Element 2:

3. Capitalization does it have reasonable or unreasonable capitalization?

Justification: This product Multifunctional portable drawing table has a suitable capitalization
since each capital will result in the acquiring of an asset.

4. Free Cash Flow

Will the business still be liquid after allocating funds to capital expenditures?
Will it have high or low sales growth?
Will it be asset or sales intensive?
Will it require higher or lower working capital?
Will it incur high or low research and development costs?
Will it have high or low gross income?

Justification: The business will remain liquid after allocating funds since each fund spent will
improve the product, resulting in a large number of net buyers. It is difficult to predict whether
the product will have high or low sales in the market because we do not know the thinking of the
buyers whether they will still need it or not. It will not require higher working capital because it is
easy as long as you have enough knowledge and tools for making the product. It will result in
high research and development expenditures since individuals can now say what is lacking or
needs to be fixed in our product by looking it up on the internet. Many people are still interested
in sketching, therefore it's safe to assume that they'll buy our product, which will bring us high
gross income.

Element 3:

2. Barriers to Entry Is it easy or difficult to enter into this business?

Are there any legal or propriety protections required like exclusivity?
Is the competition not yet aggressive or tough already?
Is the business accessible to customers?
Is it easy to build customer relationships or does it require intensive work?

Justification: It is not difficult to enter a business as long as you have the effort and
perseverance. There can be and there can be no because it depends on the size of your
business and if you want to get one.
It depends on where you sell and what you sell as to whether or not it is popular. Yes it is
accessible to customers, they will get great experience to our product. It is easy as long as you
are good at communicating and building trust with customers.

4. Entrepreneurial and Technological Differentiation will the entrepreneur offer new

smartphones versus its competitors?
Is the business an “I first” (the concept is original) or “me too” (the concept follows what the
competitors are offering)?

Justification: Entrepreneurs will provide something new to the market since, in business, you
should not duplicate others product; you must also upgrade to stay ahead of your competitors
and get consumer sympathy.

7. Fatal Flaw Is the business risk-free?

Justification: Every business faces the risk of going bankrupt or failing to gain popularity,
therefore the risk will not go away in any industry; all you have to do is be attentive and patient
when entering business.

8. Flexibility Is the business adaptable to change or is it traditional?

Justification: Of course, with every change comes the necessity to change strategy or upgrade
in order to maintain in tradition.