I am saying "hypothetical" because a good friend who is the owner of a home based web company is in kind of a pickle. Here is the scenario:
- No debt (owns a modest house out right), supporting family of 4.
- Recently took on some programmers for a year (appx $2000/mo for a yr - commitment)
- Business is down by literally 50% or more, with no signs of ramping up (has probably netted 35k this year only so far)
- 120k in the bank
- has done no advertising
- $3000/mo or so in residuals
Part of him wants to try and sell the business, though he knows he will get much less from it based upon this years current sales. The other part of him wants to either get a business guy to handle day to day operations, but again, money just isn't coming in like it was. And finally, the other part wants to blast out some advertising dollars.
I am more or less looking for the informed / wise users of this board for advice to give him. Any help/thoughts greatly appreciated!