Question

In a 500-1000 words, imagine you live in a mid-size city in the United States and are currently starting a business called SafeHeaven which will focus on recreational activities. In your opinon, Is there any other analysis to support this potential business? why or why not?

Answer 1

There are many aspects that should be considered for setting up and execution of a recreation focused business model. They are listed hereunder:

• Consideration of the required government approvals, clearances and licenses that may be required for the setting up of such business activity.
• The actual mapping of opportunities which are available which can form the part of the business model must be identified and the planning should be done on how to link them with the business.
• The economic feasibility of setting up this business model in small town of US must be calculated.
• The per unit cost that a customer needs to pay to avail the facilities provided and the miscellaneous expenses that would be incurred in facilitation of the tourists.
• The value preposition should be prepared that is delivered to the customer and this should be compared with the value provisions delivered by the competitors to ascertain the probability of customer choosing this destination over other.
• What would be the operational and maintenance cost should be calculated against the projected revenue which would be generated so that the profitability of the promoters is maintained.
• The transportation and connectivity that is available for the incoming customers and the extent to which the existing infrastructure can bear the load of such transit volume.

Thus a detailed analysis is required to analyses the requirement of infrastructure development including sanitation and housing facilities that the business idea would require to operate.

There is also requirement to access the business ecosystem that needs to be developed around the premises to augment the business which would certainly require collaborations with local vendors and service providers.

As the business is a recreations based business the identified sites should be accessed and then a development plan should be prepared so that the points like:

• Safety of travelers is taken care of.
• What will be the prime area of recreation. It may be connected to water sports, tracking, sightseeing, zoos, natural scenic beauty etc. depending upon the environmental conditions and the terrain available.

The safety of the customers during such recreational events is a major part that should be well planned in advance with the need for life support systems and trained manpower that would be required to support such business operations.

There is also requirement to check with the local Government authorities if any special clearances are required for any of the activities that are provided to the customers I the facility created.

Also, an assessment of the demographic profile of the potential tourists should be understood well in advance and planning needs to be done on how to address the recreational needs of such segments. It can be better understood like for people aged 13-25 it may be a good idea to plan for providing physical activity based programs where as the age group of 26-40 years may be interested in a balanced activity based and non-activity based schedule. For elderly people it may be some other sightseeing type of schedule which would be enjoyable. Hence the segmentation of target audience should be prepared to ascertain the course of activities that should be planned.

Another important determinant is the having a plan B which include the infrastructure requirements like power backups and firefighting.

These are certain aspects which may be considered in advance which would help in framing the real picture and deciding the potential of the project planned. This would also help in ascertaining weather to go for the project or not.