Question

1. Donald is aggressive and smart, but he's bored at his job. He wants to pursue

his dream of starting a burger joint called "Donald Mac's." His business plan is
to open six stores in 12 months. All he needs is money—other people's money.
Everyone says that finding investors is the only way to go, the shortcut to
success, wealth with no risk. So he buys a coat and tie, shines his shoes, and hits
the streets, looking for investors. He comes to you. You like his idea, but are his
plans sound? What do you think?

Answer 1

Donald's plans are not sound.

There is more to running a business than opening six stores in 12 months. How does he want to ensure that these stores will be opened and will become viable, attractive to customers, and be able to meet customers' needs.

Step-by-step explanation:

A business does not exist in isolation. It exists for a purpose. The overarching purpose is to satisfy the needs of its customers. But, first things first. Is there a viable market for Donald's business ideas? Has Donald determined the size of this market? Is the market sustainable? What are the barriers for new entrants? What competition does this business face? What competitive advantage or otherwise will Donald Mac's enjoy or suffer? How can Donald Mac's overcome its competitive challenges? Can Donald show the cash flow projections for the proposed business? This and more pertinent questions need to be answered in the business plan, to make it sound convincing before potential investors.