Discuss about the Factors Related to Venture Feasibility Analysis.
In the modern business world, so many factors have prompted the need to come up with viable business ideas. Most of the businesses around the world are failing due to poor selection of business ideas or copy-pasting non-functional ideas or strategies from other firms. As a result, therefore, there are some factors to be considered before coming up with a feasible business idea (Wyckham, 2015). Some of these factors are spotting a market gap, in identifying the market of the commodity to be sold. Others are deciding where to locate the business, why it is necessary to start the business, the benefits that will come along as a result of execution of the business idea as well as the open, entrepreneurial gap to be closed. After thorough consideration of the Singapore market and its general overview, the business idea of the sale of leather jackets arrived.
Research has proven that in most of the times, Singapore is one of the coldest countries in Asia. It has also shown that during winter most of the people cine to the country for holidays and ice skating (Umble, 2014). It would, therefore, be logical to start a business of selling leather jackets to both its population as well as those who come for holidays in the country. Most of the cotton and woolen jackets sold in the country are not warm enough to counter the coldness that strikes the country (Lin, 2017). Again, the country has suffered the lack of a business idea that is both beneficial to the owner and the counter as a whole. It is due to this reason that it has become imperative to come up with this feasible business idea.
This business idea, when executed will be very crucial to the owner and the wider population as a whole. For instance, the owner will be in a position to earn income raise their living standards, social status and maybe reach self-actualization. The benefit that will accrue to the general public is quite imperative because it concerns a large number of people (Nelson, 2014). Firstly, it will satisfy the market needs that have been left unsatisfied for quite some time. The Singapore market has been demanding better quality jackets that can effectively counter the coldness registered in the area to no avail. However, after the establishment of this business, the market will be satisfied because of a good supply of quality products as deemed due by the population.
Research shows that during the winter season most of the people suffer from different ailments resulting from coldness. It is not amazing that during this season many people die from the common cold and others pneumonia. After the implementation of this business idea, therefore, these people will be saved because they will be kept warm thus these ailments will not be able to strike them. The business will enable the country to attain sustainability. One of the biggest goals of sustainability is poverty eradication. This business will create some job opportunities for these people working in the production plant as well as those vending the jackets. These job opportunities will reduce the dependency ratio hence help eradicate poverty.
The proposed business model will be inline with the nine business model building blocks. The first block is segmentation. The customer base will be divided according to age. This division will bring about three segments, i.e., the young, middle-aged and the aged. This segmentation will help determine the most profitable segment of the market (Yew Wong, 2015). The second block is valued propositions. Several benefits will be given to the market to convince them to opt for the business’ products. These benefits include gifts, bonuses, after sale services among others. The third block channels. The distribution role will be given to the logistics management component of the supply chain management department. The business will also reach out to the public through social media platforms and the growing digital virtual connectivity (Somers, 2016). The fourth block is relationships. The business will be dedicated to establishing a personal relationship with its customers. It will strategize on customer acquisition in the first phase and then start strategizing on how to maintain them and increase purchases per individual. In the later stages of growth, it will focus on increasing the customer base by diversifying its operations.
The fifth block is revenue streams which are very important because they keep the business operating. The revenue streams will be transactional and recurrent streams. Transaction revenues will come from onetime payment the products by the customer. Recurring revenues will arise from continuous payment for the value propositions by the customers. The sixth block is resources. The required resources will be human, physical, technological and financial resources (Hong, 2016). The seventh block is key activities, and these include the acquisition of raw materials, production, and distribution to the customers. The eighth block is partnerships which will be informed of strategic alliances and the normal buyer-seller relationship. The last block is cost. The costs involved will be for paying for the factors of production including labor, meeting legal requirements as well as the distribution of the products.
To be able to maneuver, the business will establish a good relationship with its customers. Most of the businesses fail because of lack of personal contact with their customers as well as not getting their feedback to correct their flaws (Jia, 2016). As a result, therefore, the business will establish strong customer relations. Again, the business will ensure that it meets all the necessary legal requirements. It would be somewhat discouraging to get a business shut down a few days after the start as a result of unmet legal requirements. The business will be registered before starting as well as seek ISO certification to clear any doubt and make it ready to start operations (Bartkowski, 2015). The business will also use its internal resources well as a source of competitive advantages. Through this step, the business will be able to outdo its rivals. Lastly, the business will hire a skilled workforce to set a food business culture and ensure that the best quality products are produced.
There is a sure market because of the climate of the country. The business targets all the people in Singapore, whether citizens or visitors. The business is targeting to supply these jackets to more than 90% of the Singapore population. The jackets will be reached out to the market by the supply chain management team. The competitors available are other firms that sell jackets made from other materials such as well, mohair, cotton, etc. (Cooper, 2016). However, the business is certain in out competing them because of dealing with highly differentiated products. The jackets will be sold at a lower price than that of the competitors. The major strength of the competitors has a renowned brand, and their weaknesses are poor customer relations and flaws in supply chain management. There are no barriers to entering the market.
About 1.2 billion USD dollars will be required to implement the business which will be gotten from the savings, borrowing, and sale of shares. The growth and upkeep of the business will come along as a result of ploughed back profits. The business may be required to operate for approximately a week before making the first sales (Douglas, 2016). That is because of the manufacturing time. In reaching the breakeven point, the business may have to operate for roughly a month or so. It is expected that the business picks immediately.
Conclusion
While many people think that coming up with a business idea is simple, it should be appreciated that it is a process that has to be completely and adequately completed. For instance, it is important to consider the market gap that the business will cover, consider the market that it will serve, where it will be located and why as well as the current legal requirements concerning the business. It is important also to look at the general benefits of the business to the owner and general public. Care should also be taken to ensure that critical success factors are put into consideration during execution. The business should also be evaluated for feasibility to determine its viability. But to draw the line, this business of manufacture and sale of plastic jackets is expected to maneuver up well because all the necessary considerations have been made.
References
Bartkowski, J. (2015). Religious Organizations, Anti-Poverty Relief and Charitable Choice: A Feasibility Study of Faith-Based Welfare Reform in Mississippi. PricewaterhouseCoopers, Endowment for, the Business of Government, 68 (8), 50-78.
Cooper, R. (2016). Benchmarking the firm’s critical success factors in new product development. Journal of product innovation management, 4 (7), 55-67.
Douglas, E. (2016). The interaction between feasibility and desirability in the formation of entrepreneurial intentions. Journal of Business Venturing, 6 (8), 50-79.
Hong, K. (2016). The critical success factors for ERP implementation: an organizational fit perspective. Information & Management , 4 (8), 46-69.
Jia, F. (2016). Investigating the feasibility of supply chain-centric business models in 3D chocolate printing. Technological Forecasting and Social Change, 3 (6), 34-57.
Lin, Y. (2017). BPMN-based business process model feasibility analysis: a Petri net approach. International Journal of Production Research, 67 (7), 34-46.
Nelson, R. (2014). Energetic and economic feasibility associated with the production, processing, and conversion of beef fat to a substitute diesel fuel. Biomass and Bioenergy, 3 (88), 66-83.
Somers, T. (2016). The impact of critical success factors across the stages of enterprise resource planning implementations. Proceedings of the 34th Annual Hawaii International Conference on the Business process, 67 (7), 43-61.
Umble, E. (2014). Enterprise resource planning: Implementation procedures and critical success factors. European journal of operational research , 1 (6), 50-60.
Wyckham, R. (2015). Factors related to venture feasibility analysis and business plan preparation. Journal of Small Business Management, 56 (6), 74-82.
Yew Wong, K. (2015). Critical success factors for implementing knowledge management in small and medium enterprises. Industrial management & Data Systems, 24 (77), 78-93.
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