Question 1

Lou Lou has just been offered a retirement package from her work as a sales representative with Pinnacle Makeup. Her long-term goal has been to start up a day-spa resort on Sunshine Coast of Queensland with her sister Delia, who is a marketing consultant. Lou Lou has also been dreaming of joining the sea change set. A suitable building (an ex-holiday home), has become available at Sunrise Beach, Queensland. With their husbands (Jeoff, who is a builder and Connell, who is a plumber), they decide to sell up their homes in Brisbane and purchase this holiday shack. They think the potential for the business venture is enormous, but expect that additional capital will be required over the next five years for their dreams to be realised

Required

1. Do you think the two families have the necessary skills between them to run such a demanding venture? List the skills that you think are important.

2. Do you think their bank would be happier to lend them finance to expand, due to the fact that they are in partnership? Why?