Industry and Risk Analysis
Entrepreneurship and Innovation (BUS 521)
Dr. William Walker
This particular assessment will address the industry and the risk analysis. Topics that will be covered are the future outlook and industry trends related to the new venture. The research paper also identifies certain legal regulations and concerns related to the venture idea. There are certain resources available to help an entrepreneur protect those ideas which are addressed within the body of the paper. Raising capital for the new venture is also a part of the industry analysis as well as the obstacles of raising that capital. There are several ways to obtain capital and deal with the obstacles that will be presented while attempting to raise capital.
The second assessment will address the industry and risk analysis. Topics will include the future outlook and industry trends, legal concerns for venture idea, raising capital, and the obstacles with raising the capital. All of these issues can hurt a company if they are not tackled beforehand. 1. Discuss the future outlook and industry trends related to the new venture. The future outlook for a new venture in the fitness industry is on a positive rise. Many individuals are joining fitness clubs to become a member. With more people wanting to work out and join these clubs, more gyms are being built. The market is projected to continue to rise over the next five years (IBISWorld, 2010). This is a sign that there is a need for fitness and the demand has to be met by creating more fitness ventures. Fitness is a $17.6 billion industry that has doubled in size in the last 10 years (Gold’s Gym, 2010). This is also an indication that there is a bright future for the fitness market. With more individuals being educated of personal health, people are being extra cautious concerning their health. One of the most obvious reasons for living a healthy life style is that an individual will potentially live longer (TeamLife, 2007). Having more time to share with friends and family is a good enough reason to work out and live happily. The main trend that this new venture will be related to is obviously the health trend. According to Hisrich, Peters & Shepherd (2010), the health trend is “one of the biggest trends today that will continue in the next decade as the world population ages” (p. 97). The world’s life expectancy is even higher now than it once was years ago. According to Rosenberg (2010), “In 1900, the world life expectancy was approximately 30 years and in 1985 it was about 62 years, just two years short of today's life expectancy” (para. 9). People are living longer and it is most likely due the growing health trends within the world. Having the personal knowledge to take better care of the human body is helping increase the life expectancy. Other trends that are related the fitness gym is the economic trend and the social trend. Like so many industries today, Healthy Hearts Gym will also limit its spending and labor by following the economic trend. The gym will also follow the social trend by using social networks to reach our members. Social networks such as Myspace, Facebook, and Twitter are primary examples of how the industry will use the social trends. 2. Discuss the legal or concerns related to the venture idea. A new venture will probably need to invest into a lawyer to handle major legal issues for the company. A lawyer will definitely be needed since the management may not be aware of certain regulations that can potential harm the venture (Hisrich et al., 2010). The lawyer can help with making certain decisions that are feasible for the company or halting decisions that will send the venture in a negative direction. If the entrepreneur is already aware of the legal issues that the venture may face, the...