Question

Write a case study include a summary, background, analysis and insights. Answer questions at the end

Video Case Ross Lohr and Nathan Rothstein have built a thriving smallmanufacturers that paid and treated their workers well. The business from the idea of giving old T-shirts new life by hav- new business plan reflects this change in direction. Simply ing them cut into squares and sewn into comfortable fleece put, Project Repat gets the old tees from customers, cuts backed quilts. The Boston-based company is named Project the T-shirts into squares, sews them together with fleece Repat because it is dedicated to repatriating textile-industry backing, and ships out a highly personal finished quilt-a jobs and helping U.S. workers earn a living wage by sewing collage of their own T-shirts. T-shirt quilts made to order Project Repat Gives Old T-Shirts New Life To start, customers visit the Project Repat Web sit www.projectrepat.com) and select the size of their quilt, based on the number of T-shirts they want sewn together Then they choose the color of fleece for the backing. enter their payment information, and Project Repat was set up as a regular corporation because it was seeking funding from venture capital- ists and angel investors. One of the original cofounders and a designer received some shares in the corporation. However, the Lohr and President Nathan Rothstein-who together current management team of CEO Ross place the order. Project Repat with detailed instructions for preparing the T-shirts are the primary shareholders-would have preferred to and shioping them to one of its two contract manufacturing establish Project Repat as an S corporation or an LLC, in in Fall River, Massachusetts, or the one in part because the tax bill would be a little lower. Lohr and centers, the one Valdeze, North Carolina. Once the T-shirts arrive, the com Rothstein have also taken Project Repat through the pro pany confrms the receipt of the TF-shirts by sending an email cess of qualifying as a B corporation, which signals their to the customer. Within about a month, the new quit made commitment to pursuing social responsibility goals as well of old T-shirts is on its way back to the customer, ready to be enjoyed for the warmth and the memories. as financial goals. Now Project Repat is reaching out to potential custom- ers via social media sites like Facebook, Twitter,YouTube. The original business plan was to make good use of T-shirts that had been discarded by U.S. consumers and wound up in Kenya. The cofounders raised money via crowdtunding to pay for designing fashion accessories ncluding tote bags and scarves made from old T-shirts Pinterest, and Instagram. The business is growing and the number of T-shirt quilts it produces has grown each year since the company started back in 2012. The best part of the business is that it is a way for customers to use their were completed, local Kenyan artisans were beloved T-shirts in a new form and relive happy memories then employed to turn the designs into finished products that were then shipped to America for sale. However feedback from U.S. customers quickly led the company every time they use the quilt. With over $4 million in annual enue, the company has been responsible for recycling over a million T-shirts that might otherwise have been rel refocus on creating something new from customers egated to landills. Just as important, Project Repat's rapid own T-shirts that had nostalgic value. So Project Repat switched from production of fashion accessories in Kenya U.S. workers, an economic benefit to the local communities growth has resulted in the creation of dozens of jobs for production of T-shirt quilts in America through contract where they live and work. Chaptor 4 Chooding a Form of Busness

Answer 1

Video Case

Project Repat Gives old T-shirts New Life

SUMMARY

In short we are talking about 02 entrepreneurs, i.e. Mr. Ross Lohr and Mr. Nathan Rothstein who are involved in the textile industry business from 2012. Their nature of business revolves around refurbishing old used T-shirts and giving them a new look by cutting them into squares and further sewing them into quilts with woolen lining material.

Mr. Ross Lohr and Mr. Nathan Rothstein are further headquartered in Boston. Moreover this project or business venture is uniquely named as “Project Repat” for the simple reason that this respective business idea revolves around repatriation of the textile industry and providing employment to scores of locals in the US.

Project Repat also have their own website (www.projectrepat.com) where customers could log in in select their sizes or preference or color of quilts they would like to buy by simply choosing the number of old or used T-shirts sewn together.

Potential customers could also reach out to Project Repat via social media platforms like You tube, Facebook, Instagram, Pin Interest, etc.

BACKGROUND

Project Repat was formed by 02 individuals Mr. Ross Lohr and Mr. Nathan Rothstein way back in 2012 in Boston. They came about with this unique of converting old and used T-shirts into quilts with woolen lining material.

Their initial business plan was to make good use of old used T-shirts thrown away by the American people which further found their way to the shores of Kenya.

Mr. Ross Lohr and Mr. Nathan Rothstein further raised funds basically through crowd funding in order to pay for design of fashion accessories including scarves and tote bags.

On completion of design, local artisans from Kenya were employed to convert the said designs into finished products and shipped back to the US.

In due course of time, respective feedback from US customers led Mr. Ross Lohr and Mr. Nathan Rothstein to set up shop in the US due to a certain sentimental value to that respective customers in the US were basically buying products manufactured locally and not elsewhere.

ANALYSIS

A brief analysis of Project Repat could shed light about a unique business plan of converting old used T-shirts into quilts which could further serve as a platform for budding or first time entrepreneurs involved in the textile industry business.

This could further involve a certain amount of funding from close quarters and deployment of quality skilled workforce.

INSIGHTS

Insights, well it’s all about the basic business idea or something unique that one could further draw inspiration from Mr. Ross Lohr and Mr. Nathan Rothstein.

At the same time it would also involve carrying out an extensive market research as to what type of products would sell in respective markets, customer wants & desires, preferences, pricing, quality, etc.

QUESTIONS

1) Considering the tax benefits, why would investors not want Project Repat to be an S Corporation?

Answer: Investors would not want Project Repat to be an S Corporation for the simple reason because they may have had other ideas of taking complete ownership of the company in due course. Something which probably Mr. Ross Lohr and Mr. Nathan Rothstein may have realized and let them to register Project Repat as a B Corporation as they could further pursue business and social responsibility goals outside business.

2) One of the co-founders of Project Repat is no longer with the company, although he retains a small ownership stake. What complications might this change have caused if Project Repat was setup as a Partnership rather than a Corporation?

Answer: The main difference between a Corporation and Partnership is that a Corporation is different from a Partnership in structure and many business ways. The only obvious idea one could think of is that one of the co-founders would not have retained part or small ownership if it was still a Partnership firm, on the contrary the co-founder would have been paid off his respective contribution and further disallowed to have any involvement of any nature in the company.

3) Imagine you’re an angel investor looking to invest into young companies. What questions would you ask the management team at Project Repat before making a final decision about investing in it?

Answer: As an angel investor I would most certainly ask the management team at Project Repat the following questions as stated below.

What on earth does Project Repat actually do?                                                                                                                 Is there anything different about Project Repat that separates it from other competitors?                                                 How does Project Repat go about repairing problems?                                                                                                 How much of an opportunity or potential lies for Project Repat in the market?                                                                   Actual and verifiable details with regard to base, registered office, headquarters, factory, etc?                                        What is the nature of services of and products offered by Project Repat?                                                                       Rival competition to Project Repat?                                                                                                                     Strategies related to Customer acquisition & retention and Marketing?                                                                             Business progress of Project Repat over the years?                                                                                                Calculated risks to be undertaken in the near future?                                                                                                        Does Project Repat possess patents and copyrights?                                                                                                       Healthy and sound financial nature of Project Repat in the market?                                                                              What amount of proposed investment would Project Repat is looking at?