Introduction to New Business Idea

Managing a new
enterprise

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Introduction to new business idea...............................................................................................3
Feasibility of new business ........................................................................................................3
Moral and Ethical Dimensions ...................................................................................................5
Legal Dimensions .......................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation can be defined as an latest idea, new imaginations, and creative thoughts that
in form of a method, process or device (UK Licensing laws. 2019). It is utilised as an application
for better solutions in order to meet new needs and requirements. For starting a business, it is
very important for an entrepreneur to use latest technique and proper usage of innovation in
order to successfully execute all the activities of business. In this report, a new restaurant is about
to open which focuses on healthy food named, “Health is Wealth.” This report covers feasibility
and viability like market, technical, business model, economic, financial and management
viability. It also covers moral, ethical, and legal dimensions that can affect this new business.
TASK
Introduction to new business idea
A new restaurant named “Health is Wealth” is opening which focuses upon healthy food
that is oil free. Due to increase in number of diseases like food poison that can take place by
consuming unhealthy food, people are avoiding outside food. For this purpose, this restaurant is
opening up which targets health conscious people.
Feasibility of new business
Feasibility of a business can be defined as a process that can be controlled in order to
identify opportunities and problems, describe certain situations, determine various objectives,
define successful outcomes, and assess range of specific costs and benefits that is associated with
alternatives for solving problems (Andriate and Fink, 2017). While launching a new business,
feasibility is used to support the process of decision making which is based upon cost benefit
analysis of project viability. Basically it includes certain limitations and recommendations that is
used for assisting decision-makers to make decisions.
Dimensions of Business Viability
While introducing a new business enterprise, it is important for an entrepreneur to keep in
mind various dimensions of business viability. In order to understand a purpose of understanding
feasibility of a new business, an entrepreneur needs to study some dimensions of business
feasibility which can be defined as follows-
Market Viability: It includes all factors that determine the feasibility of a business in a targeted
market place. While opening a restaurant, it is necessary for an entrepreneur to check the

viability of market which includes target market, target audience, perform market research,
analysing competitors and industry properly. Entrepreneur needs to examine prevailing
conditions of market properly like to look out whether it is beneficial to introduce a restaurant or
not. Entrepreneur also need to examine if customers existing in market are interested in such
restaurant or not (Archibald and Archibald, 2016). For this purpose, a proper market research is
needed to be done in order find out customer's tastes and preferences. Businessman needed to
analyse target customers and competition prevailing in market.
The targeted audience for opening this restaurant is health conscious customers who
avoid unhealthy and and fast food. A proper market research is needed to be done and market
should be segmented properly. Moreover, this restaurant needed to be open up at a place where
there are maximum number of health conscious customers. A good promotion strategy is also
needed to be done while doing a start-up which can be both online and offline.
Technical Viability: After going through market viability, it is very essential for entrepreneurs to
look out for technical viability. It includes what new technique a business is using in order to
keep its business different from others. It can be a innovation or technique that can make that
business unique from its competitors.
Health is wealth restaurant is focusing upon health conscious customers and for this it is
launching latest technologies in order to prevent its clients from any kind of unhealthy processes.
For this purpose, it will use Non-Thermal processing in order execute the process of making
food. This processing takes place at low temperatures more than those taking place in thermal
processing. It prevents customers from negative impact of heat in taste and nutrition.
Business Model Viability: This model is needed to evaluate if business is capable of working
successfully or not. This includes uniqueness, upstart funds, targeted audience, competition
prevailing, economic mood, timing, or marketing. The success of a new enterprise is dependent
upon these factors and forces. So, it is very important for an enterprise to carry on its activities
keeping in mind all such factors (Chorafas, 2016).
While opening this restaurant, an entrepreneur should keep an eye on all its activities that
is needed to take place. Uniqueness in product and services of restaurant should be kept in mind
while formulating all marketing and production activities. In this restaurant, the unique feature is
that it is focusing on healthy food by using Non-thermal processing.

Management Model Viability: In this model of viability, management of an organisation should
be kept in mind. For a successful business, it is significant that management should be good
which will help in smooth running of a business.
Different business uses various management model for entering into a new business.
Health is Wealth restaurant is using rational goal model of management. This model focuses
upon significance of external control of management which will result from exercise from of
producer and director and their roles and responsibilities for employing humans (Cooper, 2017).
This organisation will take this model into action for performing its overall managerial activities.
Economic and Financial model viability: This model is taken into action to check the financial
and economic status of an organisation. When an entrepreneur is starting a new business, it
should take into consideration availability of its financial resources. By keeping that in mind, it
can set budget and estimate its overall cost that is going to indulge in that procedure.
Entrepreneur of Health is Wealth restaurant should check its overall economic stability
and financial resources that are available within an organisation. On that basis, it should use
latest technology within a budget. Entrepreneur has sufficient budget so it can easily use various
technologies like Non-Thermal processing in order to make its business more unique and ahead
of competitors. This will help this restaurant to be successful in upcoming times by investing its
financial resources in latest technologies and innovation which will facilitated its overall
functioning.
Moral and Ethical Dimensions
Before starting a new enterprise, an entrepreneur should keep in mind certain ethics and
morals in order to smooth running of a new venture. It can be known as guiding principals which
refers to certain rules and regulations. There are some specific moral and ethical dimensions that
can affect Health is Wealth restaurant which are-
Honesty- Entrepreneur of this new venture should be honest in all aspects and maintain
same honesty with others also. A new businessman should be honest with its customer like in
this case, if this enterprise is promising health to its customers than it should not use any kind of
unhealthy items in its food. An entrepreneur should also be honest with its employees in order to
maintain healthy relationship with them (Dam, Lê and Ghose, 2016).
Integrity- An entrepreneur should maintain its integrity and should not be hypocritical
and unscrupulous. Entrepreneur of Health is Wealth should demonstrate courage and personal

integrity and be a good example in front of employees. No matter what, what is right is needed to
be done when opening up a new venture.
Loyalty- While launching Health is Wealth restaurant, its entrepreneur should keep in
mind to stay loyal towards employees and customers. For any kind of personal advantage, there
should be no misuse of trust of workers. It will build up trust and loyalty of employees upon their
owner and they will work in more efficient manner (Maskell, Baggaley and Grasso, 2017).
Promise keeping and trustworthiness- After establishing new business venture, its owner
should fulfil promise which is made at the time of starting of an organisation. For instance,
Health is Wealth restaurant is promising to provide healthy food to customers by using healthy
ingredients in its food. This promise needed to be fulfil by its owner in order to meet customers
expectations. If any kind of misinterpretation is done while making and serving food than this
business will no longer survive in market.
Fairness- A new business should involve in fair practices and should follow all rules and
regulations of government. It should not indulge in any kind of unfair trade practices and should
not take advantage of other's mistakes (Cook, 2015). An entrepreneur should treat all its
employees equally and should accept diversity. Businessman of Health is Wealth should be open
minded and must be ready to accept own mistakes. Moreover, the procedure to cook food should
be clean and hygienic in order to meet customer's expectations and long running of an enterprise.
Leadership- Entrepreneur of Health is Wealth should possess all leadership qualities and
should be responsible for overall activities of a business. The owner should involve its
employees in decision making process and should also ask for suggestions whenever required.
Entrepreneur should understand its responsibilities and should take regular follow up from them.
Reputation and Morale- An entrepreneur should seek to build and protect its business's
good reputation and morale of its workers by involving in no conduct that can undermine respect
An entrepreneur of Health is Wealth restaurant should also take into consideration certain actions
that are necessary to prevent and correct improper conduct of others (Nicholls, 2018).
Accountability- Entrepreneur of Health is Wealth restaurant should acknowledge
personal accountability for the purpose of ethical quality of decisions and omissions to
employees, customers, communities, business and themselves also.

Legal Dimensions
Legal dimensions can be defined as certain rules and regulations imposed by government upon
organisations which must be followed by every enterprise (Ruskovaara, Hämäläinen and Pihkala,
2016). There are certain laws and acts of United Kingdom that have an impact over new start-up
business venture. These laws have great affect upon Health is Wealth restaurant which can be
seen as follows-
Health and Safety Act 1974- This act is imposed by parliament of United Kingdom
upon companies that defines basic fundamental structure and enforcement of health and safety of
workplace. The basic purpose of this act is to ensure health, safety and welfare at workplace and
it defines specific norms and regulations which must be followed by workers and management
that includes appropriate light, cleaning, hygiene fresh water, clean working environment and so
on. This act makes sure that employees working in an enterprise must be provided a healthy and
safe environment. In Health is Wealth restaurant, entrepreneur should follow this act and provide
adequate working facilities to its employees like proper hygiene and clean environment.
Equality Act 2010- The basic purpose of this act is to give protection to employees from
discrimination against sex, caste, creed, nationality, disability, and orientation that takes place at
workplace. When all workers are treated equally than it will boost up their inner confidence and
they will work in more efficient manner (Andriate and Fink, 2017). This will result in increase in
overall productivity and profitability of an organisation. An entrepreneur of Health is Wealth
restaurant need to treat its workers equally irrespective their caste, creed, nationality, sex and so
on. This law should be followed by entrepreneur for proper functioning of its new business.
Food Safety Act 1990- This act provides a framework to all food legislation in Scotland,
England and Wales. Its basic aim is to protect and prevent public health in relation of food and
eatables. It acts in favour of customers interest at every stage in production and supply chain of
food. The responsibilities of Health is Wealth food business under this law is to make sure that it
should not put anything in food or remove from food or treat that food in anyway that can
damage health of customer who are having it. Another thing should be kept in mind by Health is
Wealth restaurant is that it should serve that food which is expected by consumers, that is,
healthy and hygienic food. The food that is served should be presented to customers in that
manner which is not false and misleading (Hickman and Silva, 2018).

Data protection Act 1998- It is a part of legislation that governs the way in which
personal information is utilised by enterprises, businesses and government. Basic purpose of this
act is to prevent personal data that is stored in computers or in a proper organised paper filing
system. It regulates proper process of personal information and data, protect rights of data
subject, and hold enterprises liable to fines if they break any rules and laws (Dent and
Whitehead, 2013). Its the role and responsibility of every organisation to keep personal data of
its employees working under it protected and safe. Health is Wealth restaurant have to follow
this regulation imposed by UK government in order to run its business smoothly and effectively.
National minimum wage rate Act 1998- This act is imposed by parliament of UK in
order to provide amendment of specific enactments that is related to remuneration of different
persons employed in different sectors. This act focuses on workers above 25 years of age to
implement and provide high minimum wage rate of £7.20 and it is expected to increase at least
£9 per hour by 2020. This law should be implemented by entrepreneur of Health is Wealth
restaurant in order to provide minimum wages to its employees which will motivate them to
work more efficiently and effectively.
Licensing Act 2003- Under this legislation, a license is used and imposed by UK
government for the purpose of sale of alcohol. This law sets some rules which must be followed
by every business enterprise while serving alcohol to its customers. The basic objective of this
law is to prevent people from crime and disorder, to provide safety to public, to prevent public
nuisance, and to protect children from harm. Basically, an organisation while involving in
business of alcohol, must have a license which is a kind of permission for doing business of
alcohol. Health is Wealth restaurant will provide red wine in its restaurant which is very
beneficial for health of an individual. But as it has alcohol it, so it is the responsibility of
entrepreneur of this restaurant to apply for license in order to serve red wine. Without licensing,
this business could not be able to generated (Villa, 2014).
When starting a new business venture, entrepreneur must abide by nation's laws and
regulations in order to properly regulate its business. All these acts and laws needed to be
followed by Health is Wealth restaurant for its adequate functioning.
CONCLUSION
From the above report, it has been concluded that for starting up a new business
enterprise it is very important to record its feasibility in order to check its future progress and

success. Technical viability is important to check what latest technique and innovation can be
used by an organisation to make it different from others. It is also summarised in this project that
moral and ethical dimensions can also affect an enterprise. A businessman should be loyal and
honest towards its employees and customers for building up trust their trust upon company.
Further, it has been concluded that there are certain laws which must be followed by a company
for its smooth running like health and safety act to ensure health and safety to workers at
workplace.

REFERENCES
Books and Journals
Andriate, G. S. and Fink, A. A., 2017. Managing the change to a sustainable enterprise. In The
Sustainable Enterprise Fieldbook (pp. 118-140). Routledge.
Archibald, R. D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management.
Auerbach Publications.
Chorafas, D. N., 2016. Enterprise architecture and new generation information systems. CRC
Press.
Cooper, R., 2017. Supply chain development for the lean enterprise: interorganizational cost
management. Routledge.
Dam, H. K., Lê, L. S. and Ghose, A., 2016. Managing changes in the enterprise architecture
modelling context. Enterprise Information Systems. 10(6). pp.666-696.
Maskell, B. H., Baggaley, B. and Grasso, L., 2017. Practical lean accounting: a proven system
for measuring and managing the lean enterprise. Productivity Press.
Nicholls, A., 2018. Managing educational innovations. Routledge.
Ruskovaara, E., Hämäläinen, M. and Pihkala, T., 2016. HEAD teachers managing
entrepreneurship education–Empirical evidence from general education. Teaching and
Teacher Education. 55. pp.155-164.
Hickman, C. R. and Silva, M. A., 2018. Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
Dent, M. and Whitehead, S. eds., 2013. Managing professional identities: Knowledge,
performativities and the'new'professional (Vol. 19). Routledge.
Villa, A., 2014. Managing Cooperation in Supply Network Structures and Small or Medium-
sized Enterprises. Springer.
Cook, N. D., 2015. Crisis management strategy: Competition and change in modern enterprises.
Routledge.
Online
UK Licensing laws. 2019. [Online]. Available through:
<https://www.allianceonline.co.uk/blog/2018/07/uk-licensing-laws-selling-alcohol-in-
your-bar-or-restaurant/#a1>.