Return On Investment Question??

Question

Hypothetically...where would I begin to RESEARCH this scenario if I were replying to him with a framework for his ROI:

1. You have been retained by client Chris Smith to provide consulting services related to a new business venture that is being proposed. Chris is considering an investment in a yet-to-be formed company that will manufacture, distribute, and sell a specific type of cheese in the U.S. This cheese has not been sold in the U.S. since 1993 due to a treaty that was signed in that year; the provisions of that treaty have expired and there is almost no possibility that they will ever be renewed by the U.S. government. Chris has asked you to prepare a framework to help analyze the range of realistic annual (%) returns on such an investment.

Answer 1

hmmm........

the first thing that jumps into mind (if you are willing to spend some money) would be a trend-based marketing company-- like kudlow and co.-- they have resources to track trends and  consumer spending and such; but this is probably not where I would start.

first thing I'd look at is competition, public companies in competition should be easy to find through google finance or yahoo finance. once you find One competitor finding more should be easy. then get an idea of how that market is doing exactly, market P.E, trades how many X equity, earnings, etc.

then i'd stress that there are a lot of entrepreneurs out there that also need seed money and that could be in a much sexier industry-- like tech-- and see how he takes that.

also, check out commodities markets for your (projected) products --is it volitile in price, volume, etc.-- how are futures contracts grouped (ex- by 100 pounds feta, (?)/contract etc),--- if for nothing else than to get an idea of what the raw market is like.

then I'd probably go to some gov web sites and try to find info related to the topic-- do they susidize, offer grants, etc.

that could work for a start...........

then make a judgment, on the of those average public companies that would be in competition. how have the first few years looked, what is the average yearly growth, if any.

good luck

oh, p.s.-- dont expect them to do as well as their competition for a while-- to be realistic

Answer 2

you can invest your money anywhere where you have profit and also try to invest in any product which give you regular business. for suppose you are a trader and doing business of polypropylene and you got great return on your investment and also your material have a good quality than customers will come to you again and you can great return oon ivestment on every transaction. dont see just Return on Investment, also try to see where you can make regular customer for any profitable product.

Answer 3

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Answer 4

It sounds as though you need first to develop or assume some form of business plan, providing for raw materials and capital equipment for creating the cheese, packaging and shipping, recruitment and training of staff, marketing in its broadest sense, plus probably separate set-up costs in addition to ongoing revenues and expenses.  I've obviously missed a few factors off the top of my head, but this could be a rather compolex undertaking, with a large number of variables.