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URBAN AXES: FIRST MOVER IN US EXPERIENTIAL ENTERTAINMENT Marilyn Anthony and Shreshthi Mehta wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; www.iveycases.com. Our goal is to publish materials of the highest quality; submit any errata to [email protected]. i1v2e5y5pubs Copyright © 2021, Ivey Business School Foundation Version: 2021-03-12

In early 2017, chief financial officer Krista Paton reviewed the 2016 financial performance of her fledgling company (see Exhibit 1), Urban Axes, and could not believe the numbers. Started as a “side hustle” by Krista and partners Shaun Hurley, Stuart Jones, and Matt Paton in 2016, Urban Axes was the first axe-throwing entertainment venue in the United States. The business opened one location in Philadelphia, Pennsylvania, in September 2016, and by late December 2016 Urban Axes had already far exceeded the financial modelling that Krista had designed to identify low-, medium-, and high-performance earnings objectives. Krista and her co-founders had some big decisions to make. Given the business’s enormous early acceptance by customers, the earnings potential of Urban Axes’ unique business model, and the business’s first-mover position, what options did Urban Axes have for expansion? How quickly should the co-founders make their move? Would Urban Axes be a career bull’s eye and generate enough earnings for the partners to quit their day jobs and go all in on axe throwing? AN UNLIKELY ENTREPRENEUR In many ways, Krista, age 34, did not fit the profile of an entrepreneur. As an undergraduate, she explored many areas of interest, beginning with computer science and ending with a degree in Spanish and modern languages, with minors in international business and computer science. While an undergraduate, Krista worked nearly full-time in retail for mobile phone service provider Sprint Corporation before moving into the company’s internal audit department. Exposure to auditing led to Krista’s pursuit of a master of business administration in finance, which in turn led to her first job in the finance department of the international consumer goods corporation Procter & Gamble Company (P&G). Krista’s initial P&G position in Cincinnati, Ohio earned her recognition as a high-potential employee. A series of promotions within a variety of product lines followed, including roles as senior internal auditor, Bounty financial analyst, customer team finance manager, Canada household needs finance leader, and Gillette upstream finance and strategy manager. The promotions had involved transfers—in 2011 to Philadelphia, Pennsylvania, and in 2013 to Toronto, Ontario, Canada. Krista attributed her rapid growth at P&G to intellectual curiosity, something she felt came naturally to her. “I like to look at a question, form a hypothesis, and then collect and use data to prove or disprove those assumptions. That was a behaviour P&G really encouraged and valued in its employees.”

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