Entrepreneurship and Business Development: A New Mexican Restaurant Business Plan

This report outlines the concepts of entrepreneurship and business development by creating a new business plan for a Mexican restaurant in London, UK. It includes business concepts, industry, market and financial analysis, value chain and business canvas model, and strategies for managing potential risk.

ENTREPRENEURSHIP
AND BUSINESS
DEVELOPMENT

Table of Contents
INTRODUCTION.........................................................................................................................3
TASK..............................................................................................................................................3
BUSINESS CONCEPTS.............................................................................................................3
ASSESSMENT OF INDUSTRY, MARKET, ORGANIZATIONAL AND FINANCIAL
FEASIBILITY.............................................................................................................................5
KEY COMPONENTS OF VALUE CHAIN AND BUSINESS MODEL CANVAS IN
RELATION TO BUSINESS.......................................................................................................7
WITH QUANTITATIVE AND QUALITATIVE MODELS, IDENTIFICATION AND
STRATEGIES FOR MANAGING POTENTIAL RISK..........................................................10
CONCLUSION............................................................................................................................13
REFERENCES............................................................................................................................14

INTRODUCTION
Entrepreneurs seek possibilities and solutions through which they can contribute for the
world. Entrepreneurship is the act of building a business for scaling it to generate greater profits
while analyzing and understanding the potential risk which can be faced (What is
entrepreneurship, 2020). Entrepreneurship involves an entrepreneur who plans and takes actions
to bring change in the world with the help of the innovative idea of new business venture.
Business development is the set of activities and processes which are created and implemented
for driving growth opportunities within the organization in sustainable and profitable manner
(What is Business Development, 2020). Business development focuse4s on relationships and the
primary objective of business development is to form strategic partnership and relationship with
business in target market. This project will outline the concepts of entrepreneurship and business
development by creating a new business plan. The study will highlight business concepts,
industry, market and financial analysis. This report will define qualitative and quantitative
strategies for minimizing potential risk which can hamper the growth and stability of new
business venture. The plan will also highlight value chain and business canvas model which will
be followed by the business venture.
TASK
BUSINESS CONCEPTS
The new startup idea which will be started by the entrepreneur will be based on
establishing a new Mexican Restaurant in London, UK. The venture will majorly focus on
driving innovation through bringing fusion to the dishes which will be the factor for
differentiation for getting higher customer attention through which business can enhance their
sales and strengthen their position in the industry. The restaurant will use environment friendly
packaging through which they can meet their responsibility towards the environment and society.
The Mexican restaurant will be operating under the label of “La Distral”.
Location: The venue where La Distral will be launched is- 130 Boundary Rd, London,
UK.
Values: The business value of La Distral will focus on integrity, innovation, passion and
will focus on reflecting all values through their dishes and business operations. The primary core

values pf the restaurant will focus on effective team work, professionalism, ethical standards and
transparency in the business through which they can meet all social and legal standards and
contribute towards the betterment of the society with innovative initiatives.
Products: The products which will be offered by Mexican restaurant are listed
underneath:
La Distral
Quesadillas
Enchiladas
Tacos
Loaded Mexican Carrot Fries
Chilaquiles
Burritos With Minced Meat
Filling
Mexican Stuffed Peppers with
Walnut Cheese Sauce
Tamales
Crispy Tortilla Pizza
Vegetarian Mexican Pizza
Chilli Con Carne
Spaghetti with Veracruz Sauce
Huevos Rancheros (Ranch Eggs)
Vegan Mexican Quinoa
Vegan Burrito
Vegan black beans and rice
Services: La Distral will offer variety of services where customers can easily dine-in,
take out and order online the dishes which are served by the company. As due to digitalization
and use of cashless payments, the company will offer services such as QR code for ordering and
payments at each table and play online and pick order from the station itself to avoid unnecessary
contact and ensures seamless customer attention. The restaurant will collaborate with delivery
partners and ventures through which customers can also order their dishes through online
platforms.
Target market: The target market of La Distral is based on the demographic factors and
people of age between 15-50 years who you are looking forward or are more likely to eat
Mexican food. Therefore, the target market of the restaurant La Distral focuses on demographic
factors and also offers vegan options listed on the menu through which they can target health-
conscious customers with their variety of options (Dhahri and Omri, 2018). The target market of
La Distral involves- Gen Z adults and Millennials who like to eat healthy or vegan diet and also
interested in Mexican dishes. The target market of the restaurant will be based on demographic,

geographic and psychographic factors which will be help to target customers on the basis of their
lifestyle, on the basis of their geographical regions and on the basis of their gender, age,
education and level of income.
Special attributes: The factors which will make the venture different and unique from
other existing brand are their willingness to take risk by brining fusion and innovation to the
regular Mexican dishes. The venture will also provide unique value to customers which will
support the business venture to create their competitive position within the industry (Essential
for successful business, 2021). La Distral will follow customer centric approach by having strong
customer focus through which they can regularly meet demands and level of satisfaction of their
customers.
Scale of newly proposed business: Scalability is about capacity and capabilities. In
context of La Distral, the restaurant will analyze the ability of their growth and the whole process
will require strategic planning, financial resources, staff, processes, updated technology and
partners (How to scale a business, 2019). The restaurant will evaluate and plan all strategies for
business growth and for increasing the sales of the products offered by them. In order to manage
the financial resources, venture must identify potential bank funds and other venture capitalist
through which growth of venture can be accelerated. In order to secure the sales, La Distral will
follow a robust system to manage sales order. The venture must invest in advanced and updated
technology which will be helpful in performing all operations effectively and will be helpful in
minimizing the manual labor. La Distral must focus on their staff as they will be the
representative and lead for creating contact with customers through which customer loyalty can
be increased and greater number of customers can be retained.
ASSESSMENT OF INDUSTRY, MARKET, ORGANIZATIONAL AND FINANCIAL
FEASIBILITY
Industry/Market analysis- The revival of Mexican food in UK has been since 1970. In
the year 2015, the number of Mexican restaurants operating in UK increased by 71% (Mexican
Cuisine, 2018). The success of this cuisine is due to its flavorful dishes and fresh ingredients
which were demand of many customers. Over the last five years, the number of burrito chains
have opened an average 57 % more outlets in UK. The interest for Mexican food has been
increased in UK and this led to surge in demand of Mexican food. Due to global pandemic in 1st

lockdown, the demand and sale of Mexican food increased by 15% between April and July and
by 36% in November where greater number of customers ordered Mexican food through online
mediums (Incline in demand of Mexican food, 2021). Moreover 39% of people show their
interest in Mexican food trends which is an important part of food industry of UK.
Organizational Feasibility- Organizational Feasibility focuses on how well proposed
information system, supposes the objective of business and its strategic plan for information
systems. The purpose of organizational feasibility is to assess the prowess of management and
sufficiency of resources to successfully bring product or business idea to the market. In context
of La Distral, the organizational feasibility will define the legal and corporate structure of
restaurant (Organizational feasibility study, 2019). The background information, internal and
external principles and practices of business will also be highlighted with the help of
organizational feasibility.
Financial Feasibility- Financial Feasibility Study (FFS) assesses the practicality of the
propose business plan and considers various factors, such as economic, technical and legal
factors (Feasibility Study, 2021). Financial feasibility refers to the degree to which a strategy,
program, project or change is financially possible and attractive for business venture. In context
of La Distral, the financial analysis has been discussed below:
Cost structure
The cost structure depicted below will outline all cost factors and estimated cost which is
faced and incurred to the Mexican restaurant, La Distral.
Factors Estimated cost (in£)
Machinery cost £10000
Rent £7000
Cost of labor £5000
Raw material cost £6000
Loan payments £14000
License fee £3000
Insurance premiums £5000

TOTAL £50000
Revenue structure
The revenue structure will define all factors which are responsible for generating
revenues for the Mexican restaurant, La Distral and in the ration of %.
Factors Estimated revenue (in%)
Rent and utilities 15%
Event advertising 20%
Online food ordering 10%
Marketing 15%
Food cost 20%
Labor cost 15%
Membership 5%
TOTAL 100%
KEY COMPONENTS OF VALUE CHAIN AND BUSINESS MODEL CANVAS IN
RELATION TO BUSINESS
Value Chain Analysis
The process of value chain analysis was given by Porter and is coined as Porter’s Value
Chain Analysis. It is the process of observing activities which that go into changing the input for
product or service into an output that is valued by customers (Value chain analysis, 2021). This
framework group activities into two categories which are support and primary activities. Here,
primary activities focus on taking input, converting them into output and delivering out to
customers. Therefore, the value chain analysis defines the profit margin which can be accessed
by the company with the help of their primary and support activities.
A detailed value chain analysis of the new Mexican Restaurant, La Distral has been
discussed below:

Source: Created by self
From the above value chain analysis diagram in context of La Distral, the primary
activities and support activities ahs been listed. These activities will collectively help the
restaurant to increase their profit margin through various activities. It can be seen that support
activities of La Distral have been strength for the restaurant through which they can work
towards the achievement of organizational objectives and meet their profit margins. The other
primary activities such as just in time delivery, strong network and connection with suppliers and
customers helps the organization to sustain and maintain their competitive position. Whereas by
offering customization services to customers, it helps La Distral to meet customer demands and
reach level of customer satisfaction through which the restaurant can build strong goodwill and
brand image in the food industry. The innovation and fusion to their products and dishes with the
help of R&D, this is responsible for driving customer attention and increasing customer
Firm infrastructure- E-commerce, focus on CSR
Human resource management- Learning scenario, strong team management
Technology development- Use of advanced technology, cashless payments
Procurement- Sustainable and progressive relationship with suppliers
Inbound
logistics
Inventory
control, local
purchase of all
raw material
Operations
R&D and
technologica
l innovation,
Innovation
in products
Outbound
logistics
Just in time
delivery,
strong
supplier
network
Marketing
and sales
Social
media
promotions,
value-based
pricing
Service
Effective
customer
service,
personalizat
ion
Margin
Support Activities
Primary Activities
Margin

engagement and loyalty for the restaurant which has been proven beneficial for business
profitability and success.
Business Model Canvas
A business model Canvas is a one-page summary which describes high level strategic
details needed to get a business or product successfully to the market. In other words, Business
Model Canvas highlights all strategic factors and it is a holistic overview of company’s
operations, customers, revenue streams and many other factors (What is Business Model Canvas,
2020). The blocks are categories which are classified in Business Model Canvas are- key
partners, activities, resources, channels, customer relationship, value propositions, customer
segment, cost structure and revenue streams. A detailed Business Canvas Model (BMC) in
context of La Distral has been explained underneath:
Key partners
Grocery stores.
Delivery service
providers.
Key activities
Mutual
agreement with
grocery store
and delivery
partners.
Value
propositions
No minimum
order
requirements.
Various payment
methods.
Online delivery
Customer
relationships
Complaint portal
on website.
Customer
assistance.
Feedback forms.
Customer
segments
Customers who
are health
conscious and
likely to eat
vegan dishes.
Customers who
are likely to eat
Mexican food on
the basis of
demographic,
geographic and
psychographic
segment.
Key resources
Use of
technology.
Dine in, take-
away and online
ordering
services.
Cashless
payments.
Channels
Mobile
application.
Social media
pages.
Personal
website.
Cost structure Revenue streams

Machinery cost, Rent, Cost of labor, Raw
material cost, Loan payments, License fee and
Insurance premiums.
Rent and utilities, Event advertising, Online
food ordering, Marketing, Food cost, Labor
cost and Membership.
Source: Created by self
From the above business model canvas in context of Las Distral, various factors are
identified. With the help of this template the idea and insight of all the business activities and
operations has been gained through which the venture will be operating.
WITH QUANTITATIVE AND QUALITATIVE MODELS, IDENTIFICATION AND
STRATEGIES FOR MANAGING POTENTIAL RISK
Risk identification or assessment is the process of determining risk that can potentially
prevent the program, business or investment from achieving their objectives (Risk Assessment,
2018). Risk assessment can be helpful in forming better decision and strategies for minimizing
risk and their impact on the business. Effective risk analysis and management are fundamental to
business success. The two well established methodologies to eliminate risk involves- qualitative
and quantitative risk analysis which are discussed below:
Qualitative risk analysis- Qualitative risk assessment is the observation of an event, all
regulatory control which offers an understanding of the quality of its implementation. Qualitative
risk analysis is subjective and focuses on determining risk to measure both the likelihood of a
specific risk, event occurring during the project life cycle and impact it will create on overall

schedule of the business (Qualitative and Quantitate Risk Analysis, 2019). With the help of
qualitative risk assessment, the management can gain information related to how well the control
is implemented in the company. The outcomes and analysis are further recorded in the risk
matrix. The risk analysis matrix is depicted below:
Image Source: Qualitative vs. Quantitative risk analysis, 2020
Quantitative risk analysis- Quantitative risk analysis use verifiable data to determine
the impact of risk in terms of cost overrun, resource consumption, schedule delay and other
factors. Therefore, qualitative risk analysis assigns a numerical value to potential risk factors
which entirely depends on the quantity and accuracy of the data (Edoho, 2016). Quantitative risk
assessment is a formal and systematic risk analysis approach to quantify the risk associated with
operation of process performed by business.
Identification of potential risk
Some of the factors which can possess risk for the Mexican restaurant, La Distral has
been discussed below:
 Poor brand and reputation management- Brand and reputation management can be an
outcome of negative experience or negative customer review for the restaurant which will
create an impact on the goodwill of La Distral. As restaurant nowadays usually rely on
online reviews given by customers, this can create major risk for La Distral and affect
their brand image which will adversely influence the sales and profitability of the
restaurant.
 Insufficient cash flow- Underestimating the amount of time needed for a restaurant
established itself in order to be profitable can be a mistake which can be faced by
entrepreneur (Blundel and et.al., 2021). In context of La Distral, the entrepreneur can face
risk regarding the insufficient capital which can create disaster and affect the business.
 Poor marketing strategies- Promotional activities and strategies plays crucial role in
attracting customers and restaurants must prioritize advertising and promotion strategies.
In context of La Distral, due to lack of innovative or attractive marketing and promotion
strategy, the restaurant won't be able to target and attract greater number of customers
and can face potential threats and risks due to high competition in the industry.

 Poor inventory management- Due to poor inventory management and lack of storage
and preservation options, this can affect the raw material and will lead to incline in
wastage and also increase cost. Such factors are responsible for creating potential risk for
La Distral and affect their revenues and their competitive position within the industry.
 Workplace injuries- In context of La Distral, if employees, associates or customers
suffer from any injury on the premises, this can create potential threats and legal conflicts
which can be faced by the restaurant. Such risk can arise due to unprofessional and
untrained staff which can affect business operations.
 Certification and licensing- In context of La Distral, if the restaurant fails to maintain
all relevant permits and license then this can lead to potential fines and complications
which can be faced and such risk factors cannot be neglected (Meyer, Meyer and Molefe,
2016). By doing operations and functions without having any permit or license can hinder
the continuity of functions performed by the restaurant.
Strategies for managing potential risk
Some of the strategies and actions which will be helpful for managing and minimizing
the potential risk for La Distral, are mentioned below:
 Get appropriate license- In order to successfully open the restaurant La Distral must
acquire appropriate license before launching the restaurant to meet all legal requirements
and avoid legal threats or risk which can be faced by the venture. The venture must
understand the variety of licenses and should obtain appropriate license for successful
and continuous operations of the venture in the industry.
 Use of modern technology- For running a business in the era of digitalization, La Distral
must use technology to safeguard their business from any cyber threat. This can be done
through using antivirus software, password protection for Wi-Fi network and with the
help of security cameras. The restaurant will be able to manage digital threats with the
help of cyber liability insurance if any confidential information is hacked through cyber
threat or risk.
 Train employees- La Distral must offer training to their employees regarding work
safety, customer service and safety procedures which will be followed by them in order
to avoid any workplace injuries (Roig-Tierno, Alcazar and Ribeiro-Navarrete, 2015).

With the help of effective and proper training, all employees and staff of the restaurant
will be able to meet their performance standards and meet customer satisfaction which
will be helpful for strengthening the brand image of restaurant.
 Invest in proper equipment’s and maintain facility standards- In order to reduce
property damage and avoid wastage, La Distral must invest in equipment’s and
infrastructural facilities. The equipment’s such as refrigerators, heating equipment’s, food
products, storage boxes will be helpful for La Distral to avoid and minimize wastage
which can create an adverse impact on their reputation and minimizes their expenses. By
investing in taking precautions for maintaining safety standards and regularly cleanliness
in the kitchen will be helpful in gaining customer trust and increasing customer
engagement which will be helpful for maximizing business profitability.
CONCLUSION
From the above report, it can be concluded that entrepreneurship is the skill of an
entrepreneur which is reflected through their business idea. It can be understood that innovation
is one of the primary factors for making business successful. From the detailed study, it can be
analyzed that by following customer centric approach and value-based pricing can be helpful for
maximizing business profitability, increasing customer loyalty and strengthening competitive
position within the industry. In order to start a business, an entrepreneur must always analyze
and briefly understand the industry and changing business environment which helps in gaining
insight of the factors which can drive opportunities and understand factors which can bring threat
and hamper the operations and sustainability of the new venture within the industry. By using
different models and theories, it also helps entrepreneur to understand the operations and
functions which will be carried out by the venture in order to generate and maximize profitability
of business. It can be seen that there are various factors which are responsible for creating risk
and impact and hinder the growth of business. In order to minimize such risk, various plans and
strategies are formed to maintain the competitive position and profitability of business.

REFERENCES
Books and journals
Blundel, R and et.al., 2021. Exploring entrepreneurship. Sage.
Dhahri, S. and Omri, A., 2018. Entrepreneurship contribution to the three pillars of sustainable
development: What does the evidence really say?. World Development. 106. pp.64-77.
Edoho, F. M., 2016. Entrepreneurship paradigm in the new millennium: A critique of public
policy on entrepreneurship. Journal of Entrepreneurship in Emerging Economies.
Meyer, N., Meyer, D. F. and Molefe, K. N., 2016. Barriers to small informal business
development and entrepreneurship: The case of the Emfuleni Region. Polish Journal of
Management Studies. 13.
Roig-Tierno, N., Alcazar, J. and Ribeiro-Navarrete, S., 2015. Use of infrastructures to support
innovative entrepreneurship and business growth. Journal of Business Research. 68(11).
pp.2290-2294.
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