ohn and Bob’s Barber Shop

• Bob, John, and Betty, three good friends thinking about opening their own barbershop.
• Betty’s aunt, successful in business in her own right, advised the three about the importance of all three agreeing on key issues of money and risk.
• The aunt suggested the three friends discuss among themselves the following four simple issues:
How each person prepares their family budget
Discuss how much credit card debt each is willing to take on
Is each willing to lend family members money and the reasoning behind
their answers
Have each person answer the question: “If you inherited $250,000,what
would you do with it?”
John and Bob realized they were far more frugal than Betty and both
were more comfortable as partners than either was with Betty
Betty decided a business was not for her due to her currentdebt

Discuss the following questions:
a) What are your views on the issues raised in the barbershop casestudy?
b) What other questions should be added to Betty’s aunt’slist
c) What is your experience on lending money to relatives? In youropinion would it be better to have a relative business partnerinstead of a close friend? Why?