Advanced entrepreneurship - legal and financial decisions Essay

Advanced entrepreneurship - legal and financial decisions - Essay ExampleE genuinely year thousands of immigrants arrive in red-hot York.The immigrants come with promising talent and academics,high hopes of living the American dream.Along with this,the natural increase in the population of a city resulted in a population produce rate of 5% The inhabitable land definitely does not increase with the same rate and this result into densification of population in the city centers. The cardinal bed room apartment, with all the traditional bulky article of furniture, that can be bought in no less than $500,000 can hardly accommodate a family of four, allow alone allow them a comfortable living. Hence a problem exists and with it comes tonic opportunities to do business. The Industry This business idea is related to furniture industry. A new merchandise called Space Saving Furniture is presented to Triangle Solutions as a prospective business opportunity in New York City, Manhattan an d similar thickly populated metropolitan areas. The art of furniture design combined with the latest technology in engineering yields a broad range of multi-purpose furniture produces. The new designs are more comfortable, occupy lesser space, and can be easily modified to fit different needs throughout the day. The catalog of product allow ins a study table that turns into a two tier beds for kids at night, a superb sofa heap that turns in to a double bed when needed, a shelf that can be disassembled to give four small chairs if required and so on. The list includes a whole range of easy to operate furniture products that can fit into offices, bed rooms, kitchens, bathrooms, study rooms etc. and can serve at least two, if not more, functions at a time. Market size There are at least 2.14 million apartments in New York City alone according to a survey conducted in 2008 (DiNapoli, 2009, p. 1). Most of the residents of these apartments accept with the problems of low accommodat ion. Compared with the real estate prices and monthly rents, space saving furniture is a financially feasible option for the apartment dwellers to increase their accommodation. Hence it is estimated that the product will be extremely popular with the majority of the population. Competition exists in this market as well. There are a few companies such as Resource Furniture which are already marketing the product. However, we believe that a strong marketing campaign can certainly attract the so far-off untapped customer base. Team Requirements The team for this business must consist of following experts. Interior Decorator To design the aesthetics of the furniture Product and industrial Design Engineer For general product design Mechanical Engineer For material selection, load calculations and hydraulic system design etc. Marketing conductor For devising marketing and sales strategy and its implementation Director Operations To manage the production, inventory and general operations. Finance Officer To manage finances. Scalability of the Product The product is scalable over a good range of production and sales volume. Looking at the costs break down, we can observe that the product has very high initial, fixed costs and comparatively low variable cost. The initial cost includes the cost of equipments and machinery required for production and the design expenses. The variable costs include the materials, marketing and energy bills. Hence increasing the production and hence the sales volume will result in lesser payback time and greater profits. On the contrary, if low sales are forecasted for a particular product, then the costs can be reduced by using simpler production machinery instead of highly specialized machinery for each product. This machinery will have low initial and running cost but has more production time. Financials The business can be started by establishing an office / display center at Furniture Market in New York. A small manufacturing facili ty will be set up close to the display center. The initial capital required for it is $25,000. All the