Goventure Small Business Essay - 1300 Words

For my project, I ran Coffee-Roma, a coffee shop located in the business district of a large city. My simulation ran for 60 days. Over this timeframe, I hired 7 employees and earned gross revenues of $89,984.20. From those revenues, my net profit totaled $14,046.83. Below are the details of how I attempted to best run my business. What adjustments did you make to try and improve performance? The primary adjustments that I made to improve performance included proper staffing procedures and inventory control procedures. With respect to staffing, I found that I initially had trouble serving customers quickly enough during peak hours. Customers dissatisfied with their queue times often left the store, resulting in lost sales.†¦show more content†¦I also undertook several other, less significant adjustments to try and improve performance. I routinely invested in training for my employees when customer satisfaction levels were dropping due to service-related issues. Further, I occasionally invested in advertising and ran sales to promote customer loyalty. I also closed my shop on the weekends, when I anticipated that fewer potential customers would be in the area (due to the store’s location in a business district). Lastly, on the rare occasion that I was offered discounts by one of my suppliers, I generally took advantage of that offer. Were these adjustments related to cost savings or increasing revenue, or both? With respect to my staffing adjustments, those changes were aimed at increasing revenue. Increasing customer satisfaction and the rate at which they were served provided the coffee shop with increased revenues from more sales. My inventory control procedures provided both increased revenues and cost savings. Quite simply, I ordered adequate levels of products which were in high demand, I was able to better meet customers’ needs, and my revenues increased. The cost savings I experienced as a result of my inventory control procedures were a bit more complex. First, in establishing a routine schedule for ordering, I was able to reap the benefits of lower shipping costs. Because I had a routine schedule, I could