ENTREPRENEURSHIP.

Running head: ENTREPRENEURSHIP
Zest Mechanics
Address:
Telephone or Fax Number:
Email Address:

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Table of Contents
I. Executive Summary:....................................................................................................................2
II. Introduction:................................................................................................................................3
III. Analysis of International Business Opportunity........................................................................5
A. Economic, Political and Legal `Analysis of Trading Country....................................................5
B. Trade Area and Cultural Analysis...............................................................................................7
IV. Operation of the Proposed Business........................................................................................11
A. Organizational Plan...................................................................................................................11
B. Product/Service.........................................................................................................................13
C. Market Entry Strategy...............................................................................................................13
D. Marketing Plan..........................................................................................................................15
1. Pricing Strategy.........................................................................................................................15
2. Promotional Program.................................................................................................................16
V. Financial Plan...........................................................................................................................17
References:....................................................................................................................................21

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I. Executive Summary:
The report aims at portraying the fact those businesses that are into hiring E scooters
through app actually engage in renting the E-scooters to the customers. E scooters remain
categorized based on the power delivered by the motors. There are available in great number of
variety across the worldwide. A completely charged E- scooter takes average two and half to six
hours depending on battery capacity, battery chemistry and the manufacture.
In spite of the growth in the revenue for E scooterhire service over last decade dealers
have found it difficult to remain in the business during period of recession. The overall industry
has also fared well due to the popularity of cycling for its environmental and health benefits and
the increasing disposable income that has encouraged them in hiring E scooters for fun. Besides,
the rising demand of the consumers, external competition in sales of E-scooters due to the
presence of the mass merchandize had led to the evolution and introduction of low cost brands.
It has been found that the bike dealership and the repair industry has been a profitable and
thriving industry across most of the countries across the world. The UK market however for see
a stronger growth in the higher end E scooter Business. There has been a staggering
transformation in the number of imported E scooter throughout course of 2017. Official figures
have shown an inclination towards the E-scooters. However, the Bicycle Association of UK has
been considered a welcome change. The import value of E- scooters for the year 2017 has been
GBP 42 million Euros which have been close to 10 percent of total imports irrespective of the
fact that they make account for only 2 percent of the imported volume. The figures however
portray a healthy picture.

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However, the E scooter hire services had a lower level of industry concentration due to
the absence of dominating players within the industry. Besides, the industry is not only highly
fragmented but comprises of larger number of very small independent bike hire shops that
conducts business from more than one establishment. Thus, the present picture portrayed a
premium market for E scooters with a stronger growth. The report puts forward an international
Business Plan for E scooter business.
II. Introduction:
The report puts forward a business plan for Zest Mechanics which represented a
registered E scooter hire business that used app for locating, tracking and dropping off scooters
in cities such as London, Barcelona, Nice and Paris. The core business of Zest Mechanics would
not only be hiring E scooters to the customers but also retailing electric scooter accessories and
parts from the different manufactures along with providing repairing and maintenance of the
electric scooters.
There has been various E scooter hire business, scooter dealership and repair shop in
London, Barcelona, Nice and Paris (Stocker and Shaheen 2017). This is the reason why so much
resources and time has been spent for conducting a thorough market survey and feasibility
studies in order to be well positioned and undertake a healthy competition with the other
competitors. Zest Mechanics E scooter hire business will ensure unique treatment to the
customers availing their app. The business also has in place Customer Relationship Management
(CRM) software that will help in managing one to one relationship with the customers
irrespective of the size of the customer base (Peppers and Rogers 2016). The business is not only

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eco friendly but will make it easier for the people to travel across the cities. It is mostly targeted
towards the business workers and the university students.
Besides, Zest Mechanics will try and demonstrate its commitment toward sustainability
by being eco friendly. In other words, the business is actively participating in the communities
and thereby integrating sustainable practices wherever possible. The aim of the report remains in
portraying a business that meets customers needs precisely and completely in wherever they
patronize their services thereby holding them accountable.
Zest Mechanics is starting up business that makes use of app for locating, tracking and
dropping off scooters. It operates its business across the cities of Barcelona, London, Paris and
Nice. It is not only easy to use and eco friendly but makes travelling an easier option for the
people. With the increasing popularity of the market for E scooters, the business is expected to
flourish since it is mostly targeted towards the business workers and the student.
The business plan for the E- scooters thus focuses on the political, economic and legal
aspects of international business opportunity thereby describing the business and issues focusing
on the industry analysis. The plan also puts forward an organizational plan describing the
ownership and its products and services. The business plan also puts across a market analysis
describing the market trends, target market and the competitive advantage. There are also
discussions about the sales and marketing strategy with the focus on the sources of the income.
The report also puts across a sales forecast through the business plan. The plan also discusses
about the advertising and publicity strategy, pricing options and the start up budget. The business
plan ends by putting across a sustainability and expansion strategy.

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III. Analysis of International Business Opportunity
A. Economic, Political and Legal `Analysis of Trading Country
Economic Political Legal
London London represents the fifth
largest economy across the
world in terms of nominal
gross domestic product (GDP)
(Holton 2013). The prices rise
at a faster rate with lower or no
increase in wage rate. The
minimum wage rage for the
people in the age group of 25
stands at £7.50 per hour. The
rate of inflation in country
stood at 3.1 percent.
The country is political
stable although there has
been political debates and
uncertainties created as a
result of Brexit (Savitch
2014). The corporation tax
of the country stood at 19
percent which has however
been reduced by the
government in the year
2016.
The country puts
forward the
Employment Act for
the protection of the
employee rights and
the Equality Act that
protects people from
discrimination
(Barker and Branson
2014). The country
has various regimes,
trade policies and
procedural issues that
govern the market
entry.
Barcelona The real gross domestic product
of Barcelona stands at around
1102.83 billion Euros while the
nominal GDP stood at 1113.85
billion for the year 2016(Bakıcı,
Barcelona is established as
the democratic and social
sovereign country where
national sovereignty is
vested in its people
Both the legislature
and the executive are
constitutional and
protect the rights of
the individuals

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Almirall and Wareham 2013).
The country had GDP per
capita estimated at USD
26608.87 while the purchasing
power parity stood at USD
36415.96.
(Morales and Pilati 2014). (Zarlenga,
Ulldemolins and
Morató 2016).
Besides, the country
imposes a multilateral
and bilateral trade
agreement.
Nice The country contributes
immensely to GDP (Nevarez
2014). Nice has a good pace of
economic growth closer to 2
percent for the period 2018-19
even when there were concerns
raised over the economic
growth.
The country is politically
stable and maintains good
bilateral relations with UK
although the historical ties
between the countries have
been marked by various
challenges (Foucault 2013).
In the legal
perspective it can be
said that the French
labor laws possess
provisions for the
employee overtime,
sick leave, and annual
leave, maternity,
paternity and
sabbatical leave.
However, the
regulations and the
bureaucratic
procedures of the
county act as a barrier
to entry (Eisenberg

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2017).
Paris Paris represented a regional
economy comprising of tertiary
or service economy(Lanza
2016). The tertiary sector
includes the financial, business,
government , education and
health that accounted for 90
percent value addition
Paris being the capital of
France has a seat in the
national government of
France
The bureaucratic
regulations apply
Paris that creates a
hindrance for the
companies planning
to make an entry.
Figure 1: Tabular Representation of Economic, Political and Legal `Analysis of Trading Country
Source: By Author
B. Trade Area and Cultural Analysis
Geographic
Information
Demographic
Information
Competitive
Advantage
and
Disadvantage
Customs and
Traditions
Business
Opportunity
London London
represents
the largest
urban area
and the
The country has
a population
density of close
to 4,542 people
per square
Advantages
includes ease
in doing
business,
manageable
London
represented a
vibrant
culture and
has festivals
The country is the
leading financial
centre that puts
across a lot of
business

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capital city in
United
Kingdom
(Bonham-
Carter 2014).
It is located
towards the
south east of
Great
Britain.
kilometer (De
Vries 2013)
system of
taxation,
skilled
employees,
Manageable
regulations and
strong
infrastructure
(de Waal and
Kourtit 2013).
Disadvantages
includes
immense
competition for
the office
space, involves
higher cost
music
museums,
festivals for
entertainment
(Owen
2016)
opportunities in
various fields
(Grayson and
Hodges, 2017).
Barcelona The city is
located
towards
northeast of
Spain and
closure to
It has close to
1.7 million
inhabitants
Advantages
lies in its
strategic
location that
provides
access to cost
Barcelona
represents
mixture of the
Catalan and
the Spanish
culture and is
The country is
presently one of the
important cities of
Europe for creating
and doing business
and also acts as the

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France (Saurí
et al. 2013).
effective and
easier access to
the global
staff.
Disadvantages
lies in its
lingering and
permanent
bureaucracy.
Besides it is
not only
expensive to
start a business
but also
difficult to
handle.
quite dynamic
(Rius 2014).
magnet of the foreign
and the local
enterprise.
Nice It is the fifth
most
populous
countries
located in
France.
It has a
population of
close to one
million.
Advantages
lie in its power
and position as
one of the fifth
economic
power
(McGrath
The country
is culturally
rich and
vibrant
.
The country provides
immense business
opportunity through
its newly built silicon
valley camp (Gruber,
Kim and Brinckmann
2015)

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2013).
Disadvantages
lie in the
difficulty of
registering the
property for
internet
connection.
Challenges
also lies in
getting electric
connection,
credit and the
labor laws.
Paris The country
is located
towards
Northern
Central
France.
The city of
Paris has a
population
comprising of
2,241,346
people
Advantages
lie in the
opportunities
put forward by
the French
market
(Verbeke
2013).
Disadvantages
The culture an
d traditions of
the country
comprises of
music, art,
festivals and
other means
of
entertainment.
Being a part of
France, one of the
leading industrial
nation with highest
GDP, Paris puts
forward immense
business
opportunities for
businesses (Spender

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lie in the huge
expense and
complex
administration.
2014).
Figure 2: Tabular Representation of Trade Area and Cultural Analysis
Source: By Author
IV. Operation of the Proposed Business
A. Organizational Plan
Zest Mechanics put across the business of hiring E scooters through app thereby making
it easier for the people to travel. These scooters can use the app for tracking, locating and
dropping. The company aims at manufacturing wide range of these scooters and thereby generate
substantial amount of profit. The company is a private corporation (Goetsch and Davis 2014).
The business starts by undertaking basic start up steps which includes making a business plan,
securing appropriate funding, surrounding themselves with right kind of people, becoming a
market expert and thereby build customer base. The business will require close to 500 personnel.
Vision Statement: The vision of the company lies in becoming the leading brand of E
scooters across London, Paris, Nice and Barcelona
Mission Statement: The mission of the company lies in establishment of the E scooter
business along with the business of its repair shop and dealership. This will ensure the
availability of wider range of scooters and accessories at affordable prices.

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Business Structure: The intentions of starting an E scooter business have been in
building a standardized scooter (Binda 2013). This implies putting the right structure that will
help in supporting the growth. This implied hiring the honest, qualified and customer centric
people who would help the company in building a business that would help in benefitting the
stakeholders. Thus, a profit sharing arrangement will be put across to the staffs of the senior
management that will be based on the performance for the period of ten years or even more. The
company has therefore decided in hiring competent and qualified hands that included:
 The Chief Executive Officer (or the Owner): He helps in increasing the
efficiency of the management through selection, orientation, recruitment,
coaching, training, communicating values and appraising the job results
(Men 2015). He is also accountable for fixing the prices and is also in
charge of providing a direction. He also signs cheques and documents and
helps in the evaluation of the organizational success.
 The Shop Manager: He is responsible for overseeing smooth operation of
HR, upholds the supplies of the office, ensures the operation of the
equipment, provides training and keeps track of the repair and the rental
service. They also supervise the workforce.
 The Accountants/Cashier: They are responsible for preparing the budgets,
financial reports and the financial statements of the organization. They
also provide financial analysis; develop budgets and helps in accounting
reports while they analyze financial feasibility for complex situations.
 The Sales Agents/Customer Services Executive: They are responsible for
the hiring and the retailing of the E scooters. They also help in managing
the external research and coordinating the internal sources of the

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information. Besides, they also evaluate newer plans for expansion of
sales.
 The Bike Repair Technicians: They help in providing maintenance and
repair services and also helps in assembling electricity for clients after
any purchase.
B. Product/Service
Zest Mechanics puts forward app based E scooters for enhancing the convenience of
travel for the clients and hopes to make immense profit. This is why they make every effort in
making theses E scooters available and generate higher amounts of revenue and has its business
operations spread out across London, Barcelona, Nice and Paris. The products and services
include:
 E scooter rental service
 Retailing new scooters
 Providing repair and maintenance services of E scooter
C. Market Entry Strategy
Market Trends:
The business of E scooters is dependent on the strong consumer spending for spurring
demand for its industry services. Over, the last decade the economy gradually began recovering
from the recessionary declines that led to an increase in the disposable income and Consumer
Confidence Index. Besides the recovery of the UK economy has led to the recovery and
loosening of the consumer expectation for loosening the discretionary budget that would help the

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business to thrive in future. Thus, raising the disposable income, healthy lifestyle and climate
change in addition to global warming will help in supporting the demand for the products and
services of the industry(Dijk, Orsato and Kemp 2013). With the gaining of popularity of cycling
for its environmental and health benefits has aided the industry of the E scooters to fare well.
Further, the rise in the disposable income also encouraged the consumer purchases.
Target Market:
The target market for the E scooters is the business workers and the university students in
London, Paris, Barcelona and Nice where the company Zest Mechanics plans to start its
operation. This is because they are not only the cheapest but one of the best modes of
transportation. There is no dependency on the fuel as they run on the battery. Their easy
portability makes it convenient for the university students and the business workers since they
can be carried easily to the garage for fixing issues. Besides, features like easy maintenance, easy
parking and easy assembling makes them all the more convenient for the business workers and
students since they mostly remain pressed for time(Yilmaz and Krein 2013).
Competitive Advantage:
The E scooters are available with the following competitive advantage which includes (Miao et
al. 2014):
1. Best Alternative Mode of Transportation: E scooters are not only cheap but are an
alternative transportation means that runs on battery
2. Does not require License: E scooters have limitation in speed compared to the traditional
bikes hence do not require licensing.

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3. High Degree of Portability: E scooters can be carried easily to the garage for fixing
4. Ensures Safety and Comfort: The E scooters are safe since their acceleration is hand
operated along with possession of rare bikes. These scooters are available with a long frame that
allows a person in holding it without bending.
5. Ensures Smoothness: A rear brake, powerful motor, inflatable tires with hand operated
acceleration control along with accurate diameter and width gives rise to a pleasant experience.
6. Saves Time: The easy accessibility, sleek and portable structure and easier parking
facilities helps in saving a lot of time
D. Marketing Plan
1. Pricing Strategy
 The pricing system would be based on obtain ability within the industry and so that Zest
Mechanics does not possess the intention of charging more. Neither the company has the
intention of charging less than its competitors.
 The company also plans for offering discounted services on an occasional basis. The
company also plans in rewarding the customers provided they refer clients to the
company which might either be their family and friends (Bhatti et al. 2016)
 The price of the service will remain same across the markets of London, Nice, Paris and
Barcelona.

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Besides, the Zest Mechanics also follows the following sales and the marketing approach for
winning over the customers.
 Opening the app based E scooter shop in grand style
 Introducing the E scooter shop through distribution of brochures to the universities,
corporate organizations and the cyclist clubs
 Ensuring that there is a wider stock of E scooters its accessories and spare parts
 Making usage of eye-catching hand bills for creating awareness and providing direction
of the shop
 Positioning the signage / flexi banners at the strategic places
 Positioning the greeters for welcoming and directing the potential customers
 Creating loyalty plan for enabling rewards to the regular customers
 Engaging on the road shows within neighborhood for the creation of awareness
regarding the adoption of environment friendly E scooters
 Ensure listing the business and products on the yellow pages
 Leveraging the business on the internet for further promotion of the business
 Engaging in the direct sales and marketing
 Encouraging the use of the Word of mouth for marketing
2. Promotional Program
Zest Mechanics intends in to promote E scooters through the following means:
 Placing advertisements on the community based radio, newspaper and television stations
 Encouraging the usage of the word of mouth through publicity from the loyal customers

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 Leveraging on various social media platforms as well as internet.
 Ensure positioning on the banners and the billboards across all strategic positioning
Distributing handbills and fliers and handbills in targeting the areas in and around the
neighborhood
 Advertising the app based E scooters in the official website and employ required
strategies for pulling traffic to site
 Branding the E scooters and encouraging the staff members in wearing branded cap or
shirt at regular intervals.
V. Financial Plan
Sales Forecast:
It is to be noted that one thing that remains certain when it is related to the E scooter
business is that if the shop remains well located and has different types of spare parts and E
scooter from varied brands, it always will attract customers as well as sales which will contribute
in enhancing the revenue of the business. Zest Mechanics however remains well positioned in
taking advantage of the markets in London, Nice, Barcelona and Paris and therefore remain
optimistic about the fact that it will not only be able to meet the defined target and generate
enough profits from the initial six months of its operation and thereby grow its clientele and
business base.
However, through critical examination of app based E scooter business and analysis of
the chances in the industry, it has been possible to come up with the sales forecast mentioned
below. It has to be noted that the projections of sales depends on the gathered information on
field and certain assumptions peculiar to the start ups.

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 Sales Forecast for the First Fiscal Year: $160,000
 Sales Forecast for the Second Fiscal Year: $360,000
 Sales Forecast for the Third Fiscal Year: $760,000
Sources of Income:
Zest Mechanics is in the business of renting out E scooters and retail E scooters and spare
parts. The business aims at maximizing profit and going out of its ways in achieving the business
objectives and goals.
However, the sources of income will include:
In essence, our source of income will be;
 Renting out of the E scooters
 Retailing of the E scooters, selling of its accessories and parts and accessories
 Providing maintenance and repair service of electric bike
Expenditure/ Budget:
The start-up capital for the E scooter shop is not that capital-intensive. Therefore, an E
scooter business can be started only with few fairly used E scooters and then encourage the
business growth as per desired. The expenditure for the start up business is not cast in the stone.
However, the areas where Zest Mechanics will spend its startup capital for establishing the
business of E scooters are as follows:
 The total amount of fee for registration of the business in London – £850

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 The legal expenses for obtaining the licenses and the permits as well as accounting
services including the P.O.S machines and software – £3,400
 The marketing and promotional expenses for grand opening of the E scooter shop of Zest
Mechanic amounted to $3,500 including the printing of 2000 fliers. This amounted to a
total amount of £3,680
 The cost of hiring the Business Consultant – £2,600
 The coverage for Insurance at a total premium. This included workers’ compensation,
general liability, and property casualty amounting to £2,400
 Cost for the rent payment for the 12 months at about £1.76 per square feet that
amounted to close to £105,700
 The cost for the remodeling of shop including the construction of the racks and the
shelves) - £22,000
 The other start-up expenses that included stationery of about $500 and utility and phone
deposits of about -£2,400.
 The operational cost for first 3 months including the salaries of the employees and the
payments of the bills– £60,000
 The start-up inventory cost involving the stocking of the wide range of E scooters,
accessories and spare parts of different brands - £ 260,000
 The cost of the store equipment including the security, cash register, signage and
ventilation–£ 14,750
 The cost of installation and the purchase of the closed circuit (CCTV)- £ 11,000
 The cost of the purchase for the gadgets and the office furniture including the computers,
printers, sound system, telephone, chairs and tables- £ 4,000.

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 The cost of involved in launching of the website: £700
 The cost involved in the opening party: £8,000
 Miscellaneous cost: £11,000
Thus, Zest Mechanics requires an estimated cost of £ 512,480 in London for successfully
setting the app based E scooters business.

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