Rad Coffee Case

For Rad coffee, there are a few factors in which the business must do in order to run smoothly. Financially Rad Coffee generates between $300,000 to $400,000 per year. With fixed costs as well as variable costs, the costs come out to around $65,000 dollars in revenue. In order to advertise their business they have a budget they use. At Rad Coffee their marketing expenses are about $2500 to $3000 dollars per year. The budget includes daily social media updates, special promotions and creates advertisements through local businesses in the area. The advertising budget is small because it is a newly created coffee operation. However when the business grows the advertising budget can increase due to growth.
The financial forecast is critical to