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▪ As we know, "liability of newness" means that the start-up company is under the risk to
fail. From time to time it is getting stronger, also, has communication with stakeholders
and consumers, furthermore, contact with other companies. By the way, the risks of
bankrupt are getting lower. Justin makes his business step by step to make his success. In
this case, he started by looking for the appropriate books and information about the
business at the University of Colorado's Business School. Then, the second thing he did
was reach out to others for advice, and finally, in 2002 he wrote his first business plan.
Justin did not take a loan from the bank, he borrowed from his friends and family. I think
this is a good idea because if there are such people who can help you, it is better to lend
money to them. After that, Justin bought a used industrial-sized food processer, decided
to the manufacturer on his own and also, found a company in Denver, which rented him
space. Soon, he found out that he'd need to work through Whole Foods's distributor. The
distributor was initially reluctant, but Justin persisted, and his product was eventually
taken on by Whole Foods stores in the Rocky Mountain region. After that, he had a new
idea to produce squeeze packs. Unfortunately, no one offered to help, so he decided to go
it alone. Initially, they were a disappointment, but then Justin made a switch, which did a
trick. The idea was that consumers, who may be reluctant to try an entire jar of premium-
priced peanut butter, might try a 99-cent squeeze pack. After all, his decisions made the
start-up stronger, and the risk of fail was overcome.
▪ Despite successes, he needed a sizeable amount of capital to purchase equipment, hire
personnel, crank up his marketing, and so forth. He emphasized three key points:
1. He had an experienced manager on board
2. A strong board of advisors
3. Professional manufacturers lined up to produce his product
I think that they are key employees that move a new venture from an idea to a
