Image Cafe Case

Entrepreneurial Finance

1- Evaluate the Wooten strengths and weaknesses.
Wooten strenths:
Be persistent, which leads you to never conform to his reality, always look for something better for himself;
Be creative, always seeking to innovate; be communicative, which him makes get in touch with influential people who later will be of great importance;
He has rich experience in computer techniques;
He had a good vision, looking to observe whats the people needs and is ahead of the others to put their plans into practice;
He had good experience in the construction of three companies and to deal with different customer.
Wooten weaknesses:
Lack of focus, he's good at almost everything he does, but not sure which way to go;
He is …show more content…

4- First of all, Wooten feel that investors are generally influenced based on old experiences and racial issues in decision making, and african American young people like him can suffer prejudice. He could be right, but there are always exceptions, as a result, he pre-limited sources of capital. Wooten also focused on the financing of customers and angels investors for the ImageCafe. It's a clever strategy, but Wooten did not reach its target and failed to raise enough funds.

5- Apparently going to the West Coast would generate additional costs and unexpected problems, so Dwayne Walker’s offering would be very expensive in this case; however, half a million, in portions of $ 20,000, I believe it is reasonable. Investors have a right to know how their money is used, and Wooten needed a good amount of money to start your business. If I were him I would have accepted this offer.

6- Until 1999, Wooten raised bridge loans of $ 710,000, with a current burn rate of $ 50,000. To complete the ImageCafe site would take a year and a half, then, I need another half to generate revenue. So, ImageCafe need to survive for two years, that is to reach the break-even point, the ImageCafe could rise from 2 million. In this case, 3 million would not be necessary.

7- This depends on the ability to raise a sufficient amount of money. You can complete your site, find multiple clients, your products are ready for launch, but can never run out of money. If you have the