if alice does not raise money from a bank, what are some alternate sources of funds.? do you think alice will have to spend as much moneybon advertising as her banker suggests? why or why not?

Now that Alice Wood has a better Idea of the market potentlal and market share for her proposed retall store, she wants to be satisfled that the Petite Shop will be successful and provide an adequate return on the $45,000 she has saved over the last few years to invest. Rather than conduct an actual survey on the viability of her business, Alice starts to engage with her soclal network on Instagram about whether she should open her Petite Shop. While Allce's friends are supportive, she doesn't think she has had enough feedback, so she creates new Facebook, Twitter, and Pinterest accounts to share information about her potential store. Alice spends some time every day talking to her frlends and people she has met online, and most people support her idea. However, she has become a bit concerned that some of her frlends have suggested she should consider selling online or on eBay as the business would require less cash investment to start and could involve less risk. While Alice agrees that more and more shopping is occurring online, she is convinced there is still room for a bricks-and-mortar Petite Shop. Alice now begins investigating the typical costs she would incur in operating the store. Alice thinks she can operate her new store with one other full-time person and some part-time help at an estimated monthly cost of $4,000. In looking at potential rental costs, she came across a retail outlet for lease on a busy street in the central business district of Jacakes that seems ideal for the Petite Shop. She learns that the site leases for $20 per square foot, with no royalty payments except $2,550 per year to cover municipal taxes. The estimated utility expenses the owner provided were $300 per month, and the insurance for the retail shoe store that had previously been located there was $2,500 per year. Alice has also spoken to a local entrepreneur who has agreed to build her a website that will work well on mobile devices for $3,000. The hosting costs for the site would be $35 a year. Although Alice is excited about the potential of this site, she estimates she will need to spend approximately $20,000 for leasehold improvements, of which $12,000 will be depreciable items ( 20 percent). When obtaining the secondary information from Jacakes City Hall, she learned that the business licences will be $100. Alice estimates all miscellaneous expenses, such as stationery, bad debt expense, credit expense, and telephone, to be about $5,000 per year. These figures are based on her experience at the store where she currently works. Alice knows she will have to raise some additional money to purchase inventory. She visited her local bank and found out that the Interest rate for a business loan was 10 percent, but the bank would only lend her the money If she could pledge personal assets against the loan. She also learned that any potentlal lender would expect to see a completed Income statement and a more-thorough proposal. The bank officer mentioned that, in addition to leasehold improvements, she would need one-fourth of the year's cash expenses as operating funds. Although a bit surprised at the bank's reaction, Alice is determined to prepare such a proposal. She knows the new store will need to be promoted but does not know how much she should spend on advertising. The banker suggested the average for ladles' clothing stores was about 2 percent of sales and gave her a copy of a recent Dun and Bradstreet financlal ratio sheet to assist her ( Table 1). Allce also thinks that the Industry is changing and perhaps the banker is stuck in the past. While she thinks she may need to spend some money on advertising she thinks social media and word of mouth might be sufficient