Popsicle Startup Facing Expansion Issues

This article caught my attention due to its particular nature and the relevance it has in terms of highlighting the problems faced in starting a company from scratch. Karen Henry is a mother turned entrepreneur who spends her time making and selling popsicles. Selling hundreds on busy days, Karen is looking to expand operations into wholesale and mass production. The operation currently grosses anywhere from $1,500 to $2,500 a week. Making and selling popsicles is currently a one-person job, from the blending to the freezing and wrapping, everything is done by Karen. In order for her company to expand, there needs to be a certain level of cash investments into heavy machinery for both production and packaging. There needs to be an invested partner willing to sell the products in bulk as well as more than one employee to help run the operations. The most obvious problem or deterrent would be the possibility of bankruptcy due to an unsteady cash flow. The period of time from initial investment to profit can be a huge threat to any company, especially those operating out of their own pockets without any outside funding.

Links:

http://www.theglobeandmail.com/report-on-business/small-business/sb-money/cash-flow/popsicle-maker-grapples-with-growth-risks/article4497660/

http://www.two-tarts.com/2012/06/popsicles-with-roasted-strawberry.html

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *