BM564 Enterprise and Entrepreneurship Business Growth Plan

The report outlines the business growth plan for Taste and Try restaurant in the hospitality industry. It covers PESTLE analysis, competitors, projected profit & loss, sources of finance, skills analysis, and more. The vision is to become one of the leading organizations in the global hospitality sector.

BM564 Enterprise and
Entrepreneurship Business
Growth Plan

EXECUTIVE SUMMARY
The current report has evaluated about the purpose of having the new business in the
market. Further it will also describe about the USP and PESTLE analysis of the company.
Moreover, in this report it is described about the competitors and porters five forces. It has given
emphasis on forecasting the profit & loss, cash flow and BEP so that depth understanding can be
derived. The selected sources of finance is bank loan, investment from equity and
crowdfunding. The different system such as CRM, etc are taken into process for gaining
effectiveness.

TABLE OF CONTENT
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
Proposing Future Business...........................................................................................................4
Customers....................................................................................................................................5
Competitors..................................................................................................................................5
Skills analysis...............................................................................................................................6
Projected 2 year profit and loss account and proposed 2 years cash flow forecasts including
break-even....................................................................................................................................8
Evaluating and selecting suitable sources of funding to grow the business opportunity.............8
Plans for obtaining your resources, both tangible and intangible................................................8
Explaining type of organisation and the management information systems required to
effectively control the business....................................................................................................9
Vision for your Business Idea......................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDIX....................................................................................................................................11

INTRODUCTION
Enterprise and entrepreneurship are the main sources that helps the business to have
growth in the market. The current report is based on the Taste and Try which is the restaurant
used to deal in hospitality industry. The report will outline the business and growth plan for the
organization.
Proposing Future Business
Taste and Try is the hospitality industry that used to deal with the huge services portfolio
and brings the best services in the market. Previously the cited organization used to provide its
services by providing travelling and tourism facilities but now it has expanded its market by
providing accommodation services as well. The company used to provide the mango lassi which
is the healthy product for the customers and this is developed by company by having deep
research.
PESTLE analysis
Political: This is the most affecting factor that has affected the profitability of the
business. By the happening of the Brexit there was lots of changes in the political policies which
has affected the work of Taste and Try.
Economical: As the company has expanded its business in order to provide the restaurant
services which has affected the profitability of the company (Restaurant Industry PESTEL
Analysis, 2022). The economy of the UK was affected by the new business in the market.
Social: As the market is having different type of culture and people, so they must focus
on the social culture.
Technological: The cited organization used to use the modern and innovative technology
which helps them to have the proper management in the organization.
Legal: After the happening of Brexit new rules and regulations were made by the
government. This helps the organization to have development and have favourable outcome for
their restaurants.
Environmental: The cited organization used to operate the activities by using the Eco-
friendly products and services. This will help the organization to have the proper working in the
market and grow effectively.
By having the Intellectual Property Rights it helps the business to have the safety
regarding products services and name of the organization. This makes the business more

profitable and helps them to grow in the market. The cited organization use the patent property
rights that helps the company to have protection against the invention related to products and
services.
Customers
USP: The Unique selling proposition for the company is “ To serve the best and high
quality at the affordable prices”.
STP approach
Segmentation: The company is thinking of expanding its business in the different
geographical market (Islam, 2020). The target segment is basically the market of London where
the company is having its physical existence.
Targeting: The target market for the company is the young people who used to visit the
restaurants.
Positioning: The positioning of the company is to provide the Fresh quality of Lassi to
the customers.
Marketing mix
Product: The new product started by the company is Mango Lassi and juices that is very
beneficial for the people.
Price: The company uses the penetration pricing strategy that helps them to target the
customers and have large customers (Kahlon and Sur, 2018).
Place: The cited organization used to sell its products and services in the markets of
London only. This used to offers its services by having the agents that helps them to attract the
customers.
Promotion: By having the advertisement or online advertisements the company can do
the promotion of their new product in the market. By having the best promotion of the product
makes the company to have more customers (Lahtinen, Dietrich and Rundle-Thiele, 2020).
Competitors
The competitors of the Taste and Try is the Little Italy and Duck and Waffle that used to
affect the profitability of the company (Gao and et.al., 2018).
Little Italy Duck and Waffle
This is the small restaurant that used to serve
the quality of food and beverages to their
This company used to provide the services all
night that helps them to have good profitability

customers. as compare to Taste and Try.
Porter's Five Forces
Threat of new entrants: The threat of new entrant is high as it is the small business so it
does not require high cost to enter market.
Threat of substitutes: As there is high threat so the availability of the substitutes is also
very high. The cited organization must produce something unique that helps them to attract the
customers in the market.
Competitive rivalry: This is the new business so the company has to face the high
competition in the market.
Bargaining power of suppliers: As there are many suppliers in the market, so the
company can switch to the other supplier. So the bargaining power of suppliers is low in the
market.
Bargaining power of Customers: The bargaining power of the customers will be low as
the prices of the product are already written on the menu card. Taste and try must have the low
prices which used to attract the customers to have new products.
Skills analysis
There are different types of the skills which are required to be developed in order to
operate in the hospitality sector. The skills involve communication, multi tasking, initiative,
compliance training, adaptability, attention to details, culture awareness, etc (Varra and et.al.,
2021). For giving the effective service in the hospitality sector the organization is required to get
the appropriate type of the members in its business in turn offering the reliable service to
customers can become possible. The set of the attributes which are required for gaining the
competitiveness includes positive attitude, leadership skill, organizational, problem solving, food
safety assurance giving, etc.
Team members Skills and experience required
Engineer Minimum 1 year of experience with possessing
the skills like strategy innovation building, m
problem solving, etc so that reliable working
can be achieved.

Marketing managers More than 2 years of experience with
possessing effective communication, attention
to details, leadership, adaptability, customer
requirements identification, content
management, etc.
Accountant 3 or more years of expertise in financial
planning, forecasting, strategic decision-
making, report formulation, tax filing, etc
(Osinski, 2022.).
Operation manager Technical proficiency, data processing, risk
analysis, strategic planning, staff management,
budget formulation, improving performance,
etc with 2 years of experience.
Waiters Customer service, effectual communication,
active listening skill with more than 1 year of
experience.
Chefs Creating the appropriate dish with creativity,
teamwork, handwork, leadership skills, etc
with more than 4 years experience.
Cleaning staff Proper effectiveness in having understanding
of hygiene, etc to get effective cleanliness,
freshers are eligible.
Data analyst Possessing It skills such as cloud computing,
machine learning, system & networks, data
visualization, etc. with 3 years of experience.
Recruiting process by formulating job description, reviewing applicants, conducting
interviews, checking references, etc. by offering details on social media so that greater pool can
be attracted (Huang and et.al., 202). The skills' gap such as effective customer attracting will be

overcome by applying relevant marketing techniques to get greater attention. The primary
element that form the team is having effective financial resources in turn appropriate working
can be derived.
Projected 2 year profit and loss account and proposed 2 years cash flow forecasts including
break-even
From the information (Enclosed in appendix) it can be interpreted that the particular
company will pay attention on incurring the mentioned expenses in turn accomplishing the
organizational objective of offering quality service can become possible. These direct & indirect
expenses are helpful in attaining the organizational objective of higher profitability.
Evaluating and selecting suitable sources of funding to grow the business opportunity
There are different form of the sources of finance which can be taken into the
consideration for having effective performance (Oláh and et.al., 2019). For operating in the
hospitality sector there are different form of the requirements which are required to be
accomplished. This can be done by referring various options such as personal findings, sources
of personal financing, debt, crowdfunding, venture capital, leasing etc.
The particular firm will emphasize on using equity for gaining investment, debt in form
of bank loan and crowdfunding. The reason behind this is to get higher effectiveness in
operational action by eliminating irrelevant interference in turn attaining profitability can
become possible.
Plans for obtaining your resources, both tangible and intangible
START-UP COSTS
Particulars
Budgeted
amount
Business name 20
Licenses & Permits 90
Domain names 50
Trade marks/designs/patents 60
Vehicle registration 75
Accountant fees 200
Solicitor fees 40

Utilities (Electricity, gas, water) 60
Computer software 500
Plant & equipment
Warehouse fit out
Vehicles - forklift 1000
Safety equipment 1500
Security system 1500
Furniture 2000
Reception fit out 5600
Computer equipment 2500
Computer software 4000
Total cost required 19195
With help of this all the affordable space for manufacturing and delivering quality service
can become possible.
Explaining type of organisation and the management information systems required to effectively
control the business
The firm offers the food & beverages service in the hospitality sector. There are different
types of the systems which can be used for having effective functioning which involves CRM,
management information, decision support systems, business information systems, etc to get
effectiveness (Chen, 2020). CRM is technology that is used for managing relationship with
customers. Management information system can help in making strategic decision by referring
crucial data. Decision support system can provide assistance in having proper judgments of
organizational performance to identify lacking areas. For controlling overall performance bench
marking and variance analysis will be applied for assessing deviation in turn relevant
modification can be exerted for running business in effective manner via having standardized
outcomes.
Vision for your Business Idea
The vision is to become the one of the leading organization in global hospitality sector to
get sustainability.

CONCLUSION
From the above report it can be concluded that developing business via having strategic
information in turn greater performance can be derived. The report has involved information
regrading customers, competitors, requirement of skills, projected profit & loss account, sources
of finance so that achieving objective of sustainability can become possible.

REFERENCES
Books and Journals
Chen, X., 2020. Exploring the sources of financial performance in Chinese banks: A comparative
analysis of different types of banks. The North American Journal of Economics and
Finance. 51. p.101076.
Gao, S. and et.al., 2018. Identifying competitors through comparative relation mining of online
reviews in the restaurant industry. International Journal of Hospitality Management. 71.
pp.19-32.
Huang, A.Y. And et.al., 2021. A network analysis of cross-occupational skill transferability for
the hospitality industry. International Journal of Contemporary Hospitality
Management.
Islam, M. M., 2020. Segmenting, targeting and positioning in Islamic marketing. Journal of
Islamic Marketing.
Kahlon, K. G. and Sur, K. S., 2018. Digital Adoption for Consumer Delight: E-
Restaurant. Sansmaran Research Journal. pp.1-16.
Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix. Testing the
effectiveness of the commercial marketing mix in a social marketing context. Journal of
Social Marketing.
Oláh, J. and et.al., 2019. Analysis and comparison of economic and financial risk sources in
SMEs of the Visegrad group and Serbia. Sustainability. 11(7). p.1853.
Osinski, R., 2022. Sources of Finance for Public-Private Partnership (PPP) in Poland. Central
European Economic Journa. 9(56). pp.19-37.
Varra, L. and et.al., 2021. Job requirements in the hospitality industry: Technical or general
skills? The dilemma for academic education. European Journal of Tourism Research.
29. pp.2915-2915.
Online
Restaurant Industry PESTEL Analysis. 2022. [Online]. Available
through:<https://www.edrawmax.com/article/restaurant-industry-pestel-analysis.html>

APPENDIX
Profit and loss account
Particulars Year 1 Year 2
Particulars Amount £
Amount
£
Amount
£
Amount
£
Sales unit 20000 30000
Selling price 100 100
Sales Revenue 2000000 3000000
Less Cost of Sales 675500 575500 75500
Gross Profit 1324500 2424500
Gross Profit Margin 66% 81%
Expenses:
Payroll 8800 8800
Sales and Marketing 6000 6500
Interest 660 950
Licensing 90
Accounting fees 200
Utilities 1200 1200
Insurance 300 300
Rent 5000 5000
Payroll tax 1200 1200
Less Total operating expenses 23450 23950
Profit before interest and tax 1301050 2400550
Less Interest 1150 1150
Profit before tax 1299900 2399400
Less Tax @ 20% 259980 479880
Net Profit 1039920 1919520
Net profit Margin 52% 64.00%
Cash flow statement

Particulars Year 1 £ Year 2 £
CASH INFLOWS
Investments 25000
Loans 5000 5000
Crowdfunding 20000
Total inflows 30000 25000
CASH OUTFLOWS
Payroll 8800 8800
Sales and Marketing 6000 6500
Interest 950 950
Utilities 1200 1200
Insurance 300 300
Rent 5000 5000
Payroll tax 1200 1200
Total outflows 23450 23950
NET CASH FLOW 6550 1050
Break even
Particulars Formula Amount
selling price per
unit 100
less: VC per unit 70
Contribution Selling price- VC 30
FC 8650

BEP (units) Fixed cost/
contribution 288
BEP (rupees) 28833.33333
33333