Cold Opportunity: The Nils Bergqvist Story (A) Case Solution

2. Based on the same inventory of your means, what else can you do besides build an ice hotel?

The same inventory can also be used to build an ice rink. The only addition required would be that of skates, and there will not be much need for the steel frames. Therefore, in this case some investment will be required to purchase the skates. The plastic present can be used as an upper sheet over the already present ice. This plastic can be surrounded by wood which will act as the boundary of the ice rink. This plastic will be filled with water, and the wooden fence will help conserve the water, plus the plastic sheet will allow water not be absorbed by the ice below. The reason for making the water free over the ice surface is to ensure that a smoother and leveled surface is available for people to skate as this will particularly be important for inexperienced skaters, thus ensuring that everyone has a good time.

As the raw material that goes into building an ice hotel is oddly similar to that required for building igloos, an option could be to make igloos rather than a hotel supported by a small scale ice restaurant. This can work similarly to a hotel as well providing accommodation and food to the tourists and food items, but having a difference of construction of small scale in case of igloos. This would also provide the tourists with a private space. However, one major drawback of this would be that only a limited number of tourists can be accommodated.

3. How will you leverage partnerships to help you create an ice hotel (choose a specific example and plan out how you would approach the partner, and how would you structure the relationship)? Be creative and you don’t have to “knowâ€Â the person today – if you set a goal you can make it happen.

As I have the entrepreneurial experience and have been a part of different ventures throughout my life, I believe I will be able to handle the business side of the project. I will be able to utilize the business opportunity, to categorize the tourists and make sure that the ice hotel provides facilities that are able to attract the majority of tourists. However, I lack the artistic and engineering abilities that go into making an ice hotel and, therefore, my priority is to find a partner who can lend me the said services. As known, the ice sculptures were made by local artists. Therefore, I intend to go into a partnership with a local artist. This would also be beneficial as the local artist would be available in that region on a regular basis. This will help me stay in touch with the local business trends, as well. Although, the intention for the time being is only to work on a business venture for the winter, it is not known what facilities may be available in the future and how the trends may change. Therefore, having a local business partner would also help to pounce on such business opportunities. A local would also be more aware of the availability of different raw materials and facilities in the region. So, for the above mentioned regions I will go into a partnership with a local artist, preferably one who has worked on one of the previous sculptures.

I will approach the person with my business plan, an estimate of the required investments and the possible costs. Keeping in mind that I am approaching an artist and not a professional entrepreneur or businessman, the basic incentive that I will offer will not be the monetary value but rather the intellectual and artistic value of this adventure. The target will be to make that person realize the uniqueness of this concept for that region and the service this will do towards art in the region, as well. As per the division of profits, my preference will have to have a larger share as the idea was mine, and of course I took on this venture. However, I will give the artist a room for discussion and making up a policy so that he finds me to be a flexible person as well which is important for a successful and long lasting business venture.

4. What would you be willing to lose (your â €œaffordablelossâ€Â) in working to build an ice hotel? Think bootstrapping.

First of all, I will be willing to lose my savings both in the form of available cash and capital in order to make an investment in an entrepreneurial activity. Starting off a business has its risks and one of the major risks is that the business will not work or will not provide the benefits that can cover up for the investment done. Although, the target is to make a business profitable, there is a possibility of failure; therefore, one should be willing to lose his investment in order to start a business. Even if the business does not fail, one has to stay patient for the invested costs to be covered up by the profits. If the business takes off then hopefully the costs will be soon covered. However, if it takes off at a slower pace then I will have to be patient.

As I already have other projects running for summer and as mentioned I do keep adding boats to accommodate more customers, chances are that my new business venture may meddle with my other businesses. This often happens when hope is seen in a business, but it does not pay off at the expected rate. However, this can also prove damaging to my other business so I may well have to abstain from any such activities.

On top of all, I will be willing to lose my time and energy. I have to note that this is the first time that I have taken on such a venture, so chances are that I may be taken advantage of by different vendors and the key to survive would be not to lose hope. A lot of time would be required to learn the tricks of the trade and finally make the venture profitable.