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Jack Gray and his best friend, Bruce McVay, decided to start their own small business. Jack had developed recipes for fat-free and low-fat cookies and muffins. Bruce had extensive experience in managing food-service establishments. They knew that a startup company needs a quality product, adequate funds, a written business plan, some outside financial support, and a good promotion program. Jack has $35,000 to invest and Bruce as $15,000 to invest (but has the borrowing power of an additional $125,000). However, they still have many decisions to make, including what form or organization to use, how to market their product, and how to determine exactly what products to sell-whether just cookies and muffins or additional products.
Please evaluate the idea of a low-fat cookie and muffin retail store. Please describe any concerns in connection with starting a small business that Jack and Bruce have not considered? What advice would you give Jack and Bruce as they start up their business?
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