I. M. Aruban has a sandwich shop in a downtown business district. Several of his customers have said that they would purchase from his shop more often if he offered a delivery service. I. M. is considering establishing a delivery service to meet the needs of his market. He believes that he will have to purchase a fax machine, install a new phone line for the fax machine, purchase a delivery van, and hire at least one delivery person. I. M. asks your advice in determining whether or not he should take on the delivery service venture.
a) What steps would you recommend that I. M. use in reaching a profitable decision?
b) Explain to I. M. what each step involves.