The following was written as a part of an application for a small-business loan by a group of developers in the city of Monroe."A jazz music club in Monroe would be a tremendously profitable enterprise. Currently, the nearest jazz club is 65 miles away; t

The argument depicts a part of an application for a new jazz club. Mentioned part devoted to providing factual background proving that market for the club exists and that developers will manage to create a product interesting for jazz aficionados of Monroe. Though the initiative may be successful, additional information should be provided for the loan to be approved. To begin with, developers presented several facts in attempt to substantiate that resident of Monroe love jazz. For example, annual jazz festival gatheres over 100 000 jazz fans. The fact itself, though sounds impressive, does not prove that jazz festival visitors will become club’s customers. For the festival people might have come to Monroe from all over the country and exactly that people won’t come to the club. On top of that, may be Monroe residents visit jazz festival because that is the only event during the summer and residents visit it because of the absence of other options. To find out whether festival visitors will come to the club, the group of developers should find out what percent of festival visitors are 1) Monroe residents and 2) are true jazz lovers. May be that is the reason why there is no any competition in a radius of 65 miles. People of Monroe just do not strive for jazz and enjoy it occasionally. As a prove of rife jazz fans in the city, developers point at a jazz radio program as the most popular one. The speculation is rather popular for any selling story: number 1 rank always impresses at first sight. However, being number 1 in a small stratum diminishes significance of the fact to almost nothing. If the total number of radio listeners in Monroe is equal to 10, it does not really matter what is their #1 choice. Except the number of listeners, one should question whether those who listen to the most popular radio program at 7p. m. on weekend evening will go outside to listen to the same music or that listeners are not looking for a music itself but additional information that radio DJ provides. That would also cast a serious doubt on how typical jazz aficionado of Monroe are: if they prefer to satiate their urge for music at home near radio transistor, the likelihood of spending 1000$ on jazz entertainment in the club is very low. I would say, that this type of consumer will, most likely, spend on acoustic equipment and rare vinyl. We just don’t know. Finally, as one of assurances that the product – in other words, the satisfaction from visiting the club - also promises to be at high level, arguers note that prominent jazz performers are living in the city. No matter how good that sounds (and, by the way, could be used in advertising campaigns), this fact taken out of the context means nothing. Well-known musicians usually ask significant honorarium that can seriously undermine profitability of the new venue. Especially, if total number of visitors and/or average bill and/or fee for ticket do not cover expenses. As a result, I would say that proper profit-and-loss analysis should be conducted to know whether popular musicians are affordable. In conclusion, the arguers presented a hodgepodge of evidences related to jazz club prospects but failed to make a cogent case. Though it looks like the market for jazz club may exist, the confirmation that it is consistent is vague and asks for additional data.