Assignment -
Watch one episode of The Profit, a television show on CNBC featuring Marcus Lemonis. Marcus is an investor who helps struggling/failing businesses turn their fortunes around. The typical flow of the show is as follows:
- Marcus meets the business owner(s) and gets a feel for where the business is. This always includes a review of financial statements.
- Marcus makes a financial offer for part of the business. The owners may try to negotiate with Marcus to get a better deal.
- After the deal is made, Marcus implements changes aimed at turning the company around.
- By the end of the show, it is usually apparent whether or not the deal has a chance at success. Either the owners have followed through on Marcus' advice and signs of a turnaround appear, or the owners have fallen back into old habits that will almost certainly doom the business.
Your task is to write a 400-450 word summary of the episode you watch with a specific focus on the financial aspects of the business. Specifically, you must include the following:
Background of business and deal o Name of business and business owners o How long business has been operating o What the business does
- Marcus' offer and the final negotiated deal
Main problems with the business and Marcus' suggested solutions o While there are likely to be several aspects why the business is in trouble, finances are always a part of it. This is where you must specifically focus on the financial aspect of the business!
- What problems do the financial statements point to?
- The show typically uses several snappy graphics to illustrate how the business' finances could improve. Be sure to include/summarize these.
- What other operational/marketing/management issues are present, and how do these impact the bottom line (i.e. FINANCES) of the business?
- With all of the problems above, be sure to include Marcus' proposed solutions.
Resolution o By the end of the show, is the business in a better position to make money?
- Were the owners agreeable or hostile to the changes?
- Do you think the business' finances are shored up enough to be profitable in the long-run/future?
This assignment is designed to illustrate how small businesses operate in the "real world." The show does an outstanding job of illustrating how each of the areas of a business (operations, marketing, etc.) need to be "right" in order for the business to thrive. Ignoring one area altogether is simply not an option and leads down the road to financial ruin.