The EyesNow case presents a startup company with two founders struggling over their growing differences of opinion on the best way forward. After initially proving their concept using their own funds and successfully raising angel funding to launch a chain of retail kiosks selling eyeglasses, Cliff Burris and Corey Smith are at a crossroads. With several stores open and more being built at rapid pace, in-store traffic suddenly has slowed. Results from a meticulously planned marketing campaign are mixed. Competitors are cutting prices. And their angel investor is increasingly unhappy. The case prompts students to think about ownership and control during the early stages after a company’s founding. Strategic issues presented here include investor control, business partner relationships, marketing strategy, and pricing. Students may apply the popular strategic framework of Kim and Mauborgne’s Blue Ocean Strategy to assess the market.

This Skill will expose you to choices available when starting or bringing a business to and through the various growth stages. We will provide frameworks to develop a business funding strategy and identify appropriate sources of that funding in the stages of growth from the classic phases of “friends and family” to sources of grants, angel networks, and eventually venture capital. You will learn the sources, terminology, and deal structures that can be considered. These tools will allow you to better understand the motivations of the various funding sources and the cost of capital from those sources. With those considerations in mind, you will be better prepared to align the interests of the funding sources and deals with your business and thereby increase the probability of sustainable, long-term value creation.