Sources of Revenue for the New Company Assignment - 24

Sources of Revenue for the New Company - identification ExampleIt is evidently clear from the discussion that when the new federation is being opened up, it impart contain to encounter a number of start-up costs. These costs will consist largely of new equipment that the accompany will train to get up to provide production and hosting for customers. In addition, other costs will overwhelm the materials that will have to be used to manufacture coffee and other food items. The new company will have to invest in coffee roasters, mixing and blending machines, a refrigerator, baking machines (if the company chooses to bake its own products) and furniture for hosting the clients. Furthermore, the company will have to pay for the security and rent of the shop at they occupy along with some renovation costs. In terms of materials, the company will have to buy up coffee beans, cream, milk, flour, sugar, and other such consumables.Other than these costs, the company will have to look into pass expenditures such as costs of utilities and pays for part-time workers. Based on these projections, the company may or may not make profits depending on the market they are present in as substantially as the financial backing they have available to continue with these expenses in the beginning. The owners will have to focalize on the economic environment because economic recession and a slow resurgence of the economy have meant that disposable incomes are low. People would be less than willing to spend more on items such as coffee and non-essential food items because their finances would be already restrained. Another external environment that the owners would want to look into is the political environment.