Many successful entrepreneurs have the ability to overcome obstacles. J.W. Hulme®, a luxury luggage maker, is one of those companies that focused on growth and expansion during the economic boom times for the company. Then, the company faced financial ruin when the economy crashed in 2008 and the recession followed. As a result, the company had to take a deep look at themselves and make some tough decisions in order to get themselves back to financial solvency and avoid closing their doors for good. For this week’s Discussion, you are first going to read a real-world case study on J.W. Hulme, on pages 166–167 of your eBook, and then you will respond to the following questions: (Please note that you should only respond to the questions below and not the ones that follow the case study in your eBook)
- Financial management of fast growth is one of the greatest challenges for entrepreneurial companies. What approaches can an entrepreneur take to reduce risks associated with financing growth?
- With a better economy, J.W. Hulme may again face rapid growth. What steps should the company take to prepare?
- For an existing company that you would be in charge of, would you rather give up a majority of ownership to save your company (including the jobs of employees) or close the business and walk away?
- If you started your own company today and had to give up controlling interest to an investor to do so, would you accept this or walk away? Why?