Entrepreneurship: A New Business Plan for Success

This document discusses the actions an entrepreneur takes to run a successful business and maximize long-term viability and profitability. It covers market analysis, operational planning, risk analysis, and more.

ENTREPRENEURSHIP

EXECUTIVE SUMMARY
The project will be based on a new business plan and will focus on the actions that an
entrepreneur will take to run a successful business. The firm strategy's prospects will be
determined, with the objective of maximizing long-term viability and profitability. Identification
of the new venture's site, market study, USP of the new enterprise, operational planning, risk
analysis, market analysis, and establishing the source of money and budgets that will help the
business run competitively are all aspects of the research. The project will be divided into several
stages, each of which will reflect important information about the entrepreneur's goals.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
BUSINESS DETAILS.................................................................................................................4
MARKET/ INDUSTRY ANALYSIS.........................................................................................4
PRODUCT/ SERVICE DESCRIPTION.....................................................................................7
USP AND COMPETITOR ANALYSIS.....................................................................................8
OPERATIONS PLAN.................................................................................................................8
RISK AND COTINGENCY PLAN............................................................................................9
SALES AND MARKETING STRATEGY...............................................................................10
FINANCE AND FUNDING PLANS........................................................................................11
MANAGEMENT TEAM..........................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurship is one of the ability of a person to have a visionary eye for starting a
new business venture that can help the business in meeting the organisational objectives and earn
maximum profits. In other words, it is the activity of setting a new business by taking financial
risk in relation to earn maximum profits that can help the business venture to grow on the market
place and sustain for longer period of time span (Alvarez and Barney, 2020). Entrepreneurship is
an act of being an entrepreneur who manages the business, willing to take risk, face
uncertainties, plan strategies and try to make an attempt for earning maximum profits. The report
is based on the introduction of new business plan and how the venture will operate for generating
higher revenues and maximizing the profits. The report will define the market analysis by using
market analysis technique, define the products and services and USP of the new business
venture. The report will quote competitor analysis, operation plans, risk analysis, sales and
marketing strategy, finance plans, source of funding and management approaches which will be
followed by the business.
BUSINESS DETAILS
The business venture will be based on a bakery and will be operating under the label of
“The Baking Heaven”. The bakery will be offering variety of confectioneries which will include-
patisserie, cookies and cakes. The major focus of bakery will be using ecofriendly packaging
while online delivering their products. The venture will also focus on regularly sanitizing and
keeping the area clean which will ensure our customers that the environment is clean and safe.
The bakery will offer dine-in, take-away and online delivery services.
Location- 224, Bakers Street, London, UK
MARKET/ INDUSTRY ANALYSIS
The bakery industry in UK is worth £3.9 billion and holds a substantial portion in the
food economy in the food. The overall value of bakery industry is over £4 million units equating
to over 11 million loaves and packages sold per day. The bakery industry in UK is classified in
three categories which involves- large baking firms, in-store bakeries and High Street retail
bakers (Baker and Welter, 2018).
PESTEL Analysis

PESTEL analysis is a marketing analysis technique which helps in analyzing and
monitoring the macro business environment. With the help of Pestel analysis, various factors
such as- political, economic, social, technological, environmental and legal factors are
determined which can influence the managerial activities of business. The impact of such factors
on business activities are discussed underneath:
Political Factors- The political factors involve government intervention which can
include reawakening the food manufacturing industry. The positive impact of political factor due
to UK coalition government is understanding the need for food manufacturing companies by
following low carbon economy (Blundel, Lockett and Wang, 2017). The increase in tax, level of
corruption, trade regulation, political stability, price regulation are such factors which effects the
operations of bakery industry operating in UK.
Economic Factors- Economic factors can threaten the profitability of business venture
operating in bakery and food sector, as due to decline in importance of such industries can affect
their profitability. The other factors such as global recession has further lead to decline in
business profitability. Economic factors such as interest, inflation and exchange rate and
economic conditions create an influence on the managerial activities at success of business.
Social Factors- Due to change in social cultural factors, the number of female workers
has increased which ensure growing demand of precooked supplies. The factors such as-
believes, attitude, interests are some factors which influence the business activity in a bakery
industry.
Technological Factors- The technological advancement has created positive impact, as
the business venture can globally transport and improve their production methods which can help
the business and meeting demands of customers (Chakraborty, Thompson and Yehoue, 2016).
This factor helps in covering wide market area and reduced tariffs and trade in various
geographic locations. The rate of technological diffusion can also influence the profitability and
machinery which is used by the business.
Environmental Factors- The environmental factors such as corporate governance, laws
and regulation effects business activities. By following all listed rules and regulation it will help

the business venture to successfully operate in the food in bakery industry by minimizing the
damage to environment and also focus on managing and minimizing production waste.
Legal Factors- The legal factors include- code of practice which is imposed by food
retailing commission (FRC) and such factors influence the output of a business. The venture was
focus on following legal plans and policies which influences the access to raw materials and
directly impacts the production of business operating in bakery industry.
Porter Five Forces Model
Porter five forces model helps in understanding the competitive environment of an
industry. This model helps in understanding internal competition, potential of suppliers and
buyers, threat of new entrants and substitution of goods and services (Chowdhury, Audretsch and
Belitski, 2019). In relation to the bakery industry, the analysis of porter five forces model has
been explained below:
Competitive rivalry- There are many other businesses which are operating in bakery
industry. The industry has been segmented by various small bakeries which contributes in
economies of scale. The business operating in the bakery industry gives high competition on the
basis of price, quality, differentiation and relationship with the key suppliers.
Threat of substitution- As there are many other bakery products and companies
operating in the industry, breakfast, cereal, rice and potatoes are alternatives which can substitute
the products offered by the business. As the bakeries rely on price and convenience which helps
in employee retention and reduce employee switching and also helps in retaining and attracting
more number of customers.
Threat of new entrants- The threat of new entrants in the industry is low, as a new
venture will be established but the small amount of capital (Edoho, 2016). Whereas, the two
main factors which can influence are distribution channel which can be acquired by an effective
leader and their skills for increasing brand image in the industry.
Potential of buyers- The potential of buyers of bakery industry is high as they can
demand low prices and volume discounts through which the business can meet the demands of
the customers.

Potential of suppliers- The power of suppliers is high as this gives them high negotiating
power and offer well developed markets for the products and services which are offered by the
company.
PRODUCT/ SERVICE DESCRIPTION
Products- The company venture's goods will primarily focus on providing premium and
best-quality raw materials, allowing them to supply premium-quality items to clients and attract
more business. The bakery's goods will be eggless and created with high quality and exquisite
raw ingredients, allowing the bakery to retain its standards and cleanliness levels. The items that
the company venture will sell are displayed in the menu below:
The Baking Heaven
Menu
Cakes
Apricot cheesecake
Blueberry cheesecake
Classic walnut fudge cake
Patisserie
Chocolate éclair
Canele
Tarte myrtille
Cookies
Chocolate chip cookie
Walnut cookie
Cinnamon and pistachio cookie
Services- By working with delivery providers, the bakery will be able to satisfy
consumer requests and compete in the marketplace by offering dine-in, takeout, and online
delivery options. The bakery will guarantee that the venture's customer service is of the highest
quality so that customers are satisfied and earnings are maximized.

USP AND COMPETITOR ANALYSIS
USP- The company's USP is to offer high-quality raw materials and provide excellent
customer service in order to create and retain a competitive position in the market. The bakery
claims to provide high-quality cuisine, quick and courteous service, a clean and sanitary
atmosphere, and environmentally friendly cutlery and packaging, all of which will help the
business contribute to green practices (Eesley and Lee, 2021). The business will be focused on
providing good value for money in terms of its products and services.
COMPETITOR ANALYSIS- Competitor analysis is a strategic business system for
determining existing and future rivals' strengths and weaknesses. The procedure also aids in
assessing competitor organizations, goods, sales, and marketing tactics. The competition analysis
must take into account a number of factors, including who the target market is, what the key
challenges are, and how the problem may be handled. Approaches to competitor analysis aid in
the examination of a number of aspects, some of which are included below:
 Create a marketing strategy- An successful GTM strategy focuses on market customer
analysis, competitive pricing strategy, items supplied, and the channels through which the
company communicates with consumers. An effective competition analysis aids in the
knowledge of market dynamics, which aids in the formation of effective strategies that
can aid in reaching target consumers and determining how the business and provided
items fit into the present context.
 Identify opponent business strategies- Researching rival business strategies such as
pricing, sales, and marketing strategy may assist in identifying existing organisation ways
for acquiring more customers, generating more revenues, and maximizing profits (Hsieh
and Wu, 2019). This will also assist the new business in developing unique tactics for
attracting more clients and increasing earnings.
OPERATIONS PLAN
This is the process of planning strategic goals and objectives for achieving goals and
objectives. Operation plan is a detail oriented plan which helps a business in meeting their
organisational goals. The following mentioned operational activities are followed by the bakery
in order to start the venture and meet organisational objectives, such operational activities are
discussed below:

 Planning- The planning process followed by the bakery will involve planning all
strategies through which they can plan out all activities which will be helpful in planning
all activities that can help in avoiding wastage and manage the cost effectively.
 Organizing- Through organizing the daily activities of the bakery, it will be helpful in
meeting the demands and managing all operations of the business that can be effective for
facing the competitive scenario in the business environment (Iglesias-Sánchez and et.al,
2016).
 Monitoring and controlling- Through regularly monitoring and controlling the regular
activities of the business it will be helpful for the bakery to monitor the activities and
resources which will be helpful in effectively managing the resources, managing
inventories, avoiding excess usage and wastage of products.
 Resource management- The resources will be managed effectively be regularly
monitoring and tracking all activities of the business which will be helpful for avoiding
wastage and managing all inventories effectively.
 Production capacity- The entrepreneur will be able to better regulate the quantity of raw
materials necessary and reduce wastage by carefully calculating all predicted demand.
Serving the right amount of food for the right dish can help you meet client demand while
also optimizing your resource usage.
RISK AND COTINGENCY PLAN
There are a number of things that might endanger the bakery and act as significant risk
factors that affect the bakery's managerial function (Kuratko and Morris, 2018). The following
are some of the responsible variables that serve as risk, as well as the many methods that will be
used to mitigate such risk:
RISK FACTORS IMPACT STRATEGIES
Pricing strategy The pricing strategy of the
restaurant can be one of the
major factor which affects the
revenues and profitability of
the business.
By using economy pricing,
this will help the bakery in
setting low budget, fast-
moving products at lower
prices through which the
bakery can generate higher

revenues and maximize their
profits (Link and Strong,
2016).
Product quality The quality of the product is
one of the major factor which
affects customer interest in
the business and affects the
success and profitability of
business.
The quality of the products
which will be delivered by
the bakery will be focused
and closely monitored which
will be helpful for ensuring
customers the premium
quality of products and raw
material used by the company
(Lyons and Zhang, 2018).
SALES AND MARKETING STRATEGY
Sales and marketing functions are major functions which needs to be performed by a
business. With the help of effective sales and marketing strategy, a business can target the
market effectively and enhance the profitability of business. In relation to the new bakery which
will be operating in London, it will require innovative sales and marketing strategy for
accomplishing effective revenues. In accordance to the bakery, the sales and marketing plan
which will be followed is mentioned underneath:
 By following effective marketing strategies increase the sale and revenues of business in
first six month of operation.
 To increase the marketshare by 40% during 8 months of period.
MARKETING MIX
Marketing mix approach is a marketing strategy that supports a business in promoting
and advertising their products and services in the market place. The marketing mix strategy
involves 4 P's which are- price, place, product and promotion and the marketing mix strategy
adopted by the bakery is explained below:

Product- The bakery will offer a wide variety of products and the diversity of products
will be a source for attracting more customers and getting their attention (Maritz and Donovan,
2015). In order to satisfy the customer demand and improve their dining experience, the menu
will have diverse choices which involves- Blueberry cheesecake, Classic walnut fudge cake,
Chocolate éclair, Canele, Chocolate chip cookie, Walnut cookie, Cinnamon and pistachio cookie
and many others. The bakery will focus on delivering quality customer experience by focusing
on quality, presentation, taste and delivery of the products that can be the demands of the
customer's.
Price- It is another important factor of marketing which affects the revenues and
profitability of a business. In order to target the market and attract more customers, the bakery
will use economic pricing strategy which will help them in attracting more customers in meeting
the demands that can ultimately lead to incline in profitability and higher revenues of the
business and it will also help in establishing and maintaining the brand image of bakery in the
industry.
Place- The location and venue is a factor which affects the sales of a business and
marketing strategy will focus on this factor and in relation to this, the bakery will be operating in
Baker Street which is one of the famous Street of London and it will attract and catch an eye of
more customers which will be an advantage for the bakery to generate more sales and promote
their products and services to our customers.
Promotion-Promotion can be done through various mediums which involves-
newspapers, TV, advertisement, online marketing and social media marketing (Morris, 2015). In
relation to the bakery, the business will use online and social media marketing approach which
involves- they will create their own website and use different applications such as- Instagram,
Facebook, WhatsApp and YouTube to promote their products and services which are offered by
the venture to attract more customers by promoting and advertising the products and services in
an attractive and appealing manner.
FINANCE AND FUNDING PLANS
All of the financial resources that the entrepreneur used in creating and preparing all of
the resources that will help him manage the business are listed below:

RESOURCES ESTIMATED COST
STAFF MANAGEMENT COST £20000
SUPPLY CHAIN AND LOGISTICS £25000
RAW MATERIALS COST £15000
MAINTAINENCE COST £15000
TOTAL £75000
Sources- The source of finance and the administration of financial resources has been done
through two sources, which include:
 Personal investment- I used to work in a bank and used to save a percentage of my
salary on a monthly basis (Olanrewaju and et.al, 2020). Due to the widespread pandemic,
I was laid off and received a redundancy payout, which has been a key source of financial
resources for launching a bakery in the United Kingdom.
 Angel Investors- Angel investors and venture capitalists have been another source for
managing financial resources utilized to launch a bakery in the United Kingdom.
MANAGEMENT TEAM
Through successfully managing the team, different activities and functions are kept in
mind and controlled through which the activities are performed on the basis of performance
standards, meet organisational objectives and establish the brand image of the company. The
functions which will be managed by the organisation are described below:
 Management of raw materials- The management team of bakery and supervisors will
regularly monitor the raw materials, inventory which will be used by the business as this
will help in managing all resources and making optimum utilization of raw material.
 Personnel management- One of the primary function which will be performed by
venture will be management of personnel as it will help in maintaining functions of
business effectively. By establishing performance standards, creating correlation,
enhancing transparency, motivating employees to share their ideas will be an innovative
way to manage informed decisions by actively communicating (Staniewski, 2016). The

venture will also focus on appraising employees for their valuable contribution in the
business.
CONCLUSION
From the report, it can be concluded that entrepreneurship is a skill and ability of person
for dealing with different situations, willingness to take risk or start a new venture for earning
maximum profits from the products and services which will be offered by the company. It can be
seen that there are various strategies and models which can be used by business to identify the
changing business environment, some of these models include Pestel analysis and porter five
forces. In order to form an effective strategy for sales and marketing, various approaches such as
marketing mix is used by the venture to meet the organisational objective. The business venture
also follows various strategies for identifying the competition in the industry such as- competitor
analysis which gives an insight of the competition while operating in a specific business
industry.

REFERENCES
Books and journals
Alvarez, S. and Barney, J. B., 2020. Has the concept of opportunities been fruitful in the field of
entrepreneurship?. Academy of Management Perspectives. 34(3). pp.300-310.
Baker, T. and Welter, F., 2018. Contextual entrepreneurship: An interdisciplinary perspective.
Now.
Blundel, R., Lockett, N. and Wang, C., 2017. Exploring entrepreneurship. Sage.
Chakraborty, S., Thompson, J. C. and Yehoue, E. B., 2016. The culture of
entrepreneurship. Journal of Economic Theory. 163. pp.288-317.
Chowdhury, F., Audretsch, D. B. and Belitski, M., 2019. Institutions and entrepreneurship
quality. Entrepreneurship Theory and Practice. 43(1). pp.51-81.
Edoho, F. M., 2016. Entrepreneurship paradigm in the new millennium. Journal of
Entrepreneurship in Emerging Economies.
Eesley, C. E. and Lee, Y. S., 2021. Do university entrepreneurship programs promote
entrepreneurship?. Strategic Management Journal. 42(4). pp.833-861.
Hsieh, Y. J. and Wu, Y. J., 2019. Entrepreneurship through the platform strategy in the digital
era: Insights and research opportunities. Computers in Human Behavior. 95. pp.315-323.
Iglesias-Sánchez, P. P and et.al., 2016. Impact of entrepreneurship programmes on university
students. Education+ Training.
Kuratko, D. F. and Morris, M. H., 2018. Examining the future trajectory of
entrepreneurship. Journal of Small Business Management. 56(1). pp.11-23.
Link, A. N. and Strong, D. R., 2016. Gender and entrepreneurship: An annotated
bibliography. Foundations and Trends® in Entrepreneurship. 12(4–5). pp.287-441.
Lyons, E. and Zhang, L., 2018. Who does (not) benefit from entrepreneurship
programs?. Strategic Management Journal. 39(1). pp.85-112.
Maritz, A. and Donovan, J., 2015. Entrepreneurship and innovation. Education+ Training.
Morris, M. H., 2015. Entrepreneurship as experience. Wiley Encyclopedia of Management. pp.1-
6.
Olanrewaju, A. S. T and et.al., 2020. Social media and entrepreneurship research: A literature
review. International Journal of Information Management. 50. pp.90-110.
Staniewski, M. W., 2016. The contribution of business experience and knowledge to successful
entrepreneurship. Journal of Business Research. 69(11). pp.5147-5152.