MGT602 Entrepreneurship Assignment 1 Solution 2017

While taking a plunge into the business world an entrepreneur must opt one among the three
broad types of business startups. He or she can either have a Lifestyle Firm, Foundation
Company or a Gazelle (High Potential Firm). Different types of startups have their own unique
requirements and limitations. The selection of a startup and its categorization is based on the
attribution of resources and their potential implication.
Bilal is a passionate and vibrant 25 years old young lad with a moderate academic background
and good interpersonal skills. He is passionate about weight training and body building right
from his childhood. Currently, he is employed in a gym and working as a trainer. Although he
grabs a handsome salary from his job but he is not satisfied by his current status of being an
employee of a company. Accompanied with a brighter sense of business and risk taking-ability,
he wishes to start his own business. He has limited set of skills and attributes making his startup
selection decision more critical. He has arranged some finance for his startup so he is a bit ready
to do the business. He needs an expert opinion and guidance to flourish his entrepreneurial
journey with effective and efficient business management in the later stages of venture growth.

His business startup must be one among the above given three broader types i.e. Lifestyle Firm,
Foundation Company and Gazelle (High Potential Firm). As a student of entrepreneurship you
need to answer the following questions to help Bilal launch and run a successful business.
1. What type of startup suits him the most looking at his attributes and skill set? Mention the
startup type and business name separately. (2 Marks)

Solution : Business Type: Life style firm
Business Name: Short Grid

2. Write four logical reasons to justify your suggestion. (4*2=8 Marks)

A lifestyle business exists to fund and support your lifestyle. The business can be offline or online but the main difference is the focus is not on growth but sustaining the owner’s lifestyle.
Lifestyle businesses can be started with little to no money and in most cases there are no other shareholders, leaving the owners to have more control in the operations of the business.
You can start them with little to no money and you can control costs easily.
Built to operate for many years
Generates a good income for those involved
Allows founders to pursue passions & interests
No intentions to sell or exit.

1. Read the content given on Page No. 8 in lecture No. 3 of the handouts to grab the concept of
“Different types of business start-ups”
2. Write precise and to the point answer and avoid un-necessary details.