Bizcafe

Approximately how many medium cups of coffee will one pound of coffee beans make?

32

The high capacity espresso maker versus the standard maker has the potential of increasing your cups served by what percent?

160%

if you do not hire servers they will be hired automatically.

false

deposits are made into your checking account once each week.

false

servers work approximately 10 hours each week.

true

which of the following is a "start-up" decision which you might not be able to change?

furniture & equipment

if advertising on the radio costs $40 per spot and you run 5 spots per day, your weekly cost for radio advertising will be:

$1400

offering 2-for-1 coupons is effectively the same as offering customers coffee at half price?

True

rent is $2000 and due the 1st each month?

True

funds for starting up your business are coming from

$25,000 loan from Jane Valdez

if your fixed costs are $1,000, your variable cost per unit is $1, and your selling price is $3 per unit, what is your breakeven number of units?

500

Start-up loan from Jane Valdez

$25,000 at 10% interest

How many people drink coffee daily?

62% according to the National Coffee Association

Location of cafe and size

The retail space available contains 1,000 sq. ft. with glass frontage on Main Street and 2nd Street

Rent

$24 per square foot per year, or $24,000 total for year. Monthly rent of $2,000

Deposit for rent

equal to one month's rent must be paid in advance, and monthly rent of $2,000

When is rent due?

1st of each month

Utilities Cost (water and electricity)

Estimated $500/month

Utilities Deposit

$500

Checkbook

used to monitor cash flow. Payments for rent, utilities,wages, advertising, product purchases, and interest are automatically made at the appropriatetimes during the month. You can track your current cashbalance at any time by reviewing the checkbook

Deposits

aily cash receipts from sales are taken to the bank's night deposit andadded to your balance the following morning—except Sunday.

Cash Budget Analysis

can help you anticipate these payments. If cash from the loan provided by Jane runs out, you may be eligiblefor an additional small business loan if you provide sufficient rationale to your lenders

Daily Receipts

For a detailed analysis of sales, view the Daily Receipts report. It shows the daily capacity, orthe maximum number of cups you could have sold based on your equipment and staff; theactual number of cups sold; and the average price of the coffee sold

Weekly Purchase report

ocated under the DECISIONS menu, provides information aboutthe coffee and cups used in the past week. Check this report before ordering cups as you mayhave enough in stock (inventory) to meet demand for the coming week.

The Income Statement

shows revenues and expenses on an accrual rather than cash basis, so items are expensed inthe period they are used, rather than when they are purchased.

The Balance Sheet

shows your firm's assets, liabilities, and equity. It "balances" because assetsmust equal the sum of liabilities and equity. Examples of assets are cash, rent and utilitydeposits, inventory, and equipment. Liabilities include taxes payable and loans. Cumulativeprofits will appear under equity on the balance sheet. Unlike the income statement, whichshows results over a specified period, the balance sheet is a snapshot of your business at apoint in time

The Cash Flow Statement

shows the changes in your cafe's cash position over themonth. The statement begins with net income from the income statement, then adjusts forany differences in cash flow from operations to calculate net cash from operations. Then anyadjustments due to investment activities and financing activities are made to arrive at the netincrease or decrease in cash for the month

Local Labour

report provides the averages for manager and staff wages,average turnover rate (which tells you about how often the staff at local businesses is quitting),the area's minimum wage, and the number of employees for the other coffee shops in the area

The Customer Survey

shows customer satisfaction with your cafe, an important measure ofyour performance. As the simulation progresses, the marketing research firm that surveyssatisfaction may provide additional information depending on your decisions

The Industry Menus

hows the menus for all your competitors so you may compare competitorprices, coffee quality, and cafe hours with your own.

The 4 P's of marketing

Product, Price, Place, Promotion

The overall planning and integration process has two basic steps

1) analyzing the situation and (2)choosing a course of action

To make a good decision, three circumstances must be present.

1. have good information regarding the decision

2. have an objective.With an objective or goal in mind, one can think about how the decision would likely impact the ability to achieve the objective. 3. the person making the decision must be able to understand the information, accept the objective, and be able to discern the likely impacts of different decisions on possible outcomes

Accounting

The way in which a business keeps track of and provides importantinformation about its financial state and fulfills its state, local andnational reporting obligations.

Accrual Accounting System

An accounting system where in money in the form of revenues and expenses is counted when it is used, not necessarily when payment is made or received. A sale is recognized at the time ofthe sale, even if payment comes later.

Ambiance

The mood, character, quality, tone, and atmosphere of anenvironment.

Balance Sheet

A snapshot of your organization at a particular point in time, containing the current balance in your asset, liabilities and shareholder equity accounts

Break-Even Analysis

A way to calculate either the price you need to charge at aparticular level of sales—or, conversely, the number of units youneed to sell at a particular price—to cover fixed costs.

Capacity

The estimation of how many cups of coffee your shop canhandle—or could have handled—serving on a given day based onyour equipment and staff

Cash-Based AccountingSystem

In this system money that is received is counted or recognized asincome or revenue at the time it is deposited. Money that is spentis counted as an expense when it is spent

Checkbook

This represents your cash-based accounting system. It is a recordof all receipts and disbursements for the current week.

Compensation

Something given or received as an equivalent for services or debt.

Competition

Nearby businesses of a similar nature producing a similar product, which may attract customers that would otherwise support your business.

Cost of Goods

How much it costs to make the product, or create the service, that is being sold

Customers

Someone who purchases a company's product or service.

Customer Analysis Report

An evaluation of who the customers are and what they are looking for in regard to a particular product.

Customer Satisfaction

The extent to which a business is fulfilling the needs and desires ofits customers.