Video Assignment Wormboy

This is an individual in-class assignment.

The answers for the following questions will be based on the video presentation, as well
as from theory presented in your text book in Chapters 1 4.

Questions:

1. Explain the difference between entrepreneurship, small business, and new

venture creation as it applies to Wormboys business activities. (9 marks)
Entrepreneurship is a processes of identifying a new idea that you can capitalize on.
When you are doing entrepreneurship you are starting your own business. Instead of the
entrepreneur having a stead job they would like to be masters of there own destiny.
Worm boys business is an entrepreneurship business because he decided to go into
business for himself selling worm poop. He used environmentally friendly compost and
reusable bottles and boxes to capitalize on the opportunities of eco friendly capitalism.
Small Business in Canada is a business of 100 employees or less. Worm boys staff are
about 7 employees and a handful of college volunteers. Worm boy also houses his
volunteers live under one roof. In other aspects worm boy only hires his friends for
example robin who deals with sales in TerraCycle is a former employer of worm boy. Tom
Szaky is not only the owner but the manager of TerraCycle. Tom is very invested in the
company he lives with his employees and he not only wakes them up in the morning but
also has daily meeting with his employees and managers to get things back on track.
New Venture is when a new company that is one-year-old or younger and sales products
or services. TerraCycle is a new venture because they created jobs 2001 to 2002 they
were a new venture because they just opened up as a proprietorship. TerraCycle is not
considered a new venture today because it is 14 years old. But is also the fastest
growing green companies in the world.

2. Use figure 4.6 on Page 93 of your text book to explain Wormboys activities so far. (10
marks)
Worm Boy has identified an opportunity in using worm poop as a resource for compost
and reusable boxes and bottles. Its eco-capitalism. He was in the venture capital
business in 2001 when he started TerraCycle. He has stability and growth. The number of
locations for TerraCycle is in 26 different countries as of 2010. TerraCycle profits went up
by one per cent and the company has a strong growing potential. It was the 288th fastest
growing company in America in 2009, and now its the 768th. According to Tom Szaky of
the NY Times, their sales have climbed from $77,000 in 2004 to $500,000 in 2005 to $1.6
million in 2006 to $3.3 million in 2007 to $6.6 million in 2008 to $7.3 million in 2009 and to $13.5
million in 2010 (2011). http://boss.blogs.nytimes.com/2011/06/27/why-i-tend-to-project-a-littlehigh/?_php=true&_type=blogs&_r=1

3. What is bootstrapping and how is this idea relevant to Wormboy? (2 marks)

Bootstrapping is doing more with less (Business Essentials, 97). Penny Pinching is
one thing that comes to mind when it comes to boot strapping. It has to do with
limited money and getting more out of your resources. Worm boy uses
bootstrapping to make his end product out of compost manure which is free to
feed to the worms. Tom is using volunteers that are from his college as his
employees. One-way Tom also uses bootstrapping is when the Princeton class
graduated tom and his friends went and got couches and sheets as well as pillows
to fill up the house that he and his employees were staying in. Instead of buying
new stuff and spending money it was free to him and his room mates. If worm boy
did not bootstrap, then he would of gone broke and lost the company.

4. What kind of financing is Worm boy using for his business? (2 marks)
Worm boy used equity financing to get his money from venture capitalists and
investors. Worm boy used his personal savings as well.

5. What form of business ownership would be most appropriate for Wormboys

business? Why? (2 marks)
Worm boy on the video was at one point a sole proprietorship. Partnership is the way
that Tom should make his business move because it would bring in more educated
partners also the stress that tom faces would go down and more money would come into
the business. General partner would be the best way to go because they would have
unlimited liability. And the would also participate in the business to bring their expertise.

Bonus Question: ( 3 marks)

*** Using the internet, provide an update on the current status of Wormboys
business. ***
TerraCycle invested in something called a zero waste box which staples business office
depot and Home Depot have invested money into. The boxes help manage waste with
batteries, coffee lids, ring binders and etc. TerraCycle expanded into japan. 20% of the
business was bought by progressive waste solutions. They also got a TV deal with pivot
the show is called human resources. www.youtube.com/watch?v=XNpQTI04mmI
Some of the products that TerraCycle sells now are as follows drink pouch bags, bird
feeders, park benchs, Bicycle chain picture frame, recycled dog bowl.