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Scrutinize Before You Leap

August 7, 2007

by Andrew Olson

While reading a case study from the Harvard business school titled Eastwind Trading Company. The story starts with two ladies who are deciding whether to jump into a business venture together. The data that they received from the previous owners and the data received from the original owner were both just word of mouth. There was never financial records shared or any documentation shared with them at all. Plus they were not familiar with the venture that they wanted to jump into. I think I would have walked away for sure. It is very important that when you are researching a business venture that you have all the facts you can get your hands on in a quick amount of time.

The result was these girls went in and found out that in that field that designers only order their stuff twice a year and that was not going to cut it for them financially. It ended up being a bust business. I think they could have saved themselves the headaches if they would have seen red flags with the lack of info they had on the business. I may believe people so far but they have to back up what they are saying with actual physical data. Financial records or tax records or something if I am going to throw money and time into it as far as business ventures go.

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