DISCUSSION QUESTION Your friend Charlie is an aspiring entrepreneur looking to create a new business and is very excited about a new business idea: Cosplay for Cars People love to 'cosplay' (dress up as their favourite character from comics, movies, books or games). Now you can cosplay in your car! Cosplay for Cars (CfC) is a new business selling magnetic panels for car doors and bonnets, which 'dress' the car as a popular character (Sailor Moon, Spider Man, Batman, Zelda etc.). Because they are magnetic, the panels can be removed without damaging the surface of the car, and they hook into doors and the bonnet to avoid theft. At launch, around 25 popular characters will be available, with more added over time. In addition to purchasing a character (for $200), there will also be a low-cost rental option of just $10/month which will allow unlimited character swaps. CfC will be sold through existing retailers of pop culture, which are in most major shopping centres. Retailers who sell CfC will receive a 10% margin on both one-off sales and subscriptions. Manufacturing will be outsourced to a low-cost country - Charlie has found that custom car magnets can be purchased in Australia for $40 for a single 45cm x 60cm panel, so figures that ordering larger panels will be about the half the cost as the orders will be for much higher volumes. This means that each character will cost around $100 to produce (4 doors and a bonnet, at $20 each). Required: Answer both parts below. Part a): Charlie is very excited about CfC, but you know that an important element of any business plan is to consider the main risks. Explain what you consider to be the two most important risks to CfC and how each risk might be managed BEFORE the company launches. (4 marks) Part b): Charlie estimates that about $100,000 in capital will be required to start the business, but thinks that writing a business plan is a waste of time. Explain why it is useful to have a business plan to raise funds and why this plan should be credible. Explain the key factor which enhances business plan credibility and provide and explain ONE example of how Charlie could make the Cfc business plan credible. (4 marks) Reminder: Please type your answers in the space below. Please label your answers clearly e.g. "Answer to a)" etc