Problem
Pick any small business model (e.g., restaurant, coffee shop etc). Ensure to offer enough detail from a quantitative perspective to demonstrate your understanding of costs and revenues. The goal is to communicate an image of your path to profitability and can feasibly reach breakeven in its first year of operations.
a) Describe the business. What product or service will it provide? What will your high-level strategy be: to focus on cost/efficiency or provide high value?
b) How much will you charge for your product, and what factors do you have to consider for setting the sale price?
c) What variable and fixed costs would you have to consider for your business?
d) Do you believe that your business can break-even in its first year? Why or why not? Make sure to take volume into account.