Business Feasibility Verification Support (POC)​

While various business ideas, models, or customer groups with a high demand for new businesses may exist, the reality of starting a business differs significantly from the initial planning phase.

Every company embarking on a new venture is concerned about its success, which may deviate from its carefully crafted plans. To mitigate this risk, most companies employ market testing methods where products or services are sold to small customer groups and feedback is gathered to refine the business plans and models. However, in reality, the limited availability of resources (such as personnel, capital, and time) often leads to failure as many companies are unable to prove the viability of their new ventures.

This company, a prominent car manufacturer in Japan, is facing the same challenge and grappling with declining sales of gasoline-powered cars due to the emergence of electric vehicles in the market. Recognizing the need to adapt swiftly, this company contacted LiB to evaluate the feasibility of launching a new business centered around battery rental, known as Battery as a Service (BaaS).

This car company is struggling to establish a viable business model and lacks the means to confirm whether its business idea, known as Proof of Concepts (PoC), will generate the revenue target set by management. Furthermore, it is facing a shortage of potential business partners who can help transform this concept into a reality.

Rather than the creation of a novel and unique business idea, the most significant challenge lies in identifying and securing business partners who will offer support in terms of manpower, location for PoC, and a customer base to ensure the business’s success. The obstacles faced by the company are explained as follows:

1.  Lack of clarity on the proof required to validate its new battery rental business idea.
2.  Manpower limitations, which poses the risk of not completing the project within the set timeframe.
3.  Business partners express concern about potential risks associated with the battery rental business, including costs and reputation implications for their existing operations.
4.  Difficulties in contacting business partners directly due to strict policies that necessitate various documents to request permission for communication and information gathering.
   
   

The factors that led to the success of this business PoC are as follows:

1.  LiB’s ability to quickly contact potential business partners and initial customer groups before they could collaborate or use the services of competing companies.
2.  LiB’s role in the project team, which helped coordinate various members of the company, ensuring the project was completed within the set timeframe.
3.  LiB’s ability to highlight the positive results of collaborating with this company and its positive environmental impact.
   
   

As a result, this car company has successfully been established in several locations with numerous business partners, including golf courses and large railway companies in Japan, all within six months.