The partners were excited about securing the exclusive Canadian distribution rights for Nutrifusion. Before making a decision to pursue the venture, they had to assess the attractiveness of Nutrifusion to the industry, the idea’s overall feasibility and the financial viability of their arrangement with Loblaws. Heather Larson wanted to project an income statement and a balance sheet for the year ending December 31, 2011, to see whether HLG could generate the profit targeted by the Larsons and, if so, whether it could pay dividends. She also wondered whether Loblaws was too optimistic in its sales projections, so she wanted to determine what effect a 20 per cent decrease in Loblaws’ original sales estimate would have on HLG’s projected statements. Projections and profitability aside, would the Larsons’ decision to distribute solely through Loblaws foster or inhibit future growth? Taking these questions into consideration, Larson hoped to make a decision quickly on whether to launch HLG so she could either begin the process of incorporating the business or move on to another new business idea.
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