Question

explain how your company will make money and earn a profit

Answer 1

I have a company named Art creations, where i sell art and craft supplies to my customers. We have in-house machiney with the help of which we make the craft supplies and then market them and eventualy sells them to the ultimate customers.

The investment made in machinery the space rented for the manufacturing and the salaries of my staff are my fixed expenses. To recover my expenses, i make sure that all my supplies meet the needs of my customers. We constantly innovate and come up with new supplies that excites our customers towards making a visit to our stores. We only sell online, which does not limit our sale to a particular locality. This creates additional revenue for us. We provide door to door delivery. We spend on advertisements so that customers are made aware of our products. We keep the prices at reasonable levels , due to which custoemrs do not shy from making large purchases as well.The quality of orr products are good, which encourages our customers to make a repeet purchase.   As a result, after the end of the month , even after paying for all the expenses we are left with a reasonabel profit which is further used to expansion and investment in new innovative products.