I need help with these 5 questions please m11 Conduct a financial feasibility an
ID: 3282764 • Letter: I
Question
I need help with these 5 questions please
m11
Conduct a financial feasibility analysis for a Clothing Boutique business by responding to the following questions 1. Drawing from an Startup Costs work, can you readily obtain the funds necessary to start this type of business? Support your response. 2. Is there a way to scale back this venture to reduce startup costs? Support your response 3. Drawing from an Sales Forecast, are there realistic opportunities to increase sales year over year? Support your response 4. Drawing from an Exit Strategy, can wealth be generated exiting this business? Support your response 5. Based on your respo nses to #1-4, what actions can you take to improve the success rate of your business?Explanation / Answer
1) The funds necessary to start the cloth business can be obtained by taking a loan from the bank or financial institutions where most of banks provide financial support at a low interest rates . The purchase stocks can be obtained for credit from a wholesaler . Few options for funding business are ..
2) Scaling back this venture to reduce startup costs can prove detrimental to the business because it shows that the business is not doing well and the business may wind up any time . Instead of scaling down the business it would be benefitted,if the costs are kept to a minimum by good management . The business owner can arrange for a favourable credit conditions and also can hire the right team members who can run,manage and lead the business . The store should focus on marketing and increasing its awarness among the consumers rather than scaling back which could prove detrimental of business .
3) As business becomes more stable and established which leads to more awareness of its brand. There are realistic opportunities to increase sales year over year.
4) Wealth can be generated by exiting this business ,if the owner of store has major stakeholding with less amount of loans from banks or other any financial institutions then it is definitely possible to generate wealth by exiting this business .