BM564 Enterprise and Entrepreneurship Business Plan

Read about the proposed future business plan of Organic Hub, a new business that will provide organic and natural food items in the form of Gluten free cakes, organic snacks, organic cup cakes, real fruit beverages and many more organic food items. Learn about customer analysis, competitor analysis, skill analysis, profit and loss account, cash flow forecast, break even analysis, sources of funding, resource planning, management information system, vision and conclusion.

BM564 Enterprise and
Entrepreneurship Business Plan

Table of Contents
Introduction:.....................................................................................................................................2
Main Body.......................................................................................................................................3
Describing the proposed future business plan:............................................................................3
Customer Analysis:......................................................................................................................3
Competitor analysis:....................................................................................................................4
Skill analysis:...............................................................................................................................5
Profit and loss account:................................................................................................................5
Cash flow Forecast:......................................................................................................................6
Break even analysis:....................................................................................................................8
......................................................................................................................................................8
Sources of funding:......................................................................................................................9
Resource planning:.......................................................................................................................9
Management information system:..............................................................................................10
Vision:........................................................................................................................................10
Conclusion:....................................................................................................................................11
References......................................................................................................................................12
1

Introduction:
The entrepreneurship is considered as the process which deals in introduction, managing
as well as controlling of new business plans in order to fulfil goals and objectives as well as
earning the huge customer share. For this report Organic Hub business is taken into
consideration. The business will provide various organic food items made with organic
ingredients such as Gluten free cakes, snacks, real fruit beverages and many more. The firm will
run from busy streets of London, UK. The report will include motivation for generating the new
business idea as well as also discuss the process that entrepreneur went through in making new
business idea. In addition to this, the report will also conduct feasibility studies and will also
present the details of product and services. Moreover, this report will also reflect potential
market opportunities along with the attractiveness of market. In last, the report will analyse the
mission and vision of the business.
Main Body
Describing the proposed future business plan:
The ''Organic Hub'' will be the new business plan which will provide organic as well as
natural food items in the form of Gluten free cakes, organic snacks, organic cup cakes, real fruit
beverages and many more organic food items(Ferri and Aiello, 2017). These product will be
made by using natural and organic raised ingredients in the most effective manner. The organic
food items will be made according to the needs and demands of local customers. In addition to
this, the company will also adopt new innovative technologies with the purpose of doing daily
operations in the most sustainable manner that is without harming the environment. The food
items provided by this firm will be cholesterol as well as preservatives free so that health of
individuals are not compromised at all. When launching new business with new ideas, it will be
critical for entrepreneur to save its rights of production, packaging process and other business
activities. For avoiding this situation, the firm should register its new ideas in the form of
patents. This strategy will allow protection to company resources as the copying of business idea
will be considered as illegal move by the competitors. Hence, the gaining of intellectual rights is
mandatory for the organisation.
2

Customer Analysis:
The organic hub will undertake the use of business to consumer model with the purpose
of selling organic food products directly to the final customers. The firm will be directed for
selling the products in the market of UK with the assistance of Segmentation, Targeting and
Positioning (STP) business tool. It will help the firm in targeting the most suitable customers in
order to enhance the sales and attaining large market share(Porfírio, Felício and Carrilho, 2020).
In relation to Organic Hub, the STP model is discussed below:
Segmentation:
The market will be segmented in the form of smaller groups so that business manager can
effectively meet the needs of customer. The firm will segment the target market by considering
the behavioural segmentation of customers. As the firm will target health oriented customers
who prefers the use of organic food items.
Targeting:
After segmenting the customers on the basis of needs, the next step will be target the
health oriented customers who falls in the age group of 25 to 70 years of age.
Positioning:
The organic hub will take proper and innovative promotional programs in order to reach
into maximum number of customers. The company will also position its organic food products
on the pages of its website as well as social media platforms. In addition to this, the company
will also provide facility to customers to taste their products without paying any
money(Bhagavatula, Mudambi and Murmann, 2017). It will help the organisation in boosting
confidence level of customers for purchasing organic products of firm in more volumes.
Competitor analysis:
The competitive evaluation in market can assist the organic hub company in gaining
insight about market trends as well as about level of competition in the marketplace. In order to
do competitive analysis, the porter 5 forces model is taken into consideration.
Porter 5 forces model:
The business framework is known as the strategic framework that supports the
organisation in making future business policies by considering the power of competitors in the
market. The following points of this model in context to organic hub is explained below:
Bargaining power of customers:
3

In the food industry, the level of bargaining power of customers will be moderate to high.
As there are many number of sellers in the market which can become difficult for company to
sell organic product at higher prices. Hence, the firm needs to sell products while adopting low
cost strategy.
Bargaining power of suppliers:
The level of bargaining power of suppliers in food industry is low due to the presence of
large number of sellers in the market. This can become benefit for this firm as it can bargain raw
materials in most effective manner. The firm can then reduce its prices to attain large number of
customers(Santos, Fernandes and Ferreira, 2019).
Competitive rivalry:
The level of competition in the food industry is high due to many competitors in the
market. This can negatively impact the firm performance if no measures are being taken. So, for
tackling with this the firm will adopt low pricing strategy and also makes sure that quality of
ingredients is top notch.
Threat of new entrants:
The level of threat of new entrants is high in the food industry due to less amount of
investments involved for setting the new business of organic foods. This can pose long term
threat on the competitive position of the firm. In order to minimise it, the firm will sell best
quality products and also adopts sustainable practises(Ratten and Usmanij, 2021).
Threat of substitutes:
The level of threat of substitutes are also in the high level as there are number of well
known sellers who can effectively copy the products of the firm. So, the high amount of threat is
imposed on the firm future market position.
Skill analysis:
Basis Description
Skill possessed The entrepreneurial skills are critical skills that
helps business professionals to growth their
business in the form of large market share.
This skill can help the organic hub company to
install innovational strategies and promote risk
4

taking abilities of workers. It can benefit the
company in increasing chance of success.
Skill needed For achieving good financial position, the
financial forecasting skills can play an
important role through which the company can
forecast the future expenses in effective
manner(Kwilinski and et.al., 2019).
Skill gap The low level of market research skill is
considered as major skill gap of the firm. Due
to this, the organisation is unable to tap into
unexplored markets due to less market research
knowledge.
Profit and loss account:
Organic Hub
5

Cash flow Forecast:
6

7

Break even analysis:
8

Sources of funding:
Bank loans:
This is the most famous type of sources for meeting the needs of funds in the most easiest
manner. In this, the receiver of the loan have to pay interest on loans at the rates determined by
the banking institution. This can allow the organic hub to raise the volume of capital with the low
interest rates.
Venture capitalist:
The venture capital are considered as money lenders who invest the money for supporting
the development of firm. In this, the company can launch equity shares so that money can be
acquired with an contract.
Recommendation:
It has been recommended that organic club needs to acquire funds from the banking
institution as the firm can get large sum money which have to paid on easy monthly instalments.
This can support the company to meet fund requirements without loosing power in decision
making process.
Resource planning:
The resource planning is considered as important task that helps the business to ward off
ineffective planning strategies that may become costly as well as time consuming(Hang, 2019).
There are two types of resources which the Organic Hub company can utilise in effective
manner. The first is Tangible resources and intangible resources. The tangible resources are the
resources that can be touched and feel. On the other hand, the intangible resources are those that
can not be touched but can be feel. It is important for the Organic Hub organisation to enhance
chance of success by identifying right quantity of raw materials at the right time.
9

Type of the company:
The Organic Hub is the small scale start-up firm which will have limited number of
workers and also will be operated in small scale. It is also one of the privately owned company
that is owned by the single candidate.
Management information system:
The MIS has the critical function for organisation in terms of promoting operational
efficiency at effective manner. It will be compulsory for the Organic Hub firm to formulate
proper management information system for managing daily operations in optimum and with low
wastages. In addition to this, the MIS can also support the organisation in making sure that
resources are aligned with workers in appropriate manner(Indarti, 2020). With this, the firm can
also manage the cost of resources in smoothest manner.
Vision:
The vision of Organic Hub is to make the people more aware towards consuming organic
foods so that their health can be improved in the long run.
10

Conclusion:
From the above report, it has been evaluated that proper designing of business plan
supports the firm in increasing the rate of customer base as well as profits in short time. It is
beneficial for the plan to contain the information related to execution of business activities. It
was also concluded that for gaining knowledge of business and products it will be essential to
pay attention on meeting customer needs and wants. It was also assessed that entrepreneurship
skills as well as MIS are essential for the development of the company.
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References
Books and Journal
Ferri, M.A. and Aiello, L., 2017. Tourism destination management in sustainability development
perspective, the role of entrepreneurship and networking ability: Tourist Kit. World
Review of Entrepreneurship, Management and Sustainable Development, 13(5-6),
pp.647-664.
Porfírio, J.A., Felício, J.A. and Carrilho, T., 2020. Family business succession: Analysis of the
drivers of success based on entrepreneurship theory. Journal of Business Research, 115,
pp.250-257.
Bhagavatula, S., Mudambi, R. and Murmann, J.P., 2017. Management and organization review
special issue ‘The innovation and entrepreneurship ecosystem in India’. Management
and Organization Review, 13(1), pp.209-212.
Santos, E., Fernandes, C.I. and Ferreira, J.J., 2019. The role of political and economic
institutions in informal entrepreneurship. World Journal of Entrepreneurship,
Management and Sustainable Development.
Ratten, V. and Usmanij, P., 2021. Entrepreneurship education: Time for a change in research
direction?. The International Journal of Management Education, 19(1), p.100367.
Kwilinski and et.al., 2019. Formation of the entrepreneurship model of e-business in the context
of the introduction of information and communication technologies. Journal of
Entrepreneurship Education, 22, pp.1-7.
Hang, M., 2019. Media corporate entrepreneurship: Theories and cases. Journal of Media
Management and Entrepreneurship, 1(1).
Indarti, S., 2020. The effects of education and training, management supervision on development
of entrepreneurship attitude and growth of small and micro enterprise. International
Journal of Organizational Analysis.
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