Jason Amidon's Portfolio Boomerang

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minimum investment. maximum return.
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Team 1

• Jason Amidon
• Michele Crispin
• Marian Fean
• Tatyana Kriushina
• Joe Marsella

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Presentation Outline

• Entrepreneurship
• Boomerang- Introduction
• Interviews
• Financial Analysis
• Problems
• Recommendations

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(No Transcript)
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Definition of Entrepreneurship

• The most simple definition of entrepreneurship is
  an individual that organizes, operates, and takes
  on the risks of a business.

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Entrepreneurship

• Vital to the U.S. Economy
• Ensures job creation and economic growth
• What does it take to be a successful
  entrepreneur?
• Vision
• Passion
• Risk taker

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Subject Choice
Seth DeForest, 28, of Haddonfield, New Jersey is
the winner of the Young Entrepreneur of Southern
New Jersey Award 2005. DeForest is the CEO
owner of Boomerang, which offers high-end used
office furniture and cubicles. His business
philosophy is unique and he believes in building
customer relationships by having fun at work.
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Interview One- Seth DeForest

• Seth DeForest founded Boomerang in 2001 with a
  warehouse 5 employees
• Started by purchasing the inventory of a going
  out-of-business used office furniture company
• Pure cash-flow company/no financing
• Distribution Marketing Strategy

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• A look inside Boomerang
• What do these have to do with selling used office
  furniture?

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Interview One- Seth DeForest

• What does it take to be a successful
  entrepreneur?
• People, product and passion
• Soul of the company
• Know your product, customer and distribution
• Challenges

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Interview- Associates

• What makes Seth a successful entrepreneur?

• Hard working and passionate
• Understands the product, marketing
• and distribution
• Caterers to his customers
• Rewards his employees
• Stays within his financial means

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Financial Analysis

• The Boomerang Effect
• The Financial Statements
• The Impact

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The Boomerang Effect

• Minimal investment, maximum return
• Pre-owned office furniture _at_ 50-75 savings
• Purchaser obtains quality pre-owned office
  furniture while
• Making the most of their furniture budget
• Saving time
• Helping the environment

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Estimated Income Statement Using Industry
Averages

• Sales Increasing by 1.0 million per year
• Inventory - 10 Million
• Debt - 0
• Based on known figures and industry averages
• Ind. Avg. 2004 YTD 05
• Total Revenue 100.00 4,000 5,000
• Total Expenses 79.88 3,195 3,994
• Net Income 20.13 805 1,006
• 
  
  
  
  
  
  
  
  
• (000s have been omitted)

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The Impact

• Turned around a failing business
• Currently employs 15 people
• Gives back to the community
• Environmentally friendly
• Reduces discarded waste
• Less pollution
• Reduces waste of natural resources
• A positive impact on the community

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Problems

• Young Entrepreneur
• Having too much fun/relaxed relationship with his
  employees
• Overly optimistic confident
• Started a new venture without a proper business
  plan
• Pursuing an opportunity without a stated NEED for
  the product/service

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Problems

• Delegation of responsibility and authority
• Promotion of people to positions for which they
  are not qualified
• Keeping people for convenience vs. skill
  requirement
• Lacking a long-term business strategy
• Risk of purchasing the wrong product

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Recommendations

• Continue to use creative outside the box
  thinking
• Continue to foster a team environment amongst
  employees that promotes entrepreneurial ideas
• Utilize planning (i.e. business strategy) and
  market research
• Develop better skills for interviewing
  cultivating potential employees

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• Questions???