Integrative Case, HannaH
By; Kimberly King-Mahaffey
Professor Toiya Evans
Finance 100
May 30, 2010
Integrative Case, HannaH page 2
Hannah Eisenstat had a business plan to own and operate a small business to sell coffee to patrons. The business started out with one owner Hannah being sole proprietorship venture. The business started out a bit weak while Hannah found once it was up and operating that the coffee did not produce the flavor she had anticipated and envisioned. A regular customer made an offer to become an investor offering an idea that would eliminate the small business into a larger company that would offer a better quality of coffee, but by doing this the owner would have to agree to add a larger machine and enhance the business by roasting their very own coffee beans. This eventually caused the operation to prosper so while growing the company HannaH actually employed more people and had larger sells of coffee going out. This investor would be an Angel Investor which is a type of Investor that lends money to help start or even expand in the growth of a business. This type of investor can help with expansion of businesses and deciding on some of how the business will operate. (www.go4funding.com, 2010) Natasha was this investor and she would lend Hannah a sum of $75,000 and in return received 40% share in the business. The investor helped in the new ideas that would be put into place in the business such as operations and the expansion of it. While the two having an impact on the operation and seeing that sells would meet expectations, while at the same time the vision they both have for future development, the business started doing extremely well
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So expansion became quickly as with in the next two years they both decided it was time again to expand out to five more stores to cover a larger territory. In doing this it would require them to go with bank
Cited: (2010, May 30). Retrieved May 30, 2010, from www.businessweek.com: http://www.businessweek.com/magazine/content/10-22/b4180041317599.htm www.go4funding.com www.investopedia.com. (2009). Retrieved may 30, 2010, from http://www.investopedia.com/articles/bonds/08/convertable-financing.asp www.wikiepedia.com www.wikiepedia.com. (2010). Retrieved may 30, 2010, from http://en.wikiepedia.org/wiki/collable_bond Case Questions page 479