| dc.description.abstract | During the summer of 2008, Sean and Michelle Ryland studied the possibility of owning their own business. They discovered a franchise, Just Dogs! Gourmet, that bakes and sells dog treats, along with other pet-related merchandise. Following some basic initial research they decided to pursue this enterprise and, after investigating some potential locations for a store, put together a business plan.Compiling data provided by the franchisor along with data gathered during research, start-up costs of $212,050 were calculated, with projected sales for the first year of $277,500. At the end of the third full year of business, income before taxes was projected to be $105,219. Investing $46,480 of their own savings, Sean and Michelle sought to borrow the additional $165,570 of the start-up costs from a bank.After visiting with three different banks, Sean and Michelle were unsuccessful in obtaining the required financing. In addition to the risk associated with starting a new business in an unstable economy, Sean and Michelle’s personal finances were not favorable for such a large loan. Without funding from the banks, Sean and Michelle were unable to purchase a franchise, so they decided to focus on getting their personal finances in order and investigate other avenues to starting their own business. | |
