ENTREPRENEURIAL OPPORTUNITIES
MARKET RESEARCH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An entrepreneur wants to start a bakery. He wants to make a sales forecast for his first six months in business, so he obtains the sales records for all the successful bakeries in his state and uses the monthly average for his forecast. What mistake is he making in this process?
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He should be looking at sales records for all the successful bakeries in the country, not just in his state.
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It is impossible to make an accurate sales forecast for a new business, and attempting to do so will only set him up for failure and disappointment.
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It is not likely that he will be able to match the sales volume of successful, established bakeries in his first six months.
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He should not use data from bakeries in his own state, as it is unlikely that they will report accurate estimates to their potential competitor.
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Explanation:
Detailed explanation-1: -When you run your own business, you build your own team. You can surround yourself with people who share your vision and work the way you want them to. Being able to nurture new talent and get the best out of your colleagues is one of the most rewarding things about being an entrepreneur.
Detailed explanation-2: -A sales forecast is an expression of expected sales revenue. A sales forecast estimates how much your company plans to sell within a certain time period (like quarter or year).
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