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MODULE 2: NEW VENTURE PLANNING AND CREATION

Case 3: The Village Café

Saheed inherited $10 000 from his late father and is thinking of setting up an internet café to target students
in his home village. There is a large population of students in Saheed’s village who depend on the use DO NOT WRITE IN THIS AREA
of the internet to do their research. However, due to the absence of such facilities in Saheed’s village,
students are forced to travel to other villages to access the internet. In order to attract the students to his
business, Saheed plans to offer his service at a reduced cost. Saheed believes that this marketing strategy
would allow him to benefit from a high volume of business.

Unfortunately, Saheed’s inheritance is inadequate to start up the venture. In an effort to establish the
venture, Saheed has approached a local commercial bank for the additional funds. The bank has requested
that Saheed prepare a business plan that should include a business model.

3. (a) Explain any THREE components of a business model.

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