Case Study 3: Zatswho Llc

Case Study 3: Zatswho LLC

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Abstract

The purpose of this case study is to examine and analyze Zatswho LLC, which is a business, ran by Trish Cooper (52) and Carrie Schwinoff (26) who is mother and daughter. The company creates a learning tool for toddlers. The tool consists of soft flexible protective frames into which parents can slip family photographs and create their own flashcards. Based on their market research, there were no products on the market that would compare to their niche. With owning a business and having a partner there are certain things that must be in place, even if it is a family owned business. Also, one should know what pitfalls may arise to be prepared as much as possible.

1. What tips can you offer Cooper and Schwinoff about family members who start and run a business together? What pitfalls would you warn them to avoid?

Creating a business plan to clearly define the company’s structure, responsibilities, roles, long-term and short-term plans, and direction is one recommendation. A business plan is a tool for comparing targeted performance against actual results (Scarborough, 2012). The business plan will outline specific objectives that the company will work towards. Another recommendation is that the business plan be created by both partners and effective communication and active listening will need to be utilized.

They would also need to have a partnership agreement in place so responsibilities are specifically outlined. Also, establishing how much money each partner will earn and on agreeing up-front how equity will be distributed needs to be documented. Conflict is inevitable, but should not be allowed to destroy the business and/or the family. Conflicts should not be personalized. When issues arise, strategic planning should be executed appropriately and well documented.

2. Suppose that Cooper and Schwinoff had approached you when they were launching Zatswho concerning the form of ownership they should use....