Reference no: EM131984612
Shawn Stevens and Roberta Roberts are health care providers and are interested in starting a medical practice (service based business) to provide health care consulting services to hospitals, clinics, and other health care providers. Stevens and Roberts plan to employ 4-5 other health care providers with an average salary for each of $150,000.
The services they will offer are in high demand and they think that each provider will generate at least $400,000 in collections for work performed. Stevens and Roberts plan to acquire land and build a building for this health care consulting business.
They estimate that it will require $1 million dollars to acquire the land and build the building and another $500,000 to acquire necessary equipment. Stevens and Roberts are each prepared to put $150,000 in equity in the business.
Goal - Financing the acquisition of land, building and equipment
Amount needed: $
Initial equity (owner) investment(s): $
Owner interests - Who? What contributed? What received?
What amount left? $
How financed Detail approach and terms and relevant amount(s)(e.g., loan terms, other financing details).
Suzy Jones is 20 years old. She has a new consumer product idea. She has put $1,000 of her own money to start a LLC and develop a prototype. Her family and friends have provided $5,000 to support product development in exchange for 25% of the business.
She has no more funds and her credit is not very strong, primarily due to her age and lack of credit history.
She needs about $10,000 to proceed based on her anticipated operating costs. She also has a quote to produce 10,000 products at a cost of $5 per unit. Her projected sales price for the product is $20.
What should Suzy do to fund the $60,000 she needs? Identify her financing options and recommend the approach she should take.
Assume Suzy raises the needed $60,000 and her product takes off in the market. She now needs $1,000,000 to take her business to the next level.
Describe her options and the related considerations in terms of ownership, compliance, pros and cons of her financing options, etc.
What approach do you think she should pursue to fund the business? What other aspects of her business may need to be (re)considered?