Jennifer Pisano just applied for a bank loan to finance an Italian restaurant she wants to launch. When visiting with the banker about the loan application, she was asked if she had conducted any primary research to assess the feasibility of her proposed business. Jennifer replied that she had spent many, many evenings and weekends in the library and on the Internet collecting information about restaurants in general and Italian restaurants in particular. She further noted that the information she had collected through these efforts increased her confidence that she could open and operate a successful restaurant. One reason for her confidence, Jennifer noted to the banker, was that her library and Internet searches were carefully conducted in ways that allowed her to verify that Italian restaurants did well in demographic areas that are similar to the one in which she wants to open her business. If you were the banker, what would you say to Jennifer in response to her comments?
Answer to relevant QuestionsIf you were one of the recipients of New Venture Fitness Drink’s concept statement, as presented earlier in the chapter, what type of feedback would you have given the company about the viability of its product idea? What are some of the red flags that would suggest that the overall financial attractiveness of a proposed new venture is poor? Which of the red flags you identified would suggest that realistically, a proposed venture ...What target market does Embrace seek to serve and how attractive is that market? Spend some time looking at Lyft, one of the successful peer-to-peer business model companies mentioned in the feature. Why do you think Lyft has been successful while BlackJet, Ridejoy, and Neighborrow.com failed? Naomi Stephenson plans to open a company that will design and manufacture accessories for smartphones. She has read that having a clearly articulated business model will help “all of the elements of her business fit ...
Post your question