Question 1: based on your analysis of the owner's wishes
(shaun's criteria) and the three financing options available,
which financing option would be the best option? *
shaun's criteria
hi team,
i wanted to provide you some guidelines as you determine how we'll finance our
expansion. give this careful consideration, as we need to get this right.
1. i estimate we'll need $150,000 to increase capacity in order to stock the five additional popup
stands
2. we'll need to make sure we have additional funds available to increase our marketing efforts
to stimulate demand
3. cash flow is going to be tight, so i'd like to minimize interest payments
4. i'd like to maintain or increase our profit margins
5. since i don't have a lot of experience with big discount retailers, i'd like to add a thought
partner with experience in this channel
6. if we're successful over the next two years, we'll likely seek additional capital to expand into
more stores, so i'd like to do all we can now to enhance our credibility
we need to move on this quickly, so i'd like an answer by the end of the week. -shaun