Assume that you are planning to start a business venture. Illustrate a business
ID: 364655 • Letter: A
Question
Assume that you are planning to start a business venture. Illustrate a business idea and show how it grows and develops using the the five stages of business life cycle using revenue model: (1) Development Stage, (2) Startup Stage, (3) Survival Stage, (4) Rapid-Growth Stage, and (5) Early-Maturity Stage by considering the following key points:
i) Outline major elements of your business plan;
ii) Financing each business stage;
iii) Business exit strategy and
iv) Strengths and weaknesses of the business.
Explanation / Answer
I had a plan to start an restaurant with some of my friend that who can invenst half amount in my business as the partners.Restaurant comprises of chineese,italian and bevarages with hygenic atmosphere and planned to decorate the interior related to the plantation which eill give pleasent look to the hotel.So we had selected an area and need to strat the business.
In our business major elements was food acording to the trend which was following by the people'interior of the hotel,provide the best quality food with the daily bought products.Our business give the competirion to the other hotels which are near by us.As that we selected the area according the market analysis and target the best customers.We are using the social media,telivison for promotions of our hotel as the sale strategies.
1.Development stage-As the development stage was the starting stage and it was an seed stage.In this we cannot see any kind of profits because there will be less customers to the hotel.So that customers who visited the hotel most take feedback from them to develop the business and to rectify our flaws.
2.Startup stage-In the startup stage we started the promotions about our hotel and started marketing. Rectified our flaws which were done during the development stage.In this we should reach the customers acording to their expectations because if we failed it leads to loss in our busniess.
3.Survival Stage-When we reach this stage it was clearly observed that customers was growing and at the end of the day there was some of the profits.So,i decided to make some renovations and expand the space by that i can accomodate more customers.I had implemented some strategies which i was mentioned in business plan.
4.Rapid growth stage-In this stage my business reached all the roots and became one of the competitive to the top hotels.There was growth in the revenues than the invested amount and we have proven that our hotel givesthe best.
5.Maturity stage-This was the final stage,as we experienced all the benefits and then it will be theone of the top restaurant so in far we cannot see more growth as before.at this stage i will take a decision of the iii)Business exist strategy because i earned a much as possible but when we reach the last stage it as we exit from that business and need to invest in other business.In hotel business i cannot extend to no longer so invested in other business.
In each stage of my business there will be need to finace because without investment there will be no profits in the starting stages there will be less income and more to invest but when we reach the survival stage revenue will be generated and that can be again invested to make profits.
Strengths-Availability of drinks and food according to the taste,excellent location,hotel employees and management was dedicated to work.
Weakness-Some times employees cannot manage with the people who talks another languages,higher costs according to the market reputation.