Question

You want to create and develop a company that can provide goods and services to the world that continue to sell and be profitable whether or not the economy is growing or declining

• a range of products and services you might want to offer (or just one)
• how you would go about determining what they are (it is)
• how you would make and price them (it); who your competitors might be
• how you would raise the money to start your company
• what market conditions and government policies might affect your company
• how you might organize your company to achieve your goals
• how you would grow the company
• what obstacles you might confront

Answer 1

(a) A range of products and services you might want to offer (or just one)-

Today, people are turning vegan or vegetarians all over the world. People are choosing vegetarian food over meat. Also, there is a high demand for organic food all over the world. People are recognising the importance of organically grown crops over the ones grown in fertilisers. On these grounds, you can set up a company which sells 'organic and vegetarian food' worldwide.

The 'Food Industry' is one such industry which does not get impacted by an economy's growth or decline. Food is something which always stays in demand.

Hence, you should set up a company providing 'Organic Vegetarian Food.' Under this, you can sell various finished products like preserved organic fruits and vegetables, organic snacks, organic juice etc.

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(b) How you would go determining what they are (it is)

Before deciding on a product, several important factors have to be seen-

1. Competition-

How much competition is there in this industry? What are the companies already existing in this line? There are many new companies emerging in the line of 'organic food' business. However, this is still a growing industry and has a lot of scope for new companies to grow.

2. Demand-

What is the current market demand for such products? Currently, the demand for organic food is rising all over the world. People are getting inclined towards buying naturally grown and processed food over chemically grown ones.

3. Growth Opportunity-

Will the industry be able to grow in the long run? The organic food market is on a rise. Demand for organic products is increasing. Thus it is a good industry to invest in. It has several growth opportunities.

4. Availability of inputs-

Will there be enough inputs available for making your products? For growing organic crops, organic inputs will be needed. Contract farming is growing these days. In this, companies tie up with farmers. Farmers agree to grow crops for the company and they get paid accordingly. Another way is to buy land and set up your own organic farm for your company. Organic inputs are being manufactured these days. There are inputs available needed for organic farming.

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(c)How you would make and price them (it); who your competitors might be-

1) How to make them-

To make organic food products, organic crops are needed. Organic crops can be grown by hiring farmers who will grow the crops you need, organically. You can buy the organic inputs grown by other companies as well.

After the crops are ready, you get them transported to your manufacturing unit.

The crops will then be processed. For the processing and packaging of the finished products, you will need to invest in machinery.

2) How to price them-

Pricing of the goods will depend on the following factors-

• The cost incurred on the raw materials.
• Cost of processing the raw materials.
• Packaging costs
• Transportation costs to the market
• Cost of exporting the products to other countries

3) Competitors-

The competitors, in this case, will be the already established companies. Some of the international organic food brands are-

Whole Foods Market, Amy's Kitchen, Mary's Gone Crackers and Earths's Best Organics.

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(d) How you would raise the money to start your company-

In order to set up a business, capital is needed for investment. Some of the ways to raise money for your business are as follows-

• Equity Crowdfunding-

This is a type of investment where people invest in your company in exchange for shares or stakes in your business.

• Business Incubators-

These are the programs which help in setting up a new business. They provide funding and training.

• Loans from banks-

There are various banks which provide loans to new businesses. They see the business plan and profitability of the business in the long run and provide loans on that basis.

• Angel Investment-

People with extra money who are willing to invest in startups can fund the business. The investors expect up to 30% equity. However, it is one of the very good ways to get investment and help to raise funds for starting up your business.