Business Plans Investing and Risk Analysis Investment Business Plan

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Business Plans

Investing and Risk Analysis

Investment decisions involve consideration of both quantitative and qualitative factors. The focus of business classes, many times in on the quantitative portions of the plans. However, these "forecasts" do not predict the future, or the success of any business endeavor. At best, they demonstrate that the prospective business has at least given operations some thought, but they do not ensure the success of a business. Investment analysis involves consideration of both the financial statements and qualitative factors that hinge on the edge of being called "intuitive" factors in the business plan analysis. The following will discuss the "intuitive" factors involved in assigning a discount rate to three business plans, based on the perceived risks involved in each of them.

Ice Dreams is a unique idea that is built on the concept of an already popular consumer commodity, Sno Cones. According to the business plan, the consumer will see the difference between the traditional sno cone and shaved ice. The product sounds superior, but only if it is marketed correctly.

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The real risk with this business plan is that consumers will not differentiate the product. This plan might be more convincing if the writer did some research into the volume of its three major competitors. Another concern is that the business plans to target the low to mid range income market. I think that Sno Cones already has that covered. This end of the market is most sensitive to shocks in the economy. This product might be better if it were marketed to the mid to high end market as a luxury item.

RJ Wagner and Associates has several key strengths. The first is that is focuses on the high-end market in a growing area of Texas. This company has moderate risk associated with shocks to the housing market and a recession could affect its projected forecasts, but it will have the ability to diversify if this happens. The chosen market segment will be less reactive4 to shocks than….....

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"Business Plans Investing And Risk Analysis Investment" 24 December 2010. Web.14 May. 2025. <
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"Business Plans Investing And Risk Analysis Investment", 24 December 2010, Accessed.14 May. 2025,
https://www.aceyourpaper.com/essays/business-plans-investing-risk-analysis-investment-49344