Reference no: EM132313214 , Length: word count:1700

Assignment - Business Feasibility Analysis

Our business plan is to provide place and popups for restaurant owner or any other food business owner to help to grow up and enhance their business.

PART 1: PRODUCT/ SERVICE FEASIBILITY

A. Product/service desirability - High Desirability

B. Product/service demand - with saturation calculations Jams (CPG),

• produce=.17% and avg is .23%, so there is a .06% gap that can be filled, which = 21 potential,
• restaurants=4.7% and avg is 4.8%, so there is a .1% gap that can be filled, which = 5 potential,
• candy=0% and avg is .05%, so there is a .05% gap, which = 2 potential,
• baking=.17% and avg is .29%, so there is a .12% gap, which = 1.4 potential

Conclusions: all industries have market potential for the city.

The city holds events that host pop-ups and 30-50 sign-up so there is a market for this concept.

C. Product/service feasibility

Not Feasible Unsure Feasible

D. Suggestions for improving product/service feasibility.

Advertising/ educating businesses and citizens of Renton

PART 2: INDUSTRY/ MARKET FEASIBILITY

A. Industry attractiveness

a. The industry that our idea will be entering is what we believe to be fast growing. The industry that we would be entering is the restaurant industry.

B. Target market attractiveness

a. The market that our idea will be entering is of pop-ups using the new area to sprout growth in the market of that business. We would be a catalyst for new businesses in the area and grow the overall Renton economy. Another point that would allow us to prosper in the target market of restaurateurs would be the fact that businesses that we would have the resources for the businesses to test if they have grown enough to support their current market.

C. Timeliness of entry into the target market

a. Currently there is not a lot of competition in the pop-up/retail market because of the overall lack of companies hosting. Our idea mainly focuses on pop-ups for growing restaurants who want to test a new market of people and see if they can open a new location in Renton. Overall the timeliness of entry into the target market should be relatively quick. Because there are virtually no pop-up hosts in the area we would have control to take our time with trial and error to perfect our pop-up retail idea.

PART 3: ORGANIZATIONAL FEASIBILITY

ISSUES ADDRESSED IN THIS PART

A. Management prowess

1. Management of Sectioning

2. Budgeting

3. Facilitating maintenance

4. Retail Management Team

5. Ensuring health regulations

B. Resource sufficiency

1. Management of Resources

a. Setting limits, price points of utilities

b. Sectioning of Pop-ups and Retail

PART 4: FINANCIAL FEASIBILITY

ISSUES ADDRESSED IN THIS PART

A. Total startup cash needed - build-out cost for a temporary pop-up shop = $3,500 EA

• Prep Tables - $329
• Front Counter - $600
• Refrigeration Table - $1,029
• 6-burner stove - $1,029
• Commercial Sink - $400
• Countertop Food Warmer - $73

Tables, furniture and seat.

• 2,000 sq. ft. of space and each seating set is (5'+2' (36" min walkway for ADA compliance halved to compensate the other set)) ^2=49 sq. ft. per set,
• 2000/49=40 sets maximum so 35 for enough walkway
• 35 tables (3x3) with 4 chairs each. Table Set = $237; 237*35= $8,295
• Computer equipment (eg, square terminal($399~) for each popups) $399*16=$6384

B. Financial performance of similar businesses

Variable and hard to tell with this kind of business. If it is a well received product then $1K+ if not then less.

C. Overall financial attractiveness of the proposed venture

1. Steady and rapid growth in sales during the first one to three years in a clearly defined target market-Moderately likely.

2. High percentage of recurring income-meaning that once you win a client, the client will provide recurring sources of revenue-Low.

3. Ability to forecast income and expenses with a reasonable degree of certainty- Moderate.

4. Likelihood that internally generated funds will be available within two years to finance growth- Moderately likely.

5. Availability of exit opportunity for investor if applicable- the whole concept gives lowered risk to test out product and if it's a bad creation then they do not continue with it.

Note - Need 1700 words. Just need you to do only IV.

Attachment:- Assignment Files.rar