Go $/$ No Go Decision

Note: All the sources must be cited using APA $7$th Edition $$ must include a minimum $3$ sources.

Topic:

Tutoring$-$ Help build others' confidence by offering one$-$to$-$one tutoring, in home or online. Service area: Mississauga

All information must be in paragraph form and use complete sentences. Include Question # plus the associated answer. Please make sure you have proofread your work. Be consistent with your formatting and font $$ Arial $11.$ Regular margins. Include associated units with your numbers $($i$.$e$.,$ $$,\%,$ Units, CAD, USD, etc.$)$

$1.$ Provide the name, logo$,$ and tagline of your business.

a$.$ Provide an $$elevator$$ pitch of your business.

b$.$ Who are your top three competitors $$ why did you choose them?

$2.$ In your groups, complete a preliminary feasibility evaluation of the new business idea by answering the questions below. Show the calculations, including formulas used and references you used $($see below for citation information$).$ Please include steps bolded as below in your document so I can identify the $2$ steps. Any charts used should then be interpreted to include the steps below.

a$.$ Step $1$: Calculate Market Potential

i$.$ Determine the market area and its population.

$1.$ Include a map and marking off the size of the market. $($Hint: typically, you would want to start by serving your local area i$.$e$.,$ Mississauga, Ontario, Canada vs$.$ globally$)$

$2.$ Estimate the population within that market that might purchase the type of product $/$ service you are offering $$ provide reasoning to this estimate, use sources to give confidence in this estimate.

ii$.$ Obtain revenue $($Sales$)$ stats for this market area for this product $/$ service i$.$e$.,$ use secondary data available. If not available, see if family expenditures are available. If product $/$ service is new and no secondary data is available, use similar product $/$ service as benchmark.

$1.$ include competitor pricing $($if available$)$ and unique features of competitor product $/$ service.

$2.$ If including pricing of your product $/$ service $$ indicate justification for your price point $($i$.$e$.,$ reviewing competitor pricing if available$)$

iii. Adjust market potential total $($if necessary$).$ If actual revenue is available in $($ii$)$ then adjust for updated data $($account for inflation $\%-$ to bring to within $1-2$ years of today$)$

b$.$ Step $2$: Calculate Net Income and Cash Flow

i$.$ What are expenses you expect for your business $($looking for a comprehensive list $$ include a table and associated expense$).$ Provide citations on research used to come up with the expenses and estimates. i$.$e$.,$ Office Rent $$3,000/$ month $$ include APA citation of Real Estate listing in a similar area with similar space rented. i$.$e$.,2$ Staff $-$ Why do you require that number of employees and what research was used to come up with salaries? If a loan is being considered, state potential origin of loan and interest rate. Remember to keep costs as low as possible.

ii$.$ Subtract expenses from revenue for your business for year $1$ and $2.$

$3.$ Business Insights $$ provide insights on what you have learned.

a$.$ Do you think this is a good investment $$ why $/$ why not?

b$.$ Write down at least $2-3$ questions on what you still need to answer or are curious about at this point that you would like to investigate to help you ensure your business is successful.

c$.$ In Year $1,$ many businesses are set up that the founders $/$ co$-$founders take a diminished salary or no salary. If this is your scenario, how will these individuals be compensated?

d$.$ How does this investment compare to putting the funds into a high savings bank account?