I.

Main Problem and Any Assumptions Black-Jack Antiques:

Furniture and Restoration is founded and owned by Kevin Jack and Jeremy Black when they
decided to leave their jobs in the state and start to make a living out of their passion. Jeremy
is handling the shop's restoration while Kevin is responsible for the operations of the
business, including financing.
It is to be noted that the two are solely responsible for the daily activities of the shop. One
day, Kevin found himself in a dilemma upon learning that Jeremy is eyeing a job opportunity
to work in a nearby furniture design firm.
Kevin is concerned about their business should Jeremy leaves, especially realizing that they
do not have any business plan or partnership agreement. He is faced with the concern of
running the restoration part of the business and if the selling of antiques could carry the
weight of the business. Likewise, he is concerned for his friend's well-being knowing that
Jeremy is facing financial woes, and he might let his dream die should he not take the
opportunity. Kevin is now confronted with choices that he must make for the business, for
his friend, and for himself.
Analysis (Integrate the concepts, impact to stakeholders, factors to consider)

1. If you were Kevin, how would you initiate a conversation with Jeremy? What would
you want to learn? What would you say?

If I were Kevin, I would make sure that I already cleared my mind from the anger that I
felt upon knowing my friend’s intentions to seek opportunities in the furniture design
firm. My conversation with him will have the goal of understanding how he is doing and
coming up with a decision regarding our business.
I would talk to Jeremy casually, engaging with him in a light and friendly manner about
how he is doing now, about his family, and about his plans.
At this point, I have thought of two scenarios:

(1). If Jeremy talks about his plan of leaving the business, I would ask the following:
▪ Why do you want to leave the business? What factors do you consider in doing
so? If there are issues in our business, can we still work it out?
▪ What are your career plans? Do you intend to mentor someone?
▪ What do you intend to do with our business, especially knowing the fact that we
do not have a business plan or a partnership agreement?

(2). If Jeremy does not tell his plan of leaving the business, I will open it up to him,
saying that I learned it from an anonymous person and will ask the mentioned questions
above.
Whatever Jeremy’s answers are, I would emphasize to him that I am his friend and
would like to support him whatever he does. However, I would also like to tell him
about the fate of our business should he leave, and of course the possibility of what
could happen to me as the shop is the source of my living. In coming up with a
decision, I would lay-out our business' current state, the implication should he
choose to leave or not, and the possible outcomes.

Whatever Jeremy’s answers are, I would emphasize to him that I am his friend and
would like to support him whatever he does. However, I would also like to tell him
 about the fate of our business should he leave, and of course the possibility of what
could happen to me as the shop is the source of my living. In coming up with a
decision, I would lay-out our business' current state, the implication should he
choose to leave or not, and the possible outcomes.

2. What does this case illustrate about the risks of starting a business with a partner?
How might those risks be minimized? Explain.

According to Kopp, a partnership is a formal arrangement by two or more parties to

manage and operate a business. This type of business is often formed with a friend.
Although this has benefits, such as having someone to share the costs, responsibilities,
and risks, having access to your partner's network, and having someone who could offer
mutual support and motivation (Kiger, 2014); however, this could also pose some risks.

In the case of Jeremy and Kevin, they developed a strong friendship throughout the
years, which could have led them to neglect the need for a business plan and a
partnership agreement, having in mind that I know this person very much. We could also
magnify the issue of conflicts in interest from the case. Jeremy, who is eight years
younger than Kevin, intends to join a furniture design firm and probably expand his
career. On the other hand, Kevin is seen to be more focused on their business; he knows
that he is already advanced in age and might not find other opportunities. Lastly, the
case points out the reality that partnership sometimes cannot be sustainable. Ideally, for
a business to run, it needs a hustler, hipster, and a hacker. The hustler is the one who
builds the business, marketing, sales, and monetization person. The hipster is the know-
it-all when it comes to the product’s functions and the operation. Lastly, the hacker is
the back-end person who knows the technical side and has the skill to do a business’s
product. These three mentioned types of people could be linked with a tripod; without
one, the business fails to survive. In the case of Black-Jack Antiques, Kevin is the hustler,
and Jeremy is the hacker since he is in charge of the restoration. Jeremy, who wants to
leave, might lead the business to die.

Risks, I think, could be minimized by having a business plan. A business plan specifies the
business details prepared by an entrepreneur before opening a new business (Daft,
2012). I learned that business might be successful without it, but having one increases
the chances of success. It also needs to be updated yearly to adapt to changes in the
business. A party, or in this case, a partner could be protected by having a partnership
agreement. It is a contract between partners that sets out the terms and conditions of
the relationship between the partners (Muray, 2019). It helps sort out the confusion
should there be a falling-out in the partnership. Risks in the case could also be
minimized if Kevin and Jeremy have become more involved in each other's tasks. This
way, the business can be somehow sustainable since they know how to do each other's
part. This also prevents being bored or restless in their daily tasks. This adds another
challenge and an avenue to learn more. Lastly, the business could have someone who is
not their friend, who could be each other’s back-up. This could provide more stability
and security in the business as that person can provide inputs more objectively.
3. Do you think Kevin could make a go of the business alone? Should he try? Discuss

As I perceive him, Kevin is a person who has a tolerance for ambiguity, which is
exemplified as he and his friend, Jeremy, ventured in the business in the first place. He
could also resist the stress of running the business since Black-Jack Antiques: Furniture
and Restoration was able to thrive, which was reflected in the steady growth year after
year. Besides, he has empathy as he is much concerned about the well-being of Jeremy.
In terms of skills, Kevin is business-savvy and detailed-oriented, and he already exercised
this as he oversees sales and business operations. I think Kevin is an idealist
entrepreneur who seeks excitement in doing something new and a chance for
advancement, which he did not find in his job previously. Moreover, Antiques is
something he is passionate about, and he made the leap of turning this into a business.
We could say that Kevin has the values of being a good manager and entrepreneur;
however, Kevin is faced with a problem as Jeremy is the heart of restoration. What Kevin
may opt to do here is to hire someone and be trained by Jeremy for a while. Given this,
he should try running the whole business without his business partner and friend. It is
worth the try since the business has already become his bread and butter for years, and
the experiences in the business I think has enriched him to do better. This experience
includes dealing with the burden of mundane activities and Jeremy’s desire to leave the
business.

The case's main problem is what Kevin should do if his business partner, Jeremy decides to
pursue the opportunity in the design firm. In this event, Kevin should determine how he
should handle the business, especially the restoration part, and consider that Jeremy is also
his friend. It is also equally important to take the point of view of Jeremy. He also has a
decision to make, to leave the business or not.

Jeremy leaves the business, Kevin to run the business If Jeremy is adamant about leaving,
Kevin must respect his decision and let him join the design firm. Before doing that, Kevin
must discuss Jeremy's issues and concerns as to why he decided to leave, be it personal or
about the business. He should also ensure that they amicably settle business matters, such
as the possibility of buying Jeremy's share of the business. Kevin to run the business, with
the restoration and furniture. Given that Kevin is equipped with a good manager's
characteristics and skills, with the purpose of making a living out of the business and passion
for antiques, I think he can pull-off making things end meet when it comes to the
restoration. It is also worth trying given that Black-Jack Antiques: Furniture and Restoration
already has a solid base of customers and referrals and the fact that it made a steady growth
year after year. Kevin to see if the business will take-off, maybe he could determine this in six
months to a year.

He could gauge it by setting parameters such as target sales, profit, or by looking at the
financial statements of the business. Should the business with restoration would not work,
he should focus on doing what he is best at, with the furniture side of the business. If the
furniture side will still not work, maybe that is the time to reevaluate the business. It may be
best to try doing other things such as to sell other products, worst case would be is to sell
the business.
Jeremy Decides to stay, and together they run the business.
Should Jeremy decide to stay, it could probably be because he is willing to give the business
a second chance and focusing more on the business (e.g., being more aggressive in sales and
marketing) could be enough for his financial needs, given that he is facing personal debt. It
could also be because of the friendship that he and Kevin made since the start of their
careers in the department of transportation.