Creating a business case to check the feasibility of a new business idea
Venture Group are one of Australia’s leading automotive components manufacturers. As an Advanced participant in the Ford Supplier Diversification Program, Venture asked us to assist them in deciding if an existing Venture business, based in South Africa, could make commercial sense in Australia.
Our role in checking out the feasibility
- To work with the Commercial Strategy team, to research the size, structure and growth trends for the target markets.
- To create a financial model through which the Venture Directors could understand the magnitude of the investment required and the risks inherent in making the new business opportunity a success. The team developed a business as usual “Corporate” approach; and a second version of a “Lower Investment Market Entry” scenario.
Outcome
- The project created a data set which defined the market and the high level trends seen with the market, with a financial model which defined the revenue and cost structure necessary for success for two options.
- The Directors chose not to invest.
- The work conducted avoided the potential of losing several millions of dollars in an investment, which on first glance appeared to be sound, but on more detailed analysis proved to be riskier and more difficult to translate into a successful Australian business.
“Working with Roaring Success was a pleasure.
They offered professional and relevant inputs throughout the process.
Their ability to tailor their service to our specific needs was valued and their commitment to drive the project to remain within the time-frame ensured an excellent outcome was achieved.”
Louw Van Tonder, Commercial and Business Development Manager, Venture Group, www.ventureglobal.biz
