IJIC, Volume 4 (2020)

Synopsis

This case presents the story of an undergraduate student planning to start a direct selling organization in the cosmetics and beauty products manufacturing industry with a focus on women of color. The case discusses the cash flow implications of industry and channel selection, and the impact of financing needs and sources. Students may identify the startup scale, question projected costs, review the financing mix, and consider the timing and size of revenues and expenses.

Keywords

Cash Flow Management, Direct Selling, Channels of Distribution

Target Audience and Usage

Contemplating Cash is well-suited to an undergraduate course in entrepreneurial finance, entrepreneurial financing, and accounting. Students are most likely to have completed lower division courses in accounting and finance prior to these courses. It can work well in face-to-face, hybrid, and synchronous and asynchronous online courses, depending upon the methodology chosen. It is best taught with a brief precis, a discussion of the case questions. It may be helpful to encourage students to look at the financials of companies such as Avon and Estee Lauder, one a direct seller and the other more mainstream.

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