Business Plan for OnFood

This project presents a detailed business plan for OnFood, an online food delivery startup in the UK. The plan includes market analysis, target customer identification, financial projections, operational plan, and a personal reflection on the entrepreneurial experience. It incorporates PESTEL analysis, SWOT analysis, and marketing mix strategies to ensure success in the competitive food delivery market.

Entrepreneurship and
Small Business Vent
ures

Table of Contents
ASSESSMENT 1 BUSINESS PLAN..............................................................................................1
Executive summary .....................................................................................................................1
Marketing plan ............................................................................................................................3
Financial plan...............................................................................................................................5
Operational plan ..........................................................................................................................6
ASSESSMENT 2 INDIVIDUAL ESSAY .....................................................................................8
Personal reflection and evaluation of the experience..................................................................8
REFERENCES..............................................................................................................................13

ASSESSMENT 1 BUSINESS PLAN
Executive summary
In this plan it has been described about OnFood that provide online home delivery of food.
The objectives of business has been mentioned which is divided into different terms. Also,
PESTEL analysis is been done. In marketing plan STP, SWOT, marketing mix of start up has
been explained. Moreover, in financial plan it has been described that how much budget is
required in marketing, developing services, etc. In last operation plan is been developed that
what OnFood operations are, how services will be provided, what processes are followed, etc.
A business plan refers to starting a new business in order to provide something new to
society. It can be in either in terms of product or service. There are many elements included in
business plan on basis of which planning is done.
A business named as OnFood is been started in UK which provide online delivery of
food items to people. It offers customer to get home delivery of food. The people can order from
mobile App. It will follow a specific process through which delivery is done. The start up will
collaborate with different restaurants and hotels. For using app, individual will have to register
themselves. All details will be obtained and then order is placed. The stakeholder involved in it
are customers, employees, etc. There will be proper rules and regulations developed that is
followed in security of data, restaurant collaboration, etc. The main objective of business is to
become first online food delivery start up with almost 10000 customers. But that objectives are
further broken down into three which are as follows :-
Short term
 To provide online fast food delivery to students
 To offer discounts to new customers and retain them.
Medium term
 To collaborate with more than 100 restaurants and pubs in UK.
 To provide almost 1000 membership to people.
Long term
 To acquire small pubs and restaurants
Start up loan
In order to start this business capital is required so it will be obtained by taking loan from
bank. But in this the proportion will be 30% will be investment made and rest 70% is loan taken.
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Through this, enough capital is generated which can be useful in attaining short term goal.
However, in initial stage only fast food will be delivered so that sales and profits are generated.
Now, those profits will be used to provide membership to people. In this way medium term
objectives are accomplished.
PESTEL
Political – It refers to change in political situation of country. The separation of UK from EU,
change in government and its policies, etc are certain political factors that will influence in
carrying out of the operations in an effective way (Eric, 2013). This is because here trade and
tariff rules will be changed. So, many outside restaurants operating in UK may not collaborate.
Thus, it will impact on growth of OnFood in long term.
Economical – It is related to economic condition, inflation rate, currency rate, etc. are certain
factors that will influence the overall operations of start up (Cong, 2015). Therefore, any change
in all these highly impact on growth of start ups. Due to Brexit UK economic condition will be
affected. Thus, it will also highly impact on growth and development of OnFood. Many
restaurants will not earn profits and shut down. Thus, it will also impact on OnFood sales and
profits.
Social – It is related to demographic and cultural factors that define people needs and wants,
change in taste and preference of society (Amato and et.al, 2017). So, change in these factors
forces company to develop new products and services. However, if there occurs any change it
will affect on buying behaviour, product choice, usage, etc. of people. Thus, it can enable
customer to avoid using OnFood in ordering food.
Technological – It is related to advancement in technology. Any advancement or upgrade in
technology affects business operations and its processes. UK is a developed country so people
use advance technology (Revedin and et.al, 2015). Therefore, any emergence of new technology
will negatively impact OnFood services. They need to upgrade their tools and equipments,
software and applications used in order to offer services. Also, new policies and guidelines have
to be formulated. It will highly affect their operations.
Environmental – It includes laws and regulations related to environment protection. Any
change in laws restricts companies to modify their operations. Similarly, if brexit occurs it will
impact on OnFood as they will have to change their environment related laws. Besides this, it
might restrict them to use plastics containers or any other harmful materials in storing of food. In
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addition to this, it might ban using of personal transport for delivery. Moreover, they will need to
contribute more in CSR.
Legal – They are the laws which consists of employment, salary and wages, etc. Each company
develops laws according to legislation of country and implement it to work accordingly
(Forsgren and et.al., 2017). Any change in rules and legislation impacts on operations of
business. OnFood will also be affected due to change in legislation due to brexit. It will force
them to formulate new employment laws.
Marketing plan
Target customers
It is necessary to determine target people so that accordingly products and services are
developed. It also support in developing promotion and advertising strategies so that target
people can be attracted. Furthermore, it assists in identifying their taste and preference so that
product or service feature can be modified accordingly. The target customer of OnFood is not
specific but it mainly focuses on youngsters and professional employed people. Alongside it,
company also emphasis on families and single person who are living inn care homes.
SWOT
Strengths -
 It is a unique concept that provide online food delivery within 24 hours.
 It is an asset less business model which means return on investment is adequately high as
compared to other start ups.
 Easy to use App and user friendly.
 It focuses only on restaurants and hotels
Weakness
Already, fast food brands like KFC, McDonald's, etc. Provide home delivery of food items in
UK. So, this concept will not be that much successful.
Competition from other restaurant that already provide home delivery.
Opportunities
By collaborating with other restaurants OnFood can grow and expand in many other countries
like Ireland, Wales, etc.
High use of smart phone among youngsters
Technological advancement will allow them to expand in other European countries.
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Threats
New entrants in this sector will result in rise in competition
High risk of cyber attack that can impact on its growth and development
This business model or plan can be easily copied by others
STP
Segmentation – It enables company to select a specific segment so that products and services
are delivered accordingly. For OnFood their segment will be based geographical areas
(Camilleri,, 2018). Each region will be separated on basis of restaurants and type of food
available there. But basically it targets young population and working professionals.
Targeting – After segmentation, it is important to select target people from it. For OnFood their
target people are based on veg and non veg categories. For non veg there is a separate criterion
and for veg it will be different. Also, it include all smart phone users in UK.
Positioning – It means to position product or service in such a way that it easily attract people
minds. OnFood will position services in such as way that it attracts both veg and non veg people.
They provide restaurant guide for people (Pyo, 2015). For instance – non veg eating people will
get more variety of dishes as compared to veg ones.
Marketing mix
Product – It refers to product that satisfied needs of people. Here, in OnFood product provided
is service through which they can order food items from any of restaurant in London (Fan, Lau
and Zhao, 2015). The services will be provided via App that is available for both Android and
IOS.
Price – It is related to price of product or service which customers have to pay for it. This is
most important element in marketing mix. In OnFood customers will have to pay price of food
item that is been ordered.
Place – It refers to place or location where products or services are available. OnFood will have
an official head office and website through which services will be provided. Moreover, services
will be provided via App that is available for both Android and IOS.
Promotion - It refers to way in which products or services are promoted. This is necessary to do
so as it helps in attracting customers. OnFood will promote its services via advertisement given
in newspapers, TV, etc.
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People - It is related to employees or people working in organisation. In OnFood their people
will include delivery boy, customer support, etc.
Process – the process through which services or products are been delivered to consumer. In
OnFood a systematic process will be followed (French and Gordon, 2015.). Here, order will be
processed and delivered through delivery persons.
Physical evidence- this means the existence of business in the market which enables in attracting
people. In OnFood its physical evidence will be specific logo, container, etc. that are signs of
existence of start up.
Marketing strategy –
A business model is successful only when its products and services are promoted in
effective way. Therefore, it is necessary to develop a strategy through which marketing can be
done. There are different types of marketing strategy which is implemented by business. It
depends on nature and type of business that what type of strategy is to be followed. OnFood will
market their business via diversification strategy.
Financial plan
Financial plan is a part of a business plan which includes number of financial statements
which shows where a company is financially and where it wants to be in the future. Its is
important for any business to develop a financial plan as it determines how a business will afford
to achieve its strategic goal and objectives in the future. It will help the company to estimate the
capital which is required for establishing and running a business and will also help the company
to stand the competition in the market. A good financial plan will help the company to determine
the long term and short term financial goals and also will help the company to develop a
balanced plan in order to meet those goals (Baker, Filbeck and Ricciardi, 2017). Having a good
financial plan it will be easier for the company to take financial decisions and also help the
business to stay on track and focus on their financial goals of a new business. In order to
implement this business model it is essential to develop a financial plan so that resources are
allocated in proper way. This will enable in progressing in effective way by using capital
efficiently. The financial plan for starting up a business is described below:
Sales forecast: Financial analyst of OnFood should start with the sales forecast, financial
managers should set up a spreadsheet projecting the company's sales over the course of a time.
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An organisation should set up different sections of lines of sales and columns for every month
and even on a quarterly or monthly basis. In sales forecast cost of sales is introduced as it will
help the company to calculate the gross margin.
Creating an expensive budget: OnFood should create an expensive budget i.e. to create a
budget for the expenses which a company has to make for starting up a business as company has
make expenses like fixed technology cost, fixed corporate cost, advertisement cost, sales and
marketing cost and research and development cost (Ogada, 2016). So these are the expenses
which a company has to bear and has to create a budget for such fixed expenses. By creating an
expensive budget a company make their expenses effectively which could bring high financial
returns for the company. Also company need to understand how much it is going to cost for
making a sales forecast.
Developing a cash flow statement: This is the kind of statements which shows how money is
moving in and out of the business. A company should start up by projecting a cash flow
statement which should be broken down into 12 months. It will inform the owners of a business
what is the position of a cash in a business (Julien,, 2018). It will also help the company to
determine whether a business have enough cash in order to achieve their objectives.
Income projections: It is also called the profit and loss statement which provide the details of
forecast of a business for the upcoming years. An organisation should compare their profit and
loss account in order to determine whether a company is in profit or in loss.
Assets and liabilities: OnFood should deal with the assets and liabilities and need to project a
balance sheet, company should deal with assets and liabilities which are not in profits and loss
statements and company can project the net worth of a business at the end of a fiscal year.
Operational plan
Operational plan may be defined as the highly detailed plan which provides an
organisation a clear picture how a team, management, department, employees, etc will contribute
towards the achievement of the goals of an organisation. Operational plan covers What- are the
tasks and strategies to be achieved and completed (Dumitru and Motoi, 2018). Who-are the
individuals who have got responsibilities for each task or strategy. When-is the timeline for a
particular task or a strategy to be completed and How much-will be the financial resources
available to complete a task or a strategy. Operational plan is helpful for the owners of a business
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and for the employees of an organisation as operational plan pushes to think about what should
be the tactics to achieve a the objectives within in a given deadline. It consists of what overall
operations of business will be, what procedure will be followed, etc. In present business model
operational plan developed will include tie up with suppliers that are restaurants (Picheo and
Reed, 2017). The operational plan of OnFood can be described below and should cover the parts
of planned operations which includes:
Suppliers: As OnFood is the online food delivery business so it is important for the company to
identify where it should get the food from which means that what are the restaurants to which the
company has to get tied up with in order to start up the business. Also, OnFood has develop
online website for its business from where customer can make orders for the food to be delivered
and customer can choose the supplier or restaurant from where a customer want to purchase
food. There should be a well established relationship with the suppliers which will help in
smooth operation of a business.
Production: OnFood has to understand and analyse how long does it take a restaurant to prepare
a food products and how much time a restaurant takes to get the food shipped to the company.
Also, an organisation has to understand how well a company should be able to handle the busy
seasons or when ever there is a hike in a demand after start up. Also, how should a company
keep the customers attracted to their business if any uncertainty arises in the future and how
should a company be in position to carry on its operations.
Facilities: Facilities are very important for any business which mean how does the business and
the employees in an organisation works. As, OnFood is dealing with the online business should
posses such type of facilities like a website, an app, tie up with the restaurant, logistics, timely
delivery system, etc which could help the to grow and expand. It is also includes how well
OnFood is able to provide offers to the customers and make innovation in their business in order
to achieve high profits and competitive advantage in a business.
Equipments: Equipments includes the tools and technologies which is required for carrying out
the business process. It includes everything from computer systems to logistics and everything
between them (Read and et.al., 2016). Without a proper equipment a business can not flourish
successfully so it is important for the organisation to make effective use of their equipments for
the smooth business operations.
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Shipping and fulfilment: It involves the handling of tasks and fulfilling the tasks from placing
an order to delivery of a product. It can be done by the company by two ways either hiring its
own employees or using a third party fulfilment partner.
Inventory: Inventory management is an important task for the company i.e. how much a
company should keep in their stock and how it will be stored and how it will be the products
shipped to customers. Also, company should keep track on their incoming and outgoing
inventory.
So, this is the operational plan which will help the company is carrying out their business
operations effectively and smoothly and if this plan is successfully implemented it will help the
company to achieve a competitive advantage and can stand the competition easily and can help
in gaining profits in the long term.
ASSESSMENT 2 INDIVIDUAL ESSAY
Personal reflection and evaluation of the experience
A task was assigned to develop a business plan for a company who wants to start up a new
online home delivery business, for this purpose a team of 5 members were chosen and I was
assigned as a leader of the group. We working on the task which was assigned to us it was a
good experience for all of us and there were certain ups and down while developing a business
plan. While, developing business plan there were many challenges which was faced by me. It
was my first experience for developing business plan and for this purpose I was chosen a leader
of the group. So, I had to face many challenges like I faced the challenges in assigning different
task to my team members and have to make them work collaboratively. While, formulating the
strategies of a business plan there were various challenges like what will be the goals and
objectives of a plan, what kind of business sector will be chosen and there were also the other
challenges that I faced. But the most challenging aspect that I encountered when engaging in
developing a business plan is that I have to face was to manage my team effectively, as we were
a group of 5 members in team and to manage them was the challenging task. I had to face
challenges making them work effectively and collaboratively and keep them focused towards the
work. During task team started to enter in conversations as they came up with the different
business plan strategies which lead to the harsh conversations among them and I thought the
team will fall off. As, there were certain disagreements among the team members which created
a problem of getting the task completed on time, due to which I also faced the challenge of
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keeping the team in collaboration in order to get the task done. The conversations among the
team members developed a difference among and they want to work independently on the task
assigned to us. So the major challenge that I faced while developing a business plan was
managing my team. There were different ways to overcome the challenge that I faced as a leader
of a team it was my responsibility to get the task completed in a given time period and to manage
my team effectively. One possible way that I used to overcome the challenge was that I
motivated my team members to work as a team and made them understand importance of
teamwork and how working collaborative can be effective for a team so that goals can be
achieved easily. I personal met my team members and listen to their problem and after that
gather them and provided an effective solution by motivating them to work as a team. I also used
situational leadership style, which help me to overcome the challenge as I was faced with
different challenges in a given situation so, situational leadership style was the best style which
helped me to deal with situation. This leadership style helped me to motivate my team members
and to create a supportive work environment so that entire team can work collaborative in
effective manner so that objectives of the task can be achieved easily. I was able to build the
morale of my team which broke due to disagreements among them and they started to work as a
team and gave their equal contributions towards the task assigned to us. So we were able to
complete a task and were also able to frame effective business plan for the chosen company, so
this is how overcome the challenge that I faced during the task. This experience will improve my
future contribution to team work because as it was the first time I was developing a business plan
with my team members and I was chosen a leader of the team but I faced certain challenges
during the task. But I was able to deal with the problem effective and I motivated my team
members to complete the task on time and I was successful in job. So, this experience will help
in future and will give me confidence how to deal with such situations if they arise in the future.
As there were certain things which were new for me and for my team members having this
experience will help me to grow in future and face the challenges in within the team. I will have
the confidence to lead a team and manage a team in effective way so that goal of teams can be
achieved effectively.
There are various entrepreneurship theories that I feel can help me to understand
entrepreneurship. Two entrepreneurship theories which have helped me to improve my
understanding of entrepreneurship are Max Weber's theory of social change and Peter Druker's
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View on entrepreneurship. Max Weber's theory of social change which emphasis on the impact
of religion, Max Weber felt that religion have an impact and influence on the growth of
entrepreneurship. He believes that religious beliefs and ethical values which are associated with
the society play an important role in determining the entrepreneurial culture. As our business
plan is based on delivering the food to the customers which belong to different cultures,
communities and religions, so it is important for taking religious values in to consideration so
that every customers religious faith is valued by the organisation. For example Muslims only
prefer Halal non-veg food and do not eat Pork so they prefer to buy from such restaurants which
serve halal food and do not sell pork. So this entrepreneurship theory has helped me to
understand entrepreneurship better. Also, Max Webber also suggested that some religions
profess the basic values in order to earn money and some religions have less emphasis on earning
money. This theory also put emphasis on spirit of capitalism as a fundamental concept, as private
enterprises and economic freedom are promoted in the capitalism, so putting this spirit in our
business plan and developing a plan in such a way which will bring more and more profits for
the chosen organisation. As every entrepreneur wants to achieve profits for its business in order
to become a successful entrepreneur. This kind of spirit is widely spread in the society which
favours capitalism. According to this theory rate of business growth depends upon the values
which are professed by the religion in a society. So according to this theory it is the religion
which can help the entrepreneur to gain profits and can run business effectively. So this part of
theory has been considered by me in order to understand entrepreneurship so that we can develop
an effective business plan. Another theory which has helped me in understanding the
entrepreneurship is Peter Drucker's view of entrepreneurship according to the view of Peter
Druker entrepreneurship is a unique agent of change as he believed that entrepreneur always
looks for a change and should respond to it in effective way by exploiting the opportunity. Peter
Drucker has offered various guidelines that how an entrepreneur can become innovative in the
business and this successful innovation can only be the result of systematic hard work. He also
introduced a systematic innovation can be a framework for exploiting various innovative
opportunities within the business. So we have also introduced a systematic innovation within the
business plan as it is the innovation that we have made to start up a new business by delivering
the food to the customers at their homes with various options like choosing the restaurant from
they want to purchase the food. So for this purpose we have introduced a tie up plan with the
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different restaurants of United Kingdom. This is the innovation which we have introduced within
the business plan and this will bring huge profits for the company with low customer grievances.
Further Peter Druker considered that entrepreneurial society may be the outcome of innovative
entrepreneurship which is combined with the government facilitation. As, UK is the successful
entrepreneurial country with high entrepreneurial economy which can help the business plan to
be successful in the future after its implementation. A business plan has to be continuously
improved in order to make innovations within the business which can be done by making
innovations with the technology as in the business plan we have chosen the online business and
developing app for the company from where the customers can place orders and choose the
restaurant of their choice so, this is innovation which has been introduced within the business
plan and this innovation may prove successful for the business. Innovations in the business is the
key for the success of the business which can come from one single bright idea.
Both the theories of entrepreneurship have been helpful for me in understanding the
entrepreneurship which has helped me to develop a business plan in effective way. As these
theories focus on the two different aspect Max Weber have put emphasis on the spirit of
capitalism, where entrepreneur can achieve profits by focusing on the religion within the society.
Same has been focused within the business as it focuses on the various religious values which
can help in the growth of a business and successful development of a business plan. Another
theory of entrepreneurship given by Peter Druker which focuses on the innovations within the
business, a business can achieve success through continuous innovations and improvement
within the business, this theory also has helped me to develop a business plan which is too based
on the innovation by introducing online food delivery to the customers at their door steps which
is the innovative business plan which can still go through innovations in the future.
Yes, I am a potential entrepreneur as I posses all the qualities of the successful
entrepreneur as I have the passion of becoming the successful entrepreneur, I am self-disciplined
which is the important quality of becoming a successful entrepreneur. I have the abilities of
taking risks and I am willing to take risks in the future in order to become a successful
entrepreneur also I have creative thinking and I am a good leader. So these are the qualities
which are essential for becoming a good leader. I am hard working person and I take all the tasks
which are assigned to me seriously which helped me to grow as an entrepreneur. I not only want
to be entrepreneur but I want to be successful entrepreneur. I always wanted to be entrepreneur
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and it my aim of my life to become a successful entrepreneur and operate a business of my own
where I will take the decisions of the business with the participation of my employees. I have
participated in various entrepreneurial seminars in order to gain knowledge how to become a
successful entrepreneur and how to face the challenges as an entrepreneur whenever it may arise
in the future. I also posses the leadership qualities and I want to lead my company to heights of
success after becoming the successful entrepreneur I want to serve the community by offering
jobs and make contributions to the society, which is the quality of a successful entrepreneur. I
always kept on readding the success stories of various entrepreneurs and I have learned a lot how
they have become a successful entrepreneur. What were the challenges that they faced during
their entrepreneurial career and how did they overcome their challenges, so going through their
stories has given me motivation for me that even I can be a successful entrepreneur. Not only this
I also go through the stories of the entrepreneurs who have failed in their entrepreneurial career,
I learn what were the mistakes which were done them and how did their business fail what were
the reasons of their failures. So this how it will help me to become entrepreneur and also I have
the qualities or traits of the successful entrepreneur like I am passionate which is the significant
characteristic of becoming the successful entrepreneur, I have the strong work ethics which is
important quality in me I keep on thinking like entrepreneur how he or she does justice to their
work. Also, I have strong interpersonal skills with excellent communication skill and I am able
to motivate people effectively which is needed to become a successful entrepreneur. Also, I am
creative with high determination and open minded and ready to take risks which are the qualities
of becoming a successful entrepreneur.
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REFERENCES
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