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Trina's Software Mini-Case Trina is thinking of quitting her job as a software engineer (annual salary of $75,000 per year) and starting her own programming service business. Due to her vast social network, she knows 20 to 25 small business owners who have already expressed strong interest in obtaining custom-built software programs which would make their businesses much more efficient. Trina believes, she can earn average revenues of $2,000 per client in her first year. However, she believes that word of mouth and a marketing budget of $3,000 per year will get her to 30 clients in year two, with an average annual revenue of $2,500 per client. In addition to marketing, Trina will have an average monthly supplies expense of $200 in her first year. There will also be equipment depreciation. Trina is conservatively projecting a 10% increase in revenues from year two to year three and a 15% increase in all expenses except depreciation (which will stay the same). She expects growth of both revenues and expenses to level off after year three. Trina is interested in trend analysis on her projections and is wondering if this career move would be a good one for her, both short-term and longterm. As someone who is well aware of the importance of cyber-security, Trina is wondering about how to keep cash secure. She plans on using cash, cheques, and debit cards to make payments to suppliers. She plans on accepting cash and cheques as payments for her services. Trina expects to host customers regularly in her home office as she presents her work and exchanges ideas.
Problem 1: Advise Trina on starting her new business versus continuing as an employee. Also, provide any business recommendations you can, with detailed analysis/rationale
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