What risks did Cheri Garcia face with trying to launch Luminous Envy? Select all that apply. a. She saw a valid opportunity in the tanning market. b. She needed a large sum of startup funding. c. She got national media exposure. d. She borrowed money from family.
What risks did Cheri Garcia face with trying to launch Luminous Envy? Select all that apply. a. She saw a valid opportunity in the tanning market. b. She needed a large sum of startup funding. c. She got national media exposure. d. She borrowed money from family.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Risky Venture
Cheri did not give up. She eventually found a developer who would help get her business off the ground if she was able to raise $38,000. But as a 23 years old, it wasn't easy coming up with $38,000 for inventory. She was able to borrow money for a new idea can be super risky. Cheri remembers, "I had to take the risk of borrowing $20,000 from two different people, when I didn't even make that much in a year." However, the extra pressure to succeed made sure made sure that she that took that risk head on. "Some people say, 'the greater the risk, the greater the return.' I don't believe that. I say, 'the greater the risk, the harder you should work.'"
What risks did Cheri Garcia face with trying to launch Luminous Envy? Select all that apply.
a. She saw a valid opportunity in the tanning market.
b. She needed a large sum of startup funding.
c. She got national media exposure.
d. She borrowed money from family.
Transcribed Image Text:Inspiration Strikes
At 21, Cheri Garcia was originally planning to pursue a career in news
broadcasting, but her entrepreneurial spirit pulled her to become an Inventor.
She first drew inspiration while swimming with her family. While hoping to
get a suntan that day, she wished there was a way she could accelerate
the tanning process, without having to use suntan oil. This lead Cheri to
her invention: the first-ever tanning bed
you can inflate, deflate, and take with
you. By 23, Cheri had started, and was
operating her business, Luminous Envy
(www.luminousenvy.com). Luminous
Envy has since been picked up by "As
Seen On TV", Leslie's Pool, and many
other pool supply retailers. However,
her quick path to success was not free
of challenges.
Cheri Garcia.
After inspiration for her portable tan-
ning bed struck, Cheri started sketching
the vision for her product. From these
sketches, she came up with the design
for the Luminous Envy tanning bed,
making it inflatable, and with a reflective material on the bottom and
angled side panels to maximize results. She was extremely excited about
her idea and was ready to market it to developers who would make it for
her. However, there was one problem, "I called every factory in America,"
Cheri said. "Nobody would touch it without $100,000 up front."
Transcribed Image Text:Cheri's risk paid off. After making a first batch of 1,000 beds, she
quickly gained national attention and media buzz for her invention. With
the exposure to a larger customer and investor base, her business took
off. She continued to grow her business and obtained the patent rights in
2013. Her $38,000 risk paid off, allowing her to make ten times what
she did as an employee of a business.
Risk with Unexpected Rewards
Cheri's experience with Luminous Envy has given her credability to pursue
numerous other opportunities. Since then, she has started several other
businesses. This has included inventing an apartment evaluation app called
RentEval (http://www.renteval.com/). Her new inventions have given her
media buzz, including a segment on the Steve Harvey show. She has also
used her new ventures to help her on the path to her ultimate goal of becom-
ing a motivational speaker and invention consultant. Cheri said of her goals,
"I not only want to motivate, but INSPIRE others to realize their passion
and take risks to achieve their goals. It is my personal challenge to be a
part of helping others make their wildest entrepreneur dreams come true!"
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