Developing Entrepreneurial Capability and Mindset: Business Plan for New Drink Cafe in London

This report discusses entrepreneurship and the importance of a business plan for a new drink cafe in London. It covers key operating activities, target market, value proposition, marketing mix options, and available resources such as financial, human, and social. The report also includes a reflective log on entrepreneurship and the mindset required for success.

Entrepreneurship and
Business plan

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
Overview of the business idea................................................................................................4
Target market/potential customers.........................................................................................4
Value proposition e.g. niche, differentiation, price leadership...............................................5
Marketing mix options – Price, Promotion, Place of sale, Product/service features..............5
Resources available e.g. financial, human, social (networks)................................................6
Key operating activities of the new venture ..........................................................................7
Critical success factors e.g. having a website up and running...............................................7
Risks associated with new business and its management......................................................8
Potential profitability and approximate break-even timescale...............................................8
Reflective log........................................................................................................................10
CONCLUSION ...............................................................................................................................1

INTRODUCTION
Business plan is considered as a key approach which is beneficial in supporting a start up
business idea. It is very much essential to develop and formulate a business plan before starting a
business in order to develop strategic and planning framework (Bridge, 2017). Most of the
successful business organizations which are effectively performing at the marketplace has also
taken support of business plan in order to develop effective operations at the marketplace. In this
project an innovative business plan is prepared along with considering effective measures and
consequences that are faced by a new business. In this report example of New Drink Cafe for
the business plan is taken into consideration which will be opened in London, United kingdom.
The cafe will provide different flavoured Smoothie to customers on affordable prices.

MAIN BODY
TASK 1
REFELECTION
I Understand that entrepreneurship is a major type of business which is performed in
order to earn profit at the marketplace. I am having precise knowledge related to
entrepreneurship which will help me in developing future aspects. In my views, entrepreneurship
helps an entrepreneur to get self dependant and earn immense profit at the marketplace. The
main idea behind entrepreneurship is to facilitate development of business operations. I consider
that main task of an entrepreneur is to manage daily tasks and functions of a business in a
systematic manner. All major companies in the international marketplace focus on development
of operations according to market demand. Skill development is a key and main approach in
order to develop essential capabilities in an entrepreneur (Din, Anuar, and Usman, 2018)(Efobi,
and Orkoh, 2018). The main role of a business is to analyse the importance of skill development
and provide training to employees. An entrepreneur must focus on development of key
competencies and abilities which are helpful in major growth of a company. The perception and
mindset of entrepreneur also plays a key role in development of precise growth of a business
entity. I understand that it is key role of an entrepreneur to focus on analysing key opportunities
which are available at the marketplace and develop functioning accordingly.
I have gained knowledge related to entrepreneurship which will help me in development
of professional career. The main technique behind entrepreneurship is formulation of a planning
and strategic framework which will helps in development of systematic operations. The scope of
entrepreneurship is also very large which will help me in achievement of career based
milestones. As an entrepreneurial individual, I will take into consideration the risk management
approach which is helpful in eliminating risk associated with the operations. I will also focus on
development of management plan which ensures all major strategic actions which are required to
develop focus on key functions and activities related to business. As an entrepreneurial
individual, I will also analyse the contemporary factors related to business environment. Skill
development is also one of the major factor which is helpful in development of entrepreneurial
activity. I believe that, there are certain skills which should be there in an entrepreneur that are
important for growth and expansion of a business. An entrepreneur must also have key skills

which are important for management of employees and manpower in a business. I consider that,
the communication skills are one of the major skills which are helpful for an entrepreneur to
easily communicate with subordinate employees (Hopp, and Greene, 2018). It is also one of the
major role of an entrepreneur to focus on development of time management skills. The time
management skills will help an entrepreneur to manage day to day routine tasks related to a
business in a well defined manner. I will focus on development of coordination skills which are
important for managing work based coordination.
Entrepreneurship personality trait theory states entrepreneurship is developed because the
individuals called entrepreneur possessed certain specific taints or characteristics or
competencies which made them capable of generating new ideas and creating a new venture. The
innovation must be also facilitated by a business in order to focus on new product development.
Development of a new product will boost a business by increasing sales figures and revenue. It is
also key role of an entrepreneur to focus on development of effective strategies by the help of
new ideas. Creating a new venture is also one of the major goals of an entrepreneur in which all
new types of business functions are performed. Main task of a business should be to focus on
creating new ideas in order to lead the contemporary marketing trends. This is also one of the
major role of an entrepreneur to develop dynamic personality in order to influence other
employees. It is also one of the major role and responsibilities of an entrepreneur to develop
knowledge of contemporary business environment to focus on development of a business. The
fund requirement is considered as key approach which will decide effective requirement of a
business entity (Katz, 2018). Creating a business venture is not an easy task, it is main role of a
business to focus on whole start up process which is required for establishing perfect business.
As an entrepreneur I will also focus on development of major business areas which are human
resource, strategic, marketing and financial management in order to perform effective business
operations. Also the key skills like leadership, decision making, problem-solving and critical
thinking are helpful in development of focused business operations. In the recent times, it is also
important for an entrepreneur to analyse competitive environment and develop strategic
framework accordingly. An entrepreneur should also perform evaluation of all market forces and
develop competency edge. Opportunities which are present in the business environment should
also include focus on the development of a major and strategic approach which is helpful in
overall growth.

TASK 2
Overview of the business idea
The business idea is considered as major type of business plan which focuses on
development of business activities in corporate world. The business idea taken into
consideration, which is related to opening a New Drink Cafe in the heart of London city. Name
of the Cafe will be “Smoothies for you” and it will be located in heart of London City. The cafe
will provide world famous smoothie drinks to customers and will also offer large variety of
snacks. Smoothies for you will also provide entertainment facilities for the youth which will
include dance and theme shows in the cafe. The flavours of smoothie drinks will be strawberry,
chocolate, blueberry, cherry and many more.
Target market/potential customers
In order to develop a target marketing approach, Smoothies for you cafe will conduct a
segmentation, targeting and positioning analysis. The STP analysis helps a company to develop a
major approach in marketing operations. STP analysis for Smoothies for you is mentioned
below:
 Segmentation- Segmentation is a major marketing approach, which is helpful in dividing
the whole market according to approachable groups. The segmentation of Smoothies for
you cafe will be developed my marketing department in a professional manner for
achievement of desired results (Kolb, 2020). The segmentation of Smoothies for you cafe
will be done on demographic basis in order to increase sales. Smoothies for you cafe will
focus on geographical location to gain maximum customers. The Cafe will be opened at
Westminster and Camden, which will provide effective results in a short period of time.
 Targeting- Target customers are important for every business, who decide the
profitability and sales of a business. The target market of Smoothies for you cafe will be
young people of London, the Cafe will provide the menu planning accordingly. In the
recent times, new business has to focus on serving target customers with main priority in
order to increase the revenue and profitability. The Cafe will target youth from the age
group of 18 to 27 years and provide services accordingly.
 Positioning- The positioning is described as where the product or service stands in
relation to major competitors. As it is an innovative idea, the products of Smoothies for

you cafe will be definitely gain competitive edge in the marketplace. Innovative drinks
will be liked by youngsters as the drink will be prepared by professional chefs.
Value proposition e.g. niche, differentiation, price leadership
It is essential for a business to develop niche, differentiation and price leadership in order
to lead the marketplace. Value preposition and its development helps a business entity to
increase profitability and gain competitive advantage. The following element of value
preposition is explained below in context of Smoothies for you cafe is mentioned below:
 Price leadership- The price leadership is a major factor which includes development and
setting prices in order to attract large number of customers. The price leadership of
Smoothies for you cafe will be unique and formulated by financial management and
marketing management in order to achieve optimum results (Kuratko, and Hoskinson,
2017). The price differentiation includes variation in prices of a business as compared to
its competitors. Prices for Smoothies will be also set according to a market survey, which
will be formulated and conducted by marketing management. The Smoothies for you cafe
will also try to set affordable and reasonable prices for flavoured drinks in order to
increase their sales and attract customers to new business.
Marketing mix options – Price, Promotion, Place of sale, Product/service features
Marketing mix options create a value development of a business by increasing sales and
turnover of the company. The major elements of marketing mix for Smoothies for you cafe are
mentioned below:
 Price- The price is considered as value of a commodity which includes the cost of a
product and profit margin of company. Smoothies for you cafe will decide effective
prices for its products and services to seek attention of target customers. All flavoured
smoothies will be offered at an optimum prices to different customers. The Cafe will also
provide effective discounts and offers in order to seek attention of customers. Smoothies
for you Cafe will also follow the concept of “Happy hours” in which the drinks will be
offered at superb discounted price in a set time period.
 Promotion- Promotion is considered as main business activity which is related to
perform advertisement of product. The promotion includes advertisement and publicity of
Smoothies for you cafe. The Cafe will select information and technology which will
include internet and social media to reach customers with maximum coverage. The social

media websites like Twitter, Instagram and Facebook will be used by Cafe to reach
target customers. The cafe will also design a new website with the help of IT experts for
developing its operations and functions at the marketplace.
 Place- The place is related to geographical location selected by a company in order to sell
products and services (La Rocca, 2020). It is essential for Smoothies for you cafe to
choose best location for development of effective operations. Smoothies for you cafe will
be situated in the heart of London City in order to perform effectiveness in different
operations. The proposed location for cafe will be near Westminster and Camden, which
is a great and reliable location for business in London City.
 Product- Product is the main output of a company which is produced for satisfying wants
and needs of different customers. Smoothies for you cafe will follow concept of total
quality management in its product development in order to satisfy wants and needs of
different customers. The major products of proposed business will include flavoured
smoothies like Chocolate, strawberry, Mango, Honey, Papaya and many more.
Product development of the cafe will be facilitated by kitchen department. This will help
Cafe to increase customer satisfaction and provide innovative drinks.
Resources available e.g. financial, human, social (networks)
The main resources which are available to Cafe Youth are mentioned below:
 Financial- The financial resources are considered as main resources which are related to
monetary resources. It is compulsory for a new business to focus on financial resources in
order to lead the marketplace in a set period of time. The Smoothies for you cafe will take
loan from Barclay's bank for the period of 5 years. Also the cafe will hire professional
employees in financial management in order to maintain accounts of new business. The
Smoothies for you cafe will also take into account all financial needs of business by
developing a budget. The preparation of budget will help cafe to develop focused and
systematic operations at the marketplace.
 Human- The human resources are the employees of a company which are managed by
human resource management (Le Dinh, Vu, and Ayayi, 2018). It is major role and
responsibility of a business to focus on Human resources in order to maximise the output.
The Smoothies for you cafe will hire seven employees in kitchen management along
with one supervisor. The Cafe will also have one manager, who will manage all major

operations of new business in a precise manner. All the human resources of cafe will be
managed by a professional HRM manager in order to increase productivity of
employees.
 Social- Social networking concept is a major term which includes the connection of
individual with other people and businesses by allowing them to share information, ideas
and messages. This concept will be useful for Smoothies for you in order to create a
brand image in front of target customers. The Smoothies for you cafe will also socially
promote its products and services along with answering customer queries and concerns of
customers.
Key operating activities of the new venture
It is majorly important for the Smoothies for you cafe to focus on key operating activities
in order to perform all the new business operations in a precise manner. Key operating for a
company includes manufacturing, sales and advertising which are mentioned below in context of
Smoothies for you cafe:
 Manufacturing- The new venture should also focus on manufacturing department in
order to provide quality products. Flavoured drinks will be manufactured and prepared by
professional and experienced chefs in order to deliver best taste.
 Sales and advertising- All major products which will provided by Smoothies for you
cafe should include effective sales and advertisement activities by the marketing
department (Meor Hamdan, 2019). Choosing appropriate advertisement techniques and
tools is also important for the Smoothies for you cafe in order to gain competency edge.
Critical success factors e.g. having a website up and running
It is important for Smoothies for you cafe to focus on different success factors which are
available at the marketplace. Major success factors of the new cafe are mentioned below:
 Website and application development- The Smoothies for you cafe will create a
website with the help of professional IT experts in order to develop at the marketplace.
Cafe will also focus on development of application which will be available on IOS and
Android platform. This will help the cafe to perform all operations in an effective
manner and it will be easier for the customers to access company's activities.

 Online delivery- The Smoothies for you cafe will also focus on development of online
delivery in major areas of London in order to gain large customers. Online delivery of the
flavoured drinks will be performed by well trained delivery agents. The cafe will design
its website in a proper manner with elimination of bugs in order to perform online
delivery operations.
Risks associated with new business and its management
Risk is considered as essential part of a business which creates various issues and
challenges for the business. It is necessary for a business to focus on risk minimisation for
overall development of the company. The Smoothies for you cafe will also use various effective
risk minimisation models and approaches to overcome various challenges. Major risks associated
with new business in context of Smoothies for you cafe are mentioned below:
 Risk of competitors- The risk from competitors in the case of Smoothies for you cafe
will be low as it is an innovative business. It will create a less or minimum burden on
management, which is a major advantage.
 IT based risk- The Smoothies for you cafe will face various information and technology
based risks like virus, threat from malware and privacy concerns. In order to deal with the
risk, it is essential for the cafe to take help and assistance of IT experts.
 Marketing risk- New Smoothies for you can face marketing risks like failure of
advertisements in convincing customers (Rascão, 2020) This can impact on profitability
and revenue of the business and can be a major concern. In order to eliminate market risk,
it is essential for the New cafe to take assistance of well trained and experienced
marketing staff.

Potential profitability and approximate break-even timescale

Illustration 1: Break even analysis graphics, 2022

REFELECTIVE LOG
I as a new entrepreneur in this market faced a lot of hardships and difficulties to establish
this business entity in industry. Being the only one, firstly it was hard to follow up with my
dream to have this business. Then to arrange for its funds, resources, human power, place and all
other were none the less hardship tasks, that I had to go through. The learning with this business
has been continuous with all its work. I tried to explore major business opportunities like growth
and expansion at the marketplace. I have analysed market trends in order to develop new
business operations according to contemporary business environment. I will also focus on
development of business strategies and planning frameworks which are important for business
development. I have also analysed the application of various models and theories which are
important for business growth. In order to achieve aims and objectives which are set by me, I
will take support of precise and systematic strategy. I will also hire professionally trained experts
to perform major and key business operations. The technique of marketing which is
segmentation, targeting and positioning has helped me to achieve effectiveness in analysing
market potential (Phuengpunum, Piromsopa, and Songkram, 2018). In order to develop a
systematic approach related to financial management, I have also calculated the potential
profitability and break-even analysis.
Risk management related to new business was essential for me in order to develop a
focused and major approach in dealing with risk associated with operations. With the help of key
risk management techniques, I will be able to focus on market forces which are creating risk for
the new business. The analysis of critical success factors and opportunities also helped me to
formulate a key approach in dealing with different consequences related to a business. The
resource utilisation is considered as key approach which is beneficial in increasing potential of
the business. In the recent times, it is very much essential for a new venture to perform optimum
utilisation of resources to develop at the marketplace. The application of marketing mix also
helps a company to analyse key competitive factors which are supporting to marketing
operations. I will will use my knowledge which I gained during this assessment in order to
achieve future milestones. Business plan is a wider term which includes key focus on different
areas of a business like marketing, human resources, financial and marketing management. All
major companies in the international and national marketplace focus on development of
systematic operations to gain competency edge. I have also learned that it is essential for an

entrepreneur to analyse key marketing forces which enables in development of promotion. The
use of digital tools like social media and internet also helps a company to deliver best practices
related to promotion. In the recent times, the main function of a new business is to analyse
deeply all external and internal factors which impact on a business.

CONCLUSION
From the above stated report it can be concluded that planning plays a major role in
development of a business. It is also one of the major role and responsibility of strategic
management of a new business to focus on business planning in a precise manner to achieve
effective goals and objectives. In the recent times, it is compulsory for a business to pre plan for
its survival in the marketplace due to increased competition. This project concludes role played
by available resources of a business in its development. This report also concludes effectiveness
of marketing and human resource strategy for a new business.
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