What Would Your Outsourced CFO Say?December 12th, 2011 | Posted by in Financial Consulting | Financial Management Solutions
I was just reading over New York Magazines’ “Reasons to Love New York.” Of course, I love living here but reading over these articles always makes me appreciate even more the great city I live in. But it also draws my attention to great deals that I have never heard about before.
One of these reasons to love New York was that there is a restaurant in Williamsburg, Brooklyn that lets you pay what you want for a meal. It seems amazing, right? In the article, the owner of the business said that someone left $80 on a dinner that she would have charged only $30 for. But I can’t imagine that most people overpay. Apparently only one person has paid nothing so far and most people have been “fair.”
What would an outsourced CFO say about this business plan? I imagine that they would cringe at the potential fluctuation in income. There is the potential that you could sell the same amount of food two weeks in a row and have a wildly different profit margin.
Obviously though, this particular restaurant is doing just fine banking on the inherent goodness of our fellow man. I still think that maybe they could do with a little financial consulting.