Reference no: EM133156259

You are thinking of starting an online business that rents out men designer wrist watches. The concept is to have a portal or an app where one can rent premium watches like Patek Philippe, Cartier and Rolex. It is a sharing economy concept where owners of the watches would rent them out and you earn a commission. What you are still contemplating is whether you would buy these used premium brands and rent it out, or alternatively just provide a platform for the owners to rent out the watches and you earn a commission. The business concept should clearly explain your business model and how the rental would operate. After some thought, you decided to also include premium ladies' handbags under the same concept. The first step is to analyse your business model and identify the assumptions you making. After that you want to appraise and validate your assumptions by applying the validation board.

Developing the basic app would cost you around SGD $9,000/-. You only have S$12,000/- with you. You are not able to borrow any money as you have no collateral. You have two credit cards with a combined credit limit of S$8,000. Your bank account has an overdraft facility of S$5,000. There are no family members or friends who are able to lend you any funds. You are not keen on getting any partners in the business. Analyse and explain how you would go about doing the business concept under those circumstances.

Please explain how will the funds be used specifically.