You are working in the finance department of a tech startup. Currently, their focus is broad and they have yet to truly define their business model. Although they have 2 lines of business, they are running at a significant loss. Their 2 lines of business are:

- B2B - high $ value sales with low volume

- B2C - low $ value sales with high volume

The company has been asked by its investors to focus on profitable growth in 2021. There are 3 scenarios:

1. Focus only on B2B

2. Focus only on B2C

3. Continue to focus on both B2B and B2C

You have been asked to help the company choose between scenarios 1, 2, or 3.

a) What are the relevant revenues that must be reviewed in order to determine which scenario would be the best for the company?

b) What are some of the avoidable costs in each scenario?

c) What are the qualitative considerations for each scenario?

d) Which scenario would you choose?

e) Why did you make the choice in d)?

Answer rating: 100% (QA)

A The most important thing in humans is their blood flow and in the same way for businesses its thei... View the full answer