Question: Jessica Cox has approached a venture capitalist asking for loan to finance a French apparel store she wants to launch. As part of evaluating her
Jessica Cox has approached a venture capitalist asking for loan to finance a French apparel store she wants to launch. As part of evaluating her loan application, the venture capitalist asked her if she had conducted any primary research to assess the feasibility of her proposed business. Jessica replied that she had spent many, many evenings and weekends in the library and on the Internet collecting information about restaurants in general and French Apparel stores 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 apparel store. One reason for her confidence, Jennifer noted to the venture capitalist, was that her library and Internet searches were carefully conducted in ways that allowed her to verify that French apparel stores did well in demographic areas that are similar to the one in which she wants to open her business. If you were the venture capitalist, what would you say to Jessica in response to her comments?
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