Business - Cost Benefit Analysis

Question 1

Choosing

Answer 1

Although initial costs are high (for the purchase of tools and transport to service the pets) long term benefits and income will be significantly greater than costs.

Question 2

Saving money

Answer 2

• Minimal infrastructure costs
• Don’t plan on purchasing a building or paying rent
• Staff can use their own vehicles
• Whilst providing equipment, actual costs of business are low
• website and marketing are minimal, relying on people spreading word of happy pets

Question 3

Major expenses

Answer 3

• salaries
• insurance
• since we are a partnership and using the partners to deliver the service during the start up phase, we are all invested in the business and prepared to be paid less at this time