As my wife will tell you, I'm a vegetarian with a pork problem. More specifically, I have a soft spot for smoked ham, bacon, and of course, hot dogs. My "happy place" is officially Johnny's Dog House on Route 202, where (I'm embarrassed to say) I have a frequent flier membership.
So, when it came time to talk about various financial ratios with StratFI's summer intern, my mind just happened to wander upon a reoccurring private fantasy of running a hot dog stand.
In summary, there are three ways to make money selling hot dogs. You can go gourmet, like Johnny's, and charge $5-$6 per hot dog, earning a good profit margin. Or, you could sell cheaply, and make money by selling in high volume, like Oscar Meyer. Finally, you could ditch the hot dog stand, take out a loan, and buy a fancy restaurant. That means that you could support a bigger customer base - with some help from other people's money.