Entrepreneurship: Developing a Viable Business Idea for Health Fizz

This report focuses on developing a viable business idea for Health Fizz, a lower calorie health drink that will be introduced in different flavors. It includes a business plan, marketing strategy, financial plan, and potential issues that might affect the success of the business enterprise.

Entrepreneurship

Table of Contents
Introduction.................................................................................................................................................3
TASK 1.......................................................................................................................................................3
Covered in PPT.......................................................................................................................................3
TASK 2.......................................................................................................................................................3
Covered in PPT.......................................................................................................................................3
TASK 3.......................................................................................................................................................3
Business plan...........................................................................................................................................3
TASK 4.......................................................................................................................................................8
Potential issues that might affect success of business enterprise.............................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

Introduction
Entrepreneurship is a process wherein new products or services are introduced in market
place. It is based on creative and innovative ideas which are developed in order to earn high
amount of profit margin. Entrepreneurship signifies the process of creating new venture and
bearing the risk with an aim to earn profit. The person who performs all these activities is known
as entrepreneur. Entrepreneur is the person who has a unique idea and willingness to take the risk
in order to realize the business foe betterment of society (Chernopyatov and et. al., 2018). Main
aim of present report is to develop a viable business idea that can be executed by entrepreneur in
order to earn profit. The report is based on launch of a healthy drink names as “health fizz”. This
is a lower calorie health drink which will introduce in different flavors. This business idea is
based on existing needs and requirements of people. A business plan will prepare that will
include mission, vision, marketing, financial plan of new venture. This business plan will
provide detailed insights to investors about the viability and uniqueness of idea. Further, issues
which might affect success of business will also cover in the following study.
TASK 1
Covered in PPT
TASK 2
Covered in PPT
TASK 3
Business plan
It is a document which is prepared as an outline or blue print to start a business. It covers
mission, vision and objectives and also help to identify the ways to attain those objectives.
Business plan is often prepared by startup companies so that they can attract investors to invest
in new venture. This is a fundamental document which needs to prepare by every entrepreneur
before commencement of operations (Sahut, Iandoli and Teulon, 2021). Without preparing a
suitable business idea, it is quiet difficult to run business for longer period of time. A detailed

business plan includes executive summary, vision, mission, marketing plan, budgeting, financial
plan and more. It needs to include summary of business with detailed description of its products
or services. In present context, a business plan for health fizz is given below:
Executive Summary: Customers are highly conscious about their health in current time.
They want to get fit hence seek for the products which are suitable for health. Here, health fizz is
an energy drink that is going to launch in the market of UK. It is a lower calorie drink which is
suitable for health conscious people.
Overview of business: In present scenario, the business is related with the launch of
health drink. This health drink is specially designed for the individuals who are conscious about
health. The drink will contain lower calories and will come in different flavors. Company will
also make sure to make the drink tasty along with healthy. Major target people are youth and
millennia’s who want to stay fit & healthy. It is also good for sports person as they require to
consume health drink on regular basis.Mission: Mission of new business venture is “To offer quality health drink to people at
reasonable price.”Vision: “To earn high amount of profit and gain competitive edge by offering unique &
different soft drink to customers”.
Objective:
 To increase the sale of product by 10 % in 2022.
 To acquire 20% market share of soft drinks.
 To increase the number of loyal customers.
Marketing strategy and analysis: Marketing strategy and analysis is a crucial part of business
plan. It includes the plans which are prepared by business entity in order to gain attention of
target audience (Bekmansurov, and et. al., 2019).
Segmentation, Targeting and positioning
Segmentation: Under this, the whole population is divided into small segment. Main
purpose of segmentation is to select the appropriate group of customers to target. Here, people

having similar characteristics are put together in same group. The major types of segmentation
are demographic, psychographic, behavioral and geographic. In current scenario, psychographic
segmentation is applied where customers are group together on the basis of their attitude,
personality, behavior and more.
Targeting: After segmentation the next step is to select suitable target audience. It is not
easy to select target people. Before selecting target segment, it is important to analyze factors
such as profitability, demand, growth opportunities, characteristics of customers and more.
Target segment has a profound impact over success of business thus it needs to select with due
consideration (Singh and Gaur, 2018). In present scenario, target customers are youth,
sportsperson who wish to stay healthy and fit. By considering the requirement of target segment,
flavors also have been add on as an additional feature of health drink.
Positioning: It is the final step of STP model wherein it is important to maintain positive
positioning of product. It is related with the perception of customers about products or services.
Positive positioning is really important in order to get competitive edge in market. For this
purpose, numerous advertisement and promotional techniques are used by business entities
(Stenholm, 2021). In present scenario, the drink will be perceived by customer as a suitable and
low calories drink which is also good for health. Effective promotional techniques will help new
business venture in establishing positive image.
SWOT analysis
Strength Weaknesses
 The major strength of product is lower
calories transfer and no added sugar.
This feature is unique and attracts
more number of customers in an
efficient manner.
 The product is prepared by
considering the current market trend
which will help in increasing sale of
 It is a newly launched product and it is
quiet difficult to spread awareness in
such short period of time.
 It is a new product so it might possible
that people will not trust on it that will
directly hamper the sales

product.
Opportunities Threats
 .The entrepreneur has opportunity to
add some additional features in
product with an aim to get an edge
over rivalries already present in
market.
 It will help in leveraging the benefit of
health conscious nature of people
which will open the door of success
for new venture.
 There are numerous firms which are
working within the same domain
hence in direct competition with
health fizz.
 Ever changing external environmental
conditions will also create a major
threat for company.
Marketing mix
Product: The product is a soft drink name as health fizz. This product has lower calories
and no added sugar. The drink will come in different flavors so that customers can also enjoy the
taste while consuming the drink. This product is of high quality and will help in fulfilling the
needs of target customers.
Price: Here, price for value model is applied where company is charging the price in
accordance the value they are delivering. They make sure to offer product within affordable
range so that it can be purchased by people of different income groups.
Place: It shows the place from where product or service is made available to target
segment. In current situation, the venture is based on UK and it is situated near to universities,
gyms so that people often visit to place to enjoy the soft drink.
Promotion: According to the current market environment, online marketing techniques
will use for the promotion of product. Here, entrepreneur will promote the product via Face
book, instragram, you tube as it easy to find youth on such platforms. These platforms will help
in connecting with target audience.

Industry analysis:
With the increasing level of competition, it has become crucial to analyze the industry
dynamics before taking the end decision. It helps in analyzing the level of competition present
within industry. This analysis helps in preparing suitable strategies for success of business entity.
Industry rivalry: In context of health fizz, it is operating in food and beverage industry
which is full with extensive competition. Hence, the company is required to prepare suitable
strategies in order to ensure long term survival in competitive market place.
Threat of new entrants: In the food and beverage industry of UK, numerous opportunities
of growth are present (Ratten and Dana, 2019). However, it is required to make huge initial
investment in order to enter in the respective industry. Ample of well-known players are working
within industry for long hence threat on new entrants is high.
Bargaining power of customers: Several companies working in food and beverage
industry of UK thus buyers have ample of options to choose. In context of health fizz, bargaining
power of customers is high which will affect the profitability of new venture.
Bargaining power of suppliers: The industry in which health fizz is working has limited
number of suppliers. Hence, vendors are in position of affecting the profitability of business.
Threat of substitute: Due to presence of several firms, it is easy for customers to get
substitute products. Therefore threat of substitute is high for the respective business venture.
Financial plan: While starting a new business, it is important to arrange adequate amount
of funds. Without funds, it is not possible to continue the business operations for longer period of
time (Ramadani and et. al., 2019). Financial plans provide an idea about the requirement of funds
so that entity can arrange necessary amount of funds from different sources. In case of Health
fizz, financial plan is mentioned below:
SEGMENTS ESTIMATED COST
Operational cost £225
Human resources cost £150
Transportation cost £200

Raw material cost £175
Maintenance cost £150
TOTAL £ 900
With the above financial plan, it is estimated that there will be requirement of £ 900 for
starting as well running the venture in an efficient manner. It includes the classification of total
cost and provides an idea about different types cost.
Source of funds: There are ample of sources present from where necessary amount of
funds can be acquired for starting and continuation of business.
Banks: This is a major source of fund which is often used by business entities to get
necessary amount of money for operating business. Banks generally charge a particular amount
of interest over the loan amount. It is also required to keep asset as collateral while taking money
from bank.
Venture capital: For startups, it is a crucial source of fund. Venture capitalist are the
people who provide funds for new venture and have expectation of business growth in future
period of time (Audretsch, 2018).
Angle investors: These investors provide funds at initial phase. Main aim of angle
investors is to promote the start-ups and help new business firms to grow.
In current situation, bank loan is the suitable source of fund as health fizz will need huge
money to start the business. Banks are the authentic and reliable source to get huge funds for
business.
Monitoring and controlling: It is the final component of business plan. After preparing
marketing strategies and financial plan, it is important to measure the success of business
venture. It helps in identifying the flaws so that those can be improved for future betterment.
Continuous monitoring and evaluation helps in assessing the progress of business idea which
further allow entrepreneur to take suitable steps.

TASK 4
Potential issues that might affect success of business enterprise
It is not easy to successfully operate a new business entity. When start a new business,
ample of issues raise that need to face by entrepreneur in an effective way. Main aim to start a
new business is to earn profit. However, there is no assurance of profit. It is often seen that
startups have to operate either on loss or BEP during starting phase. They also face issues related
to legality, change in policies, acceptance in market, competition and more. In context of health
fizz some major issues identified by investors are outlined below:
Competition: It is one of the major issues that might affect the existence of new venture.
The business will be operated in food and beverage industry of UK. This industry is already full
with ample of companies that are offering the similar products. In addition to this, ample of large
players are working within the industry (Meek and Williams, 2018). It will be challenging for
new venture to make a unique presence in such a competitive market. Additionally, switching
cost of customer is also less within the food and beverage industry.
Legal formalities: To start working in food and beverage industry, there will be
requirement to complete ample of formalities. Here, it is required to register the business with
the government of UK. As per the guidelines of UK government, all the restaurants, cafes, food
stalls and more required the registration facilities. Completing all these formalities is really time
taking. Also, health fizz is required to follow all the necessary norms in order to get the
registration done at earliest.
Change in policies: Business entities are affected with the external environment in which
they are operating. It is identified that external environment is highly volatile. It is made with
political, economical, social, technological and other such factors. These factors can be changed
with change in external conditions (McKelvie, Wiklund and Brattström, 2018). These changes
also become a reason of change in existing policies which will create issues for business entity.
Here, the new business entity will required to analyze the external environment so that they can
adjust their business policies accordingly.

Changing attitude of customers: Attitude of customers also gets change with change in
trends. It is challenging to meet with ever-changing demands of buyers. It creates issues for
business entity as they are not able to sale their product and service. In context of health fizz,
change in current trend will create issues for business entity (Zheng, Ahsan and DeNoble, 2020).
Conclusion
It is summarized with above mentioned information that entrepreneurship is a process of
starting and operating with an aim to earn profit. Here, the business idea is developed by
entrepreneur in order to introduce something new in market. The above study is based on a
business idea to launch a health drink name as health fizz. There is a discussion of business plan
to realize the idea in an efficient manner. Further, certain issues such as competition, legal
formalities, change in policies and more have been identified in context of the new business.

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