Innovation and Entrepreneurship: A Business Plan for A to Z Cafe

This report includes a business plan for A to Z Cafe, covering details of the new business idea, business model for increasing profitability, point of differentiation, challenges faced, prospective customers, marketing plan, analysis of competitors, sourcing of funding, and intellectual property rights. The report emphasizes the importance of innovation and entrepreneurship in the development of a business.

Innovation and
entrepreneurship

Executive summary
This report includes a brief description of a business plan with a start up business idea. In
this report a description of new business is mentioned along with explanation of a relevant
business model. This project covers a detailed marketing plan with the analysis of different
competitors of the business. In this project various sources of funding are mentioned along with
different intellectual property rights.
Illustration 1: Proposed interior of new cafe, 2021

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
Details of new business idea...................................................................................................4
TASK 2............................................................................................................................................4
Business model for increasing profitability............................................................................4
TASK 3............................................................................................................................................5
Explanation of point of differentiation (A to Z cafe will be different products)....................5
TASK 4............................................................................................................................................5
Various challenges faced by the new business at the marketplace........................................5
TASK 5............................................................................................................................................6
Prospective customers for the business..................................................................................6
TASK 6............................................................................................................................................6
Marketing plan for the new business......................................................................................6
TASK 7............................................................................................................................................9
Analysis of competitors present in the marketplace ..............................................................9
TASK 8............................................................................................................................................9
Sourcing of funding available to the new business................................................................9
TASK 9..........................................................................................................................................11
Intellectual property rights for protection of business idea..................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is the necessary act which helps a business to sell new products to customers
with unique features. The entrepreneurship is an economic activity which is helpful in
development of business and also effective for the country (Cunningham, 2019). In the recent
times due to the introduction of information and technology value of entrepreneurship is
increasing day by day. In this report a new business plan is introduced and different dimensions
of new business are covered in a precise manner. This project includes a brief analysis of
competitors who are present in the market along with available sources of funding. In this project
a brief analysis of market is covered along with a precise marketing plan.
TASK 1
Details of new business idea
In this report example of A to Z cafe is taken into consideration which is situated in the
heart of London City. The A to Z cafe will provide most loved snacks and coffee in order to
attract large number of customers. A to Z cafe will hire professional chefs who will be able to
deliver best quality services to customers and will be able to provide best services to different
stakeholders. The cafe will have rooftop and indoor facility in order to facilitate different
customers to enjoy the coffee and snacks services. A to Z cafe will have 10 chefs, 3 waiters, 1
receptionist and 1 manager. The A to Z cafe will be able to provide different types of quality
coffees and along with wide range of snacks that are loved by London public.
TASK 2
Business model for increasing profitability
In order to survive at the marketplace it is essential for a business to apply different
models with utmost responsibility. A to Z cafe will apply the four different approaches to
increase revenue and growth which are mentioned below:
 Increasing turnover- It is important for a business to adopt various techniques of
increasing turnover which will increase profitability of the company (Ding, 2017). A to Z
cafe will be able to develop best practices which are essential for development of overall
development of the business.
 Reducing costs- It should be compulsory for a business organisation to reduce the cost of
product in order to maximise the sales. In the era of stiff competition between different

companies in the market it is compulsory for a business organisation to keep reasonable
price of the product.
 Increasing productivity- In today's competitive world it is essential for a business to
increase productivity to satisfy various customers. The productivity is an important
function of an organisation which is essential for the development of business
organisation.
 Increasing efficiency- It is important for an A to Z cafe to increase the efficiency of
different workers in order to improve performance of whole cafe.
TASK 3
Explanation of point of differentiation (A to Z cafe will be different products)
A to Z cafe will be different from other competitors as it will hire chefs who are the best
in market. Professional chefs will able to prepare top quality food and coffees which will be
healthier and hygienic for the customers (Escobar, 2021). The A to Z cafe will also give special
discounts on Sunday and will provide special discount to couple. Cafe will try to provide best
services to different customers and will also take regular feedback of different customers. In the
market A to Z cafe will provide essential services and will be open 24*7 for different customers.
It is the major responsibility of management to focus on various strengths of cafe on regular
basis for development of business in a short period of time.
TASK 4
Various challenges faced by the new business at the marketplace
A new business at the marketplace faces various challenges which are important for
business development. The new business organisations face many challenges which are
mentioned below in context of A to Z cafe:
 Competitors- In the market there are various competitors which will be present in
corporate world. Major challenge of new cafe will be there to face different competitors
which are present in market. It is important for an organisation to face competitors with
best strategies and policies in order to gain and development in competitive advantage.
 Attract customers- A to Z cafe main challenge would be attracting new customers for
the business (Farinha, 2018). It is important for a business organisation to prepare

effective business strategy which will be helpful in gaining attention of different
customers. Attracting new customers for the business will help the company in increasing
profitability, revenue and sales of a business.
 Risk in business- In the starting of a business there is an involvement of risk which is to
be faced by whole business organisation. The risk should be minimised in a business with
the help of strategic management. It is essential for A to Z cafe to choose best
opportunity for minimising risk associated with business.
 Customer service- In starting a new business customer service is very much important
so it is main aim of business to follow customer service. Increasing customer satisfaction
of different customers is the major challenge which is faced by several new organisations.
TASK 5
Prospective customers for the business
A to Z cafe will try to attract youth in order to perform services of providing coffee and
snacks. The business organisation should select the best strategy in order to attract large number
of customers. It is important for a company to analyse different options to attract target
customers. On the other hand it should be duty of management to develop best advertisement and
publicity strategy (Ferraris, 2020). In the recent times many cafes which are situated in London
are taking assistance of information and technology to perform different services. A to Z cafe
has to hire people who are good in formulating and developing strategy which is beneficial for
the business organisation. A to Z cafe will provide extra discount to couple which will help the
cafe to develop effective relationship with target customers.
TASK 6
Marketing plan for the new business
In the functioning of a new business in market, it is compulsory for a business to prepare
a marketing plan. The marketing plan will the business to gain growth in a short period of time.
The A to Z cafe will hire skilled and trained staff for selling products and gain revenue.
Marketing plan for A to Z cafe is mentioned below with the help of STP approach:
 Segmentation- The art of segmentation is considered as a good technique which is
helpful in segmenting different parts of market (Ling, 2019). The segmentation of market
is considered as a major function which helps the marketing department to grow at the

marketplace. In this technique market is divided into segments and sections to make it
easy for the customers to buy a product.
 Targeting- Targeting is an essential function of marketing department which is referred
to selection of target customers for the customers (Mongelli, 2017). It is the major
responsibility of marketing department to identify different customers from the
marketplace. A to Z cafe will identify different customers and then marketing
management. In increasing revenue of the business targeting helps a business to
overcome various challenges related to customer protection.
 Positioning- The positioning refers to the art of selecting approaches which are perfect
for selecting geographical, demographical and physical business. Positioning is
considered as major business activity to select appropriate location for the business.
Illustration 2: Marketing plan, 2021

Marketing mix (Plan)
The marketing mix contains various elements in order to develop a well developed
marketing for a business. A to Z cafe will organise and take assistance of precise business plan
which is essential for growth of the company. There are various multinational and national
companies in the market which focus on development of a crucial marketing planning in order to
gain competitive advantage. The main elements of marketing mix are explained below:
 Price- In the functioning of an organisation it is essential for a business entity to focus on
value of a product. Price is generally determined as cost and profit of a company for a
particular product. A to Z services cafe will keep reasonable price of its coffee and snacks
to gain customer satisfaction. Price is the major element which decides the value of a
commodity in order to gain advantage. The number of customers for A to Z cafe should
be developed in a precise manner by setting effective prices of products and services.
 Product- The product is considered as final output produced by any business entity in
order to sell it in the marketplace (Nakara, 2021). It is important for a person to develop
quality products in a business entity for the growth of business. A to Z cafe will develop
coffee and snacks of best quality to lead the marketplace. Product is also known as the
physical or tangible asset for a business organisation. Most of the business organisations
try to develop an effective business strategy which is helpful in development of the whole
organisation.
 Place- Place in marketing is considered as the geographical location for performing any
type of business activity (Wang, 2020). It is important for a business to select appropriate
place for selling the product in order to gain competitive edge.
 Promotion- It is essential for a business organisation to promote product and services
with the help of advertisement. A to Z cafe will select best media source in order to
promote different products and attracting new customers. The promotion of product will
be performed using information and technology. The social media advertisement will be
most suitable medium of technology which will help A to Z cafe to grow precisely in the
marketplace.

TASK 7
Analysis of competitors present in the marketplace
It is essential for a business to analyse different competitors which are present at the
marketplace. Business development is possible if the analysis of competitors is performed in a
significant manner. The following points are covered to explain competition level faced by A to
Z cafe:
 The three wheels cafe- This cafe is famous for its coffee and various types of beverages
in the market of London. The cold coffee of this cafe is famous in whole London City,
this cafe has also various positive feedbacks from major customers (Pyka, 2019). In the
market of London it is major responsibility of various cafes like A to Z to establish
market in a precise manner.
 Three restaurant and bar- It is important for a business organisation to focus on its
restaurant and bar to develop business. Most of the business organisations at the
marketplace in London prefer to develop business like Three restaurant and bar.
 The three lions- It is one of the major cafe which is situated in the heart of London city
and is known for best services. In order to provide effective services at the marketplace A
to Z cafe should learn business techniques and tools
TASK 8
Sourcing of funding available to the new business
In the functioning of a business at the marketplace it is important to select best source of
funding in order to develop a business financially. Most of the successful business organisations
in international and national market take support of various funds providing agencies to develop
financial strength (Ratten, 2021). It is the responsibility of a company to take appropriate actions
for capturing funds from the market. The various options available to A to Z cafe for raising
funds are mentioned below:
 Banks- The banks are considered as financial institutions which provide loans to business
entity. There are various banks in market which provide loan to companies on cheaper
interest rate. A to Z cafe will take loan on cheap interest rates from the banks and
establish a business which is worth of money.

 Creditors- In market there are various people who are present in order to provide credit
facility to the businesses. The creditors also charge special interest rate and in few cases
they do not charge any amount related to interest. A to Z cafe can also reach to various
creditors for taking business loan for opening cafe in London.
 Angel investors- Angel investors are individuals who offer promising start-up companies
funding in exchange for a piece of the business. It is necessary for a business organisation
to take support of angel investors in order to start and develop a new business.
Illustration 3: Elements of source of funding, 2021

TASK 9
Intellectual property rights for protection of business idea
The start up business idea will be protected in order to stop imitate of business idea and
promotion (Saji, 2018). It is the major responsibility of top level business management to
develop a precise business strategy which is helpful in protecting intellectual property rights.
Most of the successful business organisations in the market take assistance of employment
legislation and provides (Schmitz, 2017). It is compulsory for a business organisation to develop
a precise business idea which is essential for development of business and to minimise different
risks associated with the business.

CONCLUSION
From the above stated report it can be concluded that in order to establish a new business
in the marketplace there is a requirement of market analysis. The above discussion concludes
that it is compulsory for a business entity to develop a precise strategy and plan to gain growth in
market. The above stated report concludes that it is compulsory for a business organisation to
analyse internal and external environment for overall development of a business. This report
concludes it is compulsory for a company to focus on best sources of funding for maintaining
financial stability in the business. From the above stated report it can be also concluded that a
new business should focus on development of precise business strategy for the organisation in
order to be successful in market.

REFERENCES
Books and journals
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Escobar, O., Schiavone, F., and Maalaoui, A., 2021. Lead user innovation and entrepreneurship:
Analyzing the current state of research. Journal of Small Business Management, pp.1-18.
Farinha, L., Ferreira, J.J. and Nunes, S., 2018. Linking innovation and entrepreneurship to
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