Empowering viral microenterprises: Financial literacy and cost of goods sold strategies to enhance culinary business profitability and efficiency

Abstract

Pangdas Eonni, a new microenterprise selling the viral product 'pangdas' or spicy dumplings, has quickly gained popularity through social media, resulting in high daily sales. However, despite the impressive sales volume, the actual profits have fallen short of initial expectations, primarily due to challenges in accurately determining the cost of goods sold (COGS). This community service initiative aims to enhance the understanding of COGS strategies for microenterprises, focusing on optimizing profitability and efficiency. The program targets the employees and owners of Pangdas Eonni, located in Karang Rejo Hamlet, Bandar Bireuen Village, Bireuen, through offline, face-to-face training and mentoring sessions. The training encompasses problem-solving and analysis, with materials delivered via lectures, hands-on training, question-and-answer sessions, demonstrations, and case studies. Participants are guided through the process of determining COGS, using example transactions and exploring various scenarios that impact profitability. By the end of the program, the goal is to improve financial literacy and foster a deeper understanding of effective COGS strategies, enabling the business to achieve sustainable profit growth.