Assignment: Issy Cake
Now that you have built Issy's template and she has started to put things together, she realizes she needs to make the following adjustments to her projections:
1. The build out cost her $180,000, not $120,000
2. Because credit cards do not pay until 5-7 days later she has had to book 20% of sales as a receivable.
3. Issy decided to always keep a minimum inventory balance of about $1000.
4. Her vendor (bakery goods) decided to give her 30 days to pay all her invoices for ingredients for her reorders (dating was not given on her initial order).
5. Her additional operating expenses were closer to $2000/month not $800.
6. Her monthly rent was $2500 after adding taxes, insurance and CAM charges, which the Landlord billed separately. This did not effect her last month's rent deposit.
7. Rerun the numbers and book a loan for what she really needed. Factor in the loan at 8% interest with a 7 year amortization.
8. Is this business still attractive? Why or why not? What happens for her in year two (project)?
Attachment:- template.rar