Hi Jonas,

The 1st trick here is you need to show MECE-ness here. You are not collectively exhaustive!

The 2nd trick is they're testing to see if you're all about $.

Saying just NPV is wrong.

You need to recognize that money is not the end-all-be-all. There's growth/development, career, love of the work itself, etc. You can't say “qualitative” or “other”. Rather you need to actually create buckets for this.

I would have something like Financials, Day-To-Day, and Future, for example. Or Financials, Work Itself, Career

Hi there, 

That's an interesting problem to structure. 

In terms of how to approach the framework, your suggestion makes sense. The devil is in the details however, so make sure that you go deep into each area analysing the options both on their own but also comparatively. 

Best,

Cristian

You need to be able to compare apples to apples (i.e., you cannot do just the NPV of the cafe, if you don't do the NPV of the salary). 

I guess one option would be to compare lifetime value of consulting career vs. lifetime value of owning the cafe +/- intangible benefits of each option.

Hi there,

This is an odd question since you could take the 50%, be a silent partner by just taking your share of the profits in perpetuity, and still pursue a job that pays 100k (or do whatever else, for that matter).

So I guess the real question is about this key variable - what will you do with your free time? You could lie in a hammock, found a startup, pursue a ‘normal’ job, etc. You need to establish that and take it from there!

There's more to it, of course, but I wanted to direct your attention to a key aspect you hadn't even mentioned.

Hope this helps!

Best,
Moritz

Hi there,

That is a cool case!

Your approach is entirely correct from the top level as it covers everything there is to cover (= broad top level). 

Now the tricky part comes when you need to a. model the café's profit (it is essentially an estimation question with a lot of assumptions) and b. compare both opportunities in a balanced and MECE way since they are totally different (which relates to the depth of your framework).

I'd be curious to see your full framework + calculation. Feel free to share it for more detailed feedback.

Cheers,

Florian

Hi Jonas,

I think this is an interesting question that may be relevant for many people. I would be happy to share my thoughts on it:

• The approach you described seems like a good one. Evaluating both options quantitatively and then adding qualitative considerations can provide a comprehensive evaluation.
• However, to fully answer the case, you would need to flesh out your initial structure and provide further details.

If you would like a more detailed discussion on how to structure any case study, please don't hesitate to contact me directly.

Best,

Hagen