Goal: Understand ways to better manage your money to avoid getting into a cash flow crisis. What to Do: Imagine that you design upscale clothing for men and women. You started out six months ago with $50,000 that you borrowed from friends and family. You've carefully managed your money and, despite having covered expenses for your staff, raw materials, and manufacturing and production costs, you still have half that initial infusion of cash. Several boutiques like your products and have placed some good-sized orders for your first season of clothing. However, your cash flow projections show that you will run out of money in three months. What will you do to keep your business afloat? 1. In this exercise, brainstorm on how you will manage to continue to run the business. Choose one or more of the following options: a. Look for investors to raise cash. b. Based on the fact that you already have made sales, try to secure a loan from a bank or other conventional source of financing. c. Borrow more money from friends and family, d. Attempt to make more sales and negotiate faster payment terms. e. Bargain with your vendors and suppliers for later payments terms. 2. What are the pros and cons of the financing options listed above? 3. Discuss findings and your final decision to the class. Be prepared to defend it to those who have different recommendations