Launching a New Business with Proper Planning

This report emphasizes the importance of seeking various aspects while launching a new business. It includes adequate amount of capital, labor, equipment's, and machineries etc. which are required to run business effectively. Additionally, it concerns on various laws while giving employment to people, making proper business plan first. This would help in launching business more profitably.

Small Business
(Case Study)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Setting up new business..........................................................................................................1
TASK 2 ...........................................................................................................................................3
Market research to develop business......................................................................................3
TASK 3............................................................................................................................................4
Ethical dilemma with appropriate solution.............................................................................4
TASK 4............................................................................................................................................5
Employment practices............................................................................................................5
TASK 5............................................................................................................................................6
Company's assets, liabilities, expenses and gains..................................................................6
CONCLUSION................................................................................................................................7

INTRODUCTION
Today, with developing economy of nation, every entrepreneur has got advantage to
launch business successfully. For this purpose, they conduct various activities to get idea for
opening a new venture. Since small businesses help nations in improving and developing
economy in a rapid manner (Germak and Robinson, 2014). Therefore, government of UK also
gives supports to its entrepreneurs in launching their companies. The present report is going to
evaluate how an entrepreneur plan to launch its new business. In this regard, description of all
data is presented which are required to open a venture with employment practices and a cash
flow management. Some ethical dilemma with relevant solutions are also highlighted.
TASK 1
Setting up new business
Starting up a new business is considered as both exciting and frightening for an
entrepreneur. As it is associated with huge risks which may either give advantage to gain
profitability or face huge loss also. Therefore, to open a business, it is essential for a person to
concern on various aspects (Brunswicker and Vanhaverbeke, 2015). It includes location where
business can be operated, employees who give support to run, appropriate budget, quality control
and more. To ensure success of business, it is of the utmost importance for an entrepreneur to
become aware of all regulations, requirements as well as aspects of operating a business before
beginning it. Along with this, they must ensure that to get licenses, permits and registrations
applied for approved of business as well. In this regard, a newly entrepreneur wants to open a
business in fast food sector as Foodie Hamburger. For start-up, near about 20,000 Euro has put
on in budget. This restaurant will be launched in London Street where many fast food stores are
already running. The purpose behind opening this store in high competitive area to reach targeted
customers more easily.
This new fast food company mainly targets to youngsters and business class people. As
these people rarely gets chance to eat home-made products due to busy schedule. Therefore, this
would give advantage to fast food companies to target them. It helps entrepreneurs of Foodie
Hamburger also to attract targeted audience by offering products on high discounts on occasions
and affordable price rates on normal days. It will provide chance to enhance sales performance as
well as give tough competition to other food restaurants also.
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Business Plan
Overview of Foodie Burger:
Since food is the most essential need for a living beings. Therefore, companies dealing in
restaurant and food sector generate huge income annually (Burns, 2016). One main advantage an
owner gains is to get a sole right to set price as per own manner. Henceforth, this newly Foodie
Hamburger restaurant is designed to address such needs. It offers delicacies food on irrespective
price menu rates. It has also established restaurant on intercontinental style theme to attract
potential customers.
Target Market:
It has evaluated that restaurant cum food business targeted people of all walks of life. As
people of all age would like to prefer fast foods like burger, Italian pasta and more (Campbell,
DiPietro and Remar, 2014). Therefore, Foodie Hamburger mainly targeted to corporate
organisation, diplomatic community, migrants and youngsters.
Sales and marketing strategy:
As market in intercontinental meals is rapidly increasing therefore, owners of Foodie
Hamburger has adopted effective marketing strategies. It includes direct and online marketing
(via official websites and social media platform) to promote business.
Values of business:
To create value of business, owners of Foodie Hamburger has given employment to top
chef executives and staff workers of different classes. In order to create equality and diversity, its
managers have also implemented all rules and regulations which help in reducing the chance of
discrimination at workplace.
Design the company's logo:
In order to differentiate Foodie Hamburger, owners have also designed a unique logo to
differentiate it from other restaurants, as shown below:
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TASK 2
Market research to develop business
Before opening a new venture, it is essential for every entrepreneur to conduct a proper
research. By surveying both in primary and secondary manner, they can gather adequate amount
of data about business (Julien, 2018). This would help in analysing what kind of strategies are
required to make to run business effectively. In this regard, owners of Foodie Hamburger have
also conducted a proper research in order to generate idea for launching a new business.
 Primary research: Under this research, managers of Foodie Hamburger have conducted a
proper survey on potential customers. For this purpose, they have made a proper
questionnaire in order to take feedback of people (Hagen and Zucchella, 2014). This
would help in analysing preferences of targeted audience, their purchasing power and
demand. Through this process, managers can evaluate how to offer products on amazing
deals to attract customers.
 Secondary research: This type of research is done to evaluate strategy, profitability and
financial condition of other restaurants. For this purpose, managers of Foodie Hamburger
have used various websites to collect information of other companies dealing in same
area. This would help in formulating competitive strategies which helps in generating
more profitability.
The managers have got an idea to conduct research by evaluating the strategies used by
Hasburger who is considered as competitor of this company and availing same marketplace. This
company conduct both kind of research (primary and secondary) to analyse taste and demand of
customers.
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 Qualitative research: This research is done to understand the targeted customers, their
preferences as well as where a company needs to focus its efforts. In this regard,
managers of Foodie Hamburger conduct qualitative research to know targeted audiences
completely. This would help in offering products as per demand of customers.
 Quantitative research: Managers of Foodie Hamburger have also conducted quantitative
research in order to test hypothesis of some assumptions. In short, to test effectiveness of
sales and marketing strategies, this research provides statistical significance.
The another bigger competitor of Foodie Hamburger is Burger King Centre who use
qualitative and quantitative techniques. These techniques are used to analyse perceptions of each
respondent in deep manner. Therefore, managers of present enterprise also use both techniques.
TASK 3
Ethical dilemma with appropriate solution
Ethical dilemma refers decision-making issue between two possible morale imperatives,
where a company has to decide to choose a proposal or not. In terms of philosophy, it is also
called an ethical paradox. As per present scenario, an organisation wants to promote its business
on a website through a promotional company. But there is an ethical dilemma associated with
this firm that it that it treats its employees badly and harass them also (Davis and et. al., 2018).
Therefore, launching own business through such promotional websites will also impact
negatively on brand reputation. In context with Foodie Hamburger, its managers also have to
decide to accept proposal of such websites for promotion. So, it is recommended to this company
to not accept the same as it may create conflicts among its workers.
Another case where such an ethical dilemma can be seen is Super Deal which is a Credit
Homeowner Loan and arrange funds for other companies. This company has already bad image
at marketplace due to overdraft and bad creditor. In this regard, other small companies who want
to do business under partnership are afraid to joint business with Super Deal. However, it
provides benefits to small organisations in arranging resources but its negative brand image will
impact on their businesses also. So, it is advice to owners of Foodie Hamburger also to prevent
its business with such ethical dilemmas.
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TASK 4
Employment practices
After launching business in food sector, owners of Foodie Hamburger have earned
enough, to give employment to at least two employees on zero-hour contract basis. In this type of
contract employer are not legally obliged to deliver any kind of minimum working hour to
worker. While on the other hand employees are not legally abide to accept and kind of work
offered to them by an employer. This contract can be of many types which include full-time, part
time, fixed term and agency worker contract. Therefore, in case of discrepancy, employers can
call such workers on any time for do a work.
To avoid ethical dilemmas and legal obligations, it is amendable for all companies to
comply its business with legislations (Eriksson and Kovalainen, 2015). In this regard, for hiring
new employees on zero-hour contract basis, managers of Foodie Hamburger much concern on
employment laws. For this purpose, they have applied Equality and Diversity law in recruitment
and selection procedure. It includes four stages of resourcing process so that potential candidates
will get equal chance to take job. It also helps in reducing discrimination and promote diversity
at workplace as well. These stages are- Planning and Preparation; Advertising; Selection;
Appointments.
Planning and Preparation:
It refers to initial stage where managers of Foodie Hamburger are required to prepare
proper job description. They must evaluate need for recruiting employees on zero hour contract
based. This would help in describing the job and particular profile for a person.
Advertising:
After planning and preparation of documents, managers of Foodie Hamburger further
require to concern on advertising techniques. They must concern in which manner they have to
make advertisement to aware candidates about vacancies. As it is a fast food restaurant and
dealing on small scale so, it is better to give advertisement in newspapers and job portal. This
will give opportunity equally males and females to get job. This would reduce gender gap and
promote equality and diversity workplace.
Selection:
After getting resumes of interested candidates, the next stage of recruitment is to select
some eligible ones from them (Kim and Mauborgne, 2014). In this regard, managers of Foodie
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Hamburger should proper screen profiles of applicants and select as per requirement. In this
context, managers choose candidates on the basis of their eligibility and ensure not to create
discrimination of them as per different characteristics. Therefore, this will also aid to promote
diversity and equality in business.
Appointments:
It is last stage of recruitment and selection procedure, where managers of Foodie
Hamburger are required to give appointment letters to selected candidates. Under this letter, all
kinds of essential information are described viz. Date of joining, roles and responsibilities,
appraisal criteria, working hours, induction training and company's policies. This would help in
giving proper information to recruiters so that they cannot make any further unethical complaints
about business. In this regard, policies related to job employment and appointment are made as
per legal laws. Under this process, equal rights are given to candidates to be outspoken if they
feel discrimination and other kind of abusive activities at workplace. This will help in creating
equality and diversity at workplace and keep people safe also from harassment activities.
Rights of new employees:
Government of UK has established various laws and legislations in order to improve
condition of workers in organisations. This would give various rights to workers to prevent
themselves from discrimination, harassment and other kind of activities. It includes to get proper
salary as per National Minimum Wage 2018, in this regard, employer cannot make illegal
deduction from wages. As per Health and Safety Act 2015, organisations must provide clean and
safe working environment to workers, paid and sick leaves etc.
TASK 5
Company's assets, liabilities, expenses and gains
In order to launch business in food sector successfully, it is necessary for entrepreneurs to
define assets, liabilities, expenses and gains in appropriate manner (Grayson and Hodges, 2017).
In context with Foodie Hamburger, these components can be defined in following way:-
Assets:
This part includes those resources which a company can use for running business and
serve its guests. In context with Foodie Hamburger, its assets can be classified into two main
components that are- Long-term and Short-term. Here intangible assets like company's bond,
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patents and stock, kitchen equipment’s etc. are termed as long-term assets. While cash,
inventories, accounts receivable, cash in hand and bank accounts are considered as long-term
assets.
Liabilities:
As owners of Foodie Hamburger has introduced only 20k Euro for launching business
therefore, to conduct other activities, it has taken loan from banks also. In this regard, bank loan
is considered as liability for this restaurant (Yeboah-Boateng and Essandoh, 2014).
Expenses:
Purchasing raw materials from suppliers, transportation, salaries to staff members,
introducing machineries etc. are taken as expenses of business. It also includes building repair
and maintenance, security services, rent and more are also considered as expenses.
Gains:
Revenues acquired from sales of food products, growth of business after launching,
number of customers etc. are taken as gains for this fast food company.
Restaurant owner of Foodie Hamburger are required to customise their accounting
software's charts of accounts in regular manner. As this company set 20k Euro as budget,
therefore, considering accountability would help in avoiding any kind of cash flow problems.
Therefore, this budget has set in given manner among various activities as shown below:
CONCLUSION
It has been summarised from this report that in order to launch a new business, it is
essential for entrepreneurs to seek on various aspects. It includes adequate amount of capital,
labour, equipment’s and machineries etc. which are required to run business effectively. In
addition to this, they must concern on various laws while giving employment to people. This
would help in giving recruitment to people in legal manner. Along with this, it is also necessary
for employers of new organisations to make proper business plan first. This would help in
launching business more profitably.
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REFERENCES
Books and Journals
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Kim, W. C. and Mauborgne, R. A., 2014. Blue ocean strategy, expanded edition: How to create
uncontested market space and make the competition irrelevant. Harvard business review
Press.
Eriksson, P. and Kovalainen, A., 2015. Qualitative methods in business research: A practical
guide to social research. Sage.
Davis, B. and et. al., 2018. Food and beverage management. Routledge.
Hagen, B. and Zucchella, A., 2014. Born global or born to run? The long-term growth of born
global firms. Management International Review, 54(4), pp.497-525.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Campbell, J., DiPietro, R. B. and Remar, D., 2014. Local foods in a university setting: Price
consciousness, product involvement, price/quality inference and consumer's
willingness-to-pay. International Journal of Hospitality Management. 42. pp.39-49.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Brunswicker, S. and Vanhaverbeke, W., 2015. Open innovation in small and medium‐sized
enterprises (SMEs): External knowledge sourcing strategies and internal organizational
facilitators. Journal of Small Business Management. 53(4). pp.1241-1263.
Germak, A.J. and Robinson, J.A., 2014. Exploring the motivation of nascent social
entrepreneurs. Journal of Social Entrepreneurship. 5(1). pp.5-21.
Yeboah-Boateng, E. O. and Essandoh, K. A., 2014. Factors influencing the adoption of cloud
computing by small and medium enterprises in developing economies. International
Journal of Emerging Science and Engineering. 2(4). pp.13-20.
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