Week 7 Brainstorming Discussions Must post first. To respond to the Brainstorming Discussions, click on the blue hyperlink in the Topic area. Before starting, review Brainstorming Discussions. This week you will

create Part Seven of the report focusing on managing risks. Part seven of the report this week is an area that Mary has not considered well. It seems from the firm's initial interview that Mary has an attorney but she has only handled her contract work with respect with to leases and sales. She does have a general business insurance policy but now that she is working out of her home she is not sure if homeowners insurance will be at issue with that policy. She does not even know if the city requires a license to do business in her home. In short, this looks like one of those areas that Mary just does not know enough about or has not planned for well. It is plain to see she needs educating. Directions: 1. complete the following: Create part seven of the report entitled: "Managing Risks". The firm wants Mary to understand what is meant by managing risk and why it is important to consider on a yearly basis. The firm wants Mary to know all the potential risks her business may be exposed to now and in the future. The list should include not only the most common risks small business owners face but those specific to MobleyLights. The list should also identify those risks listed as present or possible future risk. Give five recommendations as to how she can manage risk keeping in mind that Mary must keep costs down by identifying whether the cost is expensive. Advise Mary about how the growth of the business can affect the list. You must use course material to support your responses and APA in-text citations with a reference list. 2. Throughout the week, complete the following: Respond to your classmates three or more days throughout the week. Remember you are trying to develop the best answers to the questions as possible. Your classmates are doing the same so read the posts carefully looking for the best ideas being presented. The goal is that by the end of the week the class will come to some consensus as to the best answers giving you the chance to submit the best ideas in the final post. You must use course material to support your responses but you do not need to use APA in the brainstorming discussion with the exception of Saturday's initial first impression post. Participation is worth 20% of the final grade. Participation must be reflected in the final post so grades will be affected by the content portion of the post if participation is not shown. Therefore, it is important to get in the class often and with the idea of improving your initial post with the discussion so that the final grade will be the best you can deliver add the recommendations and thr APA citiations Word Limit 400-450/nThe History of Mobley Lights Mary Mobley owns a business that makes geometric shaped lamps called Mobleylights. The Mobleylights are made from plastic panels that fit together like puzzle pieces. The pieces make lamps of different shapes, patterns and colors. The Mobleylights come in a variety of shapes and sizes with the largest ball lamp being 4' in diameter, or 4' x 4' square. The largest lamp sells for $125 while the most popular model, a 15" diameter model sells for $49.99. People who purchase more than three Mobleylights get one free. The choice can be hanging lamps or sit on a desk or a table. Mobleylights are popular with children and teenagers for room decor. Party planners like Mobleylights because they can set a mood in the room and they can be use again in different ways supplementing the patterns or colors from time to time. Mary first started the business in a kiosk of a local mall. The overhead was low and sales varied. She broke even almost immediately. By the end of the first year; she was making a profit. Mary expanded to another mall by the end of second year doubling sales. Encouraged by the success, Mary thought it may be time to open a shop. She looked for a spot in a small strip of stores but not in a strip mall. She found a place on the main street of "Old Town" in Ellicott City, Maryland. It was a small store with questionable parking but a high volume of foot traffic. Mary began doing lighting for party events and sales skyrocketed. Yearly sales went from $200,000 to $500,000. Thrilled with her success, Mary began to take on help. She even considered opening a shop or kiosk at the Baltimore Harbor Pier thinking she would have a lot of foot traffic. Mary was constantly thinking of ways to expand the customer base of the company. She opened a kiosk in the Harbor Building housing "Philips," a popular Maryland landmark restaurant. Sales were far from stellar but the business still showed growth. The company was now looking at over a million dollars in sales with expenses of just over $500,000. The business had 18 employees. At this point, Mary had not really explored internet sales or social media. Unbeknownst to Mary, who had been very busy growing the business, You Tube was showing instructional videos on how to make the lamps and included online websites where people could purchase the panels and other materials needed to make the lamps. One day, a downtown employee spoke with Mary about the videos. Mary was shocked. The employee said she overheard someone say to a friend, "Yes I think they are cute too, but you can go online and buy the panels and make it yourself for half the price." Within six months of this conversation, Mary, found that sales were dropping in the various kiosks, but not in the party business. Mary closed two of the kiosks, the Baltimore and the location at the first mall. She stuck with the store and the second mall location. Sales were doing well at both locations although profits were flat. One year later, Mary closed the remaining kiosk. She kept the party business in the store front. Later, Mary would close the party business as well but continue to work out of her house. Her million-dollar business had reverted to $300,000 in the span of three years.