Viability of a Business Proposal in Order

¶ … viability of a business proposal in order to entice investors and their hard earned dollars. There are currently a number of small, medium and chain store outlets that specialize in retail sports equipment. It is the researcher's belief that competing against these institutions can be accomplished in a profitable manner if two things are concentrated on. Those two items are; 1) that the store offer sports equipment that is priced for the low-income and financially destitute individuals, and 2) that the sports equipment offered to these consumers be manufactured with social conscience and environmental safety issue foremost in mind. Many business' do not worry about such items, and there seems to be a niche for a company that does so. It is hypothesized that the business objective can be profitably attained even focusing on these two anti-business components.

Current literature provides much in the way of negative perceptions of low-income consumers. As an example "recent research suggests that individuals may not accurately estimate their own financial status" (Moulton, Loibl, Samak, Michael, 2013, p. 376). If consumers have difficulty in determining what their financial status really is, does that translate into the thought that they are perceptive enough to know a good deal when they discover it? It is the researcher's contention that consumers with low-to-moderate income do understand the value of the dollar, and because they are priced out of the sports equipment realm, supplying them with low-priced equipment will entice them to purchase more from the company, not less. Of course, that's assuming they have the funds to do so, and that they are more inclined to purchase sports equipment than they are food and housing. This report will show if such thinking is viable or not.

To take the objective one step further, the researcher plans on judging the viability of an even more politically correct business opportunity by determining if the viability of the business plan can also undertake the process of supplying sports equipment that is manufactured with environmental and safety concerns as the main consideration. The problem is that most "green" processes add tremendous costs and burdens on the business that has to labor under those auspices. As current literature defines it; "commercial regulations (red and green tape) are tools to achieve desired social, political, and environment outcomes that would not be achieved through market operations" (Biddle, 2014, p. 2). Government uses these tools to supposedly assist businesses in ensuring that society is not unduly effected by the company's products (whatever those products may be). According to Biddle, the problem is that "a recent survey of business owners stated that red tape was one of their major problems" (p. 2). It is hypothesized that the proposed company will be able to efficiently address those major problems through stringent adherence to the guidelines and standards that determine environmental safety and other concerns, while still maintaining a low enough product cost to entice the low and moderate income consumer to purchase sports equipment.