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One of the most daunting tasks for any entrepreneur is estimating...

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One of the most daunting tasks for any entrepreneur is estimating...

One of the most daunting tasks for any entrepreneur is estimating demand for what he or she is selling, particularly if the product is new to the world or very different from what currently exists. Pai-Ling Wong has developed a robotic device designed to deliver food and coffee to people on the campus of the university where she is a researcher. The university is serving as a beta test site to refine the robot's functionality. As part of her effort to plan for the commercialization of her robot, Pai-Ling needs to calculate potential demand. Because she is aware that entrepreneurs frequently overestimate the level of sales they can realistically achieve in the beginning, she has decided to triangulate demand from three different points of view to get a sense of total demand.

In addition to calculating demand, Pai-Ling is well aware that if she doesn't get her expenses right, she could burn through her limited capital before getting her product to market. At the same time, she knows that the probability of getting expenses exactly right is zero.


What three perspectives should Pai-Ling consider?

What should Pai-Ling think about when considering the relationship between the sales forecast and expenditures?

Besides the direct costs of producing the product, Pai-Ling will have sales, general, and administrative expenses. This includes direct and indirect selling expenses, salaries, and promotional supplies. What else is included in SG&A?

What should Pai-Ling include in her startup expenses?

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Answered by CommodoreOkapiPerson216 on coursehero.com
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