Question

 

Context :My buisness idea is a newq form of automobile jack that is cheaper, easier to use, and much smaller than competators.

Questions: For your business idea, what are the knowledge and demand conditions related to this idea?

Answer 1

Solution:

Introduction:

My business idea is to manufacture a new kind of automobile jack that is portable and easy to use. To initiate the project it is first needed to frame the layout of the product. It is required to calculate the profits which we intend to get and losses which might occur. Following are some prospects which are calculated before investment made in this specific product.

1. Research and Development

It is necessary that market has thoroughly been studied. This study should include answers for following question.

• How many competitive product we have?
• What is the cost of the product?
• Can we sell it at competitive prices?
• Is the product cost effective?
• How can product be made better than other competitive products at a low cost.

2. Supply of Raw Material

Further, when we have prepared the layout and completed the research we require to arrange raw material. This will include all the unfinished products needed to prepare the automobile jack.

3. Investments and Costs

Setting up one's own business needs ample amount of investment. This huge investment is demanded by fixed inputs that comprises of machinery and land. Then comes the variable cost to be borne by entrepreneur. These variable costs are wages of labour and price of raw material.

4. Diffrentiated product

In order to withstand in a competitive market, we need to have a product which is better in all aspects than the product which consumers are currently buying. This automobile jack can be carried easily. It works well and is easier to use. Moreover, it is smaller in size too.