Sources of Revenue for the New Company Assignment - 24

Sources of Revenue for the New Company - Assignment Example It is evidently clear from the discussion that when the new company is being opened up, it will have to encounter a number of start-up costs. These costs will consist largely of new equipment that the company will have to buy up to provide production and hosting for customers. In addition, other costs will include 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 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 recurring expenditures such as costs of utilities and pays for part-time worker s. Based on these projections, the company may or may not make profits depending on the market they are present in as well as the financial backing they have available to continue with these expenses in the beginning. The owners will have to focus 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 need to look into is the political environment.