Lavinia Davolio set up her business selling luxury
Italian confectionery in 2014 after leaving her job in finance.
Lavolio’s
own range of boutique confectionery products which are handcrafted with 30
natural flavours including nuts, real fruit, chocolate and spices.
Her products are now stocked on the marble shelves
of Fortnum & Mason, and on the back of her success selling online she is
about to open her first high-street store in London.
“The inspiration behind my business came to me when
I was experimenting in the kitchen – a lightbulb moment when I thought that I
could make chocolate products that are more interesting and more remarkable
than that what is already on the market.
Amazon has helped to grow my business
by building my brand and reaching new customers, meaning I can offer next day
delivery and export to customers around the world.”
“My main concern now is raising the £50,000 I will
need to open my new shop”
Assess the best source of external finance for
Lavinia to consider before opening the London store. [10]
Assess questions MUST be two sided.
(“On the other hand…….”)
End with a final judgement for evaluation marks.
Your answer must be in the context of this business.
This would have been Lavinia's first shop.
Why would a business angel have possibly been more useful than approaching a bank for a loan?
What advice and guidance could a business angel have given?
Advice on the location of the shop, size of the shop and staffing needs.
On the other hand she would have had to give up some of the ownership of the business (equity).
If she approached a bank she could have asked for more than the £50,000.
What could she have used the extra money for?
Think products or flavours for application marks.
On the other hand the need to pay the money back and interest.
Also her personal assets may have been at risk if she had secured the loan using collateral.
Did you end with a conclusion?
The answer would have depended on her attitude to giving up some of the ownership of the business.
Not sure crowdfunding would have been appropriate. More here.
This would have been Lavinia's first shop.
Why would a business angel have possibly been more useful than approaching a bank for a loan?
What advice and guidance could a business angel have given?
Advice on the location of the shop, size of the shop and staffing needs.
On the other hand she would have had to give up some of the ownership of the business (equity).
If she approached a bank she could have asked for more than the £50,000.
What could she have used the extra money for?
Think products or flavours for application marks.
On the other hand the need to pay the money back and interest.
Also her personal assets may have been at risk if she had secured the loan using collateral.
Did you end with a conclusion?
The answer would have depended on her attitude to giving up some of the ownership of the business.
Not sure crowdfunding would have been appropriate. More here.
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