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- The key factors in determining whether this is a valid business opportunity for josh Mathew and Hannah include the analysis of their business ideas and the ability of passing these ideas via a test to determine their validity. All these ideas ought to have a demonstrated need a market that is ready plus the capability of providing a solid return on investments
- The partners should be aware of market drives such as the economic trends and the technological factors and as well as new government regulations or the introduction of new laws. They need t ask themselves what economic, social or technological factors are varying in the available market.
- In the business strategy by these three partners, the current weakness lies in the fact that the contemporary energy industry is dedicated to current business strategies as a result of big assets, and infrastructure. The main challenge with their strategy is coming up with a type of technology that is likely to mitigate today’s negative effects on the environment while at the same time employing the prevailing infrastructure. In addition, the lack of IP and the access from other firms and oil companies is another great fault.
- This group should employ the equity financing whereby they should invest their money into their organization in exchange for a share the running of the business. The sources of equity finance can either be from personal savings from the three members, angel investors, family and friends or form the venture capital.
- The most effective distribution channel to be used by biodiesel incorporated is in the petroleum and the agriculture sectors as the business offers unique services in the manufacturing of biodiesel on behalf of its farmer members. In addition, retail with the oil companies is also one of the best distribution channel of this organization
- Biodiesel incorporated can improve their chances of success by beginning to create a business model that defines a competitive benefit.