Growth Sustainable Business Plan for Herbal Vibes Company

This report discusses the growth sustainable business plan for Herbal Vibes Company, including identifying target customers, evaluating competitors, analyzing skills, and proposing funding sources.

Enterprise and
Entrepreneurship

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Your proposed future business...............................................................................................3
Identifying your target customer on B2C...............................................................................4
Competitors............................................................................................................................4
Skill analysis...........................................................................................................................5
Profit and Loss accounts and proposed two years cash flow forecasts including break even5
Evaluating and selecting suitable sources of funding for growing the business opportunity 6
Various types of organization and management information system required to control the
business effectively................................................................................................................6
Vision of the business idea.....................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
Books and Journals.................................................................................................................8

INTRODUCTION
Enterprise can be defined as integrating all the activities of the organisation whether it is
large or small company and generally the activities are carried out by the employees of the firm.
In relation to the small enterprises risk is relatively low in the long duration. There are various
types of risk that are legal threats, financial loss, competitors etc. For this report the Herbal vibes
company has been undertaken into account (Henry and Dana, 2019). They have operations in
various types of beauty products that they serve to their customers in the market.
Entrepreneurship can also be defined as the use of the various innovations by the entrepreneurs
in the organisation which results in the more success of the business. There will be discussion on
the proposed future business and will identify target customers on B2C. Along with that the
effect of the competitors and the skills will be evaluated. At the end of the report suitable sources
of funding will be analysed in relation to the organisation.
MAIN BODY
Your proposed future business
In order to increase the activities of the business operations in the future it is very necessary
for the management that they must exercise different types of ideas.
Management department of the company should diversity their products at a variety of
ranges through which they can introduce new herbal products in the current market. In relation to
the herbal Vibes it has been evaluated that the consumers who prefer more hygienic and safe
products can be the target audience for them.
Second, with the help of introducing new herbal products in the market the organisation can
increase their profitability. Products like hair oil, hair mask, creams and face packs with the new
innovations can attract lots of customers towards their business. By providing these quality
products in the market they can also establish available brand image in the eyes of the customer.
Third, it is very essential for the upper level of the management that they should hire skilled
and professional employees so that the management functions can be performed smoothly and
the products can be deliver in the market on time (Page, 2021). Through more professional
employees organisations can easily analyse the needs and the wants of the customers effectively.

Fourth, in order to enhance the image of the brand management should use various type of
advertisement techniques like social media, newspaper etc. Various techniques of
promotions products of the company can reach a wide market.
Identifying your target customer on B2C
In order to target the appropriate customer base the STP model is mentioned below in
relation to the organisation.
 Segmentation :- it can be defined as distributing the customer into various groups by
analysing specific criteria. This includes behavioural, geographic and demographic etc. In
relation to the herbal Vibes their main vision is to serve the quality herbal products. They
should use behaviour factors in order to find out the customers who prefer more herbal
beauty products in the market.
 Targeting: it can be defined as targeting those customer bases which will help the
organisation to increase the demand of their goods and services (Zainea and et.al., 2020).
In relation to the herbal Vibes management department should target the customers who
prefer high quality services in relation to the natural ingredients and products that are
organically produced. Through this they will be able to maintain a healthy and strong
relationship with customers in the long run.
 Positioning: it can be defined as setting up of the positive image in the minds of the
customers through which they can use the products and the services of the organisation.
In a relation to the herbal Vibes they should provide quality and effective products to the
target customers through which they can enhance their brand image and make strong
position in the market.
Competitors
Natural living supplies: This company was established in 2017 and has headquarters in
the United Kingdom. Organisation mainly deals in the natural oils and the organic products like
cosmetics and perfumes that attract lots of customers towards their business (Moon, 2018). Due to
the worldwide presence they have huge profitability in the organisation and cause so much threat
for the herbal Vibes company.
Highland health store: This company was established in 1971 and also has headquarters
in the United Kingdom. They provide various types of diet products and health products in the

market to all segments of customers. They are one of the biggest competitors of the herbal wise
company that affects the operations of their business.
Skill analysis
According to the requirement, the business organisation should mainly have three skills
that are mentioned below in order to become successful in the future.
Innovative skills: relation to the herbal vibes they use effective and skill management which
focuses on the innovation on the products that attract more consumers towards their business. In
order to innovate more effective products the organisation should listen and involve the
employees in the decision making (Henry and Lewis, 2018). Through this they can generate new
ideas and innovations in the workplace.
Creativity skills: it can be defined as applying a various kinds of unique creativity and ideas by
the upper level of management in order to carry out the project in a systematic way. Through
effective management company becomes able to modify their products according to the taste in
preference of the customers. In relation to the herbal Vibes they want to introduce various herbal
beauty products that can increase their market share.
Risk taking skilled: It can be defined as grabbing the opportunities that can generate more
revenues for the organisation. With the help of effective management they are focuses on
maintaining positive relationship with the employees through which they provide quality
services to their customers.
Skill gap can be defined as the main issue generally faced by the managers of the
organisations. In order to remove this issue entrepreneurs learn so many new things from various
generals and articles in relation to the business activities and the skills.
Profit and Loss accounts and proposed two years cash flow forecasts including break even
Variable cost per unit = Total variable cost / Number of units
Year 1
= 500000 + 600000 = 1100000
1100000 / 50000 = 22
Year 2
= 550000 + 600000 = 1150000

1150000 / 70000 = 16.42
Break Even point = Fixed Expenses / Sales - Variable cost
Year 1
= 750000 / 50 – 22 = 750000 / 28 = $ 26785
Year 2
= 750000 / 50 – 16.42 = 750000 / 33.58 = $ 22334
It is important for the organisation to generate $ 26785 in year 1 and $ 22334 in year 2 in
order to covering its expenses.
Evaluating and selecting suitable sources of funding for growing the business opportunity
Different types of sources of funds are :-
Bank loans: it means taking the money from any bank in order to carry out the activities of the
business. In this type of loan the business organisation has to pay a fixed interest on the amount
they have taken as a loan (Spicer, Kay and Ganz, 2019). Banks have the power to charge the
penalty if the management of the organisation fails to pay back the amount.
Angel investors: in this type of sourcing an individual provides money to the firm on their own
risk. In this type of funding organisations generally have to pay a high rate of interest on the
amount they have taken in order to carry out the activities.
Various types of organization and management information system required to control the
business effectively
Various types of organisations are:
Partnership: it can be defined as the agreement in which two or more people came in order to
run the activities of the business. Due to the involvement of more persons usually the decision
making process is carried out in a slow manner. There are very type of rules and regulations that
have been made by the government in order to run this type of business organisation.
Sole trader: in this type of legal entity all the activities of the organisations are fully controlled
and managed by the single owner. It is one of the most common type of business structure which
facilities the individual to co-ordinate all the various departments effectively.

From the above analysis it has been concluded that partnership is the most appropriate
option for the herbal Vibes in order to run the operations. Because in this type of structure
employees will strictly follow the rules that are made by the upper management which facilitates
in delivering the quality products to the customers.
Management information system can be referring to as the study of people, relationships
technology and organisation. In relation to the herbal Vibes managers used this concept in order
to enhance the productivity of the employees.
Vision of the business idea
The main vision of the herbal vibe organisation is to deliver high growth benchmarks in
serving best quality organic products that can help them to capture a large market share (Malach
and Kysil, 2019). They wanted to extend the physical and the digital supply chains through which
they can serve to the large market section.
CONCLUSION
From the above report it has been concluded that entrepreneur plays major role in managing
the activities of the organisation. In the above report future plan of the business has been
discussed. Effect of the competitors and the skills have also been analysed in relation to the
organisation. Sources of funding have also been discussed. At the end of the report vision of the
business idea has been evaluated.

REFERENCES
Books and Journals
Henry, C. and Lewis, K., 2018. A review of entrepreneurship education research: Exploring the
contribution of the Education+ Training special issues. Education+ Training.
Henry, E. and Dana, L.P., 2019. Māori indigenous research: Impacting social enterprise and
entrepreneurship. In A research agenda for social entrepreneurship. Edward Elgar Publishing.
Malach, J. and Kysil, N., 2019, November. Application of digital tools for the development of
entrepreneurship competencies. In Proceedings of the European Conference on e-Learning,
ECEL (pp. 378-386).
Moon, C.J., 2018. Contributions to the SDGs through social and eco entrepreneurship: New mindsets for
sustainable solutions. Entrepreneurship and the Sustainable Development Goals.
Page, N., 2021. Embedding enterprise and entrepreneurship into a core final year bioscience module.
Spicer, J., Kay, T. and Ganz, M., 2019. Social entrepreneurship as field encroachment: How a neoliberal
social movement constructed a new field. Socio-Economic Review, 17(1), pp.195-227.
Zainea, N.L and et.al., 2020. Social entrepreneurship, a key driver to improve the quality of life: The case
of TOMS Company. Business Ethics and Leadership, 4(3), pp.65-72.