Owning Your Own Business Case Study

Most people will only dream of having their own business. The mere thought of the financial cost associated with starting a new business can be overwhelming, not to mention the sheer amount of legal responsibilities that come along with starting a business. In addition, there is the concern of achieving a sustainable cash flow once the business is up and running. These fears can result in the door of opportunity slamming shut in one’s mind. With a ferocious appetite for independence, hard work, and a creative and open mindset to challenges presented along the way, let me assure you, owning your own business is certainly achievable.
At the age of 55, Tracy was fed up working for employers who were crushing his moral and ethical beliefs.
In addition, capital would need to be secured for the operational equipment purchases, tools, a computer system, office equipment and furnishing. Lastly, but not least he would need capital to build a parts inventory. Tracy and his business partner met with their local credit union to discuss and review the different lending options available for a construction loan, as well as all other startup costs associated with his new business. Tracy found this exploration exhausting and overwhelming. After an in-depth review of available options, Tracy and his business partner made an informed decision to go with a home equity loan, which offered the advantage of an incredible interest rate of 2.9%, with a term of 10 years for all necessary costs associated to start this business. Not only would the business and all associated startup costs be paid for in 10 years or less, Tracy also avoided the daunting inspections and oversight by the financial institute during the construction stages. While at the credit union, Tracy and his business partner opened all of the necessary bank accounts required to operate his business. Although Tracy had a name for the business, in which he used to open his business accounts, the next step in the formation of his new business was
While constructing the business, which he and his business partner built with the help from friends and family, Tracy was working for another company fulltime. Over the four month construction period, Tracy quickly reduced his work schedule from five days to four days, then then four days to three days. At the end of the four month period, Tracy was working four days in his new business, and three days a week for another employer. This was Tracy’s way of ensuring financial security for his family, and his new business. This grueling schedule lasted for a period of about six months. Tracy being a man with great morals, work ethic, and integrity, he places his family above all others. Therefore, the fear of cutting the proverbial aprons strings from his guaranteed paid check working for his employer, to working fulltime in his own business, began to take a toll on his health. After experiencing chest pain, and a daylong visit in the ER, Tracy and his business partner decided that he had to cut the strings, and live the American dream of owning his own business. October 2017 marked the second anniversary date for Tracy's new business. He has been very successful in sustaining a healthy profitability margin and acquiring a large client base in a small