Identifying Entrepreneurial Opportunities

This presentation focuses on identifying entrepreneurial opportunities and the process of setting up a new business. It covers the sources of entrepreneurial ideas, competitor analysis, and strategies for overcoming competition. The presentation also discusses market research and the viability of a business idea.

Identifying entrepreneurial opportunities

INTRODUCTION
 Entrepreneurship can be defined as the activity of process of setting up of a new business
by undertaking financial risk for the purpose of earning of profits.
 The present project report will focus on a proposal of opening a restaurant called Krispy
Chicken in UK.
 The report will revolve around the sources that inspired this idea and motivation for
opening this restaurant.
 Information about the proposed restaurant, an analysis of competitors, gap analysis will be
covered here.

An introduction of business idea
What is it ?
 The graduate entrepreneur has developed the idea of starting a fast food restaurant named
as Krispy Chicken. The menu of the restaurant will have chicken element in each of its
servings..
Where is it ?
 The restaurant is proposed to be set up in Bloomsbury, London. This place is chosen
because of convenience of place to people, crowd of young people, high student base area.
Potential and target audience ?
 The entrepreneur wishes to open the restaurant in the student crowed area in London which
why it chose Bloomsbury. The target audience is college going students, young people

Different sources of entrepreneurial ideas and innovation
 There are different sources of generating entrepreneurial ideas. The sources behind the idea
of opening of a restaurant called Krispy Chicken in UK are as follows:
 Person's interest and hobbies.
 Conducting customer surveys
 Brainstorming
 Mass media.

To be conti…
 Peter Drucker's model for determining the sources of systematic innovation could be
utilized by the entrepreneur. The following are seven sources :
 Unexpected success or failure
 The inconsistencies between what should happen and what actually happened
 Deficiencies in process
 Changes in market structure or industry which catch unawares of everyone
 Changes in Demographics
 Changes in perception
 New knowledge

A Competitor analysis
Basis Subway in Bloomsbury Five guys Tortilla Russell Square
Products Provides wide range of
vegetarian and non
vegetarian products.
Specializes in burgers and
provide a range of burgers.
The restaurants serve tacos,
Burritos and salad.
No. of employees A franchise of subway
requires 10- 15 members. It
has around 17 staff
members. UK stores has
around 8600 employees.
Overall employees number
of Five Guys are
approximately 15000.
Has employee strength of
100 in UK.
No. of branches 33749 restaurants in world,
1700 stores in UK.
Around 1000 stores in US,
Canada and UK.
It has around 30 restaurants
in UK.

To be conti…
Organization structure It follows departmental
structure which is well
defined.
Hierarchical structure,
manager-subordinate
relationships exist.
It does not follow
hierarchical structure but
have a mixed defined
structure.
USP Fast service, ambience and
friendly staff.
Freshness in products,
avoids using of
microwave, frozen foods.
Quality and taste of
authentic Mexican food.
Marketing strategy Relies on its Global
branding and advertises it
through digital media.
Believes in word of mouth
marketing strategy and do
not aggressively promotes
business.
It aggressively markets its
products on social media,
newspaper and food
magazine.

To be conti…
Success of fast food industry:
 McDonald's, Five Guys etc. are one of the largest fast food chains in UK.
 The quick delivery, preferences of people regarding fast foods,
 location of stores,
 reasonable prices with good quantity of food, creative branding,
 marketing, hitting right chords of people
Failure of industry:
 Strict health and Safety regulations,
 shifting preferences of people from eating unhealthy food to organic and low fat food products,
 high taxes on core raw materials, high restriction on advertisement content,
 high level of competition from global industry.

What entrepreneur can do differently?
 The entrepreneur needs to serve more organic, fresh and healthy food to its customers.
 It can price its product relatively cheaper than its competitors for beating them.
 Unique marketing strategy for attracting customers such as allowing discounts, providing excellent ambience and
quality food to people.
 The Latest technology in communication system, in kitchen, in billing system would increase the speed of delivery
of services.
 Highly trained chefs would provide entrepreneur a competitive edge over others

Gap analysis
Basis Current condition Desired condition Action plan
Products Serving non vegan
products
The market has a demand
of organic and fresh food
items
Addition of organic food
offerings in menu.
Cost The product are priced low. It might become hindrance
in earning huge profits in
early years.
A well pricing strategies
could be used for setting
right prices.
Production process Frozen foods are used in
some dishes.
The customers want highly
freshen products.
Avoiding microwave and
frozen foods inputs,
purchasing fresh materials
and using them in providing
fresh dishes to customers.
Technology The business idea involve
the latest kitchen
equipment and technology
in operations.
However, business
demands For increasing
efficiency operations,
proper integrated
information system is
Installing a customized
management information
system for better
communication in
restaurant.

Business objectives of Krispy Chicken
 Customer satisfaction and gaining loyalty
 Attaining planned financial targets for a particular period
 Establishing a reputation for Krispy Chicken
 Stability and Longevity of business

Market research for supporting the viability of business
idea
Primary sources: The data collected by researcher on field is called as primary research.
 Customer survey : These surveys helps in obtaining critical information about customer
requirements, their demands, perceptions.
 Observation : The entrepreneur has undertaken observation activity for determining the
demands of students, young people in Bloomsbury.
Secondary sources : Data collected by entrepreneur by the already established and published
books, articles, internet, literature, reports are called as secondary research.

Viability and feasibility of business idea
 It can be said that business proposal of entrepreneur is viable as it meets the basic criteria
of market condition.
 Preparation of strategies for developing something different from its competitors adds
more to the viability of its business idea.
 For determining the feasibility of fast food restaurant start-up, a cash budget is prepared for
12 months.

TO BE CONTI…
Particulars initial investment January February march April may June July august
Septembe
r October
Novemb
er
Decemb
er
sales of food
Number of customers 30000 33000 36300 39930 43923 48315 53147 58462 64308 70738 77812 85594
average cost 30 30 30 30 30 30 30 30 30 30 30 30
Total revenue 900000 990000
10890
00
11979
00
13176
90 1449459 1594405 1753845 1929230 2122153 2334368 2567805
sale of beverages
Number of customers 35000 40000 42000 44100 46305
48620.2
5
51051.26
25
53603.82
5625
56284.016
90625
59098.21
7751562
5
62053.12
8639140
6
65155.7
8507109
77
average cost 20 20 20 20 20 20 20 20 20 20 20 20
Total revenue from
beverages 700000 800000
84000
0
88200
0
92610
0 972405 1021025 1072077 1125680 1181964 1241063 1303116
Total revenue (cash
inflow) 1600000 1790000
19290
00
20799
00
22437
90 2421864 2615430 2825922 3054910 3304117 3575431 3870921

TO BE CONTI…
Expenses
Accommodation 15000 0 0 0 1000 0 0 0 200 0 0 700 0
Running cost of
Machineries 700 0 500 0 0 900 0 700 0 600 0 250 0
kitchen
equipments 500 400 250 200 350 400 100 200 150 750 500 400 300
Employees'
salaries 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500
Commission of
Supplier 3000 2500 2200 4500 4000 3000 2500 2600 3200 3500 4000 4200
Selling and
Advertisement
expenses 400 400 400 400 400 400 400 400 400 400 400 400
Miscellaneous
expenses 1200 1400 1400 1000 800 700 1200 1300 1400 600 700 800
Total expenses
(cash outflow) 16200 8500 8550 7700 10750 10000 7700 8500 8150 9850 8500 9950 9200

TO BE CONTI…
Net cash flow 16200
159150
0 1781450
19213
00
206
915
0
223
379
0
2414
164
26069
30
2817
772
30450
60
3295
617
35654
81
3861
721
owner's capital 10000
grant 50000
Loan 90000
Opening
balance of cash 150000 166200 1757700
35391
50
546
045
0
752
960
0
9763
390
12177
554
1478
4484
17602
256
2064
7316
23942
934
2750
8414
Closing
balance of
cash 166200
175770
0 3539150
54604
50
752
960
0
976
339
0
1217
7554
14784
484
1760
2256
20647
316
2394
2934
27508
414
3137
0135

Swot analysis
Strengths :
 Quick food items are highly preferred by college going students.
 Low priced products of Krispy Chicken.
 High quality food products with freshness
Weaknesses:
 Offering only non vegan food items.
 Lack of practical knowledge of young entrepreneur.

To be conti…
Opportunities
 Entering into new market segments like adding vegan dishes, desserts etc.
 Preparing more high protein products for attracting fitness conscious people.
Threats:
 Cut throat competition from local and international fast food chains.
 Extreme low prices may decrease the profitability

Strategies for overcoming risk of competition
Recommendations :
 Differentiation
 Cost leadership
 Serving as per customer's preferences
 Unique and effective marketing strategies
 Targeting on competitor's weaknesses
 Entrepreneur needs to make research more comprehensive.

CONCLUSION
From the above report, it can be summarised that entrepreneurship is the process by which
people plans to start up a new venture.
 These skills help young graduates in starting something of their own.
 Further, a swot analysis was conducted on Krispy Chicken which showed
 It also highlighted few weaknesses of this business idea that it would serve only non vegan
section of market.
 This would restrict the entrepreneur in serving masses, hindering its market share and
profitability.

REFERENCES
 Acs, Z. J., Szerb, L. and Lloyd, A., 2017. The global entrepreneurship and development
index. In Global Entrepreneurship and Development Index 2017 .(pp. 29-53). Springer,
Cham.
 Adekiya, A. A. and Ibrahim, F., 2016. Entrepreneurship intention among students. The
antecedent role of culture and entrepreneurship training and development. The
International Journal of Management Education. 14(2). pp.116-132.
 Agrawal, H., 2017. Entrepreneurship an Aspect. Journal of HR, Organizational Behaviour
& Entrepreneurship Development, 1(1), pp.1-4.
 Cañeque, F. C. and Hart, S. L. eds., 2017. Base of the Pyramid 3.0: Sustainable
development through innovation and entrepreneurship. Routledge.
 Cecora, J., 2018. Cultivating grass-roots for regional development in a globalising
economy: innovation and entrepreneurship in organised markets. Routledge