After taking BUS 130 3 years ago, Emily opened a clothing design and manufacturing business in 2019. Originally, she bootstrapped her business by investing $10,000 of her own funds and obtaining a family loan of $100,000. Her clothing designs were extremely popular due to her product meeting the physical and emotional needs of her target market and from her successful Tik-Toks. Last year, her gross revenue was $550,000. She wants to take her business to the next level and she believes she needs $1M to expand. Expansion includes renting or buying a larger warehouse to fulfill orders and run the business office, hire another clothing designer, source another clothing supplier closer to the US, hire additional warehouse and shipping employees, and a social media marketing campaign for her new line.
What is your advice to Emily on how she should get the $1M needed for her expansion? Use your creativity and your recommendation may include breaking up the $1M into smaller pieces. Make sure to support your opinion with material from weeks 2 & 3 and discuss the drawbacks for your option(s). For example, in business there is no clear perfect answer. There are always advantages and disadvantages to every decision. Your job is to anticipate Emily’s counterargument to your recommendation and refute it.
