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While sitting around one weekend at your familys home, you happened to mention to a visiting relative that you were getting your Masters in Business

While sitting around one weekend at your familys home, you happened to mention to a visiting relative that you were getting your Masters in Business from USC Marshall. Realizing a great chance to get some free advice, the long-lost relative seized the moment and began to tell you about her great dream of starting and owning a screen-printing company making t-shirts and other garments. She has always had the knowledge and desire, but never the courage. With your help, she pleads, We can make it go. With mixed emotions, you accept her challenge. What you know about Aunt Mandy isnt much -- and youre not all that sure that she does either. Basically, shes been employed at local screen-printing operation for the past ten years and is currently the general manager. She appears to be good at what she does, and you believe her when she says she can get $250,000 of sales per month to come with her if she ever left her current company. Mandy says she can deliver letters of intent to back up the sales orders. She has long standing relationships with customers who need all types of garments decorated to resell to their consumers. Mandy wants to launch a contract screen- printing business for wholesale and retail direct clothing manufacturers. With orders in hand, her past experience and your expertise, you begin to believe in her more and more. The excitement of actually starting a venture is increasing and your reluctance is declining. The final resistance is erased when Aunt Mandy tells you that she has found some used equipment, which will handle the ventures needs. And with a little luck, the total cost of the equipment will be $100,000. She surprises you even further when she produces $25,000 in cash, which shes been saving for just this moment. Now its time for you to show your skills! Please answer the following in One Page: 1. Should Mandy go into business? 2. As Mandys advisor, defend your recommendations. Why? Why not? 3. How much money will it take to start the business, and why? (regardless if you said yes or no) Please provide figures, estimates and calculations. Show supporting work. 4. What additional research and information is required? 5. What are the ethical/moral issues to be discussed? Knowing this is an impossible task for you at this early stage, dont be alarmed or disappointed if you cant answer the problem. However, we are looking at money and how to be resourceful. Please, dont ask for help from others yet -- you have to fight it out by yourself. This is a great learning opportunity for growth. There is enough information to allow for answers and some rough estimates. Make sure you use numbers and dollars

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