Entrepreneurship Business Plan

This document discusses the concept of entrepreneurship and presents a business plan for a new venture. It covers entrepreneurial competencies, strategic objectives, market analysis, competition analysis, product details, marketing strategies, sales and operations, financial projections, and SWOT analysis.

Enterprise and
Entrepreneurship
(Task 1 – Business Plan)

EXECUTIVE SUMMARY
Entrepreneurship is a business practice in which individuals themselves enter into market with a
new idea of creative and innovative nature bearing all risks and managing entire business project
by oneself as well as enjoying profits. The individual running their own business by themselves
that is an entrepreneurship are known as entrepreneurs. Every entrepreneur enters the market
with a new and innovative ideas. This is one basic nature or characteristic of an enterprise
established and introduced by an entrepreneur. The firm offers something entirely fresh to the
society which is matching with their preferences and needs. The report is inclusive of the
entrepreneurial concept and conducts discussion over the respective business setting and pitches
a new venture idea with the help of a business plan.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
THE BUSINESS MODEL (Business Plan).....................................................................................4
Entrepreneurial Competencies................................................................................................4
Strategic Objectives................................................................................................................4
The Market (PESTLE Analysis)............................................................................................4
Competition (Porter's Five Forces).........................................................................................6
The Product............................................................................................................................7
Marketing the Business (Segmentation, Targeting and Positioning (STP))...........................7
Sales and Operations..............................................................................................................8
Sales Forecast.........................................................................................................................9
Financial Projections..............................................................................................................9
Strengths and Risks of Business (SWOT Analysis)...............................................................9
Closing Summary...................................................................................................................9
REFERENCES..............................................................................................................................11
APPENDIX 1 – POWER POINT (Pitch)......................................................................................12

THE BUSINESS MODEL (Business Plan)
Entrepreneurial Competencies
Entrepreneurial competencies defines those underlying skills and characteristics which
are either specific or generic (Jones, Penaluna and Penaluna, 2019). These entrepreneurial
competencies once integrated and made effective use turns into development of a new venture
which is innovative and can be sustainable in market with proper growth prospects. Some of the
entrepreneurial competencies which me and my teams beholds are divided into two segments.
One is Personal where we all possesses Risk Taking attitudes and keeps our Morals High. The
second is Workplace Competencies where we apply our specific knowledge in best effective
manner for our venture. These are Team Working, Creative Ability and Effective Planning
and Organising abilities.
Strategic Objectives
 To bring sustainable changes in the society and support environment.
 To offer more natural and less processed beverage for children and today's youth.
 To replace harmful soft drinks with “BeerLicious”.
 To enter market and earn around 2% higher than revenue and capital expenses.
 To establish firmly in market within 18 months.
The Market (PESTLE Analysis)
The external environmental analysis is compulsory for a new venture entering the market
for gaining knowledge about the existing and present situation of business surroundings and
according develop future forecasts (Jones, 2019). Thus, PESTLE analysis is presented beneath:
PESTLE DESCRIPTION
Political/Legal The first up is UK's political and legal environment, which is not stable
enough as currently Brexit deal was finalised which imposed huge
consequences for existing businesses due the increasing uncertainties of
legal laws and regulations. But it can be an opportunity for new
businesses, as the laws and regulations are new who's results are still
uncertain but holds some positive aspects which is beneficial for
businesses as well as for the society.

Economic The economic environment of United Kingdom is unstable as well but
the country knows the importance of SME's as well as of innovation in
the market place. Thus, for the same the economic conditions are
favourable for new ventures to enter and establish themselves in the
society (Henry and Dana, 2019).
Social The current social trends are fluctuating which offered a creative
opportunity to introduce a creative change in beverage industry by
offering a drink with all benefits of beer, a unfiltered organic and
flavoursome beer like mocktail. This is a strong tapping idea in modern
world leading to more natural and less processes and chemical inclusive
drinks.
Technology The best and most feasible resource which assist and enhance
development or change in today's modern era is technology. With
revolutionary changes in technical aspects several new solutions have
been introduced with in the world which are sustainable and beneficial.
The technological strength of UK is significant over its businesses,
contributing to their existence and growth as well as survival.
Technology assisted in identification of this unique and tasty beverage
and going to be supportive in future manufacturing and other business
functions for offering “BeerLicious” and reaching to maximum
audiences (Naderi and et. al., 2019).
Environmental The environmental factor is the major support of the whole idea of the
new venture. The company is going to offer more naturally produced
and sustainable Mocktail to the society which is competitive enough to
reduce the market of harmful soft drinks that are existing in market,
produced with rigorously environment affecting procedures involving
immense amount of wastage of raw materials and resources.

Competition (Porter's Five Forces)
The competitive analysis of market is necessary as it provides a critical and in-depth
picture of the market and most specifically of the industry in which it is operating. The Porter's
Five Forces model is a supportive tool that assist in doing so.
FIVE FORCES DESCRIPTION
Existing Rivalry The existing rivals in market in beverage industry is huge and strong as
well. The direct competition is low to “BeerLicious” but indirect
competition is high as the beverage can impose influence over
consumption of soft drinks on the basis of environmental and health
concerns. Thus, existing rivalry has moderate power which can induce
in future (Drobyazko and et. al., 2019).
Threat of Substitutes The substitutes are those similar products which are competitive and can
replace “BeerLicious”. This threat is low currently as no other firm or
venture is available in market offering such innovative product. Also, in
future this threat can enhance as imitation is easy and cost worthy. In
order to stay protected form it copyrights and other intellectual
properties can be used.
Threat of New
Entrant
The threat of new entrant is very low due to number of reasons, one is
increasing entry barrier also, “BeerLicious” is a unique offering and its
presence can be impactful and wealthy for the market. But the offering
can fail as well, this uncertainties of failure or success reduces the threat
because of the unknown and irrelevant existence of good. Although a
new competitive and entirely innovative can enter the industry which
can result in harmful influences.
Bargaining Power of
Suppliers
The bargaining power of suppliers will be low or moderate as no
supplier can raise their hands for supplying raw material for an entirely
new offerings (Shimasaki, 2020). Moreover, the venture strategy for
procuring goods for production and sale is clear and not dependable on
one supplier. The firm is more independent and can self sustaining

which will also result in engagement with multiple supplier groups and
parties.
Bargaining Power of
Customers
The last factor is consumers power to bargain, it will be low in initial
stage of product launch. As the venture and its offering are fresh which
offers it a competitive power. Furthermore, in future customers power
can fluctuate and shift to high based on company's and products success
and failure.
The Product
The idea behind the venture or the entrepreneurship is to offer a unique and healthy drink
for today's youth with the initiative of replacing soft drinks which are harmful in concerns with
health of human beings and environmental aspects too. The product is a drink (Mocktail) which
is brewed like a beer and mixed with natural ingredients which are organic, offering more
flavoursome and healthy beverage to today's youth replacing harmful soft drinks and other
chemical beverages (Papadopoulou and Phillips, 2019).
The product name is “BeerLicious” that is significant to the taste of the drink, which is
basically for all age groups but mainly for teenagers who are consuming soft drinks on regular
basis. Moreover, the ingredients of the beverage are organic as it is brewed just like Beer
offering some characteristics to it. Despite of it “BeerLicious” is a non alcoholic drink which is
safe and perfect for teenagers to consume who are not legally eligible.
Marketing the Business (Segmentation, Targeting and Positioning (STP))
The marketing is a fundamental and the most basis function of business, that is used and
performed for spreading awareness in market about the entrance and existence of certain goods,
services and venture. One major tool that supports marketing acts and phenomena's is
Segmentation, Targeting and Positioning that abbreviated and commonly addressed in business
world as “STP” (Crow, Whitman and Anderson, 2020). In case of “BeerLicious” its STP is
presented below as follows: Segmentation- The first step is of market division in which the whole population is
divided into tiny groups on the basis of their common characteristics and preferences.
Thus, in case of the new venture the segmentation is based on Psychographics techniques

in which people interest is considered. Nowadays, consumers are moving towards more
healthy and sustainable goods which are prepared with sustainable means. Thus, Interest
factor is made under consideration. Targeting- This is the second major step of marketing where company gets to know its
exact targets. Knowing potential buyers is mandatory for firms and first stage for making
sales and revenue. Thus, after one segment is chosen then the respective target audience
of “BeerLicious” is identified. According to segmentation through which interest factor is
concentrated the target audience is teenagers and over belonging to age group of 14-25
who consumes soft drinks and beverages regularly (Liguori and et. al., 2019).
 Positioning- The final stage is of presentation, meaning the placement of product in the
given market and in front of the targeted audiences. The positioning stage is very critical
for any business thus, required through evaluation and restrictive actions which are most
beneficial for the product as well as the venture. Thus, in order to enter the market
properly, social media and other digital tool of marketing are the most appropriate. For
attracting youth, social media is the cheapest and fastest source.
Sales and Operations
In and organisation of any size and scope there are varied processes and functions
involved. These functions are known as operations and involves all the fundamental activities
and actions that are compulsory to perform for regulation of business. The major function of
every entrepreneurship and a venture is of sales. The sales function of company is related with
revenue generation and earning profits.
In today's ear of modernisation and development technology replacing many activities
and offering ease. In sales field too technology have made huge contributions and made its
palace. Thus, the new venture will be making use of both physical and virtual platforms for
making sales and earning business. For being physically available in market “BeerLicious” will
be made available to customer through large supermarkets and retail store. The same strategy
soft drink manufacturer use. And in case of physical presence sales transactions will be made
through official company's platforms as well as with online retailers too. In simple, terms
customers can either place order online with company's website through a common dashboard or
can use superstores sales portals.

Sales Forecast
PARTICULARS YEAR ONE YEAR TWO YEAR THREE
Estimated units to
be sold (Units)
2500 3000 4000
Selling price
(Pounds)
20 25 25
Total sales (Pounds) 50000 75000 100000
Discount (2% on
sales)
1000 1500 2000
Net sales (Pounds) 49000 73500 98000
Financial Projections
COST SHEET FOR THREE YEARS:
YEAR ONE YEAR TWO YEAR THREE
Variable cost 10 15 15
Raw material 2 5 5
Labor 3 2 2
Packaging 2.5 4 4
Advertisement 2.5 4 4
Fixed cost
Fixed production cost 6 6 6
Cos per unit 16 21 21
Profit margin per unit 4 4 4
Sales price 20 25 25
PROFIT AND LOSS STATEMENT FOR THREE YEARS:
YEAR ONE (2500
UNITS)
YEAR TWO (3000
UNITS)
YEAR THREE
(4000 UNITS)
Sales 49000 73500 98000
Less: cost of sales 40000 63000 84000
Variable cost 25000 45000 60000
Raw material 5000 15000 2000
Labor 7500 6000 8000
Packaging 6250 12000 16000
Advertisement 6250 12000 16000
Fixed cost
Fixed production cost 15000 18000 24000
Net profit 9000 10500 14000

CASH FLOW STATEMENT FOR THREE YEARS:
YEAR ONE
(POUNDS)
YEAR TWO
(POUNDS)
YEAR THREE
(POUNDS)
Cash sales 49000 73500 98000
Investment 20000
Loan 50000
Total cash receipts 124000 73500 98000
Cash payments
Variable cost 25000 45000 60000
Raw material 5000 15000 20000
Labor 7500 6000 8000
Packaging 6250 12000 16000
Advertisement 6250 12000 16000
Fixed cost
Fixed production cost 15000 18000 24000
Total cash payments 40000 63000 84000
Net cash flow 84000 10500 14000
Strengths and Risks of Business (SWOT Analysis)
SWOT DESCRIPTION
Strengths  No existing substitute or competitor.
 Unique offering.
 Sustainable means of production that is organic ingredients used.
 No chemicals and preservatives used.
 Specially determined and produced for youngsters and teenaged
children's (Salder and Bryson, 2019).
Weaknesses  Uncertainty about the products effectiveness.
 Lack of market knowledge as no information or past data present
due to new inventive nature of offering.
Opportunities  Expansion and development is the most basis and favourable
opportunity.
 Moving into new markets and diversification by adding more
number of flavours and innovation in taste.
 To offer something back to society and environment.

Threats  The unstable political and legal environment due to Brexit deal
execution.
 Social trends are fluctuating and uncertain which can create lack
of credibility over the beverage “BeerLicious”.
 Uncertain economic twists and turns.
Closing Summary
The end conclusion and summarisation form all the discussion conducted above in the
business plan is establishing and running an entrepreneurship or a new venture is a hectic job to
perform that involves varied number of small and uncertain chores as well as responsibilities.
The business plan made above is for introducing or pitching a new venture idea with a innovative
product that is beverages. There are number of aspects which were looked over such as market
and competitive evaluation is performed with the help of PESTLE and Porter's Five Forces
model. Moreover, SWOT is conducted too for gaining insight about the risks associated and
potentials available to mitigate them. In business plan marketing aspect is looked over too for
making attractive placement of the product in market and bringing potential difference in the
industry.

REFERENCES
Books and Journals
Crow, M. M., Whitman, K. and Anderson, D. M., 2020. Rethinking Academic Entrepreneurship:
University Governance and the Emergence of the Academic Enterprise. Public
Administration Review. 80(3). pp.511-515.
Drobyazko, S. and et. al., 2019. Innovative entrepreneurship models in the management system
of enterprise competitiveness. Journal of Entrepreneurship Education, 22(4), pp.1-6.
Henry, E. and Dana, L. P., 2019. Māori Indigenous research: impacting social enterprise and
entrepreneurship. In A Research Agenda for Social Entrepreneurship. Edward Elgar
Publishing.
Jones, C., 2019. A signature pedagogy for entrepreneurship education. Journal of Small Business
and Enterprise Development.
Jones, C., Penaluna, K. and Penaluna, A., 2019. The promise of andragogy, heutagogy and
academagogy to enterprise and entrepreneurship education pedagogy. Education+
Training.
Liguori, E. and et. al., 2019. Under-researched domains in entrepreneurship and enterprise
education: primary school, community colleges and vocational education and training
programs. Journal of Small Business and Enterprise Development.
Naderi, A. and et. al., 2019. The contributions of social entrepreneurship and transformational
leadership to performance. International Journal of Sociology and Social Policy.
Papadopoulou, K. A. and Phillips, R. A., 2019, May. A comparison of on-curricular and off-
curricular activities in enterprise education for postgraduate students. In Fifth
International Conference on Higher Education Advances.
Salder, J. and Bryson, J. R., 2019. Placing entrepreneurship and firming small town economies:
manufacturing firms, adaptive embeddedness, survival and linked enterprise
structures. Entrepreneurship & Regional Development. 31(9-10). pp.806-825.
Shimasaki, C., 2020. What is Biotechnology Entrepreneurship?. In Biotechnology
Entrepreneurship (pp. 3-16). Academic Press.
Online:
Entrepreneurial Competencies, 2017. [Online] Available Through:
<https://www.slideshare.net/SanjanaSaini/entrepreneurial-competency/>
Market Segmentation Strategy Solutions, 2020. [Online] Available Through:
<https://www.cmgconsulting.com/post/market-segmentation-strategy/>

APPENDIX 1 – POWER POINT (Pitch)