Eric has faced the lower sales from his laundry business and it business has gone to...

Eric has faced the lower sales from his laundry business and it business has gone to bankrupt. Eric get some ideas to revitalize his business. He suggest to provide new services such as drive thru laudry service ( customer will get a receipt after 3 hours come back to collect and they no need to get out from car especially the lock down of COVID 19), cooperate with GRAB to have a pick up service at cusmoter's house ( after 3 hours will deliever to customer ).

1-Since Eric got the ideas how to reorganize his business, but now he is lack of capital to reorganize. Discuss how personal fund (Bootstrapping, personal fund, family and friend) and Debt Financing (commercial bank, SBA Guaranted Loan Program, Crowdfunding) can raise Eric capital. (400words)

2-Do you think these new business concept will be sucessfull ? Why? (200Words)

Please teach me the strategics to raise capital so that can reorganize the business that faced this situation. Thank You

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Expert Solution

Drive thru laundry is laundry business is a good idea but it is not a new idea. Few companies hav begun to franchise their dirve through laundromat business.To start a drive thru laundry doesnot require much business knowledge or experience. But only constraint is it should have the good location.it should ideally be established on busy roads,and business areas street visibilty and accessebilty for walking customersparking and overall building condition should also appearance are also important. So now the main problem is procurement of capital,capital raising in present situation is a very big issue,becoz banks are in defficiet position and bnks are not ready to giv loans and like personal family friend lending money also becomes difficult becoz everbody is facing the sam issue lockdown problem. If we opt for boot strapping ie utlising our resources this will olso be a problem fuelling and maintaince. Every road is bloked nd we hav police every where. There is a high chance of spreading also becoz this covid 19 can spread through clothes also. So according to me this idea cannot be impelmented in present scenario.

keosha answered 2 months ago

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