Business Plan: Entrepreneurship and Business Development of Sugar Rush

This report presents a detailed feasibility study and business plan for "Sugar Rush," a venture focused on providing healthy, sugar-free desserts and beverages. It includes a statistical market research, potential locations, competitor analysis, and industry insights. The report conducts an STP analysis to segment the market demographically, psychographically, geographically, and behaviorally, targeting health-conscious individuals. It also applies the Osterwalder Business Model Canvas and Porter's Value Chain to explain the venture's operations, key activities, and cost structure. Furthermore, the report discusses business marketing strategies for growth, potential first-time mistakes made by entrepreneurs, and financial techniques for risk assessment and mitigation. The ultimate aim is to offer a roadmap for launching and sustaining a successful business in the health-conscious food and beverage industry.

Entrepreneurship and
business development

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Feasibility study of “Sugar Rush”................................................................................................4
STP analysis.................................................................................................................................5
4. Using Osterwalder business model and Porter value chain to explain how this new venture
will work-.....................................................................................................................................7
5. Business marketing strategies for growth and first-time mistakes made by the entrepreneurs-
......................................................................................................................................................9
6. Financial techniques, planning tools and decision making model to assess and mitigate
risks-...........................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
“Sugar Rush” is a new venture concept that is introduced and deeply examined and evaluated in
this discussion. “Sugar Rush” is basically a company that provides the feeling that sweets
provide to people without harming their health in any way. The main tag line of the company is
'rush without sugar'. The tag-line itself explains the whole business done by the company. The
company basically deals in desserts or sweet dishes and sweet juices. It is where the taste and
health is mixed or blended in the correct manner and ratio. The company provides sugar free,
gluten free and also vegan dietary options. The major belief of the company is each and everyone
deserves to have something that they love and are excited about, but health can also not be
neglected as the present scenario and the post Covid era. People are more inclined towards the
healthy food and beverage requirements.
This report precisely focuses on brief description about the feasibility study of the new
venture and also it conducts an STP analysis to deeply examine different aspects of the market.
Also it focuses on representation of Porter's value chain and the marketing strategies required by
the business and lastly the risks and risk mitigation techniques below.

MAIN BODY
Feasibility study of “Sugar Rush”
A feasibility study refers to an analysis or evaluation of all the relevant factors of a
particular project such as technical, economic, scheduling and legal considerations (Oey. and
Juliana., 2022). These factors are usually the major factors to ascertain the completion of a
project. In this case, the feasibility study is done as the new venture is being established to a
market, so before the establishment each and every aspect of the market needs to analysed and
examined. As per the requirement of this case in particular the feasibility study will include the
following:
Statistical research of market
Any feasibility study should precisely include the evaluation and examination of the
demographic characteristics such as income and age, so that the company is aware of the size
and proportions of the target and potential market (Ichsan. And et.al., 2019). In the case of Sugar
Rush in particular the approximate number of families and also students and singles all over
London are required. The target market of the company are mainly the individuals who love the
sweet flavour but cannot neglect their health too.
Locations that are potential
The location that is the most suitable for the company is an area which is in the centre of
the city region, so that home delivery in each region of London is possible and also convenient
(Saleh., 2020). Also, factors like parking for customer vehicles and delivery vehicles need to be
easy to access. Also, trade-off between the lease cost and location should be proper.
Competitors in the market
While conducting the feasibility study, the company should necessarily gather the
information regarding the number of companies that are dealing with the similar products
(Purwantono. And et.al., 2021). In the case of Sugar Rush the company should be aware about
all the bakeries that are operating in the area and mainly dealing in healthy products too. The
company should also be aware about the strengths and weaknesses of its competitors.

Analysis of industry
For more information about the hospitality industry and for staying updated regarding
any regulatory changes done by the government in the industry, the company should join and
keep in contact with other hospitality organizations or specifically bakeries and attend the
meetings to get knowledge regarding the growth and health of the hospitality industry.
Current/present economic environment
Decision-making regarding the current condition of the economy is very necessary. It is
essential to analyse that if it is advisable for launching a new bakery or not. If there were any
bakeries that had to shut down in the same region that the bakery is going to be located in the
past few years and if yes then what were the reasons due to which the bakery had to shut down.
The economic conditions of London, including the income levels of the individuals in the target
market, the demands of the products and the amount people are desiring to spend on the products
provided by the bakeries.
Cost structure
This point mainly describes the products sold by the company. The range of products
start from 20 pounds-sterling and go up-to 100 pounds-sterling as the quality and quantity
increases. Also, the products are healthy and according to the dietary preferences, so they are a
bit on the costlier side.
STP analysis
The STP model of marketing and it basically stands for segmentation, targeting and
positioning (DeSarbo. Blanchard. and Atalay., 2017). This model mainly supports a company to
examine their products that they are offering to the market and the ways through which the
values and benefits of the products are communicated to the specific target groups. It refers to
the segmentation of the market, targeting the best and most suitable customers of the products
that are provided and positioning the offering in the market place. This model is essential as it
helps the company in the process of identification of the most valuable customers of the
company, and the development of products as well as marketing messages forwarded to them.
Segmentation
In this step the market is segmented in different ways that are demographic,
psychographic, geographic and behavioural (McDougal. And et.al., 2021). As each and everyone
present in the market can not be a customer of the company.

Demographic: In the case of Sugar Rush the company's target market involves the people of
every age except children below the age of 3 years. Occupational and educational background of
the company does matter in this case because the customers are required to earn a good amount
of income.
Geographic: The bakery products will be sold within the geographical boundaries of London, it
is not necessary to be in the bakery because home delivery is also available.
Psychographic: The customers need to be the people who are conscious about their health and
think fitness as an essential part of their lives.
Behavioural: The people who have gluten free and vegan diets are capable of purchasing and
also all the people who want the to taste sweetness but don't want to compromise their health for
that.
Targeting
In this the company decides about which of the segments it will target that will provide
the most return to the company. The Sugar Rush bakery analyses the market size, customer
demand and profitability percentage of the company by each segment of the market that has been
segmented by the company in the above step.
As the company is a new start up it does not have past revenues or profits that have been
generated from the market by the company, so it can not be evaluated. Hence, the decision
making will mainly focus on the demand and the market size of different segments that the
company is focusing on.
Mainly the growth will be among the people that are in the of 45 plus years and the
children that are 10 plus years. This is because there are more health issues in the older age
group and also for the younger age group parents will prefer a healthier and less harmful options
for their kids.
Positioning
Finally in this step the ways or methods to position a company's product in the market so
that the most suitable and valuable target customers are focused upon (Romppanen., 2021).
Sugar Rush bakery basically markets itself as ' rush without sugar', which basically
means providing sweet products to the customers without the harm on health that is done by
sugar. The company will host a competition on social networking sites that are Facebook and
Instagram to reach the desired market of the bakery. It asks the followers to give reviews on its

products and home delivery services. Through this the company can enhance its reputation and
also gain more customers.
4. Using Osterwalder business model and Porter value chain to explain how this new venture will
work-
OSTERWALDER BUSINESS MODEL CANVAS-
This model is used to describe, visualize, and assess the model of Sugar Rush (Wit. and
Dresler., 2021). It has 9 parts-
 Customer segments-
The business is focusing on segments where it can find and attain maximum customers. With its
unique concept of sugar free products, it is targeting most of the diabetic people in the city and
medium class people, by offering qualitative variety at affordable prices.
 Value proposition-
Sugar Rush is planning to serve sugar free, gluten free and vegan products in the bakery, which
holds a very good value in the market these days as people are shifting their interest and
becoming more health conscious.
 Revenue streams-
This new business's main revenue stream is the customer base it is targetting (Keane., and et.al.,,
2018). All the health conscious and mostly diabetic people are the major source, the bakery will
be getting its revenue from.
 Channels-
The bakery will be a local business, serving in that particular area only but it is going to take
online orders also, through its website (Osterwalder. and Euchner., 2019). With that, a feedback
column to get the reviews, so that it can enhance its performance.
 Customer relationships-
It's the most important part Sugar rush is planning to focus on, as customer relationships are
something which can benefit the company throughout its operations. Sugar Rush is planning to
have an online messaging service where people can talk their confusions about the products.
 Key activities-
Customer satisfaction is the key of success for any business. The bakery comes up with new
ideas every-day, where it can run smoothly and efficiently. One way is by keeping many small
indoor games so that customer can have a good time.

 Key partners-
Key partners are the partners without which business cannot operate its functions smoothly. It
can refer to the relationships the bakery has with the suppliers, business partners or the
manufacturers.
 Cost structure-
This refers to a costing which occurs in a business related to the areas of operations for example,
the cost that is paid to the suppliers, staff and the electricity bill. Sugar rush also needs a good
cost structure for a good functioning.
PORTER VALUE CHAIN-
This chain is engaged in two types of activities primary and secondary-
PRIMARY ACTIVITIES-
 Inbound logistics-
The business is planning on maintaining good relationships with the suppliers so that no future
conflicts can come in between and disrupt the smooth functioning.
 Operations-
Being a new business it is planning to operate its functions with the help of new technologies,
where all the vegan and sugar free products are easily made and they can meet all the demands
by operating on a big level.
 Outbound logistics-
For the home deliveries, the bakery is planning to deliver the services by its own personal
network. Where a person will be hired by the business itself, and all the deliveries will be done
by taking care of all the safety measures.
 Marketing and sales-
The business is planning to advertise in two areas, one by getting some templates and banners
made for the people who are not online, and another by messaging and on-sites advertisements
for the people who are online.
SECONDARY ACTIVITIES-
 Human resource management-

This activity focus on all the hiring, training, and developing that is done in an organization. The
new bakery venture is focusing on hiring fresh talents that can come up with new recipes and can
manage the concept of the bakery keeping in mind the combination of taste and health.
 Infrastructure-
Sugar Rush is planning to have a good and cooperative infrastructure where both the business
departments, be it staff or management department work together to maintain a healthy work
culture in the bakery.
5. Business marketing strategies for growth and first-time mistakes made by the entrepreneurs-
Every business in the market should have marketing strategies as that is something
through which a business can attain maximum sales ( Ali and Anwar., 2021). It is a game plan
for reaching to the potential customers. Here is an example of strategy used by a business for
growth.
4 P's MARKETING STRATEGY-
 Price-
Price is something that a consumer has to pay in exchange for a product or service. The customer
always tends to buy a product that holds maximum satisfaction but minimum cost. Sugar Rush is
also planning its marketing strategy, by keeping in mind the seasonal discounts, affordable prices
and competitor's prices.
 Product-
It refers to something that a company is offering to a consumer be it a product or service. While
making a marketing strategy, the bakery is keeping in mind, the quality that it will be offering
and a quality other business are offering in the same price. A consumer always incline more
towards a product that has a great quality.
 Place
In this a company follows a strategic approach and determine which place would be the best
place to sell its products and where it can get maximum sales. Sugar Rush is operating its
business in the local region by operating both online and offline.

 Promotion
This P is engaged with all the promotional activities, in this a business has to choose a right
promotion network where it can give its advertisements and attract right audience towards it.
This is the best of marketing strategy the bakery is using, as customers are highly influenced by
the advertisements they see on offline and new online platforms.
COMMON MISTAKES MADE-
There are many first time common mistakes that are made by the entrepreneurs in a business
environment, it includes all the wrong planning i.e. when they don't have a right vision set in
front of them and they don't know what changes they want to create and see in the world (Ferrell
And et.al., 2021). For some entrepreneurs, they directly start their business without proper
assessments and then problems arise when that business starts building something that is not
required or that is something which nobody wants.
For a business to be successful first thing is to develop a sense of what is needed in the
world. In the market of thousand established business it is very important for a business to have a
right growth plan.
MARKET STRATEGIES TO ATTAIN GROWTH-
 Market development-
It is concern with a business putting its targeted audience in a segment (Morgan. And et.al.,
2019). Having right segments for right products is the best for a business to grow.
 Product expansion or diversification-
The business should always plan to expand its market so that it can reach to high no. of
customers and should always start developing new products to attract large no. of customers and
keep them engage.
 Strategic partnership-
A company should always think and then establish a partnership with another company
(Katsikeas. and et.al., 2019). It should focus on all the positive as well as negative factors while
partnering with another business, as partnership is always done with a view to reach and meet
new clients.

6. Financial techniques, planning tools and decision making model to assess and mitigate risks-
Financing refers to various types funding which a business needs for a start or in between
the functioning of its operations. In a business funding turns out be very crucial as all the
operations are done by that only. It helps in getting all the necessary licences, facilities,
marketing collateral, insurances and equipments. Even for recruiting a candidate funding is
required. Sometimes when there is a start up it also involve self finance. But to operate on a large
scale various source are required for funding. Sugar Rush being a start up business is also
planning to obtain its funding so that it can operate its functions smoothly and efficiently.
FINANCIAL TECHNIQUES-
 Finding an angel investor-
These investors are also called as seed investors. They invest in small start ups in exchange for
the equity and mostly are from the owner's family or friends.
 Crowd-funding-
This funding is engaged with large no. of people who come and invests in a company. This is
where big unit of people pool jointly.
 Apply loans under government schemes-
These are the support schemes which government has for the new businesses. By applying under
this scheme a company can get good funding. In this a risk of high rate is eliminated. Sugar Rush
has also applied under this scheme as it can be a good benefit for the company because it has to
pay low rate of interests.
 Avail business credit card-
Through this way a business can get itself credit cards from various finance companies and can
utilize it whenever they have a need. The only drawback is, high rate of interests.
PLANNING TOOL-
This is the tool organizations use when they plan to bring a programme, initiative or new
interventions. It involves forecasting by using statistical tools, planning for any occurrence,
benchmarking, setting of goal, participatory planning and five qualities of good goal in a
business.

DECISION MAKING MODEL-
This is a model that ensures if a business is taking right decisions and making a right
choice amongst other options (Tseng And et.al., 2018).
This model comprises 5 steps of making decision-
 Define problem-
It is concerned with identifying a problem in a business so that it can be eliminated in the future.
For the smooth functioning of any business it is important to know where the business is lacking.
The bakery is also facing an issue, which is of funding.
 Identify criteria used to judge possible solutions-
The bakery's low funds can also make paying of bills difficult and may also lead to end of the
business. To keep the staff working and continuous production on, funding is required. So it is
very important for Sugar Rush to get the funding done.
 Decide how important each criterion is-
Paying of the bills and other costs are very important because a business can not function
properly when this major source is missing. It will also become difficult for the bakery to pay off
its bills if no proper funding is there.
 Generate possible alternatives
There are no. of solutions to a single problem. This problem of funding also has solution as the
company can get itself investors from the market. Sugar Rush has also applied under government
scheme for its funding.
 Evaluate alternatives
There are numerous ways of getting funding but the best way to get it done is by applying for it
somewhere where the interests rates are low. So government is the best option.
 Determine the best solution-