Abstract
With new micro and small-scale ventures, a founder may know of the risks
associated with bank financing. Furthermore, the fact that these
small-scale ventures were not eligible for such facilities, as they
lacked proof of business concept, dictated that a founder seek
alternatives to finance an enterprise. As a result, founders forego bank
financing, and instead choose to finance the going concern with funds
generated internally. This particular case study examined the beginning
six months of a restaurant venture founded by a female Alumnus of the
Entrepreneurship Department at the University of Santo Tomas. More
specifically, this case investigated how a female entrepreneur assessed
market tastes while controlling for costs and monitoring the company
cash position. Discourse in this case study revolved about: (1) factors
regarding pricing product offerings for a specific market, (2) assessing
items that breakeven versus loss leaders, and (3) financing periodic
operations with internally generated cash flows, more specifically,
anticipating the cash position based on the cash burn rate per period.
Analyses placed an emphasis on the cash position of a new venture, as an
income statement may only partially explain operations. Hence, the cash
position was used to assess the progress of the new venture, rather than
solely through the income statement. This case study was developed to
communicate the financing needs of newly conceived ventures that an
entrepreneur faces upon implementation. As of 2018, the company this
case study considered continued to operate.