Starting a Successful Chocolate Business

This assignment delves into the intricacies of establishing a thriving chocolate business. It examines essential aspects such as market research, identifying target customers, analyzing competitors, and crafting a compelling brand identity. The document further explores production processes, supply chain management, and marketing strategies to ensure business success. Moreover, it emphasizes the importance of financial planning, risk assessment, and legal considerations.

DEVELOPMENT OF
A BUSINESS PLAN

Table of Contents
INTRODUCTION...........................................................................................................................1
EXECUTIVE SUMMARY FOR DEXTER'S CHOCOLATES.....................................................1
VISION, MISSION AND OBJECTIVES.......................................................................................1
Dexter's Chocolates' Vision........................................................................................................1
Dexter's Chocolates' Mission......................................................................................................1
Dexter's Chocolates Objectives...................................................................................................1
INDUSTRIAL ANALYSIS.............................................................................................................2
Future Outlooks and Trends........................................................................................................2
Competitor Analysis....................................................................................................................2
Market Segmentation..................................................................................................................3
INTERNAL ANALYSIS.................................................................................................................3
SWOT Analysis..........................................................................................................................3
BUSINESS VENTURE...................................................................................................................4
Products and Services.................................................................................................................4
Size of the Business....................................................................................................................4
Background of Entrepreneur.......................................................................................................4
Business Location.......................................................................................................................5
PHYSICAL FACILITIES AND OPERATIONS............................................................................5
Description and Costs.................................................................................................................5
MARKETING PLAN......................................................................................................................6
Target Market..............................................................................................................................6
Marketing Mix............................................................................................................................6
ORGANISATIONAL PLAN...........................................................................................................6
Ownership/Legal Structure.........................................................................................................6
Management Team Description..................................................................................................6
Licensing and Insurance..............................................................................................................7
RISK ASSESSMENT......................................................................................................................7
Weaknesses.................................................................................................................................7
Threats.........................................................................................................................................7

Contingency Plans.......................................................................................................................8
FINANCIAL ANALYSIS...............................................................................................................8
Feasibility Analysis.....................................................................................................................8
Start-up Costs..............................................................................................................................8
Cash Flow Forecasts...................................................................................................................8
Funding Sources and Application...............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business Plan refers to documentation covering all the aspects required in a business
plan. It is a detailed outlook of every element, factor and resources which are necessary to set up
a business (McKeever, 2016). The following report is based on “Dexter's Chocolates” which
would be a small chocolate store manufacturing and dealing in gluten and sugar-free chocolates.
It includes a detailed analysis of all aspects which are covered under development of a detailed
business plan for the company.
EXECUTIVE SUMMARY FOR DEXTER'S CHOCOLATES
Dexter's Chocolates offer superior and premium quality of chocolate products for its
customers. The firm is planning to help raise the health standards of its buyers by providing them
sugar and gluten-free offerings which would help them in staying fit and adopt a healthy
lifestyle. The organisation would operate under confectionery industry and is planning to provide
offerings with a perfect blend of health and taste.
VISION, MISSION AND OBJECTIVES
Dexter's Chocolates' Vision
With its superior quality products, vision of this company is to work in ways which help
people enjoy the very taste of eating chocolates without having any negative effects on their
body (Burns & Dewhurst, 2016). The organisation wishes to create a healthy culture by
transforming the shape of confectionery industry.
Dexter's Chocolates' Mission
The mission of this firm is to provide exquisite taste to people by offering them a range
of healthy sugar-free and gluten-free chocolates and energy bars that help in fulfilling their
nutrition needs and enhance their chocolate consuming experience.
Dexter's Chocolates Objectives
It is crucial to set out objectives which could serve as targets for the company to achieve
for which it would be developing its strategies. These objectives are:
 The firm aims at making a customer base of at least 1500 customers by the end of one
year of its inception.
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 Another objective of this firm is to acquire 1% of market share of the whole
confectionery industry within the UK within 1.5 years of its establishment.
INDUSTRIAL ANALYSIS
This covers all the factors which are required by a business to analyse in order to gain an
insight of the whole industry (Burns, 2016). It includes aspects related to customers, competitors
as well as market segmentation. Industrial Analysis of Dexter's Chocolates is mentioned below:
Future Outlooks and Trends
Globally, there is a high inclination of general public towards living a healthy lifestyle.
They are aligning their lifestyles towards fitness and consuming food products that are quite
healthy. In addition, it is likely that they would criticize any offering which is high on elements
that could negatively affect their health. At the global level, sugar free segment is estimated to
reach US$ 3.05 Billion before 2024 (Sugar Free Chocolate Market – Global Industry Analysis,
Size, Share, Growth, Trends and Forecast 2018 – 2023, 2019.). The sole reason is that countries
like the UK and the US are taking initiative to encourage their citizens in adopting effective and
healthy lifestyles. Thus, such future trends would support Dexter's Chocolates in gaining
opportunities to capture a wider market in the future.
Competitor Analysis
Within the confectionery industry in the UK, there are various firms which produce
organic chocolates and could be a competition to Dexter's Chocolates. One such company is
Biona Organic, which is one of the most trusted organic companies in the UK dealing in healthy
confectioneries. The firm has more than 350 organic products to offer to its customers.
Moreover, the firm has more than 35 years of experience and it serves in more than 30 countries
globally (Biona- About Us, 2019). The sales strategy of this firm is to communicate to people
about how adoption its product would be helping them in achieving a healthier future.
Another competition for Dexter's Chocolates is Pacari, which is an organisation dealing
in premium quality dark chocolate. It adopts manufacturing equipments and processes which are
both ethical as well as sustainable. The company has almost 250 international chocolate awards
for its utmost dedication of using techniques and ingredients which are certified as 100% organic
(Pacari- About Us, 2019). Its sales strategy is that it provides the customers with monthly offers
and personalised services which help it in regaining their buyers.
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Market Segmentation
For effective sales strategy, it is imperative that market segments are effectively
determined which would help Dexter's Chocolates identify its target market. Market
Segmentation is a process which would divide the overall market in various groups or segments
based on different characteristics. Market segments for Dexter's Chocolates are mentioned
below: Geographical: This aspect divides the overall market on the basis of their geographical
location. The firm is willing to manufacture and distribute its products in the United
Kingdom. Demographical: The market under this is divided on the basis of demo-graphs. It
includes age, gender, income groups, occupation, etc. For Dexter's Chocolates, the
market would be divided into general consumers, aged between 15-60, under any
occupation and with income more than £100, belonging to business class environment.
 Behavioural: Customer behaviour is the central point of this segment. The organisation
would be opting customers who are willing to spend a healthy lifestyle as well as are fond
of eating chocolates (Lee and et. al., 2015).
INTERNAL ANALYSIS
SWOT Analysis
It is crucial for any organisation to analyse all of its internal weaknesses and strengths in
ways which is crucial for attaining external opportunities and minimisation of threats. SWOT
analysis for Dexter's Chocolates is mentioned below:
BASIS DESCRIPTION
Strengths
The biggest strength of Dexter's Chocolates is that it is willing to use
sustainable, environment friendly and effective methods of production which
would enable it to produce effective quality products. Another strength of this
company is that its offerings are as per market preferences and customer needs
which would help it in aligning itself according to the trends.
Weaknesses One weakness is that the company lacks ample financial resources which is
required to carry out all its operations with ease and help it manufacture and
distribute its chocolate products with utmost ease. Another weakness is that the
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kind of operations which is being planned by the company requires more
human resources, which the firm is short of currently due to low financial
capacity.
Opportunities
With rise in health and fitness trends, Dexter's Chocolates could help
customers in adopting lifestyle (Ojala, 2016). This would help it gain a larger
customer base within no time and minimal efforts. Another opportunity
through sugar and gluten-free products is that it would help in enhancing
health standards and minimisation of health causes that would help in gaining
community support as well.
Threats
There are already various companies which could be quite a threat for Dexter's
Chocolates as these are trusted organisations having a substantial popularity
within the country. Another threat is changing policies due to Brexit which
would make it quite hectic for the company to cope up with.
BUSINESS VENTURE
Products and Services
Dexter's Chocolates would be dealing in a variety of sugar-free and gluten-free chocolate
products and a range of energy bars for better health of customers without even giving up the
taste.
Size of the Business
The firm would be operating in small scale, and hence, it would be having a handful of
employees (Hayter, Lubynsky & Maroulis, 2017). Apart from the owner, the firm will be having
2 partners which would be helping the entrepreneur in carrying out all the functional and
operational activities. The company would be employing 10 other employees which will be
responsible for producing the products and carrying out after sales and accounting services.
Background of Entrepreneur
The entrepreneur of Dexter's Chocolates belongs to a very educated background. He has
just completed his education this company would be his first business venture. Due to this
reason, he is interested in earning more financial gain to develop a strong image of himself
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within the market. With this organisation, the entrepreneur is planning to establish himself as an
effective businessman and has a vision to support the people and community with his premium
quality chocolate products.
Business Location
The agenda of Dexter's Chocolates is to serve as many customers as possible. For this
reason, the entrepreneur and his partners is planning to set up the company in London, United
Kingdom. Along with this, success of a venture also depends on its area within the country.
Thus, it is planned to be set up near Trafalgar Square where it could gain popularity among local
people as well as tourists.
PHYSICAL FACILITIES AND OPERATIONS
Description and Costs
The physical facilities for Dexter's Chocolate include: Ingredient Bins: These bins have the purpose of storing dry elements such as flour,
sugar-free powders, etc. The company would require almost £50 to buy 2-3 bins for the
business. Work Tables: These tables are made from either stainless steel or hardwood which could
be used by employees to craft chocolate products. Almost £2000 would be required by
the firm to set up work tables for the staff to work upon. Double Boilers: It could be used effectively by the firm to temper all the chocolate
through gentle heat as per the requirements. It is required, that company invests at least
£150 to buy effective boilers for everyday use. Commercial Mixers: Such facilities could be utilised to combine and blend quantities in
large quantities. At least £5000 are needed to buy effective quality mixers for the
company.
 Pan Racks: Assembling of the final chocolate product is done using Pan Racks. It helps
in giving hardness to chocolates before displaying them to the customers. Dexter's
Chocolates need investment of around £100 to buy pan racks required for its operations.
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MARKETING PLAN
Target Market
After segmentation, Dexter's Chocolates is required to determine its target market on
which it would effectively channelise its efforts and strategies. The target market for this firm
would be general population from the urban areas of the UK, aged between 15-60 with income
level more than £100 and habitual of living a healthy lifestyle.
Marketing Mix
These elements are those within the market which aids a company in its strategy making.
Marketing Mix of Dexter's Chocolates is mentioned below: Product: This element is centralised around the product strategy of the firm. This
company would be producing effective quality products which are healthy and possess
taste according to market preference. Price: Since the company is planning to launch sugar and gluten-free chocolates, it would
be adopting Price Skimming strategy to set the prices of its products. Place: Mostly, the firm would be operating its offline store, however, since it wants to
gain popularity, it would be tying up with food delivery companies to set itself up in
online market as well.
 Promotion: Dexter's Chocolates will be adopting social media and print advertisements
as methods to promote its offerings to its potential customers in the UK.
ORGANISATIONAL PLAN
Ownership/Legal Structure
The firm will be operating in partnership as 3 individuals, including entrepreneur would
be effectively partnering up for this venture. Its legal structure would consist of forming of
partnership agreements, deciding upon the role, share and responsibilities of each partner within
the firm. Moreover, tax structure would also be the ones followed in partnership where taxes on
profits would be paid via personal IT accounts of each partner (The Small Business Partnership:
General and Limited Partnerships, 2019).
Management Team Description
The management team for Dexter's Chocolates would include:
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 Partners: The organisation would be having 3 partners who will be managing and
supervising all the operations of the company. Along with this, they will be handling all
the resources, financial flow for carrying operations and risk handling. Employees: 8 employees will be managing the production and display of chocolates and
will be responsible for its quality and healthy nature.
 Accounting and After-sales Personnel: Two personnels will be handling the accounting
and front-desk services. Moreover, this employee would also be handling after-sales
services.
Licensing and Insurance
The licensing and insurance required by Dexter's Chocolates are mentioned below:
 The company would require Business License obtained by local government.
 Partners in the firm also require to acquire Health Code Permit to ensure that local health
standards are being met.
As for insurance, the company would need General Liability Insurance, for damages and
litigation expenses and Worker's Compensation Insurance to ensure safety of the workforce
(ow to Open a Chocolate Shop, 2018).
RISK ASSESSMENT
It is imperative for a firm to analyse and minimise risks to help running the business
smoothly. Risk assessment of this company is discussed as under:
Weaknesses
It includes lesser amount of financial as well as human resource to help manage the
business in a better way. This would lower the speed it requires for the company to manufacture
and distribute a significant amount of chocolate products.
Threats
Existing competition as well as Brexit are current threats for the company. Both of these
factors are serious threats to the company as they require it to modify its operations and product
quality in ways appropriate to the situation.
Contingency Plans
To eradicate weaknesses and minimise threats, Dexter's Chocolates must adopt policies
that are flexible to help it sail through political instability like Brexit. In addition, the product and
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pricing strategy must be competent enough for the firm to acquire more resources (material as
well as human) quickly (Frøen and et. al., 2016). For this, firm must focus on providing diverse
products at effective pricing.
FINANCIAL ANALYSIS
Feasibility Analysis
The business idea for Dexter's Chocolates is quite feasible to the partners and could be
given into practice. This is because technologically, the equipments and technology used is
competent enough to produce effective products (Brinckmann & Kim, 2015). Moreover, it is
legally feasible too as the business is in alignment with all the legal standards and effective as
per the ethical framework.
Start-up Costs
The start up cost for the company is £20,000 which covers each setting up the
infrastructure, buying equipments, hiring employees, carrying distribution and promotional
services etc.
Cash Flow Forecasts
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CASH
FLOW July Augus
t
Septemb
er
Octobe
r
Novemb
er
Decembe
r
OPENING
BALANCE £1,035 £2,174 £3,426 £4,803 £6,319
Cash
incoming
Sales £4,500 £4,950 £5,445 £5,990 £6,588 £7,247
Other
income £710 £781 £859 £945 £1,040 £1,143
Total
incoming £5,210 £5,731 £6,304 £6,935 £7,628 £8,391
Cash
outgoing
Purchases
(Stock etc) £1,580 £1,738 £1,912 £2,103 £2,313 £2,545
Accountant
fees £240 £264 £290 £319 £351 £387
Advertising &
marketing £170 £187 £206 £226 £249 £274
Bank fees &
charges £75 £83 £91 £100 £110 £121
Interest paid £110 £121 £133 £146 £161 £177
Utilities
(electricity,
gas, water)
£780 £858 £944 £1,038 £1,142 £1,256
Telephone £340 £374 £411 £453 £498 £548
Rent & rates £550 £605 £666 £732 £805 £886
Motor vehicle
expenses £100 £110 £121 £133 £146 £161
Repairs &
maintenance £120 £132 £145 £160 £176 £193
Stationery &
printing £110 £121 £133 £146 £161 £177
Total
outgoing £4,175 £4,593 £5,052 £5,557 £6,113 £6,724
Monthly
cash balance £1,035 £1,139 £1,252 £1,378 £1,515 £1,667
CLOSING
BALANCE £1,035 £2,174 £3,426 £4,803 £6,319 £7,986
Funding Sources and Application
The primary source of funding for Dexter's Chocolates would be personal capital from
the partners. Another source of funds would be Bank Loans and Government Grants which
would allow the company to be set up effectively and acquire appropriate and ample financial
resources required to operate and run the organisation smoothly.
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CONCLUSION
Thus, it is concluded that development of a business plan requires the firm to effectively
set up a structure which could help in setting up organisation appropriately. Industrial analysis
and SWOT aids in analysing and evaluating external and internal competence of a firm. Lastly, it
is essential to effectively make a marketing and organisational plan along with risk and financial
analysis for making a systematic business plan for a company.
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REFERENCES
Books and Journals
Brinckmann, J., & Kim, S. M. (2015). Why we plan: The impact of nascent entrepreneurs'
cognitive characteristics and human capital on business planning. Strategic
Entrepreneurship Journal. 9(2). 153-166.
Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.
Burns, P., & Dewhurst, J. (Eds.). (2016). Small business and entrepreneurship. Macmillan
International Higher Education.
Frøen, J. F., and et. al. (2016). Stillbirths: progress and unfinished business. The Lancet.
387(10018). 574-586.
Hayter, C. S., Lubynsky, R., & Maroulis, S. (2017). Who is the academic entrepreneur? The role
of graduate students in the development of university spinoffs. The Journal of
Technology Transfer. 42(6). 1237-1254.
Lee, Y. K., and et. al. (2015). Market orientation and business performance: Evidence from
franchising industry. International Journal of Hospitality Management. 44. 28-37.
McKeever, M. (2016). How to write a business plan. Nolo.
Ojala, A. (2016). Business models and opportunity creation: How IT entrepreneurs create and
develop business models under uncertainty. Information Systems Journal. 26(5). 451-
476.
Online
Biona- About Us. 2019. [Online] Available Through: <https://biona.co.uk/about-us/#our-
journey/>
How to Open a Chocolate Shop. 2018. [Online] Available Through:
<https://www.katom.com/learning-center/so-you-want-to-start-a-chocolate-shop.html/>
Pacari- About Us. 2019. [Online] Available Through:
<https://home.pacarichocolates.uk/pages/why-pacari/>
Sugar Free Chocolate Market – Global Industry Analysis, Size, Share, Growth, Trends and
Forecast 2018 – 2023. 2019. [Online] Available Through:
<http://www.digitaljournal.com/pr/3621893/>
The Small Business Partnership: General and Limited Partnerships. 2019. [Online] Available
Through: <https://smallbusiness.findlaw.com/incorporation-and-legal-structures/the-
small-business-partnership-general-and-limited-partnerships.html>
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