198 ENTREPRENEURSHIP
ket for about three years, its primary purpose is the printing of textiles in bulk form, not fin-
ished t-shirts and other apparel. We’ve been assured it can be used for this purpose, but some
development and fine-tuning may be required to optimize the process.- Problems with suppliers: As a new business, Babyyourway.com will have very little leverage
with suppliers. Given the commodity nature of the raw materials required, we don’t see this
as a major concern because there are substitute suppliers. - Unforeseen industry trends: A breakthrough in digital printing beyond the technology we
are exploiting could put Babyyourway.com at a disadvantage and require additional invest-
ment. Digital printing is a rapidly expanding industry and development is occurring at a
rapid rate. Also if a major e-tailer or brick-and-mortar retailer puts significant effort into cus-
tomization, Babyyourway.com will face significant competition where none exists today. - Unforeseen events: Babyyourway.com requires discretionary income to survive.
Customization is a luxury, albeit not a very expensive one. Economic downturns will dispro-
portionately affect our company. Nonetheless by positioning our products as gifts for one of
life’s most important occasions (the birth of a child), we will be better insulated against
changing spending habits than products designed primarily for the purchaser. Family mem-
bers are more likely to splurge on new babies than on themselves. - Failure to survive retaliation by competitors with significantly more resources: Several online
presences pose a risk to Babyyourway.com if they decide to enter the customizable baby
products business. Amazon.com is just one of many examples. The resources behind such a
company would make it a significant threat. Babyyourway.com would rely on first-mover
advantages to mitigate this risk since the existing “e-powers” are not currently in our busi-
ness. - Risk of inexperienced management: As with any company, the quality of the management
team is critical to success. Babyyourway.com has limited experience in new venture creation,
but the experiences of the team combined with available external resources (such as working
with DuPont and with local universities on R&D) will mitigate this risk. Also, business incu-
bators, SCORE, and other SBA resources will be exploited to the fullest possible extent. - Need for additional financing: The company intends to rely on internal cash flow generation
to fund its growth, but we realize that as Babyyourway.com continues to grow, additional
investor financing may be required. The dynamic nature of the economy and the resulting
impact on the venture funding market could (positively or negatively) affect the competition
for available investment funds. Sound management coupled with a well thought-out busi-
ness model should enable Babyyourway.com to succeed in soliciting future developmental
funds if necessary. - Risk of competitive entry: The raw materials needed to introduce the babyyourway.com prod-
ucts are readily available. Babyyourway.com would mitigate this risk by being a first mover
and working steadily to develop brand equity. High advertising spending the first year on
such existing online sites as Google, distinctive packaging, a user-friendly interface, and a busi-
ness model designed for low-cost customization, will all work to make Babyyourway.com syn-
onymous with classy, thoughtful baby gifts. Placing products in social settings (baby showers,
family reunions, etc.) will maximize word of mouth. By moving quickly, expanding rapidly,
and marketing effectively Babyyourway.com will build the most important sustainable com-
petitive advantage in this field—its name and reputation. As Babyyourway expands R&D will
ensure that its products remain best in class by keeping ahead of the copycats.