Question: Your task is to critically analyze a business plan written by a University System of Georgia colleague. Take the position of a prospective investor. Components
Your task is to critically analyze a business plan written by a University System of Georgia colleague. Take the position of a prospective investor. Components you will assess in the business plan. You are required to use these headings in your evaluation. 1) Appearance, professionalism, and organization 2) Executive summary 3) Industry analysis 4) Company description 5) Market analysis 6) The economics of the business 7) Marketing plan 8) Design and development plan 9) Operations plan 10) Management team and company structure 11) Overall structure/flow of plan 12) Financial projections 13) Level of detail and research within the business plan 14) Argument and evidence for feasibility Write a 700 to 1000 word summary of your decision as a potential investor. Make sure you submit a Word file and not a .pdf file. Would you invest? If so, what terms would you insist on to make your investment? As you write your summary, refer to the rubrics below. I will use these rubrics as a resource in assigning points for your submission.
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Expo Recreational & Therapeutic Spa Rentals, LLC to be the first inflatable hot tub rental startup in the southeastern part of the United States. By leveraging lower cost hot tubs coupled with a well-designed and executed logistical scheduling platform, we aim to primarily enter the recreational space with an incredibly unique plug and play style inflatable hot tub rental, that is both a high quality and yet low-cost alternative to more expensive hot tub offerings. This offering will include an integrated on-time delivery, completed setup and maintenance along with full removal at the end of the rental period. This market opportunity is already validated by a proven concept that has found tremendous success in a small geographical area located in the Northeastern US. With no plans to expand their footprint due to the nature of rental coordination, this recreational space is completely underserved across much of the country with no current competitors within our geographical area. Beyond this lucrative recreational space, our consumer research also uncovered additional completely new underserved opportunities in peer-to-peer hospitality services such as Airbnb and VRBO, healthcare, sports teams- players (to include a hybrid cold plunge two in one offering), along with providing much needed therapy to our military veterans. By further diversifying through this market space segmentation, we seek to create significant barriers of entry into this market by future unseen competitors. The 2021 hot tub industry is quite large by market size, measured by revenue, at $1.1 billion (about $3 per person in the US). While the hot-tub industry was originally expected to slightly decline by 4% from 2016-2021 due to low barriers to entry and high competition for traditional high end hot-tubs, the growth market for hot-tubs due to covid has skyrocketed. Now the growth market for hot tubs is expected to rise by 9.63% with pent up demand contracting out orders well into 2022. However, what our research has shown is this accelerated temporary growth created by Covidss sharper focus on a more complete backyard experience, has further demonstrated an underserved need within this industry for a customer profile that is not necessarily looking to own or maintain a more expensive option. Rather, this type of customer is looking for a rentable low-cost option to be used for shorter time periods without any of the hassle to setup or maintain. With the high material costs of plastic and resin used in the more traditional hot tubs not expected to decline for quite some time, we see an opportunity to exploit this growth and further create our own market within the industry itself serving not just this recreational space, but also specifically expanding our market penetration into the additional segments outlined by providing hot tubs exactly when, where, and how long they are needed. By positioning ourselves as providing hot tubs as a service when and where a customer needs them, we remove all the cost and hassle of ownership, allowing everyone to now enjoy them whether for the fun experience, relaxation, or therapeutic reasons. Going forward we will also address emerging ways to assist peer-to-peer hospitality services, health & wellness, sports rehab, and assisting military veterans, further insulating our business with a much larger addressable market not as sensitive to potential economic market downturns as with the recreational space alone.
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