Business Plan for Food Truck POS System

This business plan outlines the goals, objectives, and methods of attaining them for a Food Truck POS System. It includes a rationale for launching the business, micro and macro analysis, competitor analysis, segmentation and targeting, marketing strategy, and growth strategy.

Business Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Rationale for launching business along with its vision and mission...........................................1
Micro and macro analysis through understanding of external environment variable..................1
Competitor analysis along with competitive advantage of product and service..........................3
Segmentation analysis and targeting segmentation.....................................................................4
Marketing strategy of company with marketing mix analysis.....................................................5
Marketing Growth Strategy.........................................................................................................6
Source of Finance required for business venture.........................................................................7
Risk analysis that affect business ................................................................................................8
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9

INTRODUCTION
Business plan refers to a document which is in written form describing goals, objectives
of businesses and methods of attaining those goals and objectives (Chang, 2016). This project
report containing Food Truck POS System business which is a new and innovative idea. This
food truck is focused on providing healthy and nutritional food for breakfast, lunch and dinner by
using POS system which helps to manage inventory, online payment, running credit and debit
cards. This project report include entrepreneurship, role of entrepreneurial activity. It also
include entrepreneurial capacity,different entrepreneurial strategy and analytical approaches.
MAIN BODY
Rationale for launching business along with its vision and mission
Food Truck POS System business include serving healthy foods with truck at different
place as it does not has fixed shop or place instead of they are setting up business in small truck.
Reason for launching this business is that it is suitable for covid-19 situation as due to this global
pandemic people are more conscious about health and safety. Food Truck POS System business
provide healthy and safe food to people who are conscious about health. One of another reason
for launching this business is that students who live far from their family require healthy foods
with affordable prices and food truck complete those requirement of those student.
Mission statement contains information about what company is doing in market. Mission
of Food Truck POS System business is to serve society with health and tasty foods at pocket
friendly prices.
Vision statement possesses information about what a business wants to achieve and is
related to their future position. Vision of Food Truck POS System business is to provide healthy
food with changing mindset of customer with healthy food.
Micro and macro analysis through understanding of external environment variable
Macro environment analysis
PEST Analysis: PEST analysis helps to identify political, economical, social and
technological factors which affect business of an organization (Chang, 2017). It is an external
analysis that helps an organization to understand how external factors affect business. It include
different factors which are as follows:
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Political Factor: Tax policy of UK is simple and supporting small startup which create
opportunity of food truck business as it helps in survival of business of Food Truck POS System.
There is political stability in UK which also helps Food truck business as it does not crease
adverse situation.
Economical Factor: Labor in UK is cheap and skilled which provide competitive
advantage to the business of Food Truck POS System. Unemployment rate in UK is low which
show that people live in UK has purchasing power to buy goods and service.
Social Factor: Social factors include value, belief, taste and preference which affect
business of a firm. Food Truck POS System is offering healthy foods full of nutrition which is
acceptable by people live in UK.
Technological Factor: Technological factors include factors related to technology which
provide competitive advantage to an enterprise. As business of Food Truck POS System are
using POS system which helps them to better manage their inventory and reduce wastage with
increasing profit. They are also using truck or van to provide their product or service as it saves
their cost of buying a place to serve customers.
Micro environment analysis:
SWOT analysis: Swot is an internal analysis which helps to identify strength, weakness,
opportunity and threat of business (Costa, 2017). SWOT analysis of food truck are as follows:
Strength Weaknesses
 Food Truck POS System is providing
healthy food
 Business is offering product and service
at affordable price.
 Food Truck POS System are using
latest technology to serve customer that
save cost and allow better management
of inventory.
 Does not require physical place to sale
product or service.
 Firm is providing foods but with good
 Food Truck POS System offering low
price which reduce profitability of
business.
 Due to global pandemic people prefer
eating home made foods instead of
outside food.
 Young people are not interested in
eating healthy food instead of they like
junk food.
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taste.
Opportunities Threats
 Due to global pandemic people live in
UK are conscious about health and
safety.
 Students who live far from family need
healthy foods at low price.
 Threats of new entry in market as any
one can enter in industry easily.
 There are many hotel and restaurant in
UK, so it is difficult for business to
grow.
Competitor analysis along with competitive advantage of product and service
Competitor Analysis: Competitor analysis is strategy that helps firm to assess their
strength and weakness in terms of competitors (Fairchild, 2017). It helps business in developing
USP and improving their own product and service in terms of competitor. Food Truck POS
System business is conducting competitor analysis which include following points:
 Target Group: It include assessing competitor as they are serving children by offering
junk food while food truck are offering their product and service to youth and students.
 Pricing strategy: This strategy include assessing pricing policy of competitor as food
truck are serving comparatively cheaper price to their customer.
 Sales Channel: It include analysis of sales channel used by competitor to sale product
and service. Food truck are providing their product through vans and truck.
 Online marketing activity: It include analysis of competitors marketing strategy, foods
truck are using social sites to promote their product and service.
Food Truck POS System are using Porters five forces model to analyze competition in
market place. This model helps business to identify competition in market and include different
factors which are as follows:
Competition within industry: This factor include number of competitors business has in
same industry. Food truck has moderate risk from this factor as there are only few business
which are offering this kind of product and service.
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Threats of new entry: This factors has high risk for food truck as any firm can enter in
this business. But by providing high quality product at affordable price, business can minimize
risk of new entry.
Bargaining power of buyer: Food truck has low threat from this factor as customer has
low bargaining power. There are few type of player in this industry that does not allow customer
to bargain for product and service.
Bargaining power of Supplier: This factor include low risk for firm as there are many
supplier in UK which are providing fresh vegetables and this results in low bargaining power of
supplier.
Threats of Substitute product: This factors include low risk as there are less substitute
of product and service provided by food truck. As in UK, there are only few cafe which are
providing healthy food.
Food Truck POS System has less threat from competitors in market they are providing
healthy food full of nutrition with best quality at affordable price. This provide competitive
advantage to business in market in compare to any other businesses.
Segmentation analysis and targeting segmentation
STP analysis: STP analysis include segmentation, targeting and positioning that helps
business to develop marketing strategy (Jordán de la Fuente, 2017). The objective of this analysis
is to segment the whole market and target specific customer group with changing position of
product or service in minds of prospective customer. Food Truck POS System is adopting STP
analysis to face competition and focus on particular group of customer. STP analysis include
following strategy for marketing their product and service:
 Segmentation: Segmentation is the process of dividing total market into different small
groups. Segmentation can be on three basis which are geographic, demographic and
behavioral. Food Truck POS System has divide total market in small segment on the
basis of geographic location as entity is focusing on serving customer of London, UK.
As it helps them to focus on particular segment and increase competitiveness in market.
Geographic segmentation helps expansion easy for business and increase retention of
customer in market.
 Targeting: Targeting include focusing on specific group of customer on selected
segment (Nicolò, 2018). This will helps business to more effectively serving needs and
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wants of consumer. Food Truck POS System business is targeting youth population of
London, UK to satisfying their needs and wants. Targeting helps food truck business to
focus on target customer and save efforts of company. It helps to differentiate, offering of
company from those of competitors and allow a firm to improve their product and
service.
 Positioning: Positioning refers to creating specific place in minds of consumer for
product and service an organization is offering. Food Truck POS System business is
serving healthy foods full of nutrition which make them distinct from those of
competitors. It helps business to meet changing customer needs and wants. It helps
business to face competition of business along with designing strategy for promoting
business product and service.
Size and Growth of business: Food truck is having medium sized business as they are
serving their product and service only in London, UK. There is high growth in this business as
food truck can open more trucks in UK at different place and can offer variety of service like
home delivery service etc. Food truck are having 15 trucks and vans in London and planning to
launch 10 more vans soon as there are increasing demand of product or service offered by food
truck in market. They are planning to serve place outside London for growth and development of
their business.
Marketing strategy of company with marketing mix analysis
Marketing Mix Analysis: Marketing mix analysis is a marketing tool that helps
company to promote its product or service (Sainz de Vicuña Ancín, 2018). It is a mixture of
product, price, place, promotion but now it including extended P's which are people, process and
physical evidence. 7 P's of Food Truck POS System are as follows:
Product: Product is something that firm sold in market to satisfy needs and wants of
customer. Product should be unique to accepted by customer and unique in terms of use or
unique by attributes. A firm is offering tangible or intangible product in market to earn profit.
Food Truck POS System is providing healthy foods to customer to satisfy their needs and wants.
Price: Price refer to value that consumer ready to pay to buy goods and service. Price of
product depend on may factors like cost, demand, supply, market segment etc. A firm use
different pricing strategy to decide price of product. Food Truck POS System is offering
comparatively low price for their offering to cover larger market share.
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Place: Place is where a firm sale its product and service as it include decision of firm
whether they want to sell their product in physical store or online online. Food Truck POS
System are selling their products without occupying physical space as they are selling their
products through truck or van. They are placing their van in market where people has direct
approach.
Promotion: Promotion include those activity that helps firm to communicate about their
product directly to customer(Rivoal, and Haselip, 2018). It include advertising, press report,
public relation. word of mouth and other promotional strategy. Food Truck POS System are
using social media marketing to promote product and service as they are selling their product or
service to youth which are actively using social sites.
People: People in marketing mix refers to those who contribute in achieving goal and
objective of business. These people are important for business as they can help firm to attain its
goal and objectives and can provide competitive advantage in market. Food Truck POS System
are having skilled employees which helps business to attain success and growth.
Process: Process include how company will deliver goods and service to their customer.
In Food Truck POS System, business need to decide how many cooks are needs to cook food,
how will the foods is served, how much inventory is needed to serve needs of customer. Process
helps business to provide goods and service to customer to satisfy their needs and wants.
Physical evidence: physical evidence include enhancing customer experience using
physical products even in service industry. Food Truck POS System are providing healthy and
tasty foods with excellent service which enhance experience of customer.
Marketing Growth Strategy
Growth strategy helps business to increase its market share and business plan of Food
Truck POS System include Ansoff Matrix for their growth strategy. It include growing a
business in an existing market or new market. This strategy include four alternatives which are as
follows:
Market Penetration: Market penetration growth strategy include selling existing
product or service in existing market base (SAMKOVÁ, 2018) . In this strategy, business does
not change market segment and offering same product and service by extending sales unit or
finding new customer in same market. Food Truck POS System can use this strategy by
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increasing number of van or truck in same market or by providing extra services like home
delivery.
Market development: Market development growth strategy include serving existing
product and service in new market. Food Truck POS System can sell their products in the area
outside London as due to covid-19 people are more aware for healthy food.
Product development: Product development is a strategy that include developing new
product or service in same market. This strategy require research of market to develop new
product and services. Food Truck POS System can adopt this strategy as it helps them to serve
with new market in an existing market.
Diversification: Diversification is a growth strategy which include extending market
share of company with offering new product and service. It include related diversification and
unrelated diversification. Related diversification include producing related product which firm
already serving whereas unrelated diversification include producing product which is completely
different from existing. Food Truck POS System can adopt will adopt this strategy which will
help them in growing their business.
Food Truck POS System can adopt market development strategy as they can increase
their business by extending their market. As they can sell their product outside London by
increasing number of van and truck in market.
Source of Finance required for business venture
Finance is required in business from starting of business to running business operation.
An organization can raise money from different sources depend on its size and cost. Food Truck
POS System can take finance from different sources which are as follows:
Bank Loan: Bank is an institution which extend loan to business with an agreement of
repayment at fixed interest(Loureiro, 2018). Food Truck POS System can raise funds from bank
as bank provide finance at reasonable rate. It is best source of finance as bank does not control
activities of business like other sources.
Advantage of Bank Loan: Bank loan are beneficial for the business Food Truck POS System as
it provide finance on easy terms and condition with reliable interest rate. It does not control
management of business and provide finance for long term.
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Disadvantage of Bank Loan: Bank create burden on business as it include interest. There are
various formalities include in the process of taking loan from bank which waste times of
business.
Angel investors: Angel investors are those who provide finance to business in exchange
of ownership in business. They provide funds along with their valuable advice to business. They
share their experience in business as angel investors are private investor, retired people, friends
and family. Food Truck POS System can raise funds from angel investors as business is new and
they provide funds along with advice for business.
Advantage of Angel Investors: Angel investors provide finance to business with their valuable
suggestions and advise which helps business in its survival.
Disadvantage of Angel Investors: Disadvantage of angel investors is that they participate in
management of business and affect business decision.
Risk analysis that affect business
Risk in business can be defined as uncertainty that affect business or has negative impact
on business (Tamaria, 2019). As per risk analysis model this can be determined that Food Truck
POS System has various risk in market which are as follows:
Risk related to finance: Financial risk is risk associated with financial transaction as of
default of money etc. Financial risk is most serious risk in any business as banks and other
sources are afraid to lend money to new business. As Food Truck POS System is startup which is
new in market, so is difficult for them to raise money from market. To overcome this risk
business can use financial strategy which mitigate risk of finance. Company also have risk of
managing finance in business as this can impact on working of organization.
Risk from competitors: Risk from competitor refers to that risk which a business face
due to competitors strategy. Business always has risk from their competitor because they can be
reason for shut any business. Food Truck POS System are doing business where there are market
payer who has established market as it will decrease possibility of success in market. To mitigate
risk of competitor, business can use differentiation and other marketing strategy which helps to
make identity of business in market.
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CONCLUSION
From above project report this can be concluded that business plan of a firm include
goals, objective, vision and mission of business. It include goals and objective of firm including
ways in which business achieve its objective. Micro and macro analysis helps a business in
understanding external variable which affect business. An enterprise also conduct competition
analysis which helps firm to understand competition and develop competitive advantage to face
competition. Marketing strategy include marketing mix which help firm to understand ts product,
price, place and promotion strategy.
APPENDIX
As on 31st March 2021
Particulars
Equity & Liability
Shareholders Fund:
Share Capital 50000
Reserve & Surplus -24000
Current Liability
Trade Payable 6000
Other Current Liability 1400
Short term Provision 18000 51400
Assets
Fixed Assets:
Software & Licenses 35700
Equipments 2600
Furniture & Fixture 2800
Current Assets:
Cash & Cash Equivalents 5500
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Particulars
Other Current Assets 4800 51400
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REFRENCES
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to Success for Mental Health Practitioners.
Jordán de la Fuente, P., 2017. Nikarit´ s Business Plan.
Loureiro, S.M.M., 2018. Business plan of discrepante (Doctoral dissertation).
Nicolò, D., 2018. Carenze informative e vulnerabilità delle imprese giovani: il ruolo del business
plan. Management Control.
Rivoal, M. and Haselip, J.A., 2018. Delivering market-based access to clean cooking fuel for
displaced populations the Kigoma region, Tanzania: a business plan.
Sainz de Vicuña Ancín, J.M., 2018. El plan estratégico en la práctica.
SAMKOVÁ, K., 2018. A Business Plan for the New Company (Doctoral dissertation, Univerzita
Tomáše Bati ve Zlíně, Fakulta humanitních studií).
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University).
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