FINANCIAL ACCOUNTING

Decia Parris

Week 5 Assignment

Accounting

Frank’s Hotdogs Business

Hot dog cart business has grown to be among the most profit-making enterprises to undertake in the current world. The highly competitive business is easy and lucrative business that can be a full-time or part-time business. Hot dogs are loved because of their great taste. Additionally, they can be made healthy and are inexpensive. Frank’s hotdogs business is intended to start in May, 2021 and will be located in Lower Manhattan, NY near Washington Square Campus. The business will offer a range of fancy hot dogs with great tastes. The hotdogs will have a variety of spices, toppings and flavors to make them unique from what already exists in the market. The cart business guarantees a tasty treat through a special blend of spices and meats at a low cost. It will be a cart business due to various reasons including flexibility, low start-up costs and time to run the business.

College students are lovers of snacks and my hot dogs will be an energizing snack for them. I intend to cover the hotdogs with mustard and ketchup though it will depend on customer preference. I intend to sell juices as well as they blend well with hotdogs. A simple cart will be used to enhance mobility when seeking to reach my target consumers. My business will run from Monday to Friday from 4.00 p.m. to 7.00 p.m. when there is a high flow of movement out of college and in the streets. On weekends, I will start the business as early at 11.00 a.m. and will move across streets as I target different audiences. To get my business known, I plan to buy a franchise from a successful local dealer as well as use social media platforms to promote it.

My key challenge to starting and running this business is lack of finances. Being a college student and experiencing the effects of the Covid-19 pandemic, I am short of finances to run this lucrative business. The financial requirements include a minimum cash requirement of $150,000 for purchase of hot dog cart, permit for business, inventory like hotdogs, supplies like napkins, sanitizer and foil and cash for operational costs among others. My sales forecast are 100 hot dogs per day at $20. On average, I intend to earn $2,000 per day from the sale of the hot dogs. Higher sales are expected on weekends due to more working hours and movement across streets.