Solve the problem $-$

Background Information

Suppose that you and three friends from college want to open a new restaurant. Collectively, you have almost $20$ years of experience in the restaurant industry, and with lots of new houses in the area, you think there$$s an opportunity to make a lot of money if you can offer interesting food at good prices. You$$ve even identified a great location, but you realize that it$$s going to take a great deal of money to get this business off the ground. As recent college graduates, you don$$t have a lot of money, so you$$re looking for the best source of funding. Realistically, you realize that you$$re going to need at least $$100000$ to sustain operations until your business starts to return a profit.

Method

Step $1$: Individually or in a group of two or three students brainstorm a list of options for financing. You$$ll want to do a little online research to find out more about some of the loan programs identified in the text.

Step $2$: For each of the funding options, develop a list of pros and cons. Be sure to consider all the implications of each form of financing, considering interest rates, repayment options, and eligibility requirements.

Follow$-$up Questions

Before getting financing, what will be expected of you and your business partners?

Which source of financing would be best for you and your partners? Why?

What form of business ownership would be most appropriate for your new restaurant and why?