia threats. I feel that he should stay in the business to see how successful he can be in the restaurant business.
Which city was this?
Las Vegas, NV