Assignment 6.1 — Young Entrepreneurs' Expenses
In this assignment, you'll analyze the costs of a real entrepreneurial scenario. Choose one of the three projects below and answer all three questions.
You can estimate values and prices if you're not sure about the exact amounts — the thinking process matters more than the precise numbers.
Project A: Emily's Cookies
Meet Emily, a 15-year-old student who loves cooking. She decided to start a small business selling homemade cookies to her friends and family. She needed to buy ingredients like flour, sugar, butter, and chocolate chips. Additionally, she bought boxes and ribbons to package the cookies. Emily also wanted to make a small thank-you card for each customer.
Questions:
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Identify the costs: List the different costs Emily had to face at the beginning of her business. Include specific items like ingredients, packaging, etc. Categorize each cost as a direct cost (COGS), operating expense, or one-time startup cost.
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Calculate the initial investment: Add up all the costs you identified. Estimate the dollar amount you believe each cost would require and calculate Emily's total initial investment.
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Business advisor advice: If you were Emily's business advisor, what suggestions would you give her to ensure her business is profitable, considering the costs she incurred?
Project B: Lucas and the Clean Park
Meet Lucas, a 14-year-old student passionate about the environment. He noticed that there was a lot of litter accumulating in a local park, which was harming the park's beauty and the health of people who visited it. Lucas decided to start a project called "Clean Park," where he and his volunteer friends would clean the park regularly and raise awareness in the community about the importance of environmental preservation.
Questions:
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Identify the costs: List the different costs Lucas had to face at the beginning of his project. Include costs related to cleaning equipment, garbage collection materials, promoting the initiative, and other relevant expenses.
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Calculate the initial investment: Add up all the costs you identified. Estimate the dollar amount for each and calculate Lucas's total initial investment.
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Raising funds: How do you think Lucas could raise the necessary funds to finance the Clean Park project and cover the involved costs?
Project C: Rebecca and Her Cards
Meet Rebecca, a 14-year-old student with an incredible talent for drawing. She loves creating colorful and fun illustrations. One day, Rebecca had an idea: why not turn her love for drawing into a small business? She decided to create a "Personalized Cards" service, where people could order birthday cards, thank-you cards, and others with her unique illustrations.
Questions:
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Identify the costs: List the different costs Rebecca had to face at the beginning of her business when creating her Personalized Cards service. Include costs associated with drawing materials, printing, packaging, and delivery.
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Calculate the initial investment: Add up all the costs you identified. Estimate the dollar amount for each and calculate Rebecca's total initial investment.
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Promotion strategies: How would you suggest Rebecca promote her Personalized Cards to attract customers?
Submission Format
Write your responses in clear paragraphs or use a table to organize costs and amounts. Minimum 250 words total.
You may:
- Type your response directly
- Upload a document (Word, PDF, or Google Doc link)
- Submit a spreadsheet with your cost estimates
What We're Looking For
- Correct identification of costs (COGS, operating, one-time startup)
- Reasonable dollar estimates with clear reasoning
- Practical, specific advice or strategies in your third answer