Reference no: EM1365061
You have just received your MBA and, as luck would have it, you are presented with a business opportunity from a friend of yours, Ellen Grant, who has just received her degree in engineering. Ellen has a great idea to improve the bio-diesel conversion process that she thinks will be a real improvement on the current process and can make a lot of money. She has a two friends and an uncle who have faith in her and are willing to help her get her business started with some seed money. Her friends can contribute $20,000 each; not a great deal of money, but they have some engineering experience and they will be working closely with her in the business. Her uncle has a lot more money to invest -- $100,000 --- which would be a huge help in getting this business started; but she is concerned that he will try to run things even though he doesn't know anything about the technical side of things. She can't afford to turn down his money, but is concerned that he not be involved in the running of the operations.
She wants your business expertise to help her develop a business plan for developing her idea into a functional operation. In return for your assistance, she offers you the opportunity to get in on the ground floor of this potentially lucrative business and have part-ownership in the business, as well. She is going to be so busy on the technical side that she foresees the need for your business acumen in managing the day-to-day operations and marketing and all that goes along with running a business. She is just interested in the technical end and needs your help with the more business-oriented end of things.
With all the insight your received in your MBA program, you know that the first thing you need to consider is what type of business organization will be best for her for her business which she wants to call "Food-2-Fuel." [You may to offer some alternative names in your business plan].
Please discuss all the available business organizations for Food-2-Fuel and the benefits and drawbacks of each of them in relation to Ellen's needs and how she wants to deal with her investors (including yourself). Also, please discuss which you believe is the best of the business organizations for Food-2-Fuel and why, and set forth what steps you would need to take to establish this business organization here in New Hampshire.
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