Question 1
You are thinking of starting an online business that rents out men designer wrist watches. The
concept is to have a portal or an app where one can rent premium watches like Patek Philippe,
Cartier and Rolex. It is a sharing economy concept where owners of the watches would rent
them out and you earn a commission. What you are still contemplating is whether you would
buy these used premium brands and rent it out, or alternatively just provide a platform for the
owners to rent out the watches and you earn a commission. The business concept should clearly
explain your business model and how the rental would operate
After some thought, you decided to also include premium ladies’ handbags under the same
concept.
The first step is to analyse your business model and identify the assumptions you making. After
that you want to appraise and validate your assumptions by applying the validation board.
Requirements
Construct a validation board (see Figure 2.4 of your study guide) and
(a)
Identify the main assumptions for the business to succeed and analyse the
(i)
riskiest assumption(s) to validate them.
(ii)
Appraise the main assumption(s) and explain how you will validate these
assumptions. Explain what is your course of action after validation.
(50 marks)
(b)
Appraise and explain your final business concept and your value proposition.
(30 marks)