BM564 Enterprise: Proposed Business Plan for Heaven Fragrances Startup

This report outlines a comprehensive business plan for launching "Heaven Fragrances," a new brand specializing in exotic vegan perfumes. The plan details the use of organic, botanical, and environmentally friendly ingredients to cater to customers who prefer natural products. It includes a customer analysis using the STP model, competitive analysis based on Porter's Five Forces, and a skills analysis identifying essential entrepreneurial skills and potential gaps. The report further provides a profit and loss account, cash flow forecast, break-even analysis, and explores sources of funding, recommending bank loans. Resource planning, the importance of a management information system (MIS), and the company's vision to promote herbal products are also discussed, positioning "Heaven Fragrances" as a small-scale startup focused on sustainability and customer needs.

BM564 Enterprise and
Entrepreneurship

Table of Contents
Introduction:.....................................................................................................................................3
MAIN BODY...................................................................................................................................4
Proposed Future Business Plan:.............................................................................................4
Customer Analysis:................................................................................................................4
Competitive analysis:.............................................................................................................5
Skills analysis:........................................................................................................................6
Profit and Loss account:.........................................................................................................7
Cash flow forecast..................................................................................................................8
Break even analysis................................................................................................................9
Sources of funding:.................................................................................................................9
Resource planning:...............................................................................................................10
Management information system(MIS)...............................................................................11
Vision:..................................................................................................................................11
Conclusion:....................................................................................................................................12
References......................................................................................................................................13

Introduction:
The business organisation is term as entity in which different operations is performed
with an objective of meeting customer needs and wants. In order achieve the sustainable growth,
it is crucial for the any organisation to develop the appropriate business plan. The business plan
is basically referred as written document that represents activities, product description,
competitors, goals and vision of the company. Due to effective business plan, the resources and
strategical actions can be timely identified leading to the success of business goals. This report
will make a new business plan which will launch the new brand “Heaven Fragrances” for
providing exotic vegan perfumes. The following report will also outline the proposed business
plan, its target marketplace, rivals, skill analysis as well as source of funding. In the last, this
report will also describe about the type of company and vision behind new business idea.
MAIN BODY
Proposed Future Business Plan:
The “Heaven Fragrances” brand will provide the all new vegan perfume products to the
customers of the market. The product will be made by using organic, botanical as well as other
environment friendly natural ingredients(Meyer, Neck and Meeks, 2017). These type of natural
perfumes will be made as per the needs and wants of customers who prefer organic perfumes.
The product will launch its products in the range of natural fragrances such as rose, lilly, jasmine
and much more exotic fragrances will be provided through the products. For making this organic
perfume, the clean and plants based ingredients will be taken into consideration. The company
will supply the chemical free natural scent. In addition to this, the fragrances of the product will
be long lasting as well as light in smell. The synthetic free ingredients will possess no harmful
side-effects such as skin rashing or itching to the customers.
When business is launched with new idea, it is important for entrepreneur to protect the
rights of producing, packaging, process and many more. In order to refrain from this, the
organisation should have to register its right in the form of patents(Ramadani and et.al., 2017).
This will protect the business owner's new business idea to be copied from any rival competitors
and if this happens in future, then the company is legal to use its intellectual legal rights against
the cheater.
Customer Analysis:

The Heaven Fragrances will practise the business to consumer model in order to reach the
customers for selling organic perfume products. The organisation is directed towards selling the
product into the market of UK and with the support of STP business tool the business is going to
find the most relevant customers in target market. In context to Heaven Fragrances, the STP
model is explained below:
Segmentation:
The market will be segmented in smaller groups so that marketing team can easily
identify the right customer base. The organisation will segment the target market on the basis of
behavioural segmentation. This will allow the company to target those customers who prefer the
use of organic and natural products.
Targetting:
After finding the right marketplace with right customers, the next step is to target the
female customers who mainly falls in the age group of 18 to 50 years of age(Drobyazko and
et.al., 2019).
Positioning:
The Heaven Fragrances will adopt effective promotional strategies in order to gain
competitive position in the market. The firm will position its product on social media platforms
for attracting large number of customers in effective manner. In relation to this, the firm will also
offer the sample pieces of organic perfumes with attractive packaging to its customer on free
cost. This will allow the firm to enhance confidence level among customers for purchasing more
quantities of organic perfumes in future.
Competitive analysis:
The competitive analysis framework will support the Heaven Fragrances company to
know the competition level in the market for the purpose of developing future strategic
plans(Hitt and Duane Ireland, 2017). In order to perform competitive evaluation , the porter 5
forces model is taken into consideration:
Porter 5 forces model:
This business model is considered as strategic framework which can help business
organisation to frame future business strategies by taking into focus the behaviour of different
parties. The following points represents the elements of this model in context to Heaven
Fragrances:

Bargaining power of customers:
In perfume industry, the low power of customers will be faced by the company in the
long run. It is because the industry is categorised into premium industry in which customer are
ready to purchase best quality perfumes at higher prices. Hence, this benefit can assist the
organisation in gaining competitive position in the market(Alvarez and Barney, 2020).
Bargaining power of suppliers:
The level of bargaining power of supplier is high in perfume industry due to the limited
number of suppliers who supplies organic raw material in the market. This enhances the power
of suppliers in the perfume industry. Thus, this can become long term threat for the company
profitable conditions.
Competitive rivalry:
The lower level of competitive rivalry is there in the perfume industry as each brand in
the market have new formulas as well as uniqueness to produce the product. Thus, it provides an
opportunity for the organisation to enter into market in easy manner.
Threat of new entrants:
There is high chance for new entrants to enter into perfume industry due to high growth
potentials and less competition in the market. This can create a threat to the competitive position
of the company in long run(Michael, Storey and Thomas, 2017). In order to minimise this, it is
important to sell products with the best quality and also should be cost effective.
Threat of substitutes:
The level of threat of substitutes is high as there are number of well known sellers in
perfume industry who can perfectly imitate the product ingredients in order to make unique one.
So, the high amount of threat can be faced by the organisation in future.
Skills analysis:
Basis Description
Skill possessed The entrepreneurial skills is the essential skill
which support the individuals to grow their
business in effective manner. This skill can
support the Heaven fragrances organisation to
bring innovation as well as promote risk taking

abilities of employees. It can benefit the
worker in exploiting new opportunities.
Skill needed For attaining the appropriate growth, the
financial forecasting skills can play a vital role
through which the firm can monitor their future
cost as well as expenses in effective manner.
This can assist the firm in achieving high level
of profits(Jena, 2020).
Skill gap The lack of market research skill can be
considered as the major skill gap of the
organisation. Due to this, the firm is not able to
tap into opportunities that are already exploited
by the competitors.
Profit and Loss account:
Heaven Fragrances

Cash flow forecast

Break even analysis
Sources of funding:
Bank loans:
The bank loan is termed as common type of loan available for the businesses in order to
meet their fund requirements in the most simplest manner. The receiver of the loan have to pay
the interest of loan at the rate decided by the banking organisation. This can support the Heaven
fragrances in increasing capital with low interest rates.
Venture capitalist:

The venture capitalist are money lenders who invest the money in company with the
expectation of getting health return from the investments. In this process, the equity position is
acquired by the venture firm by paying the fixed sum of money.
It has been recommended from above source that the Heaven Fragrances must raise their
fund by taking loan from the commercial bank. This can support the firm to raise a low interest
capital without loosing their power in decision making process.
Resource planning:
It is termed as the critical task with the motive of minimising the ineffective planning of
resources that may result to incurring of extra cost in the future product development process.
Thus, it is crucial for the Heaven fragrances in identifying resources at right quantity and price.
Tangible resources:
These are basically the resources which can be feel and touched by the individuals. In
context to Heaven Fragrances, the herbal plants, oils, machines and cash are the resources that
can be touched (Nasiri and Bageriy, 2020).
Intangible resources:
This type of resources which can neither be touched nor feel by the business individuals.
The intangible resources includes the intellectual property rights, brand recognition, goodwill
and many more.

Type of organisation:
The Heaven fragrances is termed as the small scale start-up company which have the
limited number of employees and is operated in the small scale. It is also the privately owned
company by a single person.
Management information system(MIS)
The MIS plays a key role for any organisation for promoting the operational efficiency in
most effective manner. It is mandatory for the Heaven Fragrances to have effective management
information system for managing the herbal products optimally and without wastages. The main
goal of management information system is controlling inventory by ensuring that resources are
aligned in effective manner. Overall, it supports the organisation to manage the cost of resources
in smooth manner.
Vision:
The vision of heaven fragrances is to promote the use of herbal products among
individuals and re-igniting the greatness of mother nature.

Conclusion:
From the above report it has been concluded that effective business plan is essential for
any business to increase the customer base and profits. It is critical for business plan to contain
data regarding execution of business activities. It was evaluated that for understanding business
and products it is critical to pay focus on meeting customer needs by developing quality
products. It was also analysed that entrepreneurship skill and MIS is essential for the
development of startup company.

References
Books and Journal
Alvarez, S. and Barney, J.B., 2020. Has the concept of opportunities been fruitful in the field of
entrepreneurship?. Academy of Management Perspectives, 34(3), pp.300-310.
Drobyazko and et.al., 2019. Innovative entrepreneurship models in the management system of
enterprise competitiveness. Journal of Entrepreneurship Education, 22(4), pp.1-6.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Jena, R.K., 2020. Measuring the impact of business management Student's attitude towards
entrepreneurship education on entrepreneurial intention: A case study. Computers in
Human Behavior, 107, p.106275.
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset,
pp.45-65.
Nasiri, F. and Bageriy, M., 2020. The Relationship among Talent Management, Organizational
Intelligence and Entrepreneurship Tendency. The Journal of Productivity
Management, 13(4 (51) Winter), pp.173-193.
Ramadani and et.al., 2017. An introduction to entrepreneurship and management in an Islamic
context. In Entrepreneurship and management in an Islamic context (pp. 1-5). Springer,
Cham.

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