Imagine you have a set budget of $300,000.00 to start your business. How will you choose to
Question:
Imagine you have a set budget of $300,000.00 to start your business.
How will you choose to allocate your money between various business expenses? Justify your answer.
You may choose from the following list or use your own
•Labor; be specific to the components of your labor force.
•Marketing
•Advertising
•Materials/Supplies
•Equipment
•Office/Clinic/Space
•Phone/Internet Access
•Licenses
•Inventory
•Insurance
2) Business expense Amount Total Amount:
Imagine you have X number of hours each week to work on your business.
How will you choose to allocate your time? Remember, you can do things
yourself or hire people to help you.
Below are some examples or you may choose your own:
•Market Research
•Create a Website
•Distribution
•Print Materials
•Resume Research/Hire Employees
•Apply for licenses
•Networking
•Marketing/Advertising
•Learn Professional Skills
Business expense | Amount |
TOTAL AMOUNT: |
Given the constraints of this activity, what were the main factors that influenced the business expense allocations and weekly activities you chose?
3.Explain your decision using the concepts of scarcity and tradeoffs
4. What activities would you like to have been able to include if you had more
time or money?
5. Now that you’ve completed the business plan, identify from the tables above;
a.The Direct Costs
b.The Indirect Costs
c.The Fixed Costs
d.The Variable Costs
e.Sunk Costs.
justify the classification of each cost category
Entrepreneurship Successfully Launching New Ventures
ISBN: 978-0133797190
5th edition
Authors: Bruce R. Barringer, R. Duane Ireland