Entrepreneurship Feasibility Study: Fun Bus

Topics: Bus, Business law Pages: 5 (1637 words) Published: May 15, 2013
Entrepreneurship Feasibility Study – Business Name: Fun Bus

A vast amount of baby boomers are retiring with a lot of discretionary income which makes them a magnificent market to target. Thus, a business that targets transportation to entertainment venues provides convenience and entertainment to their lives. Furthermore, with today’s sky rocketing gas prices everyone would prefer to have a ride to places we go. It is my recommendation that I get funding for the “Fun Bus” which will be a win for everyone involved. The banker will provide a $70,000 loan with 3% interest, the active adults will get what they have a need for, and I will reap profit to keep the business going, earn a living, and pay off the loan. It is a commercial recreation business so the goal is to be profitable. Once the bus begins to pass the break even analysis and profit has been made. Money will be put back into the business to upgrade the bus with such amenities as wheel chair access, global positioning, satellite (GPS), bathrooms, intercom, etc. However, a lot of details are involved to make this business work and the following feasibility study states each step’s significant role in the process. Table of Contents

1. Description of the Business
2. Regulatory & Risk Analysis
3. Location Analysis
4. Management Analysis
5. Market Analysis
6. Financial Analysis
7. Feasibility Recommendation

Description of the Business

This business would be called “the Fun Bus” and the legal form would be a sole proprietorship essentially making it a one man job. The name would be a “doing business as” name (DBA). This allows a sole proprietorship to use a business name rather than your personal name (http://etrepreneurs.about.com/od/businessstructure/a/doingbusinessas_p.htm) Registration for it is entered at the county level. The clients of the business would be the riders of the bus, retirement homes, and entertainment venues. The bus would pick up all of the riders on at a scheduled time and date and transport them to the already predetermined entertainment event. The entertainment venues can vary from the theater, golf courses, movies, special events, etc. After the destination is determined I would negotiate with the entertainment venue for group rates. The service will be offered as a package deal and any additional income could come from add on amenities or products sold. For example, photography could be taken of the whole group, single, or couple while at the venue to be taken for their kids, grandchildren, etc. The target market is active adults 55+ and older who are into physical activities such as golf but do not have means of transportation to enjoy these activities. Bottom line is everyone wants to have fun. Regulatory & Risk Analysis

There are a lot of risk factors involved such as competition from non-for-profit organizations that get subsidies from the government for this service, venues and active adult communities which offer free or inexpensive transportation service. There are many risk factors that can appear. For example, during Hurricane Rita there was bus that was fleeing from the Gulf in Texas that went up in flames do to a busted oxygen tank which obviously shows that even fire insurance is needed. It will be a sole proprietorship which makes me need self employment tax in the state I do business. A business license and any certifications are also required such as a license to supervise people, special transportation vehicle permit, or to drive a bus of certain size. I will need a motor vehicle license and inspection fees will be incurred on an annual basis. Having older patrons it would be important to consider liability insurance as well in the event that someone is hurt under my care. Also something I have to do today is pay automobile insurance, and sticker fees. There are a lot of financial factors that must be compared to potential profits. This can be done in a break...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Feasibility Study
  • Essay on Entrepreneurship case study
  • Feasibility Study Essay
  • Entrepreneurship Essay
  • Business Feasibility Study Essay
  • Feasibility Study Essay
  • Essay on Feasibility Study
  • Essay on Feasibility Study

Become a StudyMode Member

Sign Up - It's Free