Starting and Managing a Business Starting a business can be a great challenge to investors, especially those who have no idea of the procedures they need to follow but are interested in

Starting and Managing a Business

Starting a business can be a great challenge to investors, especially those who have no idea of the procedures they need to follow but are interested in investing in a business for the first time. Kareem and Jimmy want to invest in a social enterprise but they have no idea of what they need to do to invest in the business. The business I would propose for them is coming up with a Crowdfunding Company, where they will give investors a platform they can use to connect with lenders and apply for loans. The business stands high chances of succeeding based on the analysis in the subsequent paragraphs.

The uniqueness of the Business Concept

Getting enough capital may be challenging for people who want to start businesses. There are individuals with business ideas but these ideas have not benefited them because they lack funds to start businesses, and utilize their ideas for the success of a business. On some occasions, some investors have fallen into the traps of fraudsters who pretend to be giving out loans but are out to defraud people of their hard-earned money. On the other hand, some lending companies end up manipulating investors with very high-interest rates. People may also need loans for their personal use but they may not have access to credible sources of these loans.

There is a crisis related to where to find loan service providers who provide loans at affordable rates. This is a social problem because many people have been affected. According to Mooney et al. (2021), a social issue refers to a problem that affects many people in society. It may be a common problem that many people may be struggling to solve in society. It has been noted that many individuals are struggling to find where they can access affordable loans, and this is a problem that can be solved by coming up with a Crowd Funding Company that will easily connect businesspeople to credible lenders. This is a unique business because few investors have considered investing in the business despite the increasing demand for credible lenders that can help investors achieve their business objectives. The company will be online-based, and it will scrutinize the lending companies that may want to use its website. It will aim at ensuring only the authentic sources with favorable interest rates are advertised on its platforms.

Feasibility of the Business Model

The business model that will be adopted is connecting investors to lenders. This business model can easily work since the company will charge lenders fees for connecting them with customers. The company will also make it easier for investors to connect to lenders who will help them raise funds for starting or boosting their businesses.

The advancement in technology has made networking easy; hence connecting investors to lenders will not be a difficult task. The business model will also work since starting the business is not expensive. The first essential issue to consider is developing a website; the company will need to have an e-commerce website. Website developers charge from $25 to $4200 (Wix, 2021). The amount is within the budget since Kareem and Jimmy have $12000 set aside for starting a social enterprise.

Another thing that will be needed is a license that will make the company be considered legitimate before target customers. Lenders will easily agree to transact business with the company if they can verify that the company is credible. The cost of acquiring a license for running an online-based company such as this is not more than $1000. The total cost of hiring website developers and acquiring a license will not be more than $5200. This means Kareem and Jimmy will be left with $6800 to carter for other expenses that include renting an office space and hiring employees.

Market Prospect

Market prospect refers to a company’s future performance in the market (Bergek et al., 2018). The CrowdFunding Company stands high chances of succeeding in the market because the market is not competitive. The external analysis that has been conducted indicates that there are customers in the market who need to be connected to lenders. There is a gap to be filled in the market, and this gap will be filled by a Crowd Funding Company that connects investors to lenders.

Business Canvas Model