Question: please explain the answer why or why not other options An opportunity has arisen to expand your business by opening a new store. Your local

please explain the answer why or why not other options please explain the answer why or why not other
An opportunity has arisen to expand your business by opening a new store. Your local township government is planning a restoration project of the downtown area. The project includes a theater, restaurants, professional offices, and a small shopping strip of specialty stores. Although there is no guarantee of success, similar projects in other areas have proven to be sound business investments after a slow startup period. In order to open a second store, you would need to use profits from your existing operation to provide working capital to carry you through the slow start-up period. The rent for adequate space is $7,000 per quarter and the Economic Development Commission has offered very favorable loan packages of $35,000 at 6% interest businesses that locate in the project. Your clientele will be residents from nearby areas and people who work in the downtown area. What action should you take? 4 options available. Choose one below. Watch Video 1. Same Product Line Take advantage of the opportunity to open a second store in the restored downtown area. You think that selling the same product at your two locations will help sales at both store. 2. New Product Line Take advantage of the opportunity to open a second store in the downtown location to sell a new line of clothing. You think that diversitying your product line will help reduce the risk from fluctuations in sales, 3. Different Location Pans on the option to open a second store in the restored downtown area, and book to expand in another location instead. 4. Do Nothing Expansion prospects do not look good pass on a second store at this time

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