- 04 Apr, 2021
- 0 Comments
- 1 Min Read
Investing in Russia
Your task is to identify 2 business or social ventures that the business angel you work for can invest $3-5m in (i.e. he would have to choose the best of your 2 recommendations and invest all his money into that one). So you are supposed to focus on two fast growing markets where a $3-5m investment can be sufficient to start a business, and be profitable (for example you can’t build a bridge, a resort or a casino with only $3-5m, so they would not be good recommendations).
One possible source of information is the US Country Commercial Guide (Links to an external site.) for your chosen country (“Market Opportunities” section). You can also Google “fast growing market + YourCountry”.
(Example: Let’s say that you are studying Peru. If you google “Peru fast growing market”, you find interesting search results such as:
http://www.startribune.com/fast-food-companies-find-a-market-for-growth-in-peru/174981811/ (Links to an external site.)
This source talks about the opportunity to establish fast-food chains in Peru. This would be ideal for a $3-5m investment, given that a KFC or McDonald’s franchise location costs $1m to $3m of startup cost:
https://www.franchisehelp.com/franchises/kfc-kentucky-fried-chicken/ (Links to an external site.)
https://www.franchisehelp.com/franchises/mcdonalds/ (Links to an external site.)
So this is the kind of thing you could explore here.
Please identify two venture opportunities in your target country, and write at least one page about each, highlighting for each opportunity:
Its potential in terms of market size, demand growth,
Existing competition and products/services in demand.
Existing distribution channels.