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You’ve worked hard, made a fair amount of money, and have a nice stock portfolio. You’re also known among your friends as “the guy with the money.” As with lottery winners, you’ve become a bit of a target—some want handouts, some loans, and others just do their share of freeloading. But now one of your friends has come with a business proposal. She’s just back from a trip to Southeast Asia and is raving about all the neat fabrics available in local markets in places like Cambodia, Thailand, and Vietnam. She’s also a great fan of the TV show Project Runway. So, she wants to import fabrics, buy some sewing machines and materials, rent a small storefront, and set up a shop called The Design Place. The basic idea is that a customer can come in, find fabrics, use work- space, and then design and sew their own fashions. She thinks the idea will be a winner, but has come to your for advice and— she hopes—some startup financing.
Questions
What questions will you ask and what will you say to help your friend do a good strategic analysis of her business idea? Without knowing any more than you do now, what do you believe is the real strategic potential of The Design Place? Are there examples of do-it-yourself stores within other product spaces that could serve as guides for your evaluation and help in developing her business proposal?
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