Question
Assume that you are the managing partner of a startup, which is starting to sell prefabric smart tiny houses. The salaries cost 50.000 USD monthly
Assume that you are the managing partner of a startup, which is starting to sell prefabric smart tiny houses. The salaries cost 50.000 USD monthly and office rent is 48.000 USD annually. You pay monthly 1000 USD for electricity, 500 USD for other expenses and 1.000 USD for data storage. You have bought a car for your staff and you are paying 1000 USD monthly for the lease of the car. You have a monthly revenue of 10.000 USD and for the next year there is a %200 increase in revenues every month, if you spend 8000 usd for advertisement monthly. If you don't make any advertisement, then your revenue increases %100 every month. Assume that, you are in January 2023
1- Prepare 1 year Cash Flow Statement for this startup.
2- In which months you will reach to the breakeven point with and without advertisement?
3- Would you spend 8.000 usd for advertisement or not? Why?
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