OPPapers.com

Business Model

ASSIGNMENT

Mohan Kumar is planning to start an ‘egg selling’ business in Mumbai as he founds this venture to be profitable given the low amount of investment.

To begin with his plan, he puts down the following items:

Cycle on rent: Rs 5 per day
Kerosene stove on rent: Rs 10 per day
One table on rent: Rs 5 per day
Personal expenses amount: Rs 80 per day
Salary (of Mohan): Rs 50 per day

He takes a loan of Rs 200 from his brother Sohan Kumar.

He decides to put his kiosk in an industrial area as he anticipates workers from these industries to be his potential customers and puts up outside Atlas factory situated in MIDC area.


DAY 1:

Following are the day’s investments-

Eggs- 10 crates having 12 eggs each @ Rs 1 for each egg: Rs 120
Paper plates- one packet containing 150 plates: Rs 20

He reaches the pre decided location at 7 and sets everything in place so that when the factory workers start moving in at 7.30 they become aware of this new kiosk.

By the end of the day he ends up selling 95 eggs priced at Rs 3 each.
Thus, reporting sales revenue of Rs 285.

DAY 2:

Now he expects his sales to rise as he believes that there would be greater awareness about his kiosk today.

Following are the day’s investments-

Eggs: 12 crates having 12 eggs each @ Rs 1 each egg: Rs 144
Paper plates- one packet containing 150 plates: Rs 20

Amount of additional investment for 2nd day was Rs 164.

By the end of the day he ends up selling 150 eggs priced at Rs 3 each.
Thus, reporting sales revenue of Rs 450.

DAY 3:

Following are the day’s investments-

Eggs: 14 crates having 12 eggs each@ Rs 1 each egg: Rs 168
Paper plates- one packet containing 150 plates: Rs 20

Amount of additional investment for 3rd day is Rs 188.

By the end of the day he ends up selling 165 priced at Rs 3 each.
Thus, reporting sales revenue of Rs 495.

DAY 4:

Following are the day’s investments-

Eggs: 15 crates having 12 eggs each@ Rs 1 each...