Kareece is planning to open a salon and wants to make sure she manages the company costs and cash well to increase its profitability.What should Kareece first do during this stage of the company's development?
A) calculate the costs of salon equipment and supplies
B) talk to friends and family about loaning her start-up capital
C) calculate how much she can invest into the business
D) prepare financial forecasts for the salon

Question

Quizplus · Accepted Answer

Before opening the salon, it is important for Kareece to prepare financial forecasts for the salon. This will help her to understand the potential revenue, expenses and profitability of the business. It will also help her to plan for costs and cash flow management, which is essential for any business to be successful. Once she has a clear understanding of the financial performance of the business, she can then calculate the costs of salon equipment and supplies and determine how much she can invest into the business. Kareece can also consider talking to friends and family about loaning her start-up capital at this stage, but preparing financial forecasts should be her first priority.

Kareece Is Planning to Open a Salon and Wants to Make