Shanti Block and Tackle

4 Pages Posted: 23 Jan 2019 Last revised: 27 Apr 2019

See all articles by Gregory Fairchild

Gregory Fairchild

University of Virginia - Darden School of Business

Rebecca Goldberg

University of Virginia - Darden School of Business

Abstract

With a $7,500 loan from a family member, Calvin Gorelick has started an online business selling specialty yoga blocks. His primary concern is whether or not the cycles of "purchase blocks, sell blocks, receive money, make loan and other necessary repayments" will allow his company to remain financially solvent. Coupled with the cash flow issue, Gorelick has noticed disturbing sales data in his first month of doing business: with each passing week, his sales drop. Although he has just a small data set, Gorelick is worried. Is this the beginning of a trend, a one-time drop in sales that will level off, or only garden-variety variability that will average out to an acceptable level of sales?

Excerpt

UVA-ENT-0217

Rev. Apr. 24, 2019

Shanti Block and Tackle

Introduction

It was October 2013. Calvin Gorelick wrote the following email to his brother-in-law, Rafael Salazar, in reply to his request for details about the business model and need for capital:

Rafael,

. . .

Keywords: entrepreneurship, cash flow, variability, marketing spend

Suggested Citation

Fairchild, Gregory and Goldberg, Rebecca, Shanti Block and Tackle. Darden Case No. UVA-ENT-0217. Available at SSRN: https://ssrn.com/abstract=3320836

Gregory Fairchild (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/fairchild.htm

Rebecca Goldberg

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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