Identify a potential business idea (consulting services), translate this into a ‘business concept’ and test the concept to evaluate whether or not it is feasible.
The assignment is in the form of a business model evaluation.
Business planning assignment task
Identify a potential business idea (consulting services), translate this into a ‘business concept’ and test the concept to evaluate whether or not it is feasible. This will require you to conduct basic primary and secondary market research and prepare a one year projected cash flow. The format of your final report will vary according to the nature of the business but it should typically include:
service description (business concept)
financial projections (one year cash flow, break even, investment requirements)
evaluation of the business concept
supporting documents (where necessary).
The evaluation of the concept should address the following:
What are the strengths and weaknesses of the concept?
Is the business concept feasible?
Would you pursue this venture? Why or why not?
Clarity of depiction of business concept.
Quality of research to test the business concept.
Quality of analysis and evaluation of business concept.
Information for the writer (theoretical frameworks):
1) Components of a business model:
Core Strategy (how a firm competes)
Strategic resources (how a firm acquires and uses its resources)
Partnership network (how a firm structures and nurtures its resources)
Customer interface (how a firm interfaces with its customers)
2) Criteria to evaluate business models (Rae, 2007)
Are the assumptions and information on which the model is based realistic and reliable?
Are fixed costs kept as low as possible?
At what point is break-even reached?
Are the gross and net profit levels realistic and attractive?
3) Components of a feasibility analysis:
Idea+Personal Attributes+Knowledge of Customers+Knowledge of Competitors+Marketing Strategy+Recources
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