Cakelove and Love Coffee shop Essay

Cakelove and appreciate cafe

1 ) How was Warren Brown able to fund the growth of his firm?

Warren financed his first storefront by securing a commercial mortgage from his community financial institution, CityFirst Bank of POWER because additional commercial commanders in larger, mainstream banking institutions thought it was a particularly good credit risk.

After opening CakeLove, he flipped again to CityFirst Lender to finance it because CakeLove was too fresh to have positive cash flow to aid itself.

After CakeLove opened up three additional full bakeries, CiryFirst Bank borrowed each position to dietary supplement earnings made from existing operations.

2 . What strategies has Cakelove used to manage cash flow? What others may well it take up?

First, Warren managed inventory to manage cash. He and the lads have implemented a waste-tracking system which can be helpful to maintain a " pretty good eye on the way products on hand is shifting. ”

Second, Warren employed cash-handling coverage to manage funds. He set up a cash-counting system to avoid inventory robbery problems and pilferage in the cash drawer.

Third, Warren managed the company by leveraging resources and partnering which has a community innovator to avoid selling shares in the company.

What else he may to adopt is definitely managing bank account receivable and payment in the company.

three or more. What types of cash flow management issues would you anticipate cakehole to encounter if it expands at a rate of three bakeries per year or maybe more?

Growth great, but fast growth can occasionally overwhelm the ill-prepared company owner, so it is very important to create a healthy and balanced cash flow. First, the company was growing not really based on solid ground. Once company experienced growing too fast, it may seek to take advantage of marketplace opportunities regardless if they shortage the necessary capital for the project. The undercapitalization of projects soon becomes all their undoing. Second, the company may well have concerns in offering loans. The company may encounter problems with all their account...

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