Financial Management - Cool Moose Creamery Essay

Financial Management - Cool Moose Creamery - Essay Example The report analyses whether starting a new franchise of Cool Moose Creamery would be feasible or not and what opportunities and threats might be considered while starting this venture. The report has been divided into two parts; the first part of the reports highlights and discusses different elements that could influence the decision whether to start a new venture or not and the other part of the report analyses the feasibility of starting a new venture by using different project appraisal techniques. The first part of would include more of qualitative data however the quantitative data and all the calculations have been included in the second part. Important Elements to Consider Starting a new venture is the phase when the management of the business has to consider important elements and factors that could influence the operations and success of the new firm. By identifying these important elements, the managers are able to identify factors that could influence the business and the n take steps to minimize the impact of these steps. Such elements are also important for the management as they provide areas that the management should look at and be careful of while starting a new venture (Dunung, 2010). Some of the most important elements that the management has to consider while starting a new venture are as follows: Market Size and potential of the market One of the important elements that have been considered before starting a new venture is the market size and the potential of the market. Market size is basically defined as the total number of potential customers that the firm for whom the firm would be offering products or services. Market potential basically refers to the potential or possibility of the consumers buying the products or services of the firm. If the market has high potential but the size is very limited and starting a business requires high investment, then it is not feasible to go ahead with such a venture. However, if the market size is sm all and has potential in it but requires low investment then venture can be started as despite of low market size firm would be able to capitalise the market. Therefore it is important for the management to consider and analyse the market size and the potential of the market along with the benefits that would be delivered by the venture and by comparing these elements, the final decision should be made. Product and its uniqueness The other important element that