Opportunity Journal: Evaluating Tech Gadget Rental Business Model

This opportunity journal explores the potential of a rental service company for information technology gadgets, focusing on frequently used devices like computers and projectors, as well as newer tech like drones and VR headsets. The proposed business model involves an online platform for browsing and booking rentals on an hourly basis, with free home delivery and collection. The target audience includes individuals who cannot afford to purchase expensive gadgets or only need them for short periods. Key considerations include market research to assess demand and competition, as well as licensing and legal documentation. Revenue streams are expected from rental bookings and website advertisements, while initial investments will cover insurance and the purchase of a variety of gadgets. A market test in Sydney, New South Wales, Australia, is proposed as an entry strategy to evaluate the feasibility of the business idea before a full-scale launch.

Student ID: Student Name:
Opportunity Journal 2_S2 2018
Answer sheet
Converting Your Ideas into a Business
Reflection Point–Your Thoughts
Q -1-
Rental Service company for info tech gadgets is one of the promising and profitable
info tech businesses that I want to start as an entrepreneur (Nayyar and Puri, 2016). The
company will provide rental services for frequently used info tech gadgets like computers,
projectors, teleprompter and others (Belk 2014). The services will also include latest tech
devices like DJI Phantom 4 Pro drone, Nintendo Switch , Play station VR and others . My
proposed business company will provide an online platform through its website that would
allow people to browse through the wide range of products available with us and book for
rental services. The products would be rented at an hourly basis. Home delivery services
would be provided without charges and home collection would be done after the end of
rental term. These features by the company will give the customers a comfort zone to book
services from our company without any hassles regarding delivery and returns.
There are many sections of people, who cannot afford to buy the expensive info
tech gadgets or sometimes they require these gadgets for a limited time span of time say
one or two days, so they are reluctant to buy these gadgets for lifetime. Our company
would just be the perfect place for these sections of people they can rent our services,
accomplish their work, and return the gadgets when their requirement is over .This way
they would not have to invest a hefty amount for buying these gadgets yet their needs
would be satisfied. Our services would also be helpful to those people who prefer to try the
latest innovative gadgets before buying those with hefty amount of prices.
Q -2-
To understand the opportunity of this tech business start-up a proper research
needs to be conducted. The research should identify whether the market is saturated or
not, demand of the service that is to be analysed, competitiveness of the market from rivals
should be assessed and target audience should be identified. The other key aspect, which is
to be kept in consideration before starting the start up business, is licensing and legal
documentation as any legal hassles is not desired when a company is to be started.
Rental Service company for info gadgets is a new idea of business entrepreneurship
(Burns and Dewhurst 2016). Hardly any other start-up companies are engaged in this tech
business. This is a good sign as the competition in the market would be comparatively less
than any other business idea. This is an opportunity for my proposed business start-up to
thrive. However, a thorough research of the market in Australia is every essential to get an
idea about the type of tech gadgets that are in demand .This would help to guide about
while purchasing tech gadgets that would be listed in the online portals of the company for
providing services. My proposed start-up company would target people of almost all age
groups ranging between 14 years to 60 years, this would widen the area of working to
whom it would cater the services.
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Student ID: Student Name:
Q-3-
a) The proposed start-up company of rental service of tech gadgets will earn
revenue from sources like ad based revenue models and transactional revenue model. The
company will generate the primary sources of revenue from the bookings of rental services
by the customers directly (Ojala 2013.). Every booking of tech gadgets from the wide range
of products available in the website of the company would generate revenues for the
company. Another source of revenue which can be generated is from ads in the company’s
website .This is on of the simplest and convenient way for implementation of revenue
models.
b) The proposed rental service company for tech gadgets would require a
onetime large investment .All the products to be rented would be insured for accidental
damages considering the products may be damaged accidentally when the customers
would use them for their rental term. The list of products that that would require
investment and costing are –
 Computers
 Phones and tablets
 Drones
 Play station and other gaming gadgets
 Projectors and Music Players
 Smart watches and others
A thorough market research is to be conducted in the market of operation that will
guide and give a brief picture of the tech gadgets that are in demand in the market
(Zikmund et al. 2013). This would enable the company to buy and opt for only those
products that are in demand .This approach would decrease the cost and investment,
otherwise buying tech gadgets randomly which are rarely used will lead to futile
investment.
Q -4-
Before launching the start-up business of Rental service of info tech gadgets it is
important to identify a small feasible market for test, as entry strategy .I would prefer to
conduct the market test in Sydney situated in New South Wales, Australia. New South
Wales is identified as the start up capital of Australia as about 48 percent of start-up
companies are establishing in NSW (van Weele, Van Rijnsoever and Steinz 2014). Sydney is
the primary hub of start-ups .Thus it is a good place for starting a new rental service
company of Tech gadgets. The Australian legal structure is also a factor that would be
conducive for the start up business to thrive here. Most of the major cities in Europe are
showing decline in government support and investment but Australian government is
providing grants and loans to many start-up companies. As a market test if the business
idea is launched in Sydney and a research is conducted regarding the demand of info tech
gadgets in this area, a picture can be generated regarding the feasibility of this business
strategy. If positive results are obtained from this small and feasible market test, this
business idea can be launched as a fully-fledged business in Sydney in the state of New
South Wales of Australia. For the purpose of entry strategy, the market research and test
can be conducted for a period of three to four months. The market research would also
identify the present competitors or rivals in the market who already have their business of
rental services of info tech gadgets.
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Student ID: Student Name:
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Student ID: Student Name:
Opportunity Checklist
NOTE: Please see the Opportunity Checklist on LMS that can help you completing this checklist. In
the bottom of the table, you might need to put points to justify your answers.
CUSTOMER YOUR OPPORTUNITY
Market Size (Number) Market of operation is Sydney ,target population would be 2%
of population of Sydney
Market growth (Rate) 6.5%
Gross Margin (Percentage ) Approximately 50%
PTA Psychographics Qualitative Methodology
Frequency of Purchase
(approximate)
Yearly or twice in a year
Operating Expenses
(components only)
Computers, Smartphone, smart watches, audio players,
drones ,Play Station and others
Volume of Sales On average 10 bookings daily
COMPETITORS YOUR OPPORTUNITY
Number of direct
competitors
There are 2 or 3 tech gadgets rental service company in
Australia like Rent4keeps
Number of indirect
competitors
There are around 4 indirect competitors who provides rental
services offering different products for rent
Strength of main
competitors
Moderate
VENDORS YOUR OPPORTUNITY
The main vendors It is a rental service business of info tech gadgets targeting
customers of all ages interested in tech gadgets
Relative strength of the
vendors
The gross margin is around 30 percent
GOVERNMENT YOUR OPPORTUNITY
Regulation for your industry  Australian Intellectual property laws
 Australian business and environment laws
 Financial reporting in Australia
Taxes for your industry  GST
 Capital Gain Tax
 Company Tax
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Student ID: Student Name:
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Student ID: Student Name:
References
Belk, R., 2014. You are what you can access: Sharing and collaborative consumption online. Journal
of business research, 67(8), pp.1595-1600.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan International
Higher Education.
Nayyar, A. and Puri, V., 2016. Data glove: Internet of things (iot) based smart wearable
gadget. British Journal of Mathematics & Computer Science, 15(5).
Ojala, A., 2013. Software-as-a-Service Revenue models. IT Professional, 15(3), pp.54-59.
van Weele, M.A., Van Rijnsoever, F.J. and Steinz, H., 2014. Start-ups down under: How start-up
communities facilitate Australian entrepreneurship. In Paper to be presented at the DRUID
Conference (pp. 16-18).
Zikmund, W.G., Babin, B.J., Carr, J.C. and Griffin, M., 2013. Business research methods. Cengage
Learning.
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