Small Business Enterprise Assignment : Coffee Hub

Contemporary
Themes

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Starting up a business..................................................................................................................1
Visual Identity of start-up...........................................................................................................2
Values of start-up........................................................................................................................2
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................5
TASK 4............................................................................................................................................5
TASK 5 ...........................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
A small business always starts out as an idea, but have to transform that idea into a
action. Starting a small cafe takes capital and planning and running a cafe takes an aptitude for
business as well as passion for feeding people (Burns and Dewhurst, 2016).This assignment is
based on staring up a new small business that is cafe in London, United kingdom by name of
“Coffee Hub”. In this assignment it would cover marketing research method for successfully
starting a cafe in new market. Moreover, it will also cover ethical dilemma faced during
promoting business and employment law that are required to be taken into consideration by an
entrepreneur before setting up new business. Further, it will also describe assets, liabilities,
expenses and gains to avoid any cash flow problem.
TASK 1
Starting up a business
For a entrepreneur it is important to know how he/ she will cover all the aspect of
starting a new business in marketplace of United kingdom. Here an entrepreneur is going to start
a business that is “ coffee Hub”, this will require certain necessary identification for his start-up.
That are described below:
Industry: Cafes typically fall into own category, in cross section between catering and
hospitality industry. It has been groining faster in United Kingdom than over all British
economy. Herein, the nature of this industry would be classified in Food Confectionery.
Location: Location may be one of most important factors in determine success of cafe in
new marketplace. Choosing right location will entirely determine a unique proposition of Cafe.
The main motive of Coffee Hub is to provide best quality of service to its customer. More over,
it will be situated in Broadway market of London, United Kingdom.
Target Customers: To know who are potential customer for product and services is an
important task for an entrepreneur. Its play's crucial role for an entrepreneur to know its actual
cost of product and services they are offering to their customer (Glauband et. al.,
2014).Accordingly, marketing strategies will be implement and focus on increasing effectiveness
of business in new marketplace. Coffee hub target customer's will be youngsters who are
inclined towards healthy and high standard life style.

Business Model: A business model is representation of its core business practices despite
of its size in which a business is going to operate and deliver its product and services. Now a
days are people are health conscious regarding their health and diet. Here an entrepreneur takes
an opportunity ongoing health concern of customers of United Kingdom. Coffee Hub is coming
up with new innovation of providing organic coffee with brown sugar. Moreover, they are
providing best quality of coffee to their customer to maintain their healthy lifestyles. They are
also coming up in market of united Kingdom through online order and home delivery services.
Visual Identity of start-up
Visual identity of Coffee Hub wants to create a unique identity which attract more
customers towards it (Hazudinand et. al., 2015) Clearly identifying ideology of an entrepreneur
for starting a business. From its logo and name it can be identified what message they want to
convey to their customer from their product and services.
Logo: Logo is basically a symbol or a design adopted by an organisation to identify its
product and services.
Here the logo of Coffee Hub, clearly identifies its motive of providing organic coffee. They are
adopting practice to delivery healthy coffee to their customer.
Values of start-up
Coffee Hub are adding values in their offerings of product and services to customer in
market of United Kingdom. In order to sustainability and ensure moral and ethical values for
long term growth in United kingdom. Furthermore, the values are determined below:

Environment values: Coffee Hub are adopting environment friendly values in order to
minimise usage of environmental products such as paper cups and plates etc. Moreover, they are
also adding environment values by managing their wastage of products in an appropriate manner
that does not deplete environmental issues.
Social values: Social values are related with society's welfare. Coffee Hub are coming up
with certain social values such as donating donation to poor and needy children, old age people
to enhance their way of living. There also adding value to their business by hiring both male and
female employee without any discrimination and providing employment.
TASK 2
Market Research is process of gathering, analysing and interpreting information about
product and services to be offered in marketplace (Julien, 2018).Coffee Hub are offering
affordable price and effective strategies that are required to carry out business operations with
any deviation in it. An entrepreneur have carried out research methods that result out beneficial
for its business are mention below:
Primary research: Primary research are those research which are carried out for the first
time by an researcher. Entrepreneur of Coffee hub have conducted primary research that
includes:
 Identifying need, wants and preference of customer which help them to develop their
quality of their offerings according demand of customer.
 Evaluating different types of customer and their influential behaviour that effect decision
making process.
 Analysing the marketing where they want to start their business as well as its competitors
in market of United Kingdom.
These are some of primary research conduct by an entrepreneur that are necessary before starting
business in new marketplace. So that they can establish their Coffee hub without any difficulties.
Secondary research: Secondary research involves summary, collection or synthesis of
existing research. An entrepreneur has conducted secondary research before staring its business
in United Kingdom. Such as:
 Gathering information from books and journals or website to know about market of its
indusry.

 Analysing government statistic about natural and organic coffee, subsidiaries and various
financial institution regarding cost effective methods to start up new business in United
Kingdom market.
Above mention are secondary research that would help an entrepreneur to gather data that would
complex to derive in primary research.
Quantitative research: Quantitative research is basically a systematic empirical
investigation of observation via statistical, mathematical or conceptual techniques
(Kibler,Kautonen and Fink, 2014).
Here this quantitative research is helpful for entrepreneur to know that organic coffee demand is
increasing day by day in market of United Kingdom. From this an entrepreneur will need to
focus more on premium quality of services for their product.
Illustration 1: Sale of Organic products, 2018
(Source: Sale of Organic products, 2018)

Qualitative research: Qualitative research is a primary exploratory research that is used
to gain an understanding of underlying reasons, opinions and motivations (Mas-Verdú, Ribeiro-
Soriano and Roig-Tierno,2015.).From this research an entrepreneur of Coffee Hub identify the
trend of organic coffee with brown sugar that add values to lifestyle and health of customers.
Moreover, this research emphasise more on focus group of people, personal interview and
observation. This sources enables an entrepreneur to know accurately first hand information that
is helpful in success of business.
TASK 3
An entrepreneur of Coffee Hub have to adopt ethical practices during decision making
process which is very much essential to build a strong reputation in market of competitive edge.
As per case the entrepreneur should no for such deal in promoting its business from such website
which has no reputation in market. Moreover its reputation is been declined due to unethical
behaviour with its employees such as discrimination, bullying and harassment. If Coffee Hub
promotes it business from such websites then the will loss customers and people will not buy
offerings from them as well as this will lead to shut down their business. Furthermore, according
to social values this would result negative impact on society where people are more concern
about equality, anti-discriminatory practices as to prevail harmony in environment.
For example: One of the major case that create an anonymous buzz in market regarding
discrimination, bullying and harassment is about Framboise Patisserie. This firm was sued by an
individual as this firm rejected in hiring dark complexion people in their organisation. They
were sued for such practice. From this case Coffee Hub should learn what happens when a
companies are adopting such practices such as discrimination in hiring employees, bullying and
harassment of employees in workplace.
TASK 4
Employment law are sets of law that deal with rights of employees and responsibility of
employer in an organisation. It is important for each organisation to follows such employment
laws that are abided by government for benefit of employees. Here entrepreneur of Coffee Hub
has take two main employment law that are effective in nature for its start up. The employment
law are described below:

Equality and diversified law: Equality and diversified law simply means that all
employees are treated equally without and discrimination in workplace (Naudé,2014). This is
one of major law that provides ethical framework as well as helpful in fulfilling social values. An
entrepreneur of Coffee Hub should follow this employment law of equality and diversified law in
hiring and selecting right candidate for job profile. Moreover, they should maintain proper pay
scale for their employees according to their job designation. If entrepreneur fails to perform this
employment law then he/ she shall be abided with government penalties.
Employee rights: In context of Coffee Hub employees are employed with Zero contract
hours. A Zero contract hours is a type of contract between the employees and employers, where
an employer is not obliged to provide any kind of minimum working hours (Julien, 2018). If
employees are ready to accept from their own mutual consent then employer can provide work
accordingly. A entrepreneur of Coffee Hub should adopt zero contract hours which are effective
in establishing its business in new marketplace. So that each harmony prevail in working culture
and they are able to gain competitive advantage in market of United Kingdom.
Hence, the entrepreneur of Coffee Hub have implemented these to right of employment
law so that they do welfare for the society by providing employment to local people. Moreover,
providing rights to employees so that they feel comfortable, safe and secure in working hours.
TASK 5
Cash flow is important for a business because it informs an entrepreneur about business
position and its cash position in marketplace. For a business is essential to become successful, if
they have sufficient cash at time when required to pay expenses. Here, entrepreneur of Coffee
Hub need to know basic accounting principles that are necessary to maintain in order to remain
productivity and gain profitability. Such as are mention below:
Assets : Assets are refer to those thing which are owned by business for an effective
purpose. These may be tangible and intangible in nature that are controlled and owned by a
business. Some of assets of Coffee hub are Cash: Cash are very much essential part in doing business. An entrepreneur should
maintain such amount of cash that required at time of emergency to meet sudden
requirements.
 Accounts receivable: Accounts receivable are termed as expected payments from
customer by selling offerings to them. It is not necessary that is consider liquid as in

accounts receivable generally time is acquired from a month to two month from the point
of sale.
Liabilities: Liabilities are those amount which a firm need to pay in future to external
parties from where they have borrowed. For entrepreneur of Coffee Hub liabilities are as
follows:
 Bank loans: The sum of amount borrowed by banks in order to set up business. It is one
of biggest liability to an entrepreneur of Coffee Hub as they need to pay to bank with sum
of interest along with principle amount.
Gains: Gains are those values which are generated from sales of product and services.
Moreover, for an entrepreneur of Coffee Hub is investment from market in their business.
Expenses: Expenses are those amount which are spent on purchase of raw material,
distribution and advertising their product in market. These are such expenses of Coffee Hub at
current time as they are starting up a new business in market.
Above mention are such cash flow problems that an entrepreneur need to know to
maintain their accounts of their business.
CONCLUSION
From the above discussion it has been concluded that an entrepreneur need to crucial
evaluate market of United kingdom before starting a small business of Coffee Hub. This involves
creating a framework, defining values of ethical business practices that are necessary for an
entrepreneur to do for welfare of society. Moreover, need to conduct market research which are
essential for an entrepreneur and maintain employment law while running business. Further, it is
necessary to adopt certain basic accounting principles that are necessary for an start up in order
to maintain smooth run of business.

REFERENCES
Books and Journals
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Glaub, M.E., and et. al., 2014. Increasing Personal Initiative in Small Business Managers or
Owners Leads to Entrepreneurial Success: A Theory-Based Controlled Randomized
Field Intervention for Evidence-BasedManagement. Academy of Management Learning
& Education. 13(3). pp.354-379.
Hazudin, S.F., and et. al., 2015. Discovering small business start up motives, success factors and
barriers: A gender analysis. Procedia Economics and Finance. 31. pp.436-443.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kibler, E., Kautonen, T. and Fink, M., 2014. Regional social legitimacy of entrepreneurship:
Implications for entrepreneurial intention and start-up behaviour. Regional Studies.
48(6). pp.995-1015.
Mas-Verdú, F., Ribeiro-Soriano, D. and Roig-Tierno, N., 2015. Firm survival: The role of
incubators and business characteristics. Journal of Business Research. 68(4). pp.793-
796.
Naudé, W., 2014. Entrepreneurship and economic development. International Development.
Ideas, Experiences and Prospects.
Online
Employment Discrimination Lawsuits: Case Studies. 2018. [Online]. Available
through:<https://www.insureon.com/blog/post/2014/06/19/employment-discrimination-
lawsuits.aspx/>