Identifying Entrepreneurial Opportunities

This presentation discusses the process of identifying entrepreneurial opportunities and developing new business ideas. It covers the sources of inspiration, market research, competitor analysis, and feasibility of the business idea. It also provides recommendations on overcoming competition and achieving success. The presentation is relevant for students studying entrepreneurship or business management.

Identifying Entrepreneurial opportunities

Table of Contents
 Introduction
 Background information of different sources behind business idea inspiration
 Overview of business idea
 Competitor analysis
 Gap analysis
 Market research
 Feasibility and Viability of business idea
 Recommendations on overcoming risk of competition
 Conclusions
 References

INTRODUCTION
 Entrepreneurship can be refereed as the act of developing a new business entity by
undertaking risk in order to earn profits.
 In other words, it means the process or set of activities of designing, launching and
operating a new business by a person.
 The present project report is going to discuss the different sources that generated the idea
of opening a dining restaurant in United Kingdom.
 It will also include what the business idea is, who are the target customer, the restaurant is
supposed to be open in UK. A competitive analysis will be done for assessing the
competitiveness of the market place, what the entrepreneur can do to face such
competition.

Background information about different sources that inspired the business idea
The inspiration can be drawn from anywhere and entrepreneur has developed this thought on
the basis of below mentioned sources :
 Attending trade shows, events and exhibitions
 Personal experience and talents
 Brainstorming
 Interest, hobbies and Dreams

CONT.…
Drucker's model entails the innovative opportunities for the entrepreneur :
 Unexpected success or failure
 Incongruities
 Process need
 Market structure and industry change
 Demographics
 Changes in perceptions
 New knowledge

Introduction to business idea
What is it?
 The entrepreneur has formed a thought of developing a dining restaurant called 21 Midpoint Cafe
and Dining, a restaurant that will serve proper meals.
Who is the target audience?
 Average earning working professional. It also wishes to serves tourists segment of market.
Where is it ?
 The proposed business venture is supposed to open in Manchester, one of the biggest city of
England.

Competitors analysis
Criterion McDonald Mr. Cooper House & Garden Taco Bell
Products It offers quick food such as burgers, fries,
beverages. It includes both vegan and non
vegan food items.
It is one of the local restaurant that provides British
classic dishes with new twists.
Taco Bell offers Mexican food such as
tacos, burritos, nachos etc. It offers
authentic taste of Mexican food.
Price The food offerings of McDonald's is priced
moderately.
Its prices are slight higher than other dining restaurants
in Manchester.
Taco Bell believes in cost leadership
strategy of pricing. It offers food at the
most reasonable prices.
USP Quick delivery of food, world biggest
restaurant chain.
It provides the best ambience and its restaurant theme
of trees and birdhouses is one of a kind in Manchester.
Its cocktail servings have won many awards.
The mouthwatering taste of its products
is the USP of Taco Bell.
Marketing strategy It focuses on competitive strategies.
.
It focuses on serving best to customers that create good
word of mouth. It does not market its place
aggressively.
Aggressive social media promoting
marketing strategy.
No. of employees It has around 440000 employees in 2017 in
its 37241 restaurants globally.
For running one restaurant, it requires 15-20 to operate
efficiently.
It has about 210000 employees in its
7000 restaurants across world.

Conti…
Success of restaurant industry:
 Growing tourism making restaurants highly profitable
 Demand from people working at unusual hours at workplace.
 Increase in purchasing power and in living standards of people.
 Quick accessibility to great food at moderate prices is one of reason of its success.
Failures :
 Strict regulations of government regarding health and safety.
 Employment laws and high employee turnover
 Unusual working shifts leading to exploitation of societal factor.
 Shifting preferences of customers towards low calorie food

Gap analysis and objectives of business ideas
A gap analysis is the assessment of actual performance with estimated or desired results.
Criterion Current situation Target situation Action plan
Freshness in food Many restaurants are serving that is
preheated or frozen.
To provide freshly produced food
using wood ovens for giving
authentic taste.
 Daily purchasing vegetables
and other items for producing
fresh food.
 Avoiding excessive use of
microwave and frozen food.
Price Proper dining restaurants charge very
high from customers with very less
quantity
The entrepreneur could fill the gap
by pricing its products low.
 Finding cost effective
supplier
 Controlling wastage while
making food.
Staff Restaurants fails to provide dishes
that are fusion of local dish with
modern touch due to ignoring local
chefs.
Proper mixture of cultural dishes
could be blend with new twists
and adding a protein and
nutritious touch to it.
 Hiring experienced local chef
for understanding needs of
working class people and
giving them home like food.

Conti…
Objectives of 21 Midpoint Restaurant
 Earning stability and competitive position in market.
 Earning desired financial results.
Strategies for achieving these objectives
 Serving what customers wants for achieving customer satisfaction.
 Making cost of operations effective for achieving high profitability.

Market research for supporting viability of
business idea
 Primary sources : The entrepreneur prepared a questionnaire and
included a sample size of 25 people.

Questionnaire
Q.1 How often do you dine at restaurant?
 Twice in week
 only on weekend
 Once in a week
Q.2 Do you prefer vegan or non vegan food?
 Vegan
 Non Vegan
 Both
Q.3 What do you hate most about a restaurant?
 Hygiene factor
 Frozen and Microwaved food
 Both of the above
Q.4 Are you price sensitive ?
 Yes
 No
 Not sure
Q.4 What do you recommend on price, quality, staff and ambience..
Cont…

THEME 1: Customer often visit restaurant
Twice in week.
PARTICULARS RESPONDENTS
Twice in week 15
Only on weekends 8
Once in a week 2
Twice in week
Only on weekends
Once in a week
Twice in week
Only on weekends
Once in a week

THEME 2: Maximum customers preferred
PARTICULARS RESPONDENTS
Vegan 6
Non Vegan 8
Both 11 Vegan Non Vegan Both
0
2
4
6
8
10
12
RESPONDENTS
Vegan Non Vegan Both
0
2
4
6
8
10
12
RESPONDENTS

THEME 3: Hygiene factor and Frozen and
Microwaved food preferred by customers.
PARTICULARS RESPONDENTS
Hygiene factor 8
Frozen and Microwaved
food
3
Both of the above 14
Hygiene factor
Frozen and
Microwaved
foodBoth of the above
Hygiene factor
Frozen and
Microwaved
foodBoth of the above

THEME 4: Maximum customers are price
sensitive.
PARTICULARS RESPONDENTS
Yes 16
No 5
Not sure 4
Yes
No
Not sure
0 2 4 6 8 10 12 14 16 18
RESPONDENTS
Yes
No
Not sure
0 2 4 6 8 10 12 14 16 18
RESPONDENTS

Why the idea of entrepreneur is feasible,
viable and what are its strengths and
weaknesses
 The business thought of the entrepreneur is viable because result of customer survey
supported the idea.
 It was found from the survey that people prefers high level of hygiene at place and
supreme level of freshness and taste in the food.
 This supported idea of entrepreneur of serving fresh and nutritious dishes to customers.
Similarly, people prefers low cost with good quantity and quality that supported the
entrepreneur in its thought of serving average earning working class people.

Conti…
Feasibility of the business proposal could be determined by preparing forecasted cash flow for
the 21 Midpoint restaurant for twelve months.
Particulars
Initial
investm
ent
Januar
y
Februa
ry March April May June July August September October November December
Product
Food
services
Food
services
Food
services
Food
services
Food
services
Food
services
Food
services
Food
services
Food
services
Food
services
Food
services
Food
services
Number of consumers 12000 13200 14520 15972 17569 19326 21259 23385 25723 28295 31125 34237
Average selling price 20 20 20 20 20 20 20 20 20 20 20 20
Total revenue from
Food 240000 264000 290400 319440 351384 386522 425175 467692 514461 565907 622498 684748
Product Cocktail Cocktail Cocktail Cocktail Cocktail Cocktail Cocktail Cocktail Cocktail Cocktail Cocktail Cocktail
Number of consumers 15000 16500 18150 19965 21962 24158 26573 29231 32154 35369 38906 42797
Average selling price 45 45 45 45 45 45 45 45 45 45 45 45
Total revenue from
Cocktail 675000 742500 816750 898425
988267.
5
108709
4.25
119580
3.675
1315384.0
425
1446922.4
4675
1591614.6
91425
1750776.1
605675
1925853.7
7662425

Conti…
Total revenue (cash
inflow) 915000
100650
0
110715
0
121786
5
133965
2
147361
7
162097
8 1783076 1961384 2157522 2373274 2610602
Expenses
Salaries to staff 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Ingredients 500 550 600 650 700 680 650 520 450 500 550 580
Advertisement and
distribution 1200 1100 1000 900 950 800 920 750 650 400 550 480
machineries 4000 0 0 3500 300 0 0 1000 0 0 1500 0 2000
Interest on loan 1350 1350 1350 1350 1350 1350 1350 1350 1350 1350 1350 1350
Equipment 1500 0 400 0 0 500 0 0 600 0 300 150 0
Total expenses (cash
outflow) 5500 5050 5400 8450 5200 5500 4830 5920 5220 4450 6050 4600 6410
Net cash flow -5500 909950
100110
0
109870
0
121266
5
133415
1.5
146878
6.65
161505
8.315
1777856.
1465
1956933.
76115
2151472.
137265
2368674.
3509915
2604191.
78609065

Conti…
Total revenue (cash
inflow) 915000
100650
0
110715
0
121786
5
133965
2
147361
7
162097
8 1783076 1961384 2157522 2373274 2610602
Expenses
Salaries to staff 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Ingredients 500 550 600 650 700 680 650 520 450 500 550 580
Advertisement and
distribution 1200 1100 1000 900 950 800 920 750 650 400 550 480
machineries 4000 0 0 3500 300 0 0 1000 0 0 1500 0 2000
Interest on loan 1350 1350 1350 1350 1350 1350 1350 1350 1350 1350 1350 1350
Equipment 1500 0 400 0 0 500 0 0 600 0 300 150 0
Total expenses (cash
outflow) 5500 5050 5400 8450 5200 5500 4830 5920 5220 4450 6050 4600 6410
Net cash flow -5500 909950
100110
0
109870
0
121266
5
133415
1.5
146878
6.65
161505
8.315
1777856.
1465
1956933.
76115
2151472.
137265
2368674.
3509915
2604191.
78609065

Swot analysis
Strengths:
 The business proposal is viable and is supported by the primary research.
 The entrepreneur will provide low cost dishes to people.
Weaknesses:
 Lack of experience in entrepreneur in this industry.
 Cost cutting will somewhere affect the quality of dishes.
Opportunities:
 Serving to different segments of market.
 Adding more kid meals in menu for attracting young people.
Threats:
 Cut throat competition from established restaurants.
 Increase in prices of inputs will increase the cost of producing dishes

Recommendations on overcoming risks of
competition and tapping of potential
opportunities
Recommendations :
 The entrepreneur can overcome the risk of competition by getting its restaurant highly
differentiated from its rivals.
 This can be done by making its dishes unique that have exotic flavours which no other
restaurant offers.
 It can make restaurant, a theme based , making its decor and interiors highly attractive. It
can employ best staff that knows how to treat customers and provide them the utmost
pleasure and worth to their money they have spent on the dishes.

CONCLUSION
 From the above project report, it can be summarised that entrepreneurship helps an
individual in developing and building a viable business idea of designing, launching and
successfully running the operations of new business.
 The entrepreneur developed its idea on the basis of its interests, hobbies, brainstorming
sources of opening up of a dining restaurant in Manchester.
 Further, the report concluded that entrepreneur will have to differentiate its proposal
largely from its potential competitors for entering smoothly into the market.

REFERENCES
 Bruton, G and et.al., 2015. New financial alternatives in seeding entrepreneurship: Microfinance,
crowdfunding, and peer‐to‐peer innovations. Entrepreneurship Theory and Practice. 39(1). pp.9-26.
 Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan International
Higher Education.
 Burton, M. D., Sørensen, J. B. and Dobrev, S. D., 2016. A careers perspective on
entrepreneurship. Entrepreneurship Theory and Practice. 40(2). pp.237-247.
 Camp, S. M., 2015. Entrepreneurship Development, Patterns of. Wiley Encyclopedia of Management.
pp.1-5.
 Cooper, A. and Folta, T., 2017. Entrepreneurship and high‐technology clusters. The Blackwell
handbook of entrepreneurship. pp.348-367.