Entrepreneurship exercise

Entrepreneurship exercise

  1. To introduce a successful new service, you should understand the industry in which you’ll be offering the service. Select a service business that you’d like to run and explain what information you’d collect on its industry. How would you find it? (100-200)

Entrepreneurship exercise

  • Who uses accounting information? What do they use it for, and why do they find it helpful? What problems would arise if they weren’t provided with accounting information? (100-200)
  • For the past ten years, you’ve worked at a PETCO Salon as a dog groomer. You’re thinking of starting your own dog grooming business. You found a place you could rent that’s right next to a popular shopping center, and two of your friends (who are also dog groomers) have agreed to work for you. The problem is that you need to borrow money to start the business and your banker has asked for a breakeven analysis. You have prepared the following cost estimates for your first year of operations:
Fixed Costs 
Salaries$105,000
Rent and utilities$36,000
Advertising$2,000
Equipment$3,000
Variable Cost per Dog 
Shampoo$2.00
Coat conditioner$1.50
Pet cologne$0.75
Dog treats$1.25
Hair ribbons$0.50

You went online and researched grooming prices in your area. Based on your review, you have decided to charge $32 for each grooming.