The past week has been quite active for Vicky’s Cookies as they just started a new business of a snack shop! It required construction of a small porta cabin which included a lot of raw materials like cement, labor and wood. As an analysis, we rounded up the initial investments from all the receipts that we told her to maintain carefully and taught her how to distinguish the initial capital from stock. Also, we observed that she has a proper bookkeeping system for the shop that can help her keep track of her inventories. Basically, every time she sells something, she writes down the date, item and price of the sale. This way she can appropriately count her profit and also be more resilient compared to when she depended on the seasonal sales of her cookie business.
Although the shop also sells readymade products (retailer), the real profit comes from the snacks. We were helping her decide a menu for the products that she should sell as to gain the most profit and increasing the popularity of the store. One of the items suggested by Malou was a delicacy that the people love to eat here while drinking. Also, she sells beer and has an indoor space which would be good to attract customers looking to relax on a hot afternoon. Finally, we have conducted a feasibility study that shows how long will it take for her to get back her investment, how much she should price her products at and an analysis of the competitors nearby selling similar products.
Apart from this, we also went to the Women’s Cooperative which is a microenterprise funded and approved by the government. Malou is also a member of the cooperative, who helped us talk to leader of the organization. After talking to her, we realized that they desperately needed help in preparing the financial statements for their business. They had a basic log book in which they recorded their sales and expenses, but lacked proper organization to covert those records into financial statements. Therefore, the first thing we did was teach her the advanced accounting methods to form income statement, profit and loss, capital accounts and balance sheets. We also sat and checked all of her previous records in which we found a lot of discrepancies. Apart from that, we taught her how to use excel to compile the records so she can print it out later and have a much solid record.
All these efforts were finally aimed at not doing their work for a while but instead to teach them how to do it in the simplest and most efficient way possible.
“Give a man a fish and you feed him for a day, teach him how to fish and you feed him for a lifetime”
Marizza and Popeye’s anniversary party also had wishes for my birthday in advance!