The Small-Business Challenge

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 in an effort to satisfy his personal health needs. 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 and Bruce felt they had all of this and more and were ready to embark on their new low-fat cookie/muffin store. Each had $35,000 to invest and with their homes and other resources they had 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.

1			Discussion Questions Evaluate the idea of a low-fat cookie and muffin retail store Need a Hint?
2			Are there any concerns in connection with starting a small business that Jack and Bruce have not considered?
3			What advice would you give Jack and Bruce as they start up their business?