Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

One of the most daunting tasks for any entrepreneur is estimating demand for what he or she is selling, particularly if the product is new

One of the most daunting tasks for any entrepreneur is estimating demand for what he or she is selling, particularly if the product is new to the world or very different from what currently exists. Pai-Ling Wong has developed a robotic device designed to deliver food and coffee to people on the campus of the university where she is a researcher. The university is serving as a beta test site to refine the robot's functionality. As part of her effort to plan for the commercialization of her robot, Pai-Ling needs to calculate potential demand. Because she is aware that entrepreneurs frequently overestimate the level of sales they can realistically achieve in the beginning, she has decided to triangulate demand from three different points of view to get a sense of total demand. In addition to calculating demand, Pai-Ling is well aware that if she doesn't get her expenses right, she could burn through her limited capital before getting her product to market. At the same time, she knows that the probability of getting expenses exactly right is zero. What should Pai-Ling include in her startup expenses?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The FinTech Book The Financial Technology Handbook For Investors Entrepreneurs And Visionaries

Authors: Susanne Chishti, Janos Barberis

1st Edition

111921887X, 9781119218876

More Books

Students also viewed these Finance questions

Question

What types of people do you think are most difficult to work with?

Answered: 1 week ago