1 Dr John Case Thursday 15 th April 2010 Stephen Spring sfspring@mac.com

1

Dr John Case

Thursday 15th April 2010

Stephen Spring

sfspring@mac.com

2

John Osher

3

John Osher - Background

• Earring store• Used clothing store• Taxi driver/Commune/Carpenter/plumber• Energy conservation products• Toys

– Crawlspace Rainbow Toy bar– Stretch Armstrong, Giant Bubble Gum, Lazer

Pop– Spin Pop

Bill Salman 2005

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The SpinPop

The single least socially responsible product ever made

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Post-Harvest Search

• Golf is frustrating . . . .

• Charitable activities only take so much time.

• What do we know?– Battery-driven, small electric motor for rotating

head device that meets high health standards– Chinese partner relationship– Distribution relationships

• What should we do?

Bill Salman 2005

6

Design Criteria for New Oral Care Product (and Company)

• Similar to manual but much better• Battery runs 3 months• Try Me! Feature• Sell @ retail for < $6.00• Good margins for everyone in the chain• Build a company with <12 people, all over

qualified

Bill Salman 2005

7

SpinBrush

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SpinBrush - Options

• Grow the Business

• Partner with P & G

• Sell to P & G

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SpinBrush - Exit

• Overview of Business– Investment $ 1.5 million– Sales $44 million– Profit $20 million– Employees 9

• Sale of Business– Down Payment $165 million– Earn out $310 million– Total $475 million

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SpinBrush - Learnings

• Framing the Problem– Cheaper version of $70 product– More expensive version of $0.80 product

• Scanning process - finding non-consumers, over-served consumers

• Low price, low costs, low breakeven• Hiring 101• Chinese manufacturing• Making it work for everyone• Built to flip vs. built to last

Bill Salman 2005

11

Post-Harvest Search

• Golf is frustrating . . . .

• Charitable activities only take so much time.

• What do we know?– Battery-driven, small electric motor for rotating

head device that meets high health standards– Chinese partner relationship– Distribution relationships

• What should we do?

Bill Salman 2005

12

Play it again, Sam (1)

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Play it again, Sam (2)

Father’s Day 2004:The ShaveMan disposable electric Razor $4.95 in 1,500 WalMarts

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Wrong Expectations

1. Not enough research to confirm viability

2. Miscalculate market size, timing, barriers, share

3. Underestimate $ required

4. Over-project sales

5. Under-project costs

6. Too many people and overheads

7. No contingency plans

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General Mistakes

1. Too many unnecessary partners

2. Hire for convenience not skill

3. Lack continuous overview, manage in parts

4. Focus on scale as opposed to profits

5. Seeking confirmation rather than truth

6. Complexity

7. Lack of clarity as to aims

8. Lack of focus

9. Lack of exit plan and strategy