Business Incubation Plan - Stay Fit

Running head: BUSINESS INCUBATION PLAN
Stay Fit
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Name of the University:
Author’s Note:

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Course qualification Diploma in Business & Enterprise Management Level 7
US/Prescription title: Business Incubation Project
Course/Paper number: 704
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Assessment type: Individual Report
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Table of Contents
Business Overview.....................................................................................................................5
1.0 Nature, focus and scope of the business...............................................................................5
1.1 Description of Business Idea............................................................................................6
Product and Services..........................................................................................................6
Industry............................................................................................................................11
Potential Target Market....................................................................................................13
Current Likely Position in Industry Lifecycle.................................................................13
Innovative Business Model as Window of Opportunity..................................................14
1.2 Commercial Viability of the Business Idea...................................................................14
Data Collected..................................................................................................................15
Validation of Data and Business Idea..............................................................................16
2.0 Organisational vision, goals and structure.........................................................................17
2.1 Internal and External Stakeholders of the Proposed Business.......................................17
2.2 Mission Statement and Core Values of the Business.....................................................18
2.3 Short-term, Medium-term, long-term Goals of the Proposed Business.........................19
2.4 Feasibility and Congruence with Vision of the Proposed Business...............................20
2.5 Organizational Structure for the Business......................................................................20
2.6 Potential of the Organizational Structure.......................................................................21
2.7 Gaps in Organizational Structure...................................................................................21
3.0 Business environment, key success factors and competitive advantage............................22
3.1 PESTLE Analysis...........................................................................................................22

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3.2 Porter’s Five Force Model.............................................................................................24
3.3 Market Viability and Key Success Factors of the Business...........................................26
3.4 Value for the Customers.................................................................................................28
3.5 Strength and Weaknesses of the Proposed Business......................................................28
3.6 Competitive Advantage..................................................................................................29
3.7 Competitive Viability.....................................................................................................30
4.0 Value Model.......................................................................................................................30
4.1 Key Components of Business........................................................................................30
4.2 Analysis of Key Components.........................................................................................32
4.3 Output Analysis..............................................................................................................41
4.4 Value Model...................................................................................................................46
4.5 Viability and Value Creation from Business Model......................................................49
5.0 Resource Requirements......................................................................................................50
5.1 Resource Requirements..................................................................................................50
5.2 Potential Source.............................................................................................................54
5.3 Funding Strategies..........................................................................................................56
5.4 Business Structure and Procedure..................................................................................56
6.0 Business Growth and Strategies.........................................................................................58
7.0 Financials Plan...................................................................................................................58
8.0 Risk Management Strategies..............................................................................................62
8.1 Advanced Technical Skills.............................................................................................62

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9.0 Performance Evaluation and Strategic Exit.......................................................................62
Conclusion................................................................................................................................63
Reference..................................................................................................................................64

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Business Summary
The assignment aims at making a business plan in the field of the health food sector and the
focus of the company will be primarily in the growing operations in the field of food delivery
meal. The growing demand for the food industry and the increasing trend of the demand for
healthy lifestyle has been the key focus for the company. The operations of the business is
significantly dependent on the management strategies followed by the company and the
implication of the same on the financial position of the company. The variety of products and
services offered by the company and the future vision of the company in the long-run was
some of the key aspects taken into consideration for the business incubation project. The
business analysis for the project was evaluated with the help of the PESTEL Analysis for the
project so that we can get a clear idea about the business and key macroeconomic factors
affecting the operations of the company. The Porters five forces was also evaluated for the
business where the operations of the company was evaluated in the context of the overall
development of the company. The potential impact and implications of company’s internal
environment was evaluated by assessing the strengths and weaknesses. The competitive
ability of the company was assessed by the various competitors operating in the market
offering similar or substitute products. The key components of the business models who been
majorly the stakeholders of the company was assessed in the contextual view of the business
operations. The Financial analysis for the business plan was evaluated with the help of
forecasting the business condition under the various business stages. The profitability and the
financial statement of the companies was evaluated under normal, optimum and worst case
scenario thereby assessing the possibility of the various financial conditions of the company
sop that management of the company can take an optimal strategy based on the same. The
profitability and the financial analysis of the company was evaluated with the help of the
ratio analysis for the comp0any thereby assessing the various important financial factor

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which could help the management of the company in evaluating the financial performance of
the company. The risk management and the organisational structure in the company is of
great importance and the same has been kept in view before deciding upon the various plans
and policies about the company. The funding of the initial capital for the company was
decided in the context of various factors of financing and then selecting the optimum source
for financing. The company in the initial stage will be financing through equity and debt
financing. Growth and development of the operations of the business operations are off great
importance and the same has been taken into consideration for the purpose of the analysis of
the company. The company would be aiming at promoting three common factors for the
overall development of the business operations which will be nutrition, health and wellness.
On an overall basis, the financial visibility and sustainability of the project is assessed to be at
a well stable rate for the company.

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Business Overview
There are various products, services in the market, which makes the customers, live a
healthy lifestyle, and the trend for the same has increased consistently for the companies
operating in this sector. The demand and supply for a product and service are some of the
crucial factor and the health industry has seen the trend in there market and products offered.
There are several initiatives made by the government and non-government bodies for
promoting and spreading the awareness of the health products and the implications of the
same on the lifestyle of individuals. The Business plan was decided in the field of providing
health industry where the company StayFit will be focussing on preparing and selling healthy
meals to the ultimate consumers. Having a balanced diet in the daily lifestyle is of great need
and the same is addressed and spread as a message by the company where the company
promotes healthy meals and products so that the ultimate consumers “Eat Healthy and Stay
Healthy” which serves as the tagline of the company. The feasibility of the business plan was
assessed with the help of the data collected for the company in terms of the operations of the
company and the demand for the products and services offered by the company. The
company will be starting the business with the registered name of Stay Fit Ltd. will be
established in the year 2019 as a limited liability company. The company in the initial stage
of the business will be selling the health meals and products via the online platform and
services through its registered domain website (www.stayfit.com) which will be delivering
the food products in the New Zealand itself on a primary basis.
1.0 Nature, focus and scope of the business
With the modernizing world and growing technologies it is important that companies
adopt to various technological changes and advancement so that the operations of the
company runs effectively. The demand for the fast foods in New Zealand has increased