Entrepreneurship: The Food Cloud Business Plan

This document discusses the concept of entrepreneurship and presents a business plan for The Food Cloud, a cloud kitchen focusing on online food delivery. It covers market analysis, product description, unique selling proposition, competitor analysis, operations plan, and more.

ENTREPRENEURSHIP

EXECUTIVE SUMMARY
Entrepreneurship can be referred to a process where an individual creates a new
business plan or idea with an aim to bear the risk of the business along with enjoying the
rewards. The business idea revolves around the concept of Cloud Kitchen. The business is
basically a remote or a ghost restaurant which is a totally different concept from the
traditional restaurant. The business idea will require various kitchen tools and different
facilities that are required in order to prepare the meals. The businesses involved in cloud
kitchen don’t focus on the dining concept. Their focus is on online delivery of the food and
they have a specific target market based on the demographic and geographic factors. ”. The
business plan consists of the market analysis of the business. It also consists of the products
and services offered by the business. The report focuses on the USP and competitor analysis
along with operational plans. The report explains the threats and the ways to avoid them in
the business along with the sales strategies and the management team.

Contents
EXECUTIVE SUMMARY...................................................................................................................2
INTRODUCTION.................................................................................................................................4
BUSINESS DETAILS...........................................................................................................................4
LOCATION..........................................................................................................................................4
MARKET ANALYSIS..........................................................................................................................4
PRODUCT OR SERVICE DESCRIPTION..........................................................................................7
USP AND COMPETITOR ANALYSIS...............................................................................................7
OPERATIONS PLAN...........................................................................................................................8
RISK AND CONTINGENCY PLANS.................................................................................................9
SALES AND MARKETING STRATEGY...........................................................................................9
FINANCE AND FUNDING PLANS..................................................................................................11
MANAGEMENT TEAM....................................................................................................................11
CONCLUSION...................................................................................................................................12
REFERENCES....................................................................................................................................13

INTRODUCTION
Entrepreneurship can be referred to a process where an individual creates a new
business plan or idea with an aim to bear the risk of the business along with enjoying the
rewards. The primary difference between a normal business and entrepreneurship is that the
entrepreneurship is a business with a twist of innovation. An entrepreneur who sets up a
business is known to be a source of various new ideas, services and goods. An entrepreneur
plays a crucial role in growth of an economy with the help of the innovative skills in order to
generate new ideas to the market. An entrepreneur proves themself as successful while taking
the risks while creating the startup is normally rewarded with profits and various
opportunities with growth on the other hand when an entrepreneur fails to prevail and expand
its business in the market loses its significance. The study revolves around a business plan
that was planned amidst the Covid-19 after I was fired from a job where I was working since
10 years. The organization paid me a sum of £75000 which I decided to invest in an
entrepreneurship business. The business plan for my idea is explained in the study (Aparicio,
Audretsch and Urbano, 2021).
BUSINESS DETAILS
The business idea revolves around the concept of Cloud Kitchen. The business is
basically a remote or a ghost restaurant which is a totally different concept from the
traditional restaurant. The business idea will require various kitchen tools and different
facilities that are required in order to prepare the meals. The businesses involved in cloud
kitchen don’t focus on the dining concept. Their focus is on online delivery of the food and
they have a specific target market based on the demographic and geographic factors. The
name of the business will be “The Food Cloud”. The business will focus on the people
residing in London. Also, The Headquarters for the business will be London. The people will
be able to order food through the various food delivery portals along with the app of the
business. The business will focus on delivering healthy, hygienic and balanced diet to their
customers. The business of the cloud kitchen will entertain only the online orders and deliver
the food at the location (Audretsch and Moog, 2020).
LOCATION
As the business idea for “The Food Cloud” is based upon a cloud kitchen. The
business focuses on the geographic location of London Only. The business is established at
the address 224, Baker Street, London, UK. The business operates as a virtual kitchen and
focuses on the home delivery options which take place on the basis of online orders.
MARKET ANALYSIS

For identifying the changing business environment, there are various marketing
techniques which helps an entrepreneur to determine such factors that can affect the
operations of an organisation. The two most common marketing technique which are
followed by entrepreneur to identify such factors are:
 Porter five forces model
 PESTEL analysis
Porter five forces model
The porter five forces model supports an organisation in determining various factors
which can influence the products and services which are offered by the company. The factors
which are determined by using porter five forces model are discussed below:
 Competitive rivalry- The competitive rivalry in the industry is high as there are
many other Italian restaurants which are also serving same type of food products and
are using different pricing and sales strategy that can make the business face new
challenges and affect the profitability of new venture (Berglund, Bousfiha and
Mansoori, 2020).
 Threat of substitution- The threat of substitution of products and services offered by
the business venture is high, as the products which are offered by the venture are also
offered by various existing restaurants, which creates and higher possibility of
substituting the products and services offered by the new venture.
 Threat of new entrants- For the new business venture, the threat of new entrants is
higher as new entrant can use effective research for analyzing marketing and sales
strategy for promoting the products and services and affect the profitability and sale
of existing business. New entrants in the same Italian food industry can adversely
influence the sale and revenues of existing companies.
 Potential of buyers- The potential of buyers is quite low, as there are variety of
options of other Italian restaurants operating in London and other offerings similar
products and dishes that diversify the industry. Such potential of consumers affects
the revenues of new business venture.
 Potential of suppliers- The potential of suppliers is low, as there are numerous
suppliers who are offering raw materials, resources and products at higher rates
throughout the industry. All the raw material requirements of the venture can be met
with the help of suppliers (Dabić and et.al., 2020).
PESTEL analysis

With the help of using this marketing technique different external environment factors are
identified, such factors are discussed below:
 Political factor- Political factors plays a crucial role in influencing the operations of
management. There are various political factors such as health and safety guidelines,
tax reform and political stability which affects the functioning of business venture
(Figueroa-Domecq, de Jong and Williams, 2020).
 Economic factor- Economic factors such as consumer disposable income, inflation
rate, exchange rate and other factors influence the managerial activities of business
venture. Due to increase in inflation rate, such factor can affect the price of raw
material which is used by the restaurant and can negatively influence the revenues and
customer engagement of the venture. Such factors can also create positive impact by
spreading awareness regarding the standard and hygiene factors which are followed
by the restaurant.
 Social factor- Social factors or socio-cultural factors can create an impact on business
environment. Due to rapid increase in health conscious customers, customers demand
premium quality and organic food products for maintaining a healthy lifestyle and
such factors effects the operations of the business venture from their menu to their
revenues and profit (Gupta, and et.al., 2020).
 Technological factor- The technological factor has been one of the major factor, as
rapid technological advancement has affected the regular activities of organisation
and payments methods used by the restaurant, and this has led to change in ways of
performing the daily activities of business venture.
 Environmental factor- Environmental factors such as use of ecofriendly material,
focusing on waste management and other environmental focused activities can
influence the functioning of management. By using ecofriendly material and
effectively managing the resources, it can help in reducing waste and using
environmental friendly strategies that can make the organisation to contribute in
sustaining the environment and building the brand image in the industry.
 Legal factor- Legal factors also plays a crucial role as various rules and regulations
are regulated by the government which involves health and safety laws and other laws
that restricts the operations of venture and creates a boundary under which all
ventures must operate (Jena, 2020).

PRODUCT OR SERVICE DESCRIPTION
Products- The business focuses on the concept of providing Italian cuisines through
its medium of cloud kitchen. The dishes included in the menu of “The Food Cloud” Menu
are-
The Food Cloud
MENU
Mushroom Risotto
Margherita Pizza
Pasta Carbonara
Pasta Con Pomodoro E Basilico
Caprese salad with Pesto Sauce
Services- The cloud concept idea of the business aims to provide high quality food which is
of high nutritious value through the convenience of online orders amidst the situation of
covid-19. The cloud kitchen focuses on delivering the food to their clients within a time span
of 30 minutes. The cloud kitchen based concept focuses on incurring high revenues with
maximum profit to the business idea. The cloud kitchen will focus on attracting customers in
order to create loyal customers (Landström, 2020).
USP AND COMPETITOR ANALYSIS
USP- Unique Selling Proposition is a concept which is followed by every business in order to
attract customer based on their unique concept of the business. The USP for the “The Food
Cloud” is to provide healthy and hygienic food to their customers with the comfort of their
homes during the pandemic. The main aim is to provide contamination free food which is
totally healthy and safe. Also, the business will focus on having economic prices of the food
offered in the menu so that it attracts more customers on a daily basis amidst the pandemic
(Liguori and Winkler, 2020).
Competitor Analysis- The competitor analysis allows the business man or the entrepreneur to
conduct a research of the market and analyze the market scenario. The competitor analysis
helps in identifying the competitors and the rivals of the organization. The market analysis
helps in analyzing if the products and services that are being offered by the businesses are
fulfilling the demands of the customers or not and also if they are up to the expectations of
the customers. The analysis helps in setting up standards in order to achieve them in near
future. This will help the business in identifying the growth opportunities of the business
along with the threats. The competitor analysis is done by studying the various factors. The
factors are explained below-
 Identification of the competitors- It is very important for the entrepreneur to identify
their competitor who can have an impact directly or indirectly upon the revenue and
profit of the business.

 Identifying the pricing strategy of the competitors- The competitor analysis helps in
identifying the pricing strategies that are being followed by the competitors. This will
help in making the changes in the budgets for the business in order to formulate a
better budget which will reduce the cost incurred in operation of the business. The
entrepreneur can adopt the perks and offers offered by the competitors in order to
attract and retain the customers (Mickiewicz and Rebmann, 2020).
 Identifying the products and services offered- The competitor’s analysis helps in
gathering knowledge about the products and services of the competitors so that the
ones which are popular or in trend can be adapted by the entrepreneur too in order to
gain more market share.
 Analyze the marketing strategies- The competitor’s analysis help in analyzing the
marketing strategies adopted by the competitor in order to attract and retain the
customers in order to create customer loyalty. It is important to know the marketing
strategies in order to analyze where the business might lack in capturing the
customers for the business.
 Research on selling strategies- The competitor’s analysis helps in conducting a
research on the marketing strategies of the competitors. This helps in analyzing the
volume of sale with the help of various marketing channels and same way it will help
in identifying the strategies which can be adopted by the entrepreneur to flourish its
business in the market (Ratten and Usmanij, 2021).
OPERATIONS PLAN
The operational plans and activities are to be followed by as per the plans of the
entrepreneur in order to aim a profitable and successful business in the life span of the
business. The various operations performed by the entrepreneur for the business concept of
“The Food Cloud” are explained below-
 Obtaining the raw material- The entrepreneur must focus on obtaining or gathering
the raw material for the business and ingredients from a prominent source which
provide high quality products to meet with the demand and expectations of the
customers regarding the food. The entrepreneur must maintain a checklist on the
regular basis in order to assess the need for the operational activity.
 Resources- The entrepreneur must focus on the optimum utilization of resources in
the business in order to avoid the wastage of the ingredients which indirectly adds up
to the cost and decreases the profits for the organization. This is very significant for
having an effective management ( Secundo, Rippa and Cerchione, 2020).
 Production capacity- The production capacity is determined and analyzed by the
entrepreneur in order to predict the capacity of production as per the resources
deployed in the business. It helps in avoiding the wastage.
 Planning- It is very important for the entrepreneur to plan each and every step in the
production and significantly create a brand image of the business in the market. It
helps in benchmarking the aims that are to be achieved with the help of the resources
deployed.

 Controlling- The entrepreneur must monitor the business activities in order to keep a
check on the production. In case of any deviations the entrepreneur must suggest ways
to enhance the performance and avoid the deviations in future. This will help in
building a better image in the market (Terán-Yépez and et.al., 2020).
RISK AND CONTINGENCY PLANS
The entrepreneur is surrounded with various risks that are considered as threat by the
business. The various risk will affect the business functioning of the cloud kitchen concept by
the “The food cloud”. The various risks associated with the business are explained below-
Risk Impact Mitigation
High competition The high competition will
decrease the sources of
revenue as the market share
will be divided among the
competitors.
The strategies adopted by
competitors which might
help in flourishing the
business can be adopted.
Product Pricing The pricing of the products
must be done significantly in
order to avoid loss of
customers.
The pricing strategies
adopted by the competitors
can be followed in order to
avoid the risk.
Choice of product offering The product or menu must be
in accordance with the need
of the customers and as per
the expectations or the
business might prove as a
failure.
The menu must be created
after a proper research in the
market in order to deliver
food as per the expectations
of the customer.
SALES AND MARKETING STRATEGY
Sales and marketing is one of the important department of organisation which
ensures continuous and smooth flow of all managerial activities in the business. The sales and
marketing strategy are planned strategies of business which supports an organisation in
improving image, increasing revenues, profitability and gaining competitive advantage from
the performed functions. In relation to the business venture, the sales and marketing strategy
and planned objectives are discussed below:
Sales and marketing objectives of business:
 To expand the market share of business venture by 30% in 1 year
 To enhance revenues of business venture by 50% in 7 months of operations
STP Approach

This technique focuses on enhancing the sales and revenues of a business. In relation
to the business venture, the effective implementation of STP approach is discussed below:
Segmentation- Segmentation is the initial stage which helps the business in
classifying the market into smaller segments and implement the marketing strategies that can
help in accomplishing effective outcomes. In relation to the business venture, the restaurant
will use demographic and geographic segmentation of the market to target numerous
customers. The restaurant will target all genders and people of age group from 18 to 70 where
they can target middle and high class families as the major target market of the restaurant
(Thompson, Verduijn and Gartner, 2020).
Targeting- Targeting is the factor which supports an organisation in targeting the
desired segment of the market based on the customer demands. One of the most important
elements that the restaurant would examine is accessibility. In relation to the business
venture, the restaurant will focus on the accessibility and reach to the customers and will
form various strategies and implement such strategies and techniques which will help them in
managing the cost and targeting huge number of customers that will ultimately lead to
business expansion, effective business growth increased brand image and higher profitability
of business.
Positioning- This is the last strategy of this approach, where a business focus on
following the strategies for positioning their products in the market. In context of the business
venture, the venture will use symbolic positioning and social media platforms which will help
them in targeting huge number of customers and enhance the brand image of the restaurant
among larger market segment in the industry.
Marketing mix strategy
Marketing mix approach is an effective marketing strategy which supports in
promoting and forming effective strategies for business. The marketing mix of the business
venture is discussed below:
Price- The business venture will target middle and high class customers as the
restaurant will follow cost plus pricing strategy which will help the venture in offering the
products and services at reasonable rates and also in earning fruitful amount of profits from
the dishes and products which are offered by the restaurant to the customers.
Place- This marketing factor is one of the important element of targeting customers,
as this can majorly affect the sale and revenue of business. As the restaurant will be operating
in Baker Street of London, it will be a greater opportunity for the restaurant for easily
targeting the desired segment of the market. The location where the business venture is
operating is one of the famous location in London which will help business in engaging with
more customers (Wadhwani and et.al., 2020).
Product- This factor of marketing mix is a significant factor which defines the
products and services that are offered by venture. In relation to the above mentioned
restaurant, the venture will have wide variety of products such as: Bruschetta, Margherita

Pizza, Mushroom Risotto and many other dishes which will be served by the restaurant to
meet the demand of the customers. The restaurant will focus on attractive and appealing
presentation, quality, taste and hygiene of the product and services in systematic manner that
can help in meeting the customer demand and creating goodwill in the industry.
Promotion- Promotion is another important factor for marketing which can enhance
the customer engagement and profitability of business. The restaurant mentioned above will
follow various promotional techniques which will help them in promoting the products and
services offered by them. The restaurant will use social media platforms, pamphlets and
advertise their products and dishes by using these platforms which will help them in reaching
to higher target market and promote their services. Such mediums will help the restaurant in
attracting more customers, increasing the revenues of restaurant and creating a strong brand
image in the industry that will also help in facing high competition and meet the planned
sales and marketing objectives of the business venture (Zahra, 2021).
FINANCE AND FUNDING PLANS
The source of funding which has been used by entrepreneur for opening a restaurant in
London involves- self-investment and capital investment with the help of venture capitalist.
The sources of funds are discussed below:
 Self-investment- As due to global pandemic, this has affected the job which I was
working and for that I have received huge amount of financial resources from the
organisation as redundancy which was one of the major source of investment for
opening an Italian restaurant in Baker Street which is one of the famous locations of
London.
 Venture capitalist or angel investors- Venture capitalist or Angel investors has been
another source a funding and financial resources for opening and running a restaurant
in London and in a business venture which I wanted to do from a long time.
SEGMENTS ESTIMATED COST
Raw material cost £12000
Human Resource cost £15000
Operational cost £21000
Maintenance cost £12000
Transportation cost £15000
TOTAL £75000
The total cost estimated for operating the business of cloud kitchen would sum up to £75000
that could be used by the entrepreneur. This is the cash flow required for operation of the business in
the first year.

MANAGEMENT TEAM
The team management is a crucial part of the business as the whole staff works as a
team in order to achieve the targets of the business. The team of the business comprises of-
 Leadership- It is very important to have a proper guidance in order to operate the
business successfully.
 Cash management- It is important to manage all the cash inflows and out flows in a
business in order to operate a successful business.
 Raw material- It is important to deploy staff who will initiate and manage the
availability of the raw materials in the business.
 Marketing personnel- It is important to promote the business through various social
media network and online portals to attract customers and hence it is a part of team
work.
CONCLUSION
It can be concluded from the above study that entrepreneurship is a significant skill
required in order to operate a successful business. The study focuses on a business plan of a
cloud kitchen concept named as “The food cloud”. The business plan consists of the market
analysis of the business. It also consists of the products and services offered by the business.
The report focuses on the USP and competitor analysis along with operational plans. The
report explains the threats and the ways to avoid them in the business along with the sales
strategies and the management team.

REFERENCES
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