Dragons Den Report: Assessing Investment Potential of After Market

This report presents an investment analysis of "After Market," a business venture pitched on Dragons Den, focusing on a social network service for trading home décor and fashion items. It outlines the business idea, supported by statistical data indicating a growing market for resale and secondhand clothing. The report assesses the investability of the idea, emphasizing its sustainability and potential for reuse, contributing to environmental preservation. It also includes a return on investment (ROI) analysis, payback period estimation, and a budget allocation plan for promotions, technology, human resources, research and development, and legal aspects. The conclusion highlights the importance of market research and budget management for new ventures, emphasizing the need for innovative ideas to achieve competitive advantage.

Dragons Den

Table of Contents
 INTRODUCTION
 Outline of the products or service idea
 Statistical data to back up the idea
 Why the idea is investable
 Return on investment
 Return on investment
 What the investment would be used
 Budget
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business is described as the procedure of engaging companies with
several activities such as trading, commercial, manufacturing and
many others. Companies operate business in order to maintain their
growth and productivity along with accomplishing organisational
objectives. Many entrepreneur start new ventures with some new or
innovative ideas which could help them in differentiating them from
other rivals present in the market and attract large customer base.

Outline of the products or
service idea
 Products or services are described as physical and tangible items that
companies offer to their customers where they agree to pay price of
them. Before introducing any new goods or services in the market, it
become essential for business person to conduct market research along
with identifying needs or demands of customer which they could
meet. The selected organisation which is “After market” would offer
social network services that will facilitates users to trade or acquire
products related to home décor and fashion on online platforms.

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 In order to utilise services offered by “After market”
customers have to create an account on it which will charge
them minimal. Furthermore, customers and sellers would
also be charged around 40% of transaction amount during
the procedure of renting or purchasing of items through
online social sites. The respective company has also taken
security measures where the information and contact
number of sellers or buyers were not be disclosed.

Statistical data to back up
the idea
 In the poll led by waste management agency,
BusinessWaste.co,uk, it has been estimated that a large part
of around 1,500 respondents (45%) said that they will like
to buy secondary clothes.
 Around 90% of people said that they will buy second hand
clothes when their friends and family will start buying.
 Almost 94% said that they are influenced by celebrities.

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 According to global report of Thredup, it has been
observed that the market for resale has been
growing at a rate of 11 times quicker than
traditional retail market and by the year 2030 it will
be worth of $84 million (Secondhand clothing
market set to be twice the size of fast fashion by
2030, 2021).

Why the idea is investable
 The business idea for After Market is sustainable as it will
motivate customers to minimize usage of fashion products
that could harm environment and use recycled products.
 Business plan summary:These products could be reused
by people which allows the respective organisation to adopt
sustainable practices. This business ideas will aware people
for making sustainable changes and preserve environment.

Return on investment
 This is described as a plan that could be used to
enhance growth in the market and provide various
opportunities to business. The less investment and
higher returns provide profitability to entrepreneurs.
 The selected company could increase its revenues by
executing various promotional activities which would
help it in making people aware about its brand.

Payback Period
 The pay back period is defined as the time period that is
required to recover cost a company has invested.
 The respective company needs a time period of around ten
year to recover cost it would invest in its business
operations.

What the investment would
be used
 In the procedure of starting new business venture, it
become necessary to invest amount in several activities
and operations in order to make sure that business
functions are working in effective manner.
 Promotions: The selected company will invest in
promoting its products or services I order to make
people aware about brand and to enhance customer
engagement.

Budget
Activities Amount
Promotions £20,000
Technology £30,000
Human Resource £30,000
Researched and Development £10,000
Legal £10,000