Innovation and Entrepreneurship: A Start-Up Business Idea for Warm Delight Bakery

This document discusses the start-up business idea for Warm Delight Bakery, including product and services, industry profile, business model, challenges, prospective customers, marketing plan, competitor analysis, and sources of funding.

Innovation and
Entrepreneurship

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
START-UP BUSINESS IDEA........................................................................................................1
Product and services....................................................................................................................1
INDUSTRY PROFILE....................................................................................................................2
BUSINESS MODEL.......................................................................................................................2
POINT OF DIFFERENTIATION...................................................................................................3
CHALLENGES...............................................................................................................................3
PROSPECTIVE CUSTOMERS......................................................................................................4
MARKETING PLAN......................................................................................................................4
COMPETITOR ANALYSIS...........................................................................................................5
SOURCES OF FUNDING..............................................................................................................6
INTELLECTUAL PROPERTY......................................................................................................6
REFERENCES................................................................................................................................7

EXECUTIVE SUMMARY
Warm Delight Bakery (WDB), is a new start-up business for bakery and coffee retail
small business establishment which is located in London, United Kingdom. This business is
expecting to attract the local and non-local customers in order to develop a huge customer base
and loyal customers. A broad variety of products and services will be offered to customers with a
a high quality in order to attract them at affordable prices. Business is planning to build a strong
position in a market with the help of effective strategies and marketing plan. WBD is aiming to
offer its services and products at competitive prices in order to satisfy the demand of lower to
middles to high income level tourists and residents. A company is established in London which
owned and equally manages by Mr. X and Mr. Y the two partners of the business. Mr. X is
comes from a background of finance and administration and Mr. Y has an experience in
marketing and sales and also has an expertise in management. WDB is intends to hire 6 part-time
baristas for handling day to day operations and customer care services and also intends to hire 2
full-time pastry bakers for successful operation of business.
START-UP BUSINESS IDEA
Product and services
Warm Delight Bakery (WDB), in order to enter the markets it is vital for the company to
best and quality services to their customers in order gain a competitive advantage and
profitability. Various products and services which is to offered to customers should unique and
innovative to grab customers attention in a market. WDB develops a range of products and
services, this range includes espresso products, coffee for which all coffee beans will be
imported from Columbia which are the best coffee beans in business. WDB also caters to satisfy
a customer by offering every customer an espresso product and coffee which will be made to suit
them with a best quality (Chambers and Humble, 2017). The bakery section of a company will
provide very fresh and hand made bakery and pastry products on a continuous basis in order to
keep customers attracted. Bakery products will includes 5 to 6 batches of pastry and bakery
products which will be prepared in morning in to maintain their freshness and high quality so
that company can offer its customers a best and fresh baked products which will be always
available to customers.
WDB will also the best and unique services to their customers, company will offer home
delivery system which will be online and through a call, where a product will be provided to
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customer's door-steps within 30 minutes. Within the services will be quick which will be named
a 5 minute service where customer's order will be placed in only 5 minute where customers can
sit and eat or take home. So, the services of the restaurant will be quick and unique in a market.
INDUSTRY PROFILE
In bakery and bread production industry in UK is one of the major market which includes
a number of products like, cakes, pastries, muffins, rolls etc and the operating conditions of the
industry has been influences by the preferences of customers, consumer confidence level,
fluctuating input prices as well as disposable incomes. It has been forecasted that revenue of
industry will increase at 3.2% of compound annual rate and is estimated to reach a target of 8.5
billion pounds which means a growth of 2.1 percent in a current year (Burns and Dewhurst,
2016). Bakery companies are holding a great market share in bakery and bread products within
UK industry there are more than 3,165 businesses operating in UK with a total revenue of 8
billion pounds and also offers an employment for 75,736 people in UK. Due to Brexit UK has
been facing a pressure economically and politically since a Brexit vote and the value of pound
could fluctuate rapidly due to departure of UK for European Unions which can impact the import
and export balance of country to higher levels. WDB wants to establish a huge customer base in
market so, there it is vital for a company to concentrate more on a local residents which are the
dominant in market which help the company to gain high revenue base and profitability.
BUSINESS MODEL
WDB is expecting to achieve its sales to 100,000 pounds of its own capital investment
and company is anticipating a sale of 200,000 pound in a third year plan of a business and
company can use break even analysis in a 4th month of its operations if the sale of the company
increases steadily. Also, the profits margin for the company for three year plan is, for 1st year of a
business company is expecting a profit of 10,000 pounds, in 2nd year of business company is
expecting a profit of approximately 30,000 pounds and for the third year company is expecting a
profit of 40,000 pounds. Also company is not anticipating any problems in cash-flow. In a
business idea there occurs a 6 stage of business cycle which is mentioned below:
1. Expansion: In the stage of expansion there will be increase in sale of products of WDB
which will result in increase in employment, production, income for company and hence
increase in sales (Correll and et.al.,2016). Here both the partners of business will pay
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their debts on time and economy will have steady flow of money and investment of the
company is booming.
2. Peak stage: In this stage economy of the company is reaches peak and hits a snag which
means company will achieve a maximum level of growth.
3. Recession: This is referred as a period of contraction of economy of a company and
production of the company also tends to slow due to slowing down of sales.
4. Depression: In this economic growth of a company will continue to decline in the
market, it will be hard for the company to find customers and it will also difficult for a
company to secure its credit levels.
5. Through: This is a stage which will mark the end of depression in which attempts are
made to improve the economy of a company in recover stage.
6. Recovery: This is the stage of a business where profits for the company starts to turn
around and WDB will witness rise in demand for the company's products which are
marks end of one business cycle.
POINT OF DIFFERENTIATION
WDB is different from it competitors in various ways as this company will offer the best
products with high quality to satisfy its competitors. Company will import the best quality coffee
from Columbia which will loved by coffee loving customers (Ghezzi, Cavallaro Rangone and
Balocco, 2015). Also, bakery products will be customised by the company as per the needs of
customers for examples pastries and cakes. There will also be a special segment for kids and
products will be prepared by taking there health into consideration. Also, company will offer the
unique services to customers like 30 minutes delivery and 5 minute order placing which are the
services that are not offered in bakery market.
CHALLENGES
There are various challenges which a business can face and some of them are mentioned
below:
Staffing weakness: This is the major challenge that a business idea is facing if the staff are not
adequate and does not posses the knowledge and skills for production of goods and services for
the company which can hamper the profitability of the company to higher extent (Watson,
McGowan and Cooper, 2016). Hiring well qualified staff can be one of the major challenge for
the company as staff of the business play an important role in the success of business.
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Competition: Bakery market in UK is growing which is also giving rise to high level of
competition in the market, so gaining a competitive advantage in the market can be a challenging
factor for the company.
Bakery marketing challenges: It is also one of the major challenge that a business idea is
facing, develop an appropriate marketing strategies for attracting local residents and tourists can
be challenges task for a company like developing the pricing strategies different marketing
strategies which should be effective to attract customers and make them switch towards WDB.
Operations and cleanliness: In UK bakery products are being regularly inspected and are
graded by country's health authorities and normally these grades are being placed where
customers can see them. Achieving a higher grades can be a challenging task for WDB and
impressing these authorities can be challenging task (Watson, McGowan, and Cunningham,
2018). If a company gets a lower grades it may affects profitability and may result in the loss in
business. Also, cleanliness of the shop is can also be a major challenge for the company and it is
important for the company to keep it sparking clean where customer can eat and it with
satisfaction.
PROSPECTIVE CUSTOMERS
Before starting a business it really important for the company to identify prospective
customers for their business. As company will offer its products and services at affordable prices
with higher quality which can attract the customers of lower to higher income customers. The
prospective customer of company's product can be residents of the area and tourists and people
passing by the shop (Ward, 2016). Also, company will specialise in preparing health bakery
produce for children they can also be a prospective customer for the company. Another section
of the company deals with coffee, and the prospective customers of the company's coffee will be
local business man who try to discuss their business meetings at the shop. So, these are the
prospective customers of the company which WDB can target.
MARKETING PLAN
The marketing plan of Warm Delight Bakery within London can be explained with the
help of 4 Ps of marketing which can be explained as:
Products: Products of WDB can be divided in to two major segments such as bakery products
and the key products of the company are pastries, cakes, cupcakes, muffins, roles, etc. The
quality of products is very essential for company image and success. For a company to assure
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the quality of products WDB will emphasise on sanitation and cleanliness in a store. Also,
company will use high quality ingredients and will ensure that there products are always fresh
and well baked (Vandervalk and et.al., 2017). Once a business becomes a success it will adopt
various innovative strategies to keep customers attracted towards the business and will start
various flavours and product options to customers.
Price: One WDB opens its first store in London and one of its key objective will be to achieve a
high market share in order to enter in the market and get higher return on investment. So, the
pricing strategies which will be adopted by the company will be competitive pricing strategy in
order to attract customers and face high levels of competition. By doing so, WDB will be able to
survive in high competitive market and will be able to attract its competitors customers towards
the company.
Place: Warm Delight Bakery will open as single bakery store in London but its objectives will
grow continually once a business starts to get well established in a city. This is a city which
provides a company a huge opportunity for growth and profitability. City remains crowded by
tourists and local resident which can surely prove the best location for the business.
Promotion: One of the major promotional objective of WDB is to create awareness among the
customers to generate desires and interests in customers in order to motivate customers to make
purchases from the store. Company will develop a strong public relation which is really
important for the company in order to survive in the business. Company can make use of various
promotional strategies in order to generate awareness and attract prospective customer on of the
best promotional strategy is social media marketing. This very easy and most effective strategy
for company which can generate huge awareness among the customers.
COMPETITOR ANALYSIS
A London city is considered as one of the most busiest place in the world which remains
crowded across the year besides it is one of the best location for bakery business which keep on
attracting bakery businesses where people come to eat. So, there is huge competition in the
market and Warm Delight Bakery can face a tough competition from three best bakery stores in
London one is Konditor & Cook is one of the most popular bakery store in London and has been
operating from more than 25 years in the areas which can offer a tough competition to WDB
(Yu, 2016). Another popular bakery store which can provide tough competition to WDB is Jacob
The Angel, which has been using various types of flavours in their products in order to attract
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customers. Another popular competitor for WDB is Ottolenghi which produces various types of
cakes and desserts which very inspiring for customers and can pose major threat for the
company.
SOURCES OF FUNDING
As there are two partners involved in the business and can use their personal capital for
funding and there are also various sources of funding that a company can acquire. One of the
common source of funding for starting a business can be Bank loans in which money is
borrowed by a company and has to pay back over a regular periods with interest. Business loans
can be divided in to two major categories such as Secured business loans and unsecured business
loans (Swanson, 2017). Another source of funding for business can be Grants, in which small
business grants are provided by government or by a charitable organisation. Finance is given to
organisation as per the criteria and has to go through an application as well as vetting process.
Another modes of financing can be venture capital which can prove to be a great option for
WDB if it is looking for serious finance with respect to exchange of equity.
INTELLECTUAL PROPERTY
In order to protect the business idea Mr. X and Mr. Y can use various ways of protection
of ideas and some of them are mentioned below:
Patents: It is a form an intellectual property which gives the owners of the plan right to exclude
others for developing same business idea over the years (Lin, 2019). In order to obtain patents
business owners can apply at UK Intellectual Property Office and officials find that business idea
is patentable, patent will be granted for the business idea mostly for 4 years after its application.
Copyright: It can help the owners in protecting original works which are made by the owners in
a business plan and it is not necessary to get business idea to be registered to have copyright
protection.
Trademarks: With the help of trademarks WDB can distinguish its products and services from
competitors in the market with this company can help customers to identify the WDB's products
from its competitors.
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REFERENCES
Books & Journals
Burns, P., & Dewhurst, J. (Eds.). (2016). Small business and entrepreneurship. Macmillan
International Higher Education.
Chambers, I., & Humble, J. (2017). Plan for the planet: a business plan for a sustainable world.
Routledge.
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Northern Great Plains (NGP) business plan. Final report.. Bird Conservancy of the
Rockies, Brighton, Colorado, USA.
Ghezzi, A., Cavallaro, A., Rangone, A., & Balocco, R. (2015, April). A Comparative Study on
the Impact of Business Model Design & Lean Startup Approach versus Traditional
Business Plan on Mobile Startups Performance. In ICEIS (3). (pp. 196-203).
Lin, E. (2019). The Business of Bariatrics: Creating a Business Plan.
Swanson, L. A. (2017). Business Plan Development Guide. OPENPRESS. USASK. CA.
Vandervalk, A & et.al (2017). Maryland State Highway Administration Pilot of the Data
Business Plan Guide for State and Local Departments of Transportation: Data Business
Plan (No. FHWA-HOP-18-010). United States. Federal Highway Administration.
Ward, J. (2016). Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
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competition through the incorporation of effectuation.
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Yu, M. (2016). Business Plan-Art Marketing.
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