Business Case Studies & Business Publications

Bizzy Coffee

Schill, Michael J.

Case

Bizzy Coffee

Schill, Michael J.

F-2047 | Published August 15, 2023 | 14 pages Case

Collection: Darden School of Business

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Product Details

This case explores the common cash-flow challenges that start-up businesses face as they straddle the conflicting objectives of business growth and cash preservation. In August 2022, Alex French, the CEO and cofounder of Bizzy Coffee (Bizzy), an emerging business in the rapidly growing cold-brew coffee market, prepares for a meeting with potential investors. His preparation requires a diagnosis of why Bizzy is burning so much cash, a proposal for getting the business to positive cash flow, and an assessment of the amount of financing required to get there. Students complete these tasks and build an understanding of cash flow and its importance to business stakeholders. It is designed for use in the core finance curriculum at Darden as part of a module covering financial modeling and analysis.

The case is designed to accomplish any of the following objectives: (1) Introduce and explore financial modeling of business decisions. (2) Motivate the concept and relevance of cash flow and the distinction between cash flow and profits. (3) Facilitate financial statement forecasting and an understanding of the interdependence of business sources and uses of cash. (4) Introduce the cash cycle and the relation of working-capital management to financing needs in a growing business. (5) Build skills in financial analysis and the interpretation of financial ratios.