Sunny wants specific advice on what he should do. If it is a good idea to pursue the Sunny Vacations business, he wants detailed advice on business strategy, financing, ethical considerations, etc. He is open to advice beyond what is discussed in this case, but it should be relevant to his situation.

Sunny, who graduated from college last year with a Bachelor of Business Administration degree with a Marketing concentration, is at a career crossroad. Last year, after some job hunting, Sunny managed to get a job as a marketing assistant for a prominent realtor in the area, Diane. With a colourful, outgoing personality, Sunny was a natural fit to host home viewings and even going door-to-door talking to homeowners, brochures in hand.

1. Diane quickly realized that Sunny was a bigger help to her than anyone she had hired before and bumped up his compensation from an hourly minimum wage to $28,000 a year (they agreed on about twenty-four hours a week, mostly on weekends). Sunny believes he can earn $50,000 a year working full-time in real estate, but that would be long, slow climb up- perhaps over five years.

5. Sunny believes he can finally monetize on his abilities. With $3,000 worth of one-time advertising (brochures and social media ads), Sunny estimates that he can book $200,000 worth of vacation activity in his first year. From this, he can charge a fee of 5%. While this wouldn't mean much money immediately, especially considering he would be spending about ten hours a week on the business, Sunny does believe he can double the $200,000 number in the second year once word-of-mouth really kicks in.

6. Then, he would be in a position to raise the fee to 6% and benefit from 10% year-over-growth for three years. After that, the fee would be raised to 7% at that point with flat revenues for the following five years. He has run some rough numbers and believes business expenses (mostly car-related) can be held to only 12% of business revenues with this plan- he hasn't considered borrowing costs yet, though. Luckily, Sunny has no student loan debt and pays a very low monthly rent to his parents. However, that could change if he decides to start his own business he has talked to his bank and was offered a $15,000 line-of-credit at a 7.05% annual rate. He believes that, if needed, he can renegotiate the line-of-credit to $25,000, but maybe with an 8% interest rate.

7. Another option is to advertise more aggressively. Sunny is thinking about renting a billboard for $500 per month at a busy corner in town (the initial sign would have a $2,000 upfront cost). With the billboard, Sunny anticipates his projections getting boosted by 50% (same fee percentages) over the next decade. There is also the option of buying the billboard outright for $20,000. Sunny believes the billboard will last ten years with yearly maintenance of $1,000- he isn't sure how expensing an asset such as this works.

`Sunny isn't great with projections and numbers, so he is asking you for help in deciding if this business is lucrative enough to pursue. He is also wondering about the importance about maintaining accurate records in general. He doesn't really know much about accounting, so he wants some quick advice on journal entries, T-accounts, and the like.

8. Sunny is thinking of one final consideration- bringing in a business partner who is willing to cover the costs of the billboard in exchange for a 25% share in his business. His friend, Nina studied accounting and he would be willing to give her a 33.3% share if she took care of all accounting/finance tasks along with the billboard. Sunny hasn't mentioned this idea to her yet he wants your thoughts first.