BM564 Enterprise and Entrepreneurship: Proposed Business Idea and Strategies

This report discusses a proposed business idea for Delight, an online and offline food service provider. It covers customers, competitors, skills analysis, profit and loss forecasts, funding sources, start-up costs, company type, and management information systems.

BM564 ENTERPRISE AND
ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Proposed future business.............................................................................................................3
Customers....................................................................................................................................3
Competitors.................................................................................................................................4
Skills analysis..............................................................................................................................4
Projected 2 years’ profit and loss account and cash flow forecasts including break even..........4
Finding, evaluating and selecting suitable source of funding.....................................................6
Break-down of start-up costs......................................................................................................6
Type of company and management information systems...........................................................7
Vision for business idea..............................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Enterprise refers to a company or venture, that establish in a specific industry in effective
manner and plan to sustain forever in productive way. While, entrepreneurship is defined an
individual’s capability, which enable them to run and manage an organization or enterprise that
in turn provide them varied benefits. The current assignment will be based on specific proposed
business idea that is delight. This idea drives the attention management toward offering day and
night delicious food services to customers. The study will define proposed further venture,
customers, rivals, skills analysis, cash flow forecasts, source of funding and breakdown of start-
up costs. Furthermore, the report will also specify the form of company and management
information systems along with vision for venture idea.
TASK
Proposed future business
Delight attempts to offer online and offline food services to customers, which contribute to
increase its profitability and productivity (Yost and Cheng, 2021). According to this new
business idea, entrepreneur efforts to set up a small section of their house as business outlet,
where customers reaches easily and place their food order according to choice. It is the place
where they order range of food items and also order online. The current business idea brings
specific innovation to market, in term of providing customers chance to watch live cooking
process, during which they can give their directions to add some of their favourite ingredients,
which were never happened before. In order to protect chosen business idea, it is important for
owner to select specific intellectual property right tool, such as patent, copyright, trade mark, etc.
They use trademark to make their food recipes protected from others.
Customers
For new business idea, entrepreneur take approach to select a group of customers. By
referring to STP model, they target all people’s along with some households (McDougal and
et.al., 2021). They use business to customer concept and move ahead with that, which enable
them to build trustworthy relation with target audience. Households and other peoples are
considered as end users, who uses food delivery services of delight as a new venture idea. They
are able to buy this service and take pleasure of the same. The services that organization attempt
to offer to individual customer will have some essence that make that valuable and even better

than rivals. Management will add new aspect in current service plan in term of providing
consumers chance to watch live cooking session and direction to add each ingredient that they
prefer to add in meal. The target customers’ needs that services of new business idea by the
workers require to be good and on time. It can be evaluated that the other companies position in
the same market is high because of this Delight will face several challenges, but still it has
chance to overcome each challenge in term of providing better quality of goods and appropriate
services.
Competitors.
Well known restaurants in the UK are the biggest competitors for current service that
entity plan to offer to individual person. Sabour, House of Tibes, A Wong, etc. are included in
category of rivals. Each rival have high market share as they are already exist in the market.
Their existence will still benefits new business in term of increasing customer base as it will plan
to offer varied attractive features as discuss above.
Skills analysis.
For developing and taking business idea forward, I have good decision-making, problem
solving, critical thinking, innovative, flexibility and team work skills. Instead of having all these,
I want some more skills like ICT, research, adaptability, and interpersonal. I will address any
skill gap that I might have in form of taking approach to select specific and effective method
such as training, etc. that aid to develop a area of improvement.
Projected 2 years’ profit and loss account and cash flow forecasts including break even
particulars Amount for the
year 2023
Amount for
the year 2024
To rent
To salary
To marketing expenditures
To advertisement
To bank charges
To depreciation
To loss on sale of assets
To miscellaneous charges
80000
170000
80000
60000
155000
79000
30000
156000
80000
185000
110000
60000
150000
81000
29000
200000

Total expenditures of the organisation
To tax management charges
To income from taxation consultancy
To income from tax planning commission
Total revenue for the year
8,10,000
580000
280000
190000
1050000
8,95,000
750000
400000
280000
1430000
Net projected profit for the year 240000 535000
 2023 2024
Cash flows from operating activities for the
year
Net Income form business
Adjustments pertaining to operating
activities-
Depreciation and amortization
Loss on sale of equipment
Changes in current assets and liabilities-
Increase in current assets
Decrease in current liabilities
Net cash provided by operating activities
Cash flows from investing activities
Capital expenditures of the organisation
Lease expenditures for the year
Amount generated from sale of equipment
Net cash used for investing activities
Cash flows from financing activities
Amount generated from issuing debentures
Dividends paid to stockholders
Net cash provided by financing activities
269000
79000
38000
-5500
25000
405500
-
-29000
-
-29000
800000
-
800000
398000
79000
28000
-6500
25000
523500
-
-28000
-
-28000
-
-

Net increase in cash during the year
Cash at the beginning of the year
Cash at the end of the year
170000
1458800
1448800
1951800
Finding, evaluating and selecting suitable source of funding
For purpose of business growth, enterprise is accountable to take decision to select a
specific source of funding, from several options such as angel investors, venture capital, bank
loan and personal saving. It can be evaluated that angel investor, is the good source of funding
because it provides fund according to business need, but it encompasses some drawbacks such as
loss of overall control as a part owner. Venture capital is also included in category of same
concept, that cover some drawbacks and benefits. It makes funding difficult, but also make the
process easy in term of monthly payment opportunity that an entity will grab. Bank loan is the
easiest and trustable source of funding (Wong, Holmes and Schaper, 2018). It will permit
organization to grow, while affect negatively upon their growth in form of lengthy application
procedure that consume a lot of time.
From above evaluation and finding, it has been determined that Bank loan is suitable in
case of new business idea that help to progress or proceed further in form of increasing
profitability.
Break-down of start-up costs
Without tangible and non-tangible resource a company will do not take initiative to start
up their venture in the market (Barbery-Montoya and Torres-Briones, 2020). It is essential for
management to make an appropriate plan to arrange both type of resources such as computer
systems, human resource, business logo, furniture, etc. With respect of other assets, venture will
plan to have good articulate tactic where, risk, potential consequence and other factors it will
take into its considerations. The overall initial cost of new business idea implementation,
including costs of resource is around 1388000.
Particulars amount
Charges for commencement certificate 60000
Patent fees 78000
Expenses for purchasing computer, furniture 558000

Preliminary expenses 28000
Marketing charges 78000
Market research expenses 100000
Expenditure for installing MIS 280000
Purchasing new tools and software 168000
Business commencement related some other charges 18000
Cash at hand 200000
Total cost 1388000
Type of company and management information systems
The current form of chosen business idea is sole proprietorship, which drive the
attention of owner toward dealing with any situation independently.
In order to make control on each activity relate to new business idea, it is important for
entrepreneur to utilize effective management information systems such as Microsoft Dynamics
365. This system is used to control managerial activities in appropriate and systematic manner.
The chosen management information system is considered as cloud based venture application
channel that encompasses element of consumer relationship management and business resource
planning features that will put positive impact on Delight. As new business idea, controlling and
appropriate monitoring is essential, which is possible with implementation and utilization of a
system like chosen one. Inventory control system is also useful and beneficial for controlling
business performance and growth as well as supply of goods.
Vision for business idea
The current venture idea will have bright future, because individual person instead of
cooking meal for family or any type of functions prefer to order food, from good and trusted
venture. Recently, this form of preference it considered as current market trend that individuals
follow in the future as well. Therefore, the growth and success possibility of Delight in the future
is possible that in turn lead to increase profits and generate unpredicted revenue. With clear
vision statement that is to enhance customer satisfaction and provide them satisfactory food
delivery services, organizational management may focus on each market trend, that help to reach
desire outcome.

CONCLUSION
On the basis of above discussion, it has been concluded that organization has retained and
gained the attention of potential customers by using effective strategies and approaches. It has
gained competitive advantages in form of providing customers online and offline services, that
increased profitability and productivity. Furthermore, from above study, it has been identified
that organization has achieved set aim, vision and objectives of company by using the best
funding source and effective management information systems.

REFERENCES
Books and Journals
Barbery-Montoya, D. C. and Torres-Briones, C. L., 2020. Between Reason and Emotion:
Socioemotional Intelligence as a Non-tangible Resource for Strategy, Operation, and
Sustainability for the Family Business. In Entrepreneurship and Family Business
Vitality (pp. 9-25). Springer, Cham.
Januarita, R., 2021. The Newly Sole Proprietorship as Limited Liability Company in Recent
Indonesian Company Law. MIMBAR: Jurnal Sosial dan Pembangunan. 37(1). pp.221-
231.
McDougal, E. R and et.al., 2021. Telling the tale: applying a strategic brand storytelling process
for STP planning. Journal of Strategic Marketing. pp.1-21.
Wong, A., Holmes, S. and Schaper, M. T., 2018. How do small business owners actually make
their financial decisions? Understanding SME financial behaviour using a case-based
approach. Small Enterprise Research. 25(1). pp.36-51.
Yost, E. and Cheng, Y., 2021. Customers’ risk perception and dine-out motivation during a
pandemic: Insight for the restaurant industry. International Journal of Hospitality
Management. 95. p.102889.