A friend of yours wants to start her own taxi business, in her locality in France. Her plan would involve starting with one taxi, and scaling to several vehicles if the business is successful. She would run the company herself and would hire drivers to operate the taxis. She has 50,000 to invest and has asked you to advise on whether this is a good idea

Questions :

How would you structure your approach to the question?

You decide to first estimate the annual revenue of the business. You can assume that there is sufficient demand in the market for taxi services and that your friend will operate within her local city only. What would you estimate to be the revenue potential for this business in the year 1 ?

Useful data:

- This is a single-vehicle business at this stage so the estimation is based on one taxi and not longterm Potential

- 8-hour work days, 250 work days a year,

- Suggest values for any other necessary data, the process counts, not the result.