Practise evaluating start-up problems, planning choices, risks, and contextual opportunities involved in establishing a new business for IB Business Management HL.
Call it Magic (CIM)
Call it Magic (CIM) is an online jewellery store that sells silver earrings. It has completed its first year of trading, during which it sold 1000 pairs of earrings. CIM's selling prices are low compared to those of other jewellery stores. The average unit cost per pair of earrings is $5, and overhead costs are already at a minimum level.
Table 1: Selected financial information for CIM for the year ended 31 December 2022
State two problems that a new business might face.