Friday, October 4, 2013
October 4 - Online Discussion Question 1
Donald is aggressive and smart, but he’s bored at his job. He wants to pursue his dream of starting a burger joint called “Donald Mac’s.” His business plan is to open six stores in 12 months. All he needs is money—other people’s money (OPM). Everyone says that OPM is the only way to go, the shortcut to success, wealth with no risk. So he buys a coat and tie, shines his shoes, and hits the streets, looking for investors. He comes to you. You like his idea, but are his plans sound? What do you think?
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His plans are not sound. I think he should start saving before he starts investing.
ReplyDeleteHe should be investing more before looking for investors. Even the fact that he bought a new outfit just shows he isn't investing his money very well.
ReplyDeleteit would be a high risk investment to put money into since it could go either way, but also high opportunity for gain. if you thought the plan would do really well, then maybe you could put a little money in, if you could handle losing all of it should the buisness tank. He probably shouldn't be trying to open 6 at once on borrowed money.
ReplyDeleteI would not invest in his plans. He should save up his own money to open one store and if that is prosperous, then he could continue adding stores. He should establish a solid reputation and then pursue investors for expanding his company.
ReplyDeleteHis plans aren't sound. He should save and use his own money. If the restaurant's a flop, he'd be in huge trouble.
ReplyDeleteAutumn
I would not invest. He should open one store with his own money and see how it goes. If it goes bad then he won't owe anybody. If it goes good, then he can start to look for investors.
ReplyDeleteHe should save for a while, then he should invest, and it's not smart to use OPM, because then you also owe interest.
ReplyDeleteHmmmmmmmm. Way to go on the big idea, but you really should never borrow money in order to invest it. That is the big No-no. Why not start saving up and make your goal just to open one store right now? That way you could see how your business does and gain more money to open more.
ReplyDeletesave up your own money to start the first business with one store and if it does well then you can maybe look into investors to start a 2nd and 3rd store
ReplyDeletetravis
Adam
ReplyDeleteI think that his plan is too fast. He needs to start small and build up. Taking on too much at once is never good.
He needs to save so he doesn't have to borrow other people's money. His plans are definitely not sound. I would not invest.
ReplyDeleteeyezik
No, he should never borrow money! He should save instead.
ReplyDeletehis plans are not sound he should save some money and have a backup plan before he starts borrowing money.
ReplyDelete-Jacob