Business Proposal

Business Proposal

ECO 561 Economics

Business Proposal

A business proposal is a document that creates a sense of excitement and vision for your business enterprise while ensuring future investors and stakeholders that the proposal has potential for success and survival within the respective industry (Danna & Porche, 2008). An effective business proposal should be an ever-evolving document that lays the foundation and a long-range plan for the projected business. Business plans persuade backers to invest in a business idea, help secure financial support, and lay out economic analysis for your planned endeavor. The business plan should serve as the planning map that guides the development of the enterprise (Danna & Porche, 2008).

Well-intentioned business proposals do not guarantee financial success. An economic analysis must be completed to address market structure, elasticity of the product, pricing, marginal cost and marginal revenue, non-pricing strategies and fixed and variable costs. The following business proposal includes economic analysis for my proposed motorcycle clothing line.

GP Motorcycle Clothing Line

GP Motorcycle Clothing (GPMC) will be a line of clothing made specifically for the adventurous motorcycle rider who needs comfortable, safe clothing for extreme motorcycle riding. GPMC will produce high-performance motorcycle gear designed to keep riders comfortable during hot and cold weather rides in all environmental conditions.

Market Structure

I have assessed the number of firms in the motorcycle clothing industry, considered whether or not they produce standard products, and evaluated how easy or difficult it will be for GPMC to enter this industry. There are numerous firms producing motorcycle clothing. However, GPMC will set itself apart from other manufacturers by producing base-layer clothing (undershirts, shorts and pants). This niche market seems underdeveloped.

The distinct market structure GPMC will fall into is...