Creative Financing

For the scenario below, write a BUSINESS MEMORANDUM, providing a recommendation and describing the solution approach. A sample business memo is located in the Course Documents tab. Sally is self-employed. She makes cookies out of her own home, and sells these cookies through her website. Recently, a severe storm went through the area that Sally lives in, and caused some damage to her home. Sally was forced to use some funds from her cookie business to pay for the needed home repairs. At this point, Sally only has enough money to make ten-dozen more cookies, which will likely not be enough quantity to produce enough profit for her to buy more ingredients to make more cookies. Sally knows she could generate more cash on hand if she generated more advance-orders, but she also knows that she would have to advertise more. Advertising more might force her to use the remainder of the cash on hand she currently has. Sally needs to quickly decide what to do.