Cato Boldon 32, CEO and founder of Optimum Athletics, reside in the island of Tr

Question

Cato Boldon 32, CEO and founder of Optimum Athletics, reside in the island of Trinidad and Tobago with his wife and children. The business has been in operation since 2008. He decided to start the business during the financial crisis that hit the world in 2008 due his passion for track and field. The company has been experiencing a loss for the last two years and cash flows are beginning to tighten. A major customer owes the company US$100,000 for almost a year. He gets a salary of 5 million per annum from the business. He has savings of US$ 100,000 and his looking to invest to secure his financial future. He wants to enjoy both safety and capital gains.

The government of Trinidad is currently in discussion on whether to grant small businesses in the manufacturing industry an incentive package. Boldon is considering his options. Should I sell the business or go back to management in a corporate enterprise. His has an Master of Science Degree in Kinesiology. His two children are aged 9 and 13yrs old respectively and his wife is six months pregnant. His wife recently completed her Law Degree and is looking to called to the bar in Trinidad and Tobago in the next six months. Her husband had been contributing to her alumni Scholarship Fund for the last 5 years and wishes to continue. His father 60, is not doing well. He was recently diagnosed with diabetes. Boldon recently found out that his father has limited insurance coverage. Boldon is concerned about his retirement and his ability to finance his children education. He wanted the business to be part of his pension plan as he wanted the company to be listed on the Trinidad Stock Exchange. He had to use the deposit that he had saved for his home ownership to fix the family car that was recently damaged by hurricane Irma.

QUESTION:

Based on the information above, decide what Mr. Boldon should do with the business (i.e. buy, hold or sell)? Provide support and make assumptions where necessary in no less than 250 words.

Explanation / Answer

Looking at the conditions of Mr. Boldon, he must hold his business as of now and must not be in hurry to sell it up. Once going to corporate enterprise, the history of his business will go for a toss and to get it listed on Trinidad Stock Exchange may get very delayed and it may not even happen in the coming future. Although, following points gives a clear picture that he must hold his business and must focus on increasing his own business:

Hence, looking at all the parameters, we can say, this is a tough time, which will pass in few months, he must hold his business and must build strategies to increase his income, once the fall is over and people will have extra disposable income.

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