Business Opportunity Assignment: Matt Grant Case Study

Racer’s Resource
Name
Institution
Racer’s Resource
I think that it is prudent for Matt Grant to pursue the existing business opportunity. This is because he will depend on utilizing the events, services, and product advertisement as the major content source to be used in the publication. It is clear from what Matt projects that at first it would be expensive, considering that the regional magazine at maturity would be producing very little returns. For instance, it is projected that at maturity, it will only produce one hundred thousand dollars annually. The period for ramp up in each market at maturity is estimated to be around ten issues. This is because sustainably, business per region will need the sales of about 280 ads of events annually. Matt also plans that the Racer’s Resource should get into each market with the lowest price possible. As such it would seem attractive to many firms and individuals who would wish to advertise various products (Wright, 2004). He will, therefore, improve the publication. Based on the preceding idea, Matt will be increasing the rates of assertions slowly but steadily to compare with same firms found in such regions.
The plan if implemented will lead to the production of about four issues when combined with thirty-three thousand dollars sales. In three years time, it would rise to five hundred and four thousand. This would be significant and a great encouragement to Matt as an investor. The critical challenge for Matt in this context will be pegged on the initial returns that would be expecting every. However, Matt has to cope with this since, at the end of the day, there would enough to sustain his life. Another challenge would be the competition expected between his firms and surrounding firms in t...