Problem
JoAnn Brewer and Christi Sterling had never run a company before they teamed up to found Locker Lookz. After helping their preteen daughters create accessories to dress up their school lockers as a way to show off their personal style, they recognized a viable business opportunity. "Selfexpression is such a huge, huge thing at this age," explains Sterling. "Not everybody gets to see your bedroom at home, but everyone gets to see your locker." Part of the fun for customers is mixing and matching products for a unique look. For this reason, Locker Lookz's Web site has an interactive design feature to help girls visualize how different products go together. The site also offers instructional videos so customers know how to install and remove accessories without damaging the locker. Coming soon: Accessories to personalize boys' lockers.
Questions
1. When Locker Lookz needed to raise money quickly, why do you think the founders sought financing from family, friends, and a church investment group rather than talking with banks?
2. If you were writing a business plan for Locker Lookz, what would you recommend as an exit strategy? Explain your answer.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.