Working Capital Recommendations

Week Six Team “A” Reflection

Dale Rogers

FIN 571

April 3, 2012

Walter Corrigan

Week Six Team “A” Reflection

This week team “A” discussed the Corporate Finance video, “Stable Money Makers” (Parrino, Kidwell, & Bates, 2012.  Team A discussed two specific capital improvements to assist the owner with her Alpaca Business.

Capital Improvement

Very little information was given in the video for what Peggy Parks (not Betty) was using her Alpaca’s for or how she intended to make money for her business. Peggy did state she has made $15,000 on two new born alpacas implying that breeding is the focused product line of her business plan. Team A discusses capitalizing upon other sectors of this animal’s existence by using the Alpacas as a tool within the entertainment industry or marketing the Alpacas’ fleeces for sell as alternative fabric supply and for use in arts and craft projects.  

Llama rental or lease is a widely spread practice for many different reasons. For weddings, birthdays, or just a party for the kids, Llamas are a great add on as a beautiful, unique display. The video specifically says alpacas are llama lookalikes. These animals are as docile as the Llamas and are ideal for being presented at animal petting farms for amusement and enjoyment. Since Peggy only started with seven alpacas, with an addition of two new bourns, Peggy can generate income off of the Alpacas while she continues to grow her herd for future sales. Selling the alpacas at this point, would reduce her ability to breed and sell after the herd has grown significantly. Peggy should look to provide services of alpaca rentals or lease to specific events.

A very specific event she can look into in order to ensure her alpacas are put to good use, is the Therapy and Counseling Community.  Llamas and Alpacas are already used throughout the human service community as a means to animal therapy. Alpacas are already used within this realm particularly at elderly homes, or with children who have dire medical concerns. Alpacas can also be used within the realm of Post-Traumatic Stress (PTS) victims, giving them a unique animal to become friends with. Peggy could also set up her own land with space for people to regularly interact with the animals at a low cost.