TRICKY BUSINESS 2

PROGRAMME 6: STICMATZ

ACTIVITIES

Guidance

These activities support a mix of individual, paired and group work.

Before viewing

Discuss what kind of support parents should give a child who is running a business from home.

What do business mentors do? What kind of people become business mentors? If entrepreneurs agree to work with business mentors, should they listen to and follow their advice?

Generate ideas on how to market and sell a small storage device that keeps a car clutter free and stops things moving around.

After viewing

To view 4Learning video clips you will need Windows XP/2000 and Windows Media Player 9, 10 or 11. Unfortunately, the clips are not supported on Macintosh computers.

The video clips may contain a few seconds of extra material at the beginning and end. We have therefore included opening and closing descriptions to help identify the intended scene.

Business problems
Clip one: 01:42 – 03:45

• Opens with the narrator saying, 'Today we're in Wilstead, Bedfordshire where John is going to be meeting Matt Aitkenhead and his company Sticmatz.'
• Closes with Colin saying, 'We have a lot invested now in Matt and the business, but I guess fathers and mothers do that for their sons.'

List the business challenges facing Sticmatz. For each challenge that you identify, suggest possible causes and solutions. Imagine that you are part of an investment team. In pairs, write a memo saying what you think of Sticmatz as an investment opportunity and whether you think that the team should invest in it. Join another pair, share your memos and negotiate an investment decision. Take a group vote on whether to invest in Sticmatz, exploring the reasons for any major disagreements.

Direct selling
Clip two: 07:05 – 08:38

• Opens with the narrator saying, 'Today Matt and his mate Gareth have come to a trade fair to try flogging mats as promotional gimmicks to big companies.'
• Closes with John Boyle saying, 'Selling is undoubtedly the hardest part of any business and if that's not your forte, get someone on board.'

Discuss why Matt failed to sell any products at the Pro Retail trade fair and how he could have improved his preparation. In pairs, take on the roles of Matt and a Pepsi representative. If you are Matt, think about how Sticmatz can help to promote the Pepsi brand. If you are the Pepsi representative, think about what you want to know from Matt and prepare some questions. When you have finished, share what you have learned from the activity with the rest of the group.

Business failure
Clip three: 11:55 – 14:21

• Opens with the narrator saying, 'John's advice was clear.'
• Closes with John Boyle saying, 'If they don't get some outside investment, the chances of this business surviving are very slim indeed.'

Entrepreneurs have competing demands on their time. Some businesses fail because entrepreneurs get their priorities wrong and fall into one or more of these traps:

• poor financial management – the business runs out of money
• poor market research – the product or service does not sell
• poor price setting – income does not cover business costs
• employing the wrong people – all businesses need someone who knows about finance, research and development, production, marketing and sales, customer service and administration
• having unrealistic or vague goals – all businesses need specific, measurable, achievable, realistic and time-bound goals that give them strategic direction and help them to check their progress
• false hope – believing that the business will succeed whatever the evidence suggests.

Which, if any, of these traps did Matt and his parents encounter? What could or should they have done differently? Do you agree with John's analysis of the situation or do you support Matt and his parents? If you support John, write a letter to the family explaining why their ambitions for Sticmatz are unrealistic. If you support the family, make an action plan to help them grow their business.

Business planning
Clip four: 16:38 – 18:17

• Opens with the narrator saying, 'Graham McMullen is a millionaire many times over.'
• Closes with the narrator saying, 'Just like John, the potential investor spotted the big problem that Matt has no sales executive in place.'

Review what Graham McMullen says in this clip and explain why he decides not to invest in Sticmatz. Discuss the purpose of a business plan, and its importance to a business that is looking for funds. List the areas that you think Matt should cover in his business plan. Check out your ideas using information from the internet, banks and other organisations. Did you omit anything important?

Facing the future
Clip five: 20:16 – 22:05

• Opens with the narrator saying, 'At their final meeting in Glasgow, John has devastating news for Matt.'
• Closes with the narrator saying, 'Despite being more than £100,000 in debt, Matt still believes that he can save Sticmatz.'

Take a vote on whether you think that Sticmatz will survive as a going business. Imagine that you are a careers or personal adviser. Advise Matt on how he can develop his future career. Think about the skills, qualities, achievements, experiences, strengths and weaknesses that he has revealed in the programme. Does he have what it takes to be a successful entrepreneur? Should he look for new business partners or a full-time job?