Feed Recourses Recovery

Posted: October 17th, 2013

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Question One

Feed’s most likely source of competition would most probably manifest itself in the long term. The idea itself requires investing sufficient time and effort in order to understand it fully and launch it. The idea of new and upcoming business venturing in a field similar to Shane’s is a bit far fetched. The major determinant is the requirement of the colossal amount of capital; which was a huge milestone that Shane had to overcome. The industry highlights tough requirements that one needs to satisfy in order to succeed. The market would only sufficiently support a venture that is intended to operate in large-scale means. Moreover, the evident ventures in the market are ones that operate on high levels of capital; taking Waste Management for example, that earn an average of thirteen billion dollars in annual revenue. Therefore, it would be safe to say that Feeds is not in a position to encounter any serious competition in the short-term, maybe in the long-term, since the competitors would require some time to establish themselves in the market.

Question Two

Venture capitalists are interested in this Shane’s business venture for a number of reasons. Shane’s business plan on large-scale anaerobic digestion scooped top ranks in the business plan competitions. This consequently prompted the venture capitalists to shed more light on his idea. They analyzed his visualized plan and found out that it was viable, possessing the ability to operate in large-scale in a market that was not yet ventured in. This sector is deemed to be fast growing, as the world is becoming more aware of global warming as well as other environmental hazards. Companies are endeavoring to operate in environmental friendly operations. Shane’s idea is just that answer that numerous industries look for. Venturing into this market moreover would translate to large profit turn over, which is exactly what business ventures are about.

Question Three

On my opinion, if I were a venture capitalist, I would not invest in the business immediately. I would first consider several factors before I decide the way forward. I would analyze the competitive edge brought forth by the business. The business should be able to compete on a large scale in order to ensure success and ensure long lasting perpetuation. No one would want to invest in a venture that does not promise security in the long-run, as well as success.

Question Four.

Just like any business venture, Feeds is prone to failure due to a small mistake in decision-making or the course of its operations. A good business will always possess an exit strategy to come in handy in its times of collapse. Feeds can achieve this through the acquisition exit strategy. The very nature and characteristics of the business are mouth watering and have already attracted potential suitors who want to be involved in its operations. Should the business face any potent threat of liquidity, Shane can opt to sell it at a negotiated price.

Question Five

There would be no problem in Shane and Ryan approaching their family and friends for financial assistance. Family and friends are easy people to convince since there is a mutual trustworthy relationship. Although, there are some issues that may act as some hindrances to this method of acquiring funds, including past experiences. In addition, one may hail from a background that is not exceptionally well off, and even though they may agree to fund the project, the amount may not reach the desired target.

Question Five

Apart from funds from family and friends, there are plenty other sources of amassing capital for Shane to start up the feeds business. One option is savings and other investments. Ryan and Shane should combine their savings and should act as part of the amount that will supplement the starting of the business. The other most reliable means of acquiring an investment to fund the business is through loans from banks and credit institutions. Banks and credit institutions will often judge the motives and credibility of the loan advancement as well as period required to refund the loan. Shane and Ryan’s business plan is very viable offering minimal doubts. They should not have any difficulties in securing loan advancements.