For several years, Delia and Lorenzo Garcia have been making leather items such as belts, purses, and wallets in their home as a hobby. They have sold many items to friends and neighbors. Because Lorenzo has just lost his regular job, he and Delia have decided to go into business full-time making leather craft items. The items will be sold at fairs, festivals, and flea markets and hopefully later to retailers. They will need a large amount of money, some of which they have saved, to expand to a full-time business. Both agree that they know a great deal about how to make leather items but very little about financial and other business decisions. Delia believes they should hire a consultant before they do anything else. Lorenzo, on the other hand, believes they should go to a bank to obtain the money they need to start the business. He thinks that they can hire an accountant after they have gotten the business started. He does not believe the consultant will know enough about the leather business to give advice. "Besides," he adds, "consultants are too expensive."
1. Do you agree with Delia or with Lorenzo about whether they need a consultant? Explain.
2. How could a consultant help them? How might the bank help them?
3. Could the Small Business Administration be of help? How?