Read the following case scenario:
Taira Nova is a sole proprietor of an online jewelry business. She has invented a series of designs that revolve around a product called a necklet. The product is unique in that it can serve as a bracelet or a necklace. Taira patented her invention and feels strongly that she retains ownership of her creations. However, she also knows that moving forward she may not be able to do so. The business has caught on and Taira has been pondering whether to open a storefront. She knows to do so she will need a loan or obtain investment capital to make the expansion work.
The following week, several individuals approached Taira with offers for her business, making it difficult for her to make a decision. After much thought, Taira put on paper the following options from which she will choose. She also has decided to keep an open mind when assessing each option.
Option 1: Franchise R Us, a huge consulting firm for individuals interested in matching investors with products for franchising, has matched Taira with an investor to creat a franchise line of necklet kiosks in malls around the country and abroad. Taira would have to turn over her patent to the investor who would invest $250,000 in the marketing of the franchise line in exchange for 50% of the licensing profits for the first three years and 40% of the profits each year thereafter. The investor will return the patent to Taira upon sale of the business or at the time he has recouped the original investment plus 7.5% interest, whichever comes first.
Option 2: Taira could pursue a bank loan to expand her business on her own as a sole proprietorship.
Option 3: Brooks Bezan, who owns his own storefront, approached Taira. Bezan is looking to retire in a few years. He has an existing storefront business with significant inventory. He has proposed to Taira that she come into the business. Taira would bring her online business and the jewelry designs. In return, Bezan would offer the existing inventory and storefront. Profits would be split 50/50 and Taira could maintain ownership of the necklet patent. When Bezan retires, Taira would have first right to buy his interest for half the current value of the business.
Question: Taira Nova has to make a decision between three business growth options (Option 1, 2, or 3). Each growth option potentially offers Taira a different outcome in the level of growth a business could experience.
Assess the different growth options and determine the best growth option for Taira to pursue. Explain in detail why this is the best growth option. In doing so, do not depend solely on the facts provided but use other material and resources related to Tips to Successfully Grow your Business and Proven Ways to Grow Your Business. Note: This requirement is not about business forms.
Your answer must select of the best growth option was logically explain why you have chosen the option you have incorporate one opAlso ideas and reasoning (justification) that were thoroughly supported by course material and show insightful understanding of how the option could maximize current portunity. business growth usingapa in-text citation and reference.