Task 1-
You want to start a summer business to earn money. What will you do? You have to consider how much money you can afford to invest in this business, how much it will cost you to make each item, and how much you’re going to charge for each item. Research something that would be reasonable to make and sell with the startup investment you have determined.
a. What is the total amount of money you are willing to invest in this business?
b. What item are you going to make and sell? Why?
c. Describe how your business will work. How much will it cost you to make each item? How much will you sell each item for?
d. Do you think your business will be profitable? Explain your answer.
I just need help with understanding....
Please help!
Start >> Research something that would be reasonable to make and sell
Lemonade
Now -- research how much it will cost to sell lemonade. Consider the lemons, sugar, and disposable cups.
I have that. What now?
To start a summer business and make it profitable, you need to consider a few factors. Let's break down the questions one by one:
a. Determine the total amount of money you are willing to invest in this business:
To answer this question, you need to assess your financial situation and determine how much capital you have available for investment. Consider how much you can afford to allocate without jeopardizing your financial stability.
b. Decide on the item you are going to make and sell, and explain why:
To make an informed decision, research various products that have a potential market demand and can be produced within your determined startup investment. Consider your skills, resources, and interests to find a product that aligns with your abilities and appeals to potential customers.
c. Describe how your business will work, including production cost and selling price:
Once you have chosen your product, you need to plan how your business will operate. Calculate the costs associated with producing each item, including raw materials, labor, packaging, and overhead expenses. Determine the selling price by considering the production cost, market demand, competition, and what price customers are willing to pay. Find a balance between affordability for customers and profitability for your business.
d. Evaluate the profitability of your business:
To assess the potential profitability of your business, compare the estimated revenue with the production cost. Calculate how many units you need to sell to cover your costs and start generating profits. Consider factors like market demand, competition, pricing strategy, and scalability. If the expected revenue exceeds your costs and offers a reasonable profit margin, your business has a good chance of being profitable.
Remember, these are general guidelines. It is crucial to conduct thorough research, analyze the market, and consider various variables to make informed decisions and increase the chances of success for your summer business.