Part 1

1. Yes, they are feasible. I would like to add few more variable to in this

consideration of sales forecasting. As customer review is very

important, in parallel to it customer satisfaction is also a significant

variable o consider. Addition on to this, financial allocation is also a

great variable to consider such as budget allocation to bring on those

sales.

2. Before investing in a company or lending money to a company there are

few figures and ratios which needs to be calculated, analysed for a good

investment or lending decision. First of all, revenue of the company, I

would like to see how much revenue they make each month and what is

the growth in percentage on monthly basis in revenue figures. Secondly

both types of profit need to be calculated and those are gross profit and

net profit along with the ratios and percentages on annually basis.

Adding on to this, as per there balance sheet, what are there Liabilities

both long term and short term. Liabilities will explain me how much

they have to pay to others and also check their current asset ratio and

debt equity ratio. If I lend them money will they be able to pay me back
 my interest on time or not. Furthermore, There cash flow statement

mentioning the cash inflow and outflow.

One of main challenges I got for this planning is too much capital

requirement as I for this whole planning I need so much money that’s was a so big

challenge. For setting up this plan I need so much money because the setup cost of

warehouse, inventory and all other expenses are too much costly. So, to mitigate

this challenge I was planning to go with 49 percent business part with the help of

stockholder and my 51% adjust my own with the help of my saving, my family

help and business loan. Another challenge of this planning process to make an

effective working model to attract more customer into first hardware and

household product super store. Because in setting up location there too old and

established small shops of different hardware and construction product. That’s why

to attract customer the blueprint of this model should be include proper 4PS,

pricing mythologies and customer behaviour theories.

Getting best quality inventory within genuine prices is one of major

challenge of this model to make this model successful. As in my target location

majority of customers are middle class and higher class that’s why I need quality
products with less prices then the competitors. That’s why I was planning to

contact with China, USA and local manufactures as well as I will buy inventory in

bulk to get less prices with best quality.

Knowledge about the right product, tools and setup instructions is also

challenge during the planning. As the hardware industry is one of biggest and wide

products sector in the world. That’s why getting knowledge about right inventory

Is so important to selling to customers. To giving all the right tools and products

my company will hire expert staff who has a enough knowledge to identify all the

right demand inventory as well as able to install the product easily.

The growth potential of this hardware business is a great as the population of

the whole world increase so rapidly and shelters are one of basic need. The

population targeting location almost 1 million that’s why I am thinking potential

growth of this business extremely high.

Social media Facebook, twitter, YouTube, snapchat will one of best platform

to increase up this business growth. Going best service to local contractors and

builders will help to growth up this business too quickly. Because in my area all

the hardware industry impacts a lot my contractors as my father is contractor if my

father gets best deal my any store then he gives reference about that store to his

contractor friend. That’s why it makes good reputation will help a lot in growth
 I am envisioned to be the hardware leader in the marketplace. This will be

accomplished by producing quality of hardware products, proper knowledge about

local market, knowledge about all the product instructions and by providing good

service to contractures, local customers.

Part 2

 This entrepreneur mentioned some big challenges he/she would face when

starting this business. Do you agree? Explain your decision

 Evaluate the growth potential of the business. Would you agree with this

entrepreneur’s vision? Why or why not?