A Dream Business

A Dream Business

Part 1

The dream business I intend to start in the foreseeable future is a restaurant operating within the university premises. The restaurants will offer fast foods to the university population that includes the students, university staff, and visitors. The business will have a ready market since the university has no cafeteria within its premises and the nearest one is about one kilometer away from the university. The two ways I would use to generate the $ 1 million needed to finance my dream business will be through getting a loan from a financial institution and seeking help from my friends and relatives (Klačmer Čalopa, Horvat, & Lalić, 2014). The risk associated with a loan from my banker is the need for collateral and the high interest rate charged on loans as well as hidden charges like loan processing fees. However, the benefits lie in the long period of about 10 years given to pay the loan. Moreover borrowing from friends has the risks of not getting the required amount in time to meet the business operations while the benefit is that, the family or friends who make donations may not charge any interest on the amount.

Peer Response

Hello Sabrina. Sabrina, I appreciate your thoughtfulness and ability to mobilize funds to start your dream business from your savings. This eliminates the obstacles that may affect your business operations due to inadequate since you will negotiate for the full amount before starting operations (Pukala, Sira, & Vavrek, 2018). Also, the idea is to incorporate the help of your financial advisor to guide you on the best investment options. This will make the business go on an upward trajectory. It’s important to note that loan acquired from a credit union during the payment timelines you will be expected to pay both the interest and principal amount over a predetermined schedule.


Klačmer Čalopa, M., Horvat, J., & Lalić, M. (2014). Analysis of financing sources for start-up companies. Management: journal of contemporary management issues19(2), 19-44.

Pukala, R., Sira, E., & Vavrek, R. (2018). Risk management and financing among start-ups.

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