Business Plan for Sip Savour: A Food and Drink Business in London, UK

This presentation outlines a business plan for Sip Savour, a newly established food and drink company in London, UK. It covers the business description, objectives, market information, operational plan, strategy for growth/development, and financial information.

New Business
Business Plan

Table of
Content
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◎ Executive Summary
◎ Introduction
◎ Business description
◎ Objectives
◎ Market Information
◎ Operational plan
◎ Strategy for growth/development
◎ Financial Information
◎ Conclusion
◎ References

Executive
Summary
◎ The presentation summarises that proposed
business idea is “Sip Savour” which is a food and
drink business. It is planning to offer variants of
food and drink products to health conscious people
of London, UK. Business plan guides through each
stage of starting and managing a new business.
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Introduction ◎ Business is defined to an organised effort, activities and
contributions of a person for manufacturing, advertising,
distribution and selling commodities and services to earn
profits. The business plan is prepared on ‘Sip Savour’
which is newly established food and drink company in
UK.
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Business
description
◎ In UK, there has been huge surge in popularity of
organic food and beverage products. Sip Savour is a
new business idea that is planning to establish at
London, UK. The business is all about producing and
selling variants of healthy, tasty and nutritious food and
drinks.
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Objectives ◎ Objectives are specific along with measurable results that
businesses hope to maintain when they grow. At the time
when set of business objectives are created, main focus is
towards specifics. It reflects on analysis, assessment as
well as understanding about where a business is and where
it wants to be in future
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Market
Information
◎ Within UK market, food and drink industry is growing at
alluring rate. The market spent around £ 230 Billion on food
and drink products in each year. Its intended growth rate is
around 33% for food and beverage products. The growth rate
of the market is significant factor for a start-up venture to
carry out its operations. In 2023, the food and drink business
will be enhanced by 10% that is positive sign for the start-up
business.
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Continue Trends and challenges that impacts start-up in the market
Trends:
◎ Healthier products:
◎ Modern Nostalgia
Challenges:
◎ Meeting regulations and standards
◎ Managing increasing labour costs
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Operations
plan
Operational plan is detail oriented plan which defines the
ways in which team, group and department contributes in
reaching goals of a venture. It outlines day to day practices
that are required to run an organisation.
◎ Goals and objectives: Operations objective of Sip Savour
are different from overall objectives of company.
◎ Strategic objective
◎ Technological department operational objective
◎ Sales department operational objective
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Continue ◎ Production Process: Once objectives and goals are
created, then it becomes vital for managers to think
strategically on the ways business is going to meet
objectives. Moreover, various other items of product
process in context to Sip Savour are as follows:
◎ Location
◎ Work Hours
◎ Personnel
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Continue ◎ Timeline: Development of timeline with milestone is
significant for a new business. In context to Sip Savour,
timeline will keep all stakeholders focused with
operations. Some on milestones of the proposed business
are as follows:
◎ Production
◎ Market
◎ Financial
11

Strategy for
growth/develo
pment
◎ In a business, growth or development strategy is
significant to create vision and direction to attain growth
in competitive business scenario. Some of strategies that
could be used by Sip Savour for development aspects
are mentioned below:
◎ Market development strategy
◎ Market penetration strategy
◎ Product development strategy
◎ Diversification strategy
12

Financial
information
◎ Projected sales and profits over a 3-year period for
Sip Savour:
13
Particulars First year Second year Third year
Units sold 2000 2200 ( 2000 + 10 % ) 2420 ( 2200 + 10 % )
Sales ( 30 Per unit ) 60000 66000 72600
Less: cost ( 10 per
unit )
20000 22000 24200
Profit: 40000 44000 48400
Profit margin: Profit /
sales * 100
40000 / 60000 *100 44000 / 66000 * 100 48400 / 72600 * 100
66.67 % 66.67 % 66.67 %

Continue
◎ Cost structure: The cost structure for the Sip Savour
for first year is as follows:
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Particulars Amount
Fixed cost
Rent (Per annum) 8000
Salaries 9000
Variable cost
Market research 1000
Advertisement, marketing and promotions 1000
Cost of material 1000
Total cost 20000

Continue ◎ Cash flow forecast for Sip Savour: The cash flow analysis
for Sip Savour is as follows:
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Particulars Amount
Opening cash balance Nil
Cash receipts from sales 60000
Total 60000
Cash payments:
Rent 8000
Salary 9000
Market research 1000
Advertisement, marketing and promotions 1000
Cost of material for coffee and mugs 1000
Total B 20000
Closing balance (Total A - B) 40000

Conclusion ◎ From the presentation, it is concluded that business
improves quality of life by providing high quality
offerings to target audience for enjoyment, health
addition to comfort. Effective business plan comprises of
executive summary, business description, strategies for
growth/ development, operational plan and financial
information.
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References ◎ Greiner, D., 2020. The basics of idea generation. CRC Press.
◎ Hasan, S. and Koning, R., 2019. Conversations and idea
generation: Evidence from a field experiment. Research
Policy, 48(9), p.103811.
◎ Johannessen, J. A. and Stokvik, H., 2018. Idea Generation
and Innovation. In Evidence-Based Innovation Leadership.
Emerald Publishing Limited.
◎ Taghizadeh, S. K., Rahman, S. A. and Marimuthu, M., 2019.
Idea generation leveraged from value co-creation process
enhances new service development performance. Journal of
Strategic Marketing, 27(6), pp.483-504.
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