Question

The bottom line of starting any for-profit business is the entity’s ability to make money. Discuss why you think the business on which you did your plan is or is not a good investment. If you were one of the “sharks” on Shark Tank, would you commit and risk your own funds to invest in this business?

Answer 1

There is no information provided on the business you have selected so I'll select one for the purpose of this answer.

I want to invest in a mobile game design company. I believe that it is a sound investment for a number of reasons:

The potential for future growth and demand in the market is immense.

2. The need for portable entertainment increases with today's lifestyle and work life.

3. Video games will always be in demand.

4. If one generation passes to another, the next generation is readily available to take their place.

5. Online gaming has given rise to a number of advertising and product placement and sponsorship opportunities.

6. Developing for a mobile device is less capital intensive.

That being said, I would not invest my own money in this endeavor because the presence of competition is intense and the threat of substitutes and the entry of new products have high implications over the competitive factors for the business. The second reason is that the capital requirement, even though less than a large company working on a console game; there is still a consideration that needs to be made since running a small company or even an indie game studio is expensive. Unless we are a one-man team, but that has other tradeoffs with potential quality, design and time constraints.