The Covid Challenge: Business Plan

This business plan outlines the goals, methods, and timeframe for a new venture called Detox Juice Bar, which aims to provide healthy and organic juices and smoothies. It includes details about the business, location, industry analysis, product description, unique selling proposition, operations plan, and sales and marketing strategy.

The Covid Challenge
Business Plan

EXECUTIVE SUMMARY
The business plan summarises that it is written document that entails goals of company,
methods to reach objectives and time-frame for objective attainment. For this business plan,
Detox Juice Bar is a newly established company that is founded by a person who have worked
for more than 10 years in local bank at the time when Covid-19 broke as well as resulted in
losing working among various other staff members. The capital available with the entrepreneur
to launch the venture is £ 75K for exploiting opportunities in the pandemic. The business plan
covers information about details, industry analysis, products or services, operations plan,
location, sales and marketing strategy.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Business Details...........................................................................................................................1
Location.......................................................................................................................................1
Market/ Industry analysis............................................................................................................2
Product or service description.....................................................................................................3
USP and Competitors analysis.....................................................................................................3
Operations plan............................................................................................................................5
Risk and contingency plan...........................................................................................................6
Sales and marketing strategy.......................................................................................................7
Finance and funding plans...........................................................................................................8
Management teams....................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is an action to establish a business for making profit. Through
entrepreneurship, entrepreneurs transform the globe via providing products that solves big issues.
It is not fair hearted as creating successful journey requires massive perseverance, conviction
together with actions (Liguori and Winkler, 2020). Business plan is delineated to a written
document which entails the ways a start-up or other organisation define objectives as well as
actions to be taken for achieving goals. Covid-19 pandemic have triggered widespread disruption
of working of people, requiring ample number of entrepreneurs to pivot addition to quickly
adapt. “Detox Juice Bar” is the new enterprise that will be established in the niche market by the
entrepreneur to exploit opportunities with pandemic period.
Present business plan includes details about business, location, analysis of industry and
market, description of product or service. It also highlights USP and competitor’s analysis,
operations plan, strategy for sales and marketing, management team and funding plans.
MAIN BODY
Business Details
Detox Juice Bar is a start-up herbal beverage store that aims to provide convenient and
truly healthy juices along with smoothies to busy people. In the pandemic situation, there are
growing number of populations that prefers freshly squeezed juice together with juice bottled
without added preservatives that makes a great business opportunity (Ratten and Jones, 2021).
Mission of Detox Juice Bar is to supply health-conscious people with 100% sustainable, natural,
healthy and delicious kinds of beverage. The venture produces various types of smoothies, juices
and other drinks that keeps body fit and healthy. The idea of making and selling drinks entirely
from fresh addition to natural fruit without resorting to using cheaper ingredients or concentrates
makes the business unique.
Location
Location is a place where something happens (Sahasranamam, 2021). In business terms,
location is any physical location wherein an entrepreneur conducts business. For Detox Juice
Bar, selected location is London, UK as major population of the location is going back to their
roots addition to trying herbal drinks that are organic in nature. In the location, there is wider
demand for detox juices, smoothies and other beverages among middle class along with rich
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people. Through opening a store, all its products and services will be offered to people living
within and surrounding areas of the location.
Market/ Industry analysis
Market analysis framework refers to a tool that is applied by organisational manager for
studying market or industry for their offerings (Che and Zhang, 2019). For gaining competition
in the market, entrepreneur emphasis on offering detox drinks to people so to build their immune
to fight against Covid-19. In context to Detox Juice Bar, entrepreneur conduct analysis of food
and beverage industry through application of Porter's five force model that is a framework used
for measuring attractiveness, profitability addition to intensity of a market or industry.
Description of all forces of the model in relevance to Detox Juice Bar are underneath:
Threat of new entrant: It reflects towards ways new market players imposes threats on
exiting companies in market (Liguori and Pittz, 2020). It is analysed that when the industry is
profitable and entrant barriers and low then it attracts more players that create high threat of new
entrant. For Detox Juice Bar, entry in food and beverage industry requires investment of some
capital and resources. Moreover, the start-up business have probability to face low threat of
entrant as it is coming with innovation that puts certain challenges on new business to enter in
market.
Threat of substitutes: Availability of substitutes leads to create market challenging for a
start-up venture (Gleason and Murschetz, 2019). Within food and beverage industry, high threat
of substitution reflects that target audience uses alternative products or services to meet needs.
For Detox Juice Bar, there is high substitution threat as switching cost related to use of
substitutes is high and customers lacks deriving same utility from substitute drinks that they can
derive from its offering.
Competitive rivalry: It shows competition within number of companies which creates
highly competitive rivalry in the market or industry (Prah and Sibiri, 2020). In Food and
Beverage industry, major players are Innocent Drinks, Portobello Juice Cafe, Crussh, Juicebaby
and CRPESS Chelsea and many more offering multiple variants of drinks and beverages that
leads to highly competitive rivalry for Detox Juice Bar.
Bargaining power of suppliers: The force reflects on pressure exerted by any supplying
person or company on business through using certain tactics such as product availability,
increasing prices, etc (Hovestadt, Richter and Werder, 2021). In Food and Beverage Industry,
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suppliers have low bargaining power as product lacks differentiation, switching cost are less and
no threat regarding forward integration by suppliers. In case with Detox Juice Bar, entrepreneur
develop long term contractual relations with ample suppliers belonging to different geographical
location that gives low bargaining power to suppliers. This improves chances for the start-up
venture to develop efficient supply chain in pandemic of Covid-19.
Bargaining power of buyers: The force indicates pressure that is exerted by buyers or
customers on business form for getting quality of commodities at affordable prices addition to
excellent customer services (Eichelberger and Peters, 2020). In Food and Beverage Industry,
there is more concentrated customer base, low switching costs and high marker knowledge that
gives high bargaining power to customers. There is high bargaining power of customers with
Detox Juice Bar as customers are price sensitive as well as makes purchase of standardised
products related to juices, smoothies and so on that gives high bargaining power to customers as
the company have to make changes in its strategies with dynamic preferences of customers so to
sustain in the market.
Product or service description
Detox Juice Bar is planning to offer juices, smoothies and other beverage kind that are
healthy, organic and delicious. Its products provide innovative solutions for assist population
with present's fast paced as well as health-conscious lifestyle in Covid-19 pandemic. One of the
products of Detox Juice Bar is Tropical Juice which is the product will take customer back to
beach and is made up of mint and lemon. Another is Ginger Zinger that is a drink with
inflammation fighting ingredients and is packed with antioxidants that help in easy any kind of
inflammation. Anti-inflammatory juice is prepared of two-star ingredients that are turmeric and
ginger that boost immunity of a person. Daily Greens is perfect and is nutritional powerhouse
with so many vitamins. French Toast Smoothie is delicious in taste and helps in reducing weight
(Akeel and Khoj, 2020). Other than these, some products are Project Juice, Lemonkind,
Squeezed, Caroot Cleanser and hence forth that boost level of essential antioxidants addition to
vitamins, boost immune system and maintain good health.
USP and Competitors analysis
In context to Detox Juice Bar, unique selling proposition is offering drinks and beverages
that are made of fresh, natural and pure ingredients including vegetables and fruits in Covid-19
pandemic that boost immune system of target audiences. Flavoured and high quality of juice
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beverage as well as nectar at affordable price is the unique selling proposition of the new venture
that is devised by considering health of target people in the pandemic (Utama, 2020). Through
this USP, the entity is planning to achieve success along with sustain for long term in the
industry and market (Akpan, Udoh and Adebisi, 2020).
For launching a venture, it is essential to conduct competitor's analysis in order to
understand about strengths and weaknesses of rivals for recognising ways for enhancing business
strategy (Meshram and Rawani, 2019). Entrepreneur of Detox Juice Bar apply Competitors
Analysis Framework for shaping the ways to go for investigating about competitors. With this
framework, key focus of the entrepreneur is to look at strengths and weaknesses of other
competitors. Below is Competitors Analysis Framework for Detox Juice Bar:
Basis Competitor 1
(Jamba Juice)
Competitor 2
(CPRESS Drinks Store)
Organisational
specification
Jamba Juice work to reach out to
creative youngster class consumer.
Its products are expensive to
make.
CPRESS Drinks Store is
specialised for functional, nutrient
rich juice cleanses addition to
organic boosters.
Target customers Jamba Juices targets high class
consumers by offering products
with high quality.
The entity targets younger
generation for associates energy
and youth for bottle of beverages
(Gaidukova, Medvedev and
Rudykh, 2021).
Pricing Strategy In Jamba Juices, competition-
based pricing is emphasis in order
to match its prices of rivals and
reduce certain operational costs for
enhancing profitability.
Within CPRESS Drinks Store,
bundle pricing strategy is used to
pair several commodities together
addition to sell them at less prices
than individually.
On the basis of Competitors Analysis, entrepreneur of Detox Juice Bar looks towards
strengths and weaknesses in order to make changes in strategies for meeting customer demand
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and sustaining in the industry for longer time. Strengths and weaknesses of Detox Juice Bar are
as follows:
Strengths Weaknesses
 Detox Juice Bar uses penetration pricing
strategy for attracting customers by offering
commodities at lower prices in initial period.
 It have team of specialised people that
contributes in making it popular and most
preferred choice in market (Saiz-Alvarez,
2019).
 It offers healthy, tasty, delicious and organic
juices along with smoothies to boost immune
system and metabolism in pandemic of
Covid-19.
 Detox Juice Bar limited funding
to start and carry out practices in
dynamic industry.
 The company provides products
through its official store that lacks
outlets for getting people to have
knowledge about its offering
(Martínez and Torrejon-Martin,
2019).
Operations plan
Operations plan determines the ways in which team as well as department contributes in
achieving organisational objectives (Carracedo, Puertas and Marti, 2021). It helps investors to
make decision for investment and employees to make contribution of efforts as it assists in
pushing tactics together with deadlines. Elements of operations plan in context to Detox Juice
Bar are as follows:
Examining organisational vision: Vision of Detox Juice Bar is to make drinks and
beverages good. It promises that all the things it makes will always be healthy, natural, organic,
sustainable and delicious (Vidmar, Rosiello and Golra, 2020).
Determining goals: Herein, entrepreneur of an entity determines goals and strategy for
the venture. In case with Detox Juice Bar, goals are as follows:
 To continuous serve with smoothies and drinks with best ingredients.
 To become the place wherein everyone wants to carry out practices.
 To create future opportunities for stakeholders.
 To earn good revenue and profit.
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Planning out activities: With vision and goals handled then next is to get into actual
planning activities (Duruflé, Hellmann and Wilson, 2018). In context to Detox Juice Bar, key
activities include inbound logistics, production, customer services, marketing and sales, human
resource management, sales, accounting as well as infrastructure development so to offer healthy
drinks and beverages to people in Covid-19 pandemic.
Assigning roles and responsibilities: In this, all the roles and responsibilities associated
to people involved in the venture are assigned (Amore, Garofalo and Martin-Sanchez, 2020). In
case with Detox Juice Bar, all the team members are assigned roles and responsibilities to deliver
detox and other juices to target audiences. Some roles and responsibilities of various departments
of Detox Juice Bar are as follows:
Marketing department: Key roles and responsibilities of marketing department of Detox
Juice Bar includes defining and managing the brand, conducting campaign management,
producing marketing materials, managing social media and making huge sales (Sudhakar, 2020).
Human resource department: Roles and responsibilities associated to human resource
department are recruitment and selection, compensation management, training and development,
performance appraisals, promotions, information sharing, organisational development and
retaining people (Kumar and Ayedee, 2021).
Production and operations: Within Detox Juice Bar, roles and responsibilities related to
production and operations department are production planning and control, continuous
improvement, supply chain management, forecasting demand and delivery management.
Monitoring and adjusting: It is important to monitor and adjust operations for ensuring
that everything are on track (Beech and Anseel, 2020). In case with Detox Juice Bar, monitoring
and making adjustment in operational practices is essential for survival and success in Covid-19
pandemic. This will be done through holding the team for deadline that is set and when deadlines
are missed then work reports will be drafted throughout the project for analysing performances
of operations effectively.
Risk and contingency plan
Risk and contingency plan assist entrepreneur to foresee uncertainties addition to
identification of actions or tactics to prevent them from occurring addition to reducing impacts
that they have chance to eventuate (Durst and Henschel, 2021). With risk and contingency plan,
entrepreneur identify potential risks and implement strategies for reducing their impact in the
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business. Some the risk and ways to mitigate them in relevance to Detox Juice Bar are as
presented:
Risks and
Contingencies
Likelihoo
d
Impact Responsible
person
Mitigating action
Reputation
risk
High High Marketing
manager
For reputation risk, mitigating action that
entrepreneur of Detox Juice bar can take
are protecting against breach of
information, being vigilant for customer
service mishaps, making values
operational and becoming mindful to
conduct practices ethically.
Shortage of
funds
High High Finance
manager
Shortage of funds will be mitigated by
manager of the new business through
maintaining adequacy of emergency
funds, evaluating operations for
efficiency, using metrics in all types of
decision and performing quality
controlling tests (Nhuta and Mukumba,
2017).
Compliance
risk
Medium Low Human
Resource
Manager
Mitigation actions that will be taken in
future by entrepreneur of Detox Juice Bar
for compliance risk are understanding and
working with latest enforcement policies,
building a culture of compliance addition
to ethics, monitoring and updating efforts
of compliance.
Sales and marketing strategy
Sales strategy is a tactic through which organisation position and sell its offerings to
qualified purchaser in such manner which differentiates solutions from rivals (Brown and Kline,
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2020). For a business, sales strategy is a planned approach for recognising together with
qualifying prospects, policy formation, generation of order and sales presentation.
In context to Detox Juice Bar, sales strategy that entrepreneur is planning to adopt is Need
Satisfaction Selling in which sales person probes in demands or needs of consumer and then
prepare sales pitch as per identified needs for juices or another beverage to satisfy consumer.
With this strategy, start-up venture is able to convince target customers into purchase products
and services. When it is successful then it assists in building customer loyalty addition to trust
for healthy and organic drinks in the pandemic of Covid-19 (Marinov and Marinova, 2020).
Marketing strategy can be defined to a tactic used by marketers for concentrating limited
resources on widest opportunities with the hope of enhancing sales together with achieving
sustainable competitive edge. Key application of marketing strategy in an institution is for
collaboration with consumers (Tabibzadeh and Lashgarara, 2014). Marketers also employ
marketing strategy for improving awareness of consumers about specifications, characteristics
addition to benefits of products.
In association to Detox Juice Bar, internet marketing is one of marketing strategy which
can be used to promote business over Internet. Through this, all marketing material is shared and
promoted on certain number of platforms through diverse approaches. Another marketing
strategy is direct selling that suits best for Detox Juice Bar as it is all about promoting and selling
products directly to end users. With this, organisation avoid expensive overheads, run business
flexible, provide personalisation and reduce advertising costs (Isele and Rogoff, 2014) (Beard,
2020).
Finance and funding plans
Funds are most essential resources required to start and carry out operations of an
establishment. Funding plan outlines the ways in which organisation is going to finance the idea.
Cost structure: The cost structure for Detox Juice Bar for first year of trading is underneath:
Particulars Amount (In £)
Fixed cost
Rent (Per annum) 15000
Salaries 20000
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Variable cost
Market research 10000
Advertisement, marketing and promotions 7000
Cost of material for equipments 15000
Electricity 5000
Utilities 3000
Total cost 75000
Revenue streams: In context to Detox Juice Bar, revenue stream includes the following:
Particulars Amount (In £)
Sales through social media 40000
Revenues from website 25000
Income from wholesaler 30000
Total sales 95000
Break even analysis:
Formula = Fixed cost / contribution per unit
= Total fixed cost for first year is 35000
Contribution per unit = Sales – variable cost / total selling units
= 95000 – 40000 / 20000
= 2.75
BEP = 95000 / 2.75
= 34545
Cash flow analysis: The cash flow analysis for first year of trading of Detox Juice Bare
is as follows:
Particulars Amount (In £)
Opening cash balance Nil
Cash receipts from sales 95000
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Total 95000
Cash payments:
Rent (Per annum) 15000
Salaries 20000
Market research 10000
Advertisement, marketing and promotions 7000
Cost of material for equipment 15000
Electricity 5000
Utilities 3000
Total B 75000
Closing balance (Total A - B) 20000
Management teams
Management team is termed to a collection of top managers that have responsibility for
setting business strategy along with run operations with top leaders (Treviño, 2019). In Detox
Juice Bar, management team comprises of CEO and departmental heads. All these authorities are
able to lead the new venture as all have traits of effective delegation, proper decision making,
communication, problem solving, work allotment and motivating staff with huge techniques.
The management team discusses issues and brainstorm ideas to exploit situation of Covid-10
pandemic in order to gain profitable outcomes. Managers have project management skill, conflict
resolution skill, data analytical skill, communication skill, strategic thinking skill and many more
that makes them effective to manage Detox Juice Bar effectively to achieve sustainable position
in food and beverage industry.
CONCLUSION
From the business plan, it is concluded that entrepreneurship is the potential for making
improvements in living standards addition to creation of wealth by driving innovation in market.
It contributes to society, create changes, bring innovation and generate employment. Unique
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Selling Proposition is said to a perceived benefit or feature of an offering that makes the entity
unique from another competing brand. Through market analysis, entrepreneurs conduct research
about competitive dynamics of market in relevance to demand and supply of commodities and
services. Financial plan elaborates each of activities, equipment, materials along with resources
which are required to achieve objectives within timeframe with available funds.
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