DayOne Case Study Draft.edited - Financing Entrepreneurial...

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Financing Entrepreneurial Ventures DayOne CasexUniversity of PhoenixENT/527xx
Financing Entrepreneurial Ventures DayOne Case2Financing Entrepreneurial Ventures DayOne CaseDayOne Center is a company assembled by an experienced entrepreneur Andrew Zenoffand a like-minded and active promoter Sallie Weld. The plan was formulated over coffee in asmall diner in San Francisco.The plan was to use his experience with his first company andparlay its product the My Brest Friend pillow into a venture to help new and expectant parents.Andrew and Sallie discovered that there was “no single service provider had ever been able toadequately serve the various needs of new moms” (Bygrave & Zacharakis, 2014, p. 359).Theidea was to create a company that could provide new and expecting parents a comprehensivesupportive business model that could prepare them for a new child. The business would equipparents with the knowledge and all the wares needed in one location. The new business planwould require an infusion of capital to get the DayOne Center from concept to build.Andrew’s understanding of business and being an entrepreneur was formed early in hiscareer, and his success was clearly defined by his national brand of My Brest Friend. My BrestFriend is a unique nursing pillow for mothers. Andrew “secured an overseas manufacturer, officespace in a San Francisco warehouse, and a few volume accounts that were yielding a decent butfar from satisfying cash flow”(Bygrave & Zacharakis, 2014, p. 361).Building Credibility and Securing CapitalFrom the beginning, DayOne was struggling to make a name for itself. It seemed thatevery facet of the industry was against them. But why? Andrew did the research, preparedDayOne with a knowledgeable team, and had what he thought was a solid business plan. Andrewidentified a business opportunity in a market that showed enormous growth potential with atarget rich with potential customers. The problem was too much emphasis on how the companywould be received by local medical facilities and doctors. The idea that local hospitals would
Financing Entrepreneurial Ventures DayOne Case3facilitate DayOne’s public exposure was ill conceived. In fact, the day the new business was setto open, hospital directors were actively working against DayOne because they looked at them ascompetition and not partners.DayOne has a credibility problem that prevents them from forming a customer base andgarnering respect in the business community. Brand credibility is “the believability of theproduct position information contained in a brand, which depends on the willingness and abilityof firms to deliver what they promise” (Erdem et al., 2006, p. 34). DayOne’s early years were

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Term
Spring
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Tags
Entrepreneurship, Venture Capital, DayOne, Entrepreneurial Ventures DayOne, Ventures DayOne Case

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