Blues and hues for Color Valley

Purpose – The owners and promoters of Color Valley are feeling blue as their much cherished entrepreneurial endeavour is attacked by multi‐hued issues. Having chalked out a distinct position for itself in the landscape of the unorganized paint industry through aggressive brand building and marketing, the five year old company, known for its quality product and customer satisfaction, is today at a crossroads of liquidity dilemma. The severe cash crunch needs to be not only contained but reversed through well thought out actions. This is not an exception in such set‐ups: it's rather more of a norm. However, decisions of today are going to determine the fate of tomorrow. The purpose of this paper is to present a case of financial (mis)management set in the backdrop of entrepreneurial venture, which will be useful to practising managers, entrepreneurs and students alike. Design/methodology/approach – The researchers use a single case study approach by examining stages in entrepreneur development process, effect of environment, barriers to entrepreneurship and strategic decision making. In addition, secondary data on the Indian paint industry were gathered and analyzed to determine external environment for the business, and the root cause of the problems faced by young entrepreneurs identified. Findings – The case finding encapsulates issues of general management, financial management and marketing and throws a light on entrepreneurial thinking and development. Originality/value – This case study provides a deep understanding of the tough times faced by young entrepreneurs, resulting from the exposure of the multiple issues which offer the opportunities and problems to small‐scale entrepreneurs.