Aunt Rita's Swiss Chocolate Company: Financial Analysis

3520 Words Feb 4th, 2018 14 Pages
Yet, for aunt Rita, the situation is even more potentially hazardous, due to the fact that she is retired and is using her retirement savings as a way to fund her new start up business. In order for aunt Rita's business model to work out, she must first understand the potential strengths and weaknesses of her model, adjusting elements as necessary in order to increase overall profit potential. With the right planning, aunt Rita's Swiss Chocolate company can become successful and provide her the extra cash and business activities she still longs for.
Aunt Rita had just retired when she realized that she was not ready to sit idly by without working. Rather than working for somebody else, Rita is planning for a different route. After years of working for other people, Aunt Rita is ready to use her retirement payment of $300,000 to start her own business. She has forecasted a number of elements in great detail based on her history studying business. After speaking with her directly, it can be assumed that she would be paying about $50 per kg of chocolate direct from the manufacturer, which is at a 50% discount rate to their European price. Yet, for every kg ordered, Rita would also have to pay $10 in shipping costs. Her forecasted sales seem reasonable, and she has accounted for growth within her business model.…

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