Question
You are considering expanding your firm that builds franchise restaurants. Currently you do some work in this area, but if you invest additional funds in
You are considering expanding your firm that builds franchise restaurants. Currently you do some work in this area, but if you invest additional funds in equipment and training you hope to double the size of your business. Recently you were contacted by an investor who is considering building 100 new restaurants over the next 5 years. If you expand you will be able to handle the investors account. If you don't expand you will not be able to handle their account. What options might impact your decision?
You decide to lease all of your equipment for five years with a "cancellation clause" that allows you to return the equipment for an extra fee. | ||
You decide to take on the customer, but you also begin to market your firm to other investors in other lines of construction so that you might have some flexability if the franchise restaurant market declines. | ||
You delay the purchase of any equipment and instead work your current crew overtime and slowly hire more workers and buy equipment if needed. | ||
All of the above represent plausible options that may be considered. |
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