Jesse would like to start a landscaping company that concentrates on using native plants.The feasibility study showed a need for $100,000 to start the company (she has $10,000),competition of three other companies (one concentrated on using native plants),and buyers who were predominantly 60 years or older (who loved yard work).Which statement is true?
A)This plan shows fatal flaws with financing,competition,and market as none of these flaws could be fixed.
B)The plan has a fatal flaw with financing and competition as the market might have an interest in her speciality.
C)The plan has a fatal flaw with financing but competition might not be as much of an issue if the native plant landscaping is growing with the buyers.
D)The plan could be fixed if an investor went into business with her.

Question

Quizplus · Accepted Answer

While financing may be a challenge, the fact that there is interest in native plant landscaping among the target market suggests that there is potential for growth in the business. Competition may not be as much of an issue if demand for the specialty is growing. However, the plan may still require additional financing to overcome the initial challenge. Option D is also a possibility, but it is not the only solution.

Jesse Would Like to Start a Landscaping Company That Concentrates