	Richards’ and O-Fold’s resources and assets are very limited at the current time.  Their most significant assets are intangible competencies in innovation and knowledge of consumer desires.  O-Fold has virtually no workforce as of now beyond Alex Richards and his brother.  Outside producers have been contacted, but no arrangements have been made.  Richards has no relationships with suppliers, putting him at a significant disadvantage even against small, but established businesses.  The only assets of any value to Richards and O-Fold right now are, as mentioned, their skill in creatively designing luggage products with in-demand features, and their comparatively good, first-hand understanding of consumer wants and needs.
	Most of the competitive strengths Richards and O-Fold possess are largely speculative.  They seem to have a solid prospective product that encompasses much of what consumers seek in modern luggage, but they have neither first-hand market data nor any direct consumer research to back it up.  The most advisable course of action to give them some degree of reliable competitive strength would be to patent the O-Fold and/or the concepts involved in it (e.g. wrinkle-preventing designs, maximum use of storage space).  Richards lacks more than he possesses in terms of competitive strength.  As mentioned above, he lacks any sort of relationship or bargaining power with suppliers; he has no workforce and thereby no way to create a competitive advantage by utilizing labor in innovative and effective ways; he has no advantage of any sort in regards to location; and he has access only to the lowest levels of investment capital (family and friends, bank loans, angel investors).
	Richards’ and O-Fold’s financial state is also very risky and speculative right now.  So far the only source of financing has been Richards’ own money.  He is considering seeking out angel investors, and could apply for a bank loan, but otherwise has little access to capital beyond his own savings and investments by family and friends (if they choose to invest).  Richards will likely require a bank loan or angel investor financing if he wishes to produce the O-Fold in large quantities and market it anywhere except a website.  Profits in the luggage industry are healthy in general, but as the O-Fold is a newly created product and Richards has no experience in running or managing a business, profit prospects are shaky.  Beyond patenting his ideas, another excellent step to take after arranging financing would be to hire at least one experienced business manager, and possibly a team of people experienced in running a business if the O-Fold sees strong initial demand.  Qualified management will be necessary to help ensure a good possibility of profits and sustainable revenue and growth with the O-Fold.  (See Appendix 1 for SWOT analysis.)

O-Fold faces many risks that may ultimately affect how the business operates and whether or not they will achieve success in the market.  The opportunity costs of starting a company from “scratch” in Richards’ situation can be somewhat significant; examples include the financial (personal capital) aspect and also a personal life aspect. Without an angel investor, Richards would have to invest his own money and if the business is not a success could result in personal financial difficulties and lack of security.  Also, Richard would be responsible for the entire company so that could impact future family plans that he has with his girlfriend for the next seven years.  Richards’ must personally feel as though the opportunity costs presented do not outweigh the potential rewards.  Once Richards’ has determined if the associated opportunity costs are worth the risk personally, he must decide amongst the strategy options which is the best “fit” for O-Fold. 
