Forecasting sales to hire enough employees and buy the right amount of product can be one of the most difficult tasks when running a business. At the beginning of the simulation, the only clue you will have about potential demand is a similar business that sold approximately 1,000 cups a day. Whether your coffee reaches or exceeds that amount will depend on your ability to anticipate and manage growth. 1. When starting out, you can assume that sales are well under 1,000 cups a day. What is your projected net cash flow if you expect to sell 300 medium cups of coffee a day (M-F) at $ 3.50 a cup and have expenses of $ 6,000 for the week? 2. At BizCafe, what decisions can you make to increase demand in the early stages of your business? What other decisions will you have to consider to manage growth?
1. When starting out, you can assume that sales are well under 1,000 cups a day. What is your projected net cash flow if you expect to sell 300 medium cups of coffee a day (M-F) at $ 3.50 a cup and have expenses of $ 6,000 for the week?
2. At BizCafe, what decisions can you make to increase demand in the early stages of your business? What other decisions will you have to consider to manage growth?
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