Entrepreneurship: Detailed Business Plan Report for Eat & Treat

This report presents a business plan for Eat & Treat, a food and beverage startup operating in London, UK. The plan encompasses an executive summary, industry analysis, and operational strategies. The industry analysis evaluates competitive rivalry, supplier power, buyer power, threat of substitution, and threat of new entry using Porter's Five Forces model. The report details the company's marketing strategies, including product positioning and promotional activities. The financial plan includes startup costs, sales projections, and profitability analysis, including a break-even analysis to assess the financial viability of the business. The conclusion emphasizes the importance of a clear mission and vision for the startup's success.

ENTREPRENEURSHIP
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Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Executive Summary.................................................................................................................................3
Industry Analysis.....................................................................................................................................3
Operations and Management Team Plan.................................................................................................4
Marketing plan........................................................................................................................................5
Financial Plan...........................................................................................................................................5
CONCLUSION...........................................................................................................................................7
REFERENCES............................................................................................................................................8
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INTRODUCTION
In this competitive business environment every business unit want to grow and develop
in the marketplace and for that they need to come up with the new and innovative ideas to attract
the large number of customers (Parker, 2018). The innovative and creative ways of carrying the
business operations helps in improving the brand image of the company in the marketplace.
Market research and analysis provides support in order to identify the present trend in the
marketplace and customer needs and desires. The report is based on business plan in which
organization chosen is Eat & Treat. The organization is operating in food and beverage sector in
UK with the main objective of improving its market performance.
MAIN BODY
Executive Summary
The report is based on the business plan of new startup business named as Eat & Treat
which is belonging to food and beverage industry. The business is small and is operating in
London market only. The company is identifying the various methods and strategies which they
can use in order to make their brand name in marketplace. The level of competition is quite high
hence they need to use various creative and innovative ways to attract the potential customers.
The focus of the company is to establish its brand name in UK market and is using various
methods to attract the potential customers.
Industry Analysis
Eat and Treat is a newly opened business belonging to food and beverage sector located
in London, UK. Moreover in order to make people aware about their presence they are selling
food products in the marketplace (Kirzner, 2015). They provide delicious home baked food to its
potential customers and provide relaxing environment in their licensed café. The business is
established at small scale and focusing on the London market. In order to grow their business
company is introducing new item in its food range which is Pizza loaded Pasta. The special
quality of this food type is that is Pizza full of pasta and cheese in order to provide two different
taste in one product. This new item would help in attracting new potential customers and help in
increasing the sales and profit of the company. Moreover they are researching and evaluating the
strategies of competitors with the motive to come with effective strategy to cover the large area
of market. The evaluation of Porter’s five force model is been explained below-
 Competitive Rivalry- In context of the Eat & Treat they are operating in the industry
where the level of competition is high. In order to maintain its position in the marketplace
they are focusing on sustainable differentiation strategy within its range of products in
order to provide tough competition to its competitors.
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 Supplier Power- In food and beverage industry the raw material is been acquired from
different supplier in order to provide variety of different taste to its customers. It is
important for Eat & Treat to make the strong relation with its suppliers so that they do not
face problem in acquiring raw material and able to increase its profits in the marketplace.
 Buyer Power- In marketplace buyers pay important role as they focus on buying best
product at the minimum possible price. Ear & Treat is facing problem as the bargaining
power of the buyers is quite high as they have to take step in order to satisfy the needs
and design of customers at the minimum possible price.
 Threat of substitution- There are many other companies which are providing the similar
products to the customers so Eat & Treat need to focus on providing quality products and
services to its customers.
 Threat of new entry- In food and beverage industry the threat of new entry is high as with
the increasing demand of customers new businesses are coming up. In order to maintain
its position in the marketplace they have to provide quality food products to its customers
at affordable prices with the motive to increase the profit.
Operations and Management Team Plan
The operational plan for a business is been developed on the bases of customers need and
preferences with the motive to satisfy them (Venkataraman, 2019). In context of Eat & Treat
they are providing eating area to its customers where they can set and have their food. Hence its
operational plan consist of such type of services. The customers can simply order its food from
the menu offered by the restaurant and the staff members would provide the quality services to
the customers. They are providing the authentic taste of food to its customers as most of the
material they are forming on their own that is have their own pasta making machines. The outlet
is located in Regent Park as it is one of the popular and crowded place in London and they are
providing online services to its customers who find it difficult to visit the café. Customers can
order form the company website and other food mobile base applications. The management team
of the company is efficient and effective as they have small staff where the chefs are making
good food and the staff is providing quality services to the customers. Moreover the issues or
quires of the customers are consider and due attention is been provided in order to make them
satisfied and happy. The company need to work on its weaknesses which are Eat and Treat is
totally new in market because of which less clients know about its administrations. This become
a significant shortcoming before organization at commercial center. Competitors of Eat and
Treat has solid clients base because of its assortment of product offering. They should work on
converting their weakness into strength by building effective and productive team. Moreover by
improving its management system they would be able to carry it business operations in most
effective and efficient manner (Hjorth, Holt and Steyaert, 2015). The efficient team management
helps in accomplishing the desire goals and objectives of the business. In context of Eat & Treat
they have strong team which is working in coordination with each other in order to accomplish
the desire results. They focus on building strong relation with the team members and consider
them as the part of the business where in the business decisions the staff members are included.
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The team members are free to put their viewpoints and provide suggestion in business operations
in order to improve the performance of the business. These small steps help the business in
accomplishing the success and to make their brand name in marketplace.
Marketing plan
Marketing strategy of Eat & Treat is to focus on improving its brand image on the marketplace
by providing wide range of different and delicious food to customers. It help in attracting the
new customers as they are providing good quality food with great taste. Moreover they are
analyzing the need of customers and the market conditions in order to formulate better strategies
to cover the large share of market (Burns, 2016). The company is positioning its products with
unique and core values in order to strong their brand. Moreover they are taking step to visuals its
existence in market before positioning their business against competitors. The name, logo design
of the restaurant is having meaning behind and they are taking support of media in order to
position itself successful in the food and beverage industry. The company is positioning itself in
the fast food chain in the UK market where they are serving good quality and delicious fast food
like pizza, pasta and many more to its customers. The company is taking step to make its product
different from that of competitors by providing new type of food with different flavors and taste.
There are various well established brands in the food and beverage sector hence they have to face
high competition in the marketplace. The company is mainly targeting those customers who
prefer fast food and understanding the needs and desires of customers in order to satisfy their
needs (Carraher, Welsh and Svilokos, 2016). They are able to increase its number of customers
by providing them different and innovative dishes which is not provided by its the competitors.
The price used by the company is quite affordable as they are new in the market so initially with
low pricing strategy they are covering the large market area. Mainly they are targeting teenagers
who can spend less amount hence they are providing different types of dishes at minimum
possible prices. The company is using various promotional strategies in order to make people
aware about its presence and the range of food dishes they are providing with good taste and
different flavors. They are using social media marketing to attract large number of customers that
is promoting their business on various popular social media channels such as facebook,
instagram amd many more. With the help of their own website they are engaging people with
help of visual context and the new dishes. The sales process of company is they are selling their
food products in their own outlet and also providing the online services to its customers. From
their website and popular mobile application the customers can order their favorite food. The
distribution strategy used by the company is quite simple as they are serving in the London
market only so with the help of their delivery partners and with the collaboration with other food
service mobile application they are distributing their food product to customers (Siqueira, Webb
and Bruton, 2016). Most of the raw material is been made by them hence have less number of
suppliers and able to effectively maintain strong connection with them.
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Financial Plan
Eat & treat restaurant is introducing new dish in its menu that is pizza loaded with pasta
and its statement for financial requirements is explained below-
Business start up cost- It is fundamentally that cost which includes the underlying fuel for firing
up a business and its activities. In the given business, beginning expense is separated in after
portions:
 Tools = £ 2000.
 Essential material = £ 1500.
 Expenses (will be acquired on rent)
 Security deposit = £ 100.
 Advance rent for 1 month = £ 100.
 Sales Estimated cost = £10 per unit.
 Selling price per unit = £50.
 Fixed cost = £ 1500.
 Variable cost = £3 per unit
Based on examination of market patterns and different elements that may affect the deals. It is
guage that eatery will have the option to produce a business identical to 200 units in a month.
Based on this estimating following is a cost explanation:
Particulars Calculation Amount
Sales £50*200 £10000
Less: variable cost £3*200 £600
Contribution Sales-variable cost £9400
Less: fixed cost £1500
Less: estimated cost of sales £10*200 £2000
Net profit £5900
From the above table, following is productivity and break-even analysis examination,
Break-even analysis examination It is essentially that volume of deals, at which the organization
has no benefit and no misfortune. It is a nonpartisan circumstance. To acquire benefits,
organization needs to outperform this purpose of deals. In given case, breakeven point is:
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Breakeven point = Fixed cost/ (selling point – variable cost)
= 1500/(50-3) = 31.91 units or 32 units (approx.)
Profitability analysis= from the above calculation, it has been identified that, company is
earning profit on 168 units (200-32). Therefore, profit is earned on these units only.
Net profit margin for the company = net profit / sales*100
= (5900/10000)*100 = 59%
CONCLUSION
From the above report it has been concluded that it is significant for organization to build
up an unmistakable mission and vision prior to beginning another business. As it gives help with
catching consideration of client towards its new product offering. In this there are different
perspective that can be examined by organization is Macro climate investigation for which Pest
examination will be utilized to dissect the outside factor that can be influence the organization.
Furthermore, market and industry examination is likewise help in deciding the zone in which
achievement can be accomplished in a viable manner. With the assistance of this, organization
can produce bigger piece of the overall industry and simultaneously likewise support in
commercial center from wait timeframe.
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REFERENCES
Books & Journals
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. In Seminal ideas
for the next twenty-five years of advances. Emerald Publishing Limited.
Hjorth, D., Holt, R. and Steyaert, C., 2015. Entrepreneurship and process studies. International
Small Business Journal. 33(6). pp.599-611.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Siqueira, A.C.O., Webb, J.W. and Bruton, G.D., 2016. Informal entrepreneurship and industry
conditions. Entrepreneurship Theory and Practice. 40(1). pp.177-200.
Carraher, S.M., Welsh, D.H. and Svilokos, A., 2016. Validation of a measure of social
entrepreneurship. European Journal of International Management. 10(4). pp.386-402.
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