Emily Guo 1
Home Safely Case
BAEP 451 Fall 2013
Emily Guo
Sept 14, 2013
With no further information, my intuition is that this should be a good venture idea for
David. First of all, he comes from a sailing family, growing up he would have prepared
himself with enough industry knowledge in sailing related situations. Also that his
previous job on the Balboa ferry made him an experienced worker in the industry. His
interests, business sense in this field and his connections made him came aware of this
opportunity. Considering the potential market, the change of rules, the cut-back in services
of the U.S Coast Guard also especially favor this venture idea. Moreover, the information
shows that although many others had similar ideas in the one-man tow boat business, its
still great opportunity in the expansion of it. I believe he could use this opportunity to
become a future successful entrepreneur, because what matters is how an entrepreneur
refines prior efforts to the known, and how he prepares for the unknown.
Considering the chance to survive for his first year venture, since David already have a
handful of information, I believe making a break-even analysis and a projection of year 1
cash flow statement would be beneficial to him. Government regulations and weather
factors are uncontrollable while the pricing, service level and schedule, the arrangement of
capital are controllable. With the information, David need 11 addition boats, a monthly
