Topic 3- Feasibility analysis of a start-up

4 types of feasibility analysis required for a start-up

1. Topic 3
Feasibility Analysis

2. What Is Feasibility Analysis?
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Feasibility Analysis
• Feasibility analysis is the
process of determining
whether
a business idea is viable.
• It is the preliminary evaluation
of a business idea, conducted
for the purpose of determining
whether the idea is worth
pursuing.

3. When To Conduct a Feasibility Analysis
Timing of Feasibility Analysis
◦The proper time to conduct a feasibility analysis is early in
thinking through the prospects for a new business.
◦The thought is to screen ideas before a lot of resources are spent
on them
Components of a Properly Conducted Feasibility Analysis
◦A properly conducted feasibility analysis includes four separate
components, as discussed in the following slides.
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4. Feasibility Analysis

5. Forms of Feasibility Analysis
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Product/Service Feasibility
Organizational Feasibility
Industry/Target Market
Feasibility
Financial Feasibility

6. Outline for a Comprehensive Feasibility
Analysis
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7. Product/Service Feasibility Analysis
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Product/Service
Feasibility Analysis
Purpose
• Is an assessment of the overall
appeal of the product or service
being proposed.
• Before a prospective firm rushes
a new product or service into
development, it should be sure
that the product or service is what
prospective customers want.

8. Product/Service Feasibility Analysis
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Components of product/service feasibility analysis
Product/Service
Desirability
Product/Service
Demand

9. Product/Service Desirability
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• Does it make sense? Is it reasonable? Is it something consumers
will get excited about?
• Does it take advantage of an environmental trend, solve a
problem, or take advantage of a gap in the marketplace?
• Is this a good time to introduce the product or service to the
market?
• Are there any fatal flaws in the product or service’s basic design
or concept?
First, ask the following questions to determine the basic
appeal of the product or service.

10. Does it make sense?
Yes, an electric scooter rental service makes sense, especially in urban
areas with high population density and traffic congestion. It provides a
convenient and eco-friendly mode of transportation for short distances.
Is it reasonable?
Electric scooters are a reasonable mode of transportation. They are
relatively affordable to use, and the technology is well-established,
making it a practical choice for many consumers.
Is it something consumers will get excited about?
Yes, consumers are likely to get excited about an electric scooter rental
service, as it offers a fun and efficient way to navigate through urban
areas. The novelty and convenience of electric scooters can generate
enthusiasm.
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Example: Electric Scooter Rental Service

11. Example: Electric Scooter Rental Service
Does it take advantage of an environmental trend, solve a problem,
or take advantage of a gap in the marketplace?
Yes, electric scooters take advantage of the growing environmental trend
toward sustainable transportation. They also address the problem of
urban congestion and the last-mile transportation gap. This service aligns
with both trends and market needs.
Is this a good time to introduce the product or service to the market?
Timing is crucial. Introducing the service in a city with significant traffic
and a growing awareness of environmental issues would be an ideal
market entry point. The readiness of infrastructure, local regulations, and
consumer acceptance are also important factors to consider.
Are there any fatal flaws in the product or service’s basic design or
concept?
Potential fatal flaws could include safety concerns, inadequate
maintenance, or a lack of proper infrastructure for scooter parking and
charging. Ensuring these aspects are addressed is essential to avoid fatal
flaws.
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12. Product/Service Desirability
Second, Administer a Concept Test
◦A concept statement should be developed.
◦A concept statement is a one page description of a
business, that is distributed to people who are asked to
provide feedback on the potential of the business idea.
◦The feedback will hopefully provide the entrepreneur
◦A sense of the viability or the product or service idea.
◦Suggestions for how the idea can be strengthened or
“tweaked” before proceeding further.
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13. Example of Concept Statement: Electric
Scooter Rental Service
Overview: Our electric scooter rental service aims to provide an eco-
friendly and convenient transportation solution for urban commuters.
We plan to deploy a fleet of electric scooters in key city centers, offering
users a flexible and efficient mode of travel for short distances. The
service will be accessible through a mobile app, making it easy for users
to locate, unlock, and ride our electric scooters.
Key Features:
•A fleet of electric scooters available for rent at strategically placed
docking stations.
•User-friendly mobile app for registration, locating scooters, and making
payments.
•Affordable pricing options, including pay-per-ride and subscription
packages.
•Eco-conscious and sustainable transportation solution.
•Convenient and flexible last-mile connectivity.
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14. Example of Concept Statement: Electric
Scooter Rental Service
Target Market:
Our primary target market consists of urban dwellers,
commuters, tourists, and anyone seeking a cost-effective and
environmentally friendly transportation alternative. We will
focus on metropolitan areas with heavy traffic and high
population density.
Value Proposition:
Our electric scooter rental service provides a practical solution
to urban congestion and offers a greener alternative to
traditional transportation methods. Users will enjoy the
freedom to navigate through city streets, avoid traffic jams,
and reduce their carbon footprint.
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15. Example of Concept Statement: Electric
Scooter Rental Service
Feedback Request:
We are seeking your feedback on the concept of our electric scooter rental
service to assess its viability and identify areas for improvement. We are
particularly interested in your thoughts on the following:
Do you find the concept of electric scooter rentals appealing?
What suggestions do you have to make the service more attractive to potential
users?
Are there any concerns or reservations you have about this concept?
Do you think this service is needed in your city or region?
Your input is invaluable in helping us refine our business idea and ensure that it
meets the needs and expectations of our target audience. Thank you for taking
the time to review our concept. We appreciate your insights and look forward to
your feedback.
[Contact Information]
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16. Product/Service Demand
Product/Service Demand
◦Their are two steps to assessing product/service demand.
◦Step 1: Administer a Buying Intentions Survey
◦Step 2: Conduct library, Internet, and Gumshoe research
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17. Product/Service Demand
Buying Intentions Survey
◦Is an instrument that is used to gauge customer interest in a
product or service.
◦It consists of a concept statement or a similar description of a
product or survey with a short survey attached to gauge
customer interest.
◦Internet sites like SurveyMonkey make administering a buying
intentions survey easy and affordable.
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18. Product/Service Demand
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19. Product/Service Demand
Library, Internet, and Gumshoe Research
◦The second way to assess the demand for a product or
service is by conducting library, Internet, and gumshoe
research.
◦Reference librarians can often point you towards resources to
help you investigate a business idea, such as industry-
specific trade journal and industry reports.
◦Internet searches can often yield important information about
the potentially viability of a product or service idea.
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20. Product/Service Demand
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Gumshoe Research
Explanation
• A gumshoe is a detective or an
investigator that scrounges around
for information or clues wherever
they can be found.
• Be a gumshoe. Ask people
what they think about your product
or service idea. If your idea is to
sell educational toys, spend a week
volunteering at a day care center
and watch how children interact
with toys.

21. Product/Service Demand
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• One of the most effective
things an entrepreneur
can do to conduct a
thorough product/service
feasibility analysis is to
hit the streets and talk to
potential customers.
• This potential entrepreneur
is administering a survey
about a new product idea.

22. Gumshoe research on the electric
scooter rental service
User Surveys and Interviews: Approach potential users, such as
commuters, tourists, and city dwellers, and ask them about their
transportation preferences and their thoughts on electric scooters.
Inquire about their willingness to use such a service, pricing
expectations, and the perceived benefits and drawbacks.
Observational Research: Spend time in busy urban areas where you
plan to deploy the electric scooters. Observe the transportation
patterns of people, paying attention to traffic congestion, public
transportation usage, and the last-mile commuting needs. Take notes
on how people react to existing modes of transportation.
Competitor Analysis: Investigate existing electric scooter rental services
or similar transportation solutions in other cities. Analyze their pricing
models, user reviews, and the challenges they face. Identify what
differentiates your service from the competition.
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23. Gumshoe research on the electric
scooter rental service
Focus Groups: Organize focus group sessions with a diverse group
of potential users to discuss their impressions, concerns, and
expectations regarding the electric scooter service. Encourage open
discussions about their transportation needs and any potential
barriers they see.
Mystery Shopping: Secretly test existing electric scooter rental
services in other cities to understand the user experience firsthand.
Take note of the ease of locating and unlocking scooters, the
condition of the scooters, and any issues encountered during the
rental process.
Community Engagement: Attend local community meetings or
forums where transportation issues are discussed. Engage with
residents to understand their views on alternative transportation
solutions and the impact on the environment.
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24. Gumshoe research on the electric
scooter rental service
Regulatory Research: Investigate the local regulations and
policies related to electric scooter usage in your target cities.
This is essential to ensure that your business complies with
local laws.
Online Surveys and Social Media: Create online surveys and
social media polls to collect feedback from a broader audience.
Utilize online platforms to reach a wide range of potential
users and gather their opinions.
Pilot Program: Consider running a small-scale pilot program
to test the electric scooter service in a limited area. Gather
feedback directly from users during the pilot to make real-time
adjustments.
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25. Industry/Target Market Feasibility Analysis
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Industry/Target Market
Feasibility Analysis
Purpose
• Is an assessment of the overall
appeal of the industry and the
target market for the proposed
business.
• An industry is a group of firms
producing a similar product or
service.
• A firm’s target market is the
limited portion of the industry it
plans to go after.

26. Industry/Target Market Feasibility Analysis
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Components of industry/target market
feasibility analysis
Industry Attractiveness
Target Market
Attractiveness

27. Industry Attractiveness
Industry Attractiveness
◦Industries vary in terms of their overall attractiveness.
◦In general, the most attractive industries have the
characteristics depicted on the next slide.
◦Particularly important—the degree to which
environmental and business trends are moving in favor
rather than against the industry .
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28. Industry Attractiveness
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29. Industry attractiveness of the electric
scooter rental service
Environmental and Business Trends Favorable: The electric scooter
rental service benefits from the growing trend towards sustainable and
eco-friendly transportation options. Cities are increasingly promoting
alternative transportation modes to reduce congestion and lower
carbon emissions, which aligns with this service.
Industry is Young: The electric scooter rental industry is relatively
young, with significant growth potential as it continues to expand into
new markets.
Early in Life Cycle: This industry is still in its growth phase, especially in
many cities where electric scooters are a relatively recent addition to
the transportation landscape.
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30. Industry attractiveness of the electric
scooter rental service
Fragmented: The industry is relatively fragmented, with multiple
companies and startups operating in different cities. This
fragmentation allows room for innovation and competition.
Growing: The industry is generally growing as more cities and users
embrace electric scooters as a convenient and sustainable mode of
transportation.
Products Customers Must Have: Electric scooter rentals can be
considered a product that many urban commuters may need for their
daily transportation needs, especially when faced with traffic
congestion.
Not Crowded: While there is competition, the market for electric
scooter rentals is not overcrowded, and there is room for new
entrants who can differentiate themselves or target underserved
markets.
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31. Industry attractiveness of the
electric scooter rental service
Higher Operating Margin: Electric scooter rental services can
have relatively high operating margins when managed
efficiently. The costs associated with maintaining the scooters
and mobile app platforms can be balanced by the revenue
generated from user fees.
Historically Low-Priced Raw Materials: Electric scooters rely
on components like lithium-ion batteries, which have seen
price reductions over the years, making the service more cost-
effective.
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32. Target Market Attractiveness
Target Market Attractiveness
◦The challenge in identifying an attractive target market is
to find a market that’s large enough for the proposed
business but is yet small enough to avoid attracting larger
competitors.
◦Assessing the attractiveness of a target market is tougher
than an entire industry.
◦Often, considerably ingenuity must be employed to
finding information to assess the attractiveness of a
specific target market.
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33. Target market attractiveness for an
electric scooter rental service
Market Research:
Demographic Analysis: Examine the demographic characteristics of
potential users. Look at population density, age groups, income levels,
and commuting patterns in the target area. Are there enough people
who could benefit from the service, and is the market large enough to
support growth?
Psychographic Analysis: Understand the lifestyle and preferences of
the target audience. Are they eco-conscious, tech-savvy, and open to
new transportation solutions like electric scooters?
Geographic Analysis: Define the specific geographic areas where the
service can be deployed effectively. Consider factors like urban vs.
suburban settings, areas with high tourist traffic, and regions with
transportation infrastructure challenges.
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34. Target market attractiveness for an
electric scooter rental service
Competitive Analysis:
Identify Competitors: Research existing electric scooter rental services
in the target market. Determine their market share, strengths, and
weaknesses. Consider how you can differentiate your service to gain a
competitive edge.
Barriers to Entry: Assess the barriers to entry, such as local regulations,
permits, and infrastructure requirements. This will help you understand
the ease of entering the market.
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35. Target market attractiveness for an electric
scooter rental service
Customer Behavior and Needs:
User Surveys: Conduct surveys or interviews with potential users in the
target area to gauge their interest in electric scooters, their commuting
habits, and their preferences for such services.
Observational Research: Spend time in the target area to observe how
people currently commute, their transportation challenges, and
whether electric scooters could address these challenges.
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36. Target market attractiveness for an electric
scooter rental service
Regulatory Environment: Understand the regulatory environment
regarding electric scooters in the target market. Some cities may have
strict regulations, while others may be more welcoming. Compliance
with local laws is essential.
Economic Viability: Analyze the economic conditions in the target
area. Consider factors such as disposable income, cost of living, and the
willingness of residents to spend on transportation alternatives.
Partnerships and Alliances: Explore potential partnerships with local
businesses, universities, and transportation authorities. Such alliances
can help you access a ready user base and gain market share.
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37. Target market attractiveness for an electric
scooter rental service
Scalability: Assess the scalability of your business model in the target
market. Can you expand the service to meet growing demand while
maintaining profitability? Consider fleet size, maintenance capabilities,
and customer support.
Market Trends: Stay updated on market trends, including shifts in
transportation preferences, environmental concerns, and the adoption
of electric mobility solutions.
Market Testing: Consider conducting a small-scale pilot program in
the target area to test user adoption and gather real-world feedback.
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38. Organizational Feasibility Analysis
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Organizational Feasibility
Analysis
Purpose
• Is conducted to determine
whether a proposed business has
sufficient management expertise,
organizational competence, and
resources to successfully launch
a business.
• Focuses on non-financial resources.

39. Organizational Feasibility Analysis
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Components of organizational
feasibility analysis
Management Prowess Resource Sufficiency

40. Management Prowess
Management Prowess
◦A firm should candidly evaluate the prowess, or ability, of
its management team to satisfy itself that management has
the requisite passion and expertise to launch the venture.
◦Two of the most important factors in this area are:
◦The passion that the solo entrepreneur or the founding team has for
the business idea.
◦The extent to which sole entrepreneur or the founding team
understands the markets in which the firm will participate.
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41. Evaluating the management prowess
for launching an electric scooter
rental service
Passion for the Business Idea:
The passion of the solo entrepreneur or founding team for the
electric scooter rental service is a critical element in ensuring
the success of the venture. The enthusiasm and dedication to
the business idea are fundamental drivers for overcoming
challenges, staying committed during the early stages, and
inspiring the team and stakeholders. A genuine belief in the
benefits of electric scooters as a sustainable and convenient
mode of urban transportation will be pivotal in driving the
venture forward.
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42. Evaluating the management prowess for
launching an electric scooter rental
service
Understanding of the Markets:
The extent to which the solo entrepreneur or founding team
comprehends the markets in which the electric scooter rental
service will participate is equally crucial. This understanding
includes a thorough knowledge of the target cities, their
demographics, commuting patterns, and transportation
needs. It also involves a deep awareness of local regulations,
competitive landscape, and potential partnerships. Such
market intelligence is essential for strategic decision-making,
including expansion plans, pricing strategies, and customer
acquisition efforts.
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43. Resource Sufficiency
Resource Sufficiency
◦This topic pertains to an assessment of whether an entrepreneur
has sufficient resources to launch the proposed venture.
◦To test resource sufficiency, a firm should list the 6 to 12 most
critical nonfinancial resources that will be needed to move the
business idea forward successfully.
◦If critical resources are not available in certain areas, it may be impractical
to proceed with the business idea.
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44. Resource Sufficiency
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Examples of nonfinancial resources that may be critical
to the successful launch of a new business
• Availability of affordable office or lab space.
• Likelihood of local and state government support of the business.
• Quality of the labor pool available.
• Proximity to key suppliers and customers.
• Willingness of high quality employees to join the firm.
• Likelihood of establishing favorable strategic partnerships.
• Proximity to similar firms for the purpose of sharing knowledge.
• Possibility of obtaining intellectual property protection in key areas.

45. Critical nonfinancial resources
needed for the successful launch
of an electric scooter rental
service
Availability of Affordable Office or Lab Space:
For an electric scooter rental service, this may not be a critical
resource, as the primary operations involve deploying and
maintaining scooters throughout a city. However, a central office
for administrative and customer support functions may be
necessary, and affordable office space could be an advantage.
Likelihood of Local and State Government Support:
Government support is critical for obtaining the necessary
permits and operating licenses. The willingness of local and state
governments to endorse and regulate electric scooter services is
vital. Support can also include the establishment of designated
parking areas and adherence to safety regulations.
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46. Critical nonfinancial resources
needed for the successful launch
of an electric scooter rental
service
Quality of the Labor Pool Available:
A skilled labor pool is essential for tasks like scooter
maintenance, app development, and customer support.
Availability of mechanics, app developers, and customer
service representatives with experience in the transportation
or tech industry is valuable.
Proximity to Key Suppliers and Customers:
Proximity to suppliers of electric scooters, spare parts, and
maintenance services is advantageous to ensure a smooth
supply chain. Additionally, being close to densely populated
urban areas with potential customers is crucial for the
successful operation of the service.
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47. Critical nonfinancial resources
needed for the successful launch
of an electric scooter rental
service
Willingness of High-Quality Employees to Join the Firm:
Attracting and retaining high-quality employees is vital for
managing operations, maintaining scooters, and delivering
excellent customer service. Employees with expertise in electric
vehicle maintenance, logistics, and customer relations can
contribute to the success of the venture.
Likelihood of Establishing Favorable Strategic Partnerships:
Building partnerships with local businesses, public transportation
authorities, or universities can enhance the electric scooter
service's reach and accessibility. The willingness of potential
partners to collaborate can greatly impact the venture's success.
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48. Critical nonfinancial resources
needed for the successful launch
of an electric scooter rental
service
Proximity to Similar Firms for Knowledge Sharing:
Being located in close proximity to other firms in the electric
scooter or shared mobility industry can be beneficial for
knowledge sharing, potential collaboration, and staying
informed about industry trends. It can foster an ecosystem of
innovation and support.
Possibility of Obtaining Intellectual Property Protection:
Depending on the level of innovation, obtaining intellectual
property protection for aspects of the service, such as
proprietary app features or scooter design improvements, can
provide a competitive advantage.
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49. Financial Feasibility Analysis
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Financial Feasibility
Analysis
Purpose
• Is the final component of a
comprehensive feasibility analysis.
• A preliminary financial assessment
is sufficient.

50. Financial Feasibility Analysis
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Components of financial
feasibility analysis
Total Start-Up Cash
Needed
Financial Performance of
Similar Businesses
Overall Financial
Attractiveness of the
Proposed Venture

51. Total Start-Up Cash Needed
Total Start-Up Cash Needed
◦The first issues refers to the the total cash needed to
prepare the business to make its first sale.
◦An actual budget should be prepared that lists all the
anticipated capital purchases and operating expenses
needed to generate the first $1 in revenues.
◦The point of this exercise is to determine if the proposed
venture is realistic given the total start-up cash needed.
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52. Total start-up cash needed for an
electric scooter rental service
Capital Purchases:
Scooter Fleet: The most significant capital expense will be the acquisition
of electric scooters. This includes the purchase or lease of the initial fleet,
which will vary based on the target market's size and demand.
Charging Infrastructure: Set up charging stations or infrastructure to
keep the scooter fleet operational. This may involve purchasing charging
equipment, securing locations, and ensuring electrical connections.
Mobile App Development: Budget for the development and maintenance
of a user-friendly mobile app for renting and locating scooters.
Safety Gear: Purchase helmets and other safety gear for users, which
may be legally required in some areas.
Office Setup: If an office or administrative space is necessary, allocate
funds for office space rent, furnishings, and utilities.
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53. Total start-up cash needed for an
electric scooter rental service
Operating Expenses:
Marketing and Promotion: Budget for marketing activities to raise
awareness and attract initial users to the service.
Employee Salaries: Include salaries and wages for employees, such as
mechanics, customer support staff, and app developers.
Insurance: Set aside funds for liability insurance, coverage for scooter
damages, and any other required insurance policies.
Permits and Licensing: Account for fees and expenses related to
obtaining necessary permits and licenses to operate in specific areas.
Maintenance and Repairs: Budget for ongoing maintenance, repairs,
and spare parts for the scooter fleet.
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54. Total start-up cash needed for an
electric scooter rental service
Operating Expenses:
Charging Costs: Include the cost of electricity for charging the scooters
at designated stations.
Customer Support: Budget for resources needed to provide efficient
customer support through various communication channels.
Software and App Maintenance: Allocate funds for app maintenance,
updates, and customer data security.
Administrative and Overhead Costs: Cover general administrative
expenses such as legal fees, accounting services, and utilities for the
office.
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55. Financial Performance of Similar
Businesses
Financial Performance of Similar Businesses
◦Estimate the proposed start-up’s financial performance by
comparing it to similar, already established businesses.
◦There are several ways to doing this, all of which involve a
little ethical detective work.
◦First, there are many reports available, some for free and some that require
a fee, offering detailed industry trend analysis and reports on thousands of
individual firms.
◦Second, simple observational research may be needed. For example, the
owners of New Venture Fitness Drinks could estimate their sales by
tracking the number of people who patronize similar restaurants and
estimating the average amount each customer spends.
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56. Example: Electric Scooter Rental Service
Industry Trend Analysis and Reports:
Market Research Reports: Access industry reports and studies related
to electric scooter rental services. These reports provide in-depth analysis
of industry trends, growth projections, and key performance indicators.
While some reports may require a fee, others are available for free or
through subscriptions to industry databases.
Competitor Financial Statements: If available, examine the financial
statements of established competitors in the electric scooter rental
industry. These can provide insights into revenue, operating expenses,
and profitability. Analyze their growth over time and identify any trends.
Customer Reviews and Ratings: Review customer feedback, ratings, and
reviews for existing electric scooter rental services. Understand customer
satisfaction, service quality, and common pain points. This information
can help you estimate potential demand and customer retention.
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57. Example: Electric Scooter Rental Service
Observational Research:
Foot Traffic Analysis: Conduct on-site observational research by visiting
areas where established electric scooter rental services operate. Observe
the volume of users, frequency of rentals, and popular locations for
scooter pickups and drop-offs.
Pricing and Usage Patterns: Study the pricing models of existing
services and monitor the frequency and duration of scooter rentals.
Estimate how much revenue these services generate per scooter or per
user.
User Surveys: Conduct surveys among users of existing scooter rental
services to gather data on their spending habits, frequency of scooter
use, and the factors that influence their choice of transportation.
Partnerships and Collaborations: Investigate partnerships and
collaborations that established services have with local businesses, public
transportation authorities, or universities. Understanding their revenue-
sharing agreements and expansion strategies can provide insights.
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58. Overall Financial Attractiveness of the
Proposed Venture
Overall Financial Attractiveness of the Proposed
Investment
◦A number of other financial factors are associated with
promising business startups.
◦In the feasibility analysis stage, the extent to which a
business opportunity is positive relative to each factor is
based on an estimate rather than actual performance.
◦The table on the next slide lists the factors that pertain to
the overall attractiveness of the financial feasibility of the
business idea.
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59. Overall Financial Attractiveness of the
Proposed Venture
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Financial Factors Associated With Promising Business
Opportunities
• Steady and rapid growth in sales during the first 5 to 7 years in a clearly
defined market niche.
• High percentage of recurring revenue—meaning that once a firm wins a
client, the client will provide recurring sources of revenue.
• Ability to forecast income and expenses with a reasonable degree of
certainty.
• Internally generated funds to finance and sustain growth.
• Availability of an exit opportunity for investors to convert equity to cash.

60. Example: Electric Scooter Rental Service
Steady and Rapid Growth in Sales in a Defined Market Niche:
For an electric scooter rental service, steady and rapid growth in
sales can be achievable if the service effectively targets and serves
a defined market niche. This niche could be densely populated
urban areas with high traffic congestion. As the demand for eco-
friendly and convenient urban transportation solutions increases,
this niche can provide a fertile ground for rapid sales growth.
High Percentage of Recurring Revenue:
Electric scooter rental services can generate a significant portion of
recurring revenue. Once users become accustomed to the service
and find it convenient, they are likely to continue using it for their
daily commuting needs. Subscription plans, loyalty programs, and
user retention strategies can contribute to a high percentage of
recurring revenue.
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61. Example: Electric Scooter Rental Service
Ability to Forecast Income and Expenses:
These services can establish reliable forecasting models by tracking
usage patterns, maintenance costs, and seasonal variations. They
can anticipate revenue from daily rentals, subscriptions, and
promotions, while also estimating ongoing expenses related to
fleet maintenance, charging infrastructure, and marketing. This
ability to forecast income and expenses with a reasonable degree
of certainty is essential for financial planning and sustainability.
Internally Generated Funds for Growth:
Successful electric scooter rental services can generate funds
internally through user fees and ongoing revenue streams. These
funds can be reinvested in expanding the fleet, improving
technology, and entering new markets. A financially self-sustaining
model can support steady growth without excessive reliance on
external financing.
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62. Example: Electric Scooter Rental Service
Availability of Exit Opportunities for Investors:
Investors in the electric scooter rental service may be attracted
to the industry's growth potential. As the service
demonstrates steady and rapid growth, it becomes an
attractive prospect for investors looking to convert their
equity into cash. Exit opportunities can include acquisitions by
larger transportation companies or initial public offerings
(IPOs).
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63. Thank You!
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