Entrepreneurial Opportunities Report: The Biker's Cafe Business Plan

This report presents a comprehensive analysis of the entrepreneurial opportunity for The Biker's Cafe, a theme-based cafe concept. The introduction outlines the core idea of the cafe and its innovative approach to attract customers. The main body delves into the inspiration behind the business, drawing upon Drucker's 7 sources of innovation, including unexpected events, incongruities, and demographic shifts. It introduces the cafe's business idea, target audience, and market segmentation strategies, focusing on behavioral, demographic, and geographic factors. A detailed competitor analysis using Porter's Five Forces is conducted to assess the competitive landscape, identifying strengths, weaknesses, and potential risks. Gap analysis is employed to identify areas for improvement and strategic planning. Market research supports the viability of the business, and a SWOT analysis summarizes the strengths, weaknesses, opportunities, and threats. The report concludes by summarizing the key findings and recommendations for The Biker's Cafe's success.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Q1. Background information about those sources that inspired your idea and what motivated
you personally in wishing to set up your own business..............................................................3
Q2. An introduction to your business idea and what it is, and who and where your potential
customers and target audience ...................................................................................................5
Q3. A competitor analysis that looks at the competitive marketplace. Look at failures and
successes. What you can do differently? Is this a growth area with low and medium risk?......6
Q4 Draw Gap analysis and how you are looking to close the gaps?..........................................7
Q5 Market research to support viability for your business idea and identify market potential
using a range of sources that could be both primary and secondary.........................................11
Q6 Explain the Viability of the Business idea with the help of the SWOT Analysis...............12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurial opportunities refers to the situation where goods and services can be sold
at a price greater than the cost of their production. It is the situation where a business man take
action to generate profit. This report is based on the cafe name The Biker's cafe, starting this cafe
idea is chosen to establish and generate profit. Innovative idea of this cafe is this cafe is theme
based cafe which differentiate it from the others. This place has the interiors which might be
another home for any biker. This report will provide brief information about the sources that
inspired the idea of cafe with the help of Drucker's 7 sources of innovation, of systematic
innovation. The report will give an introduction of the business idea and its potential customers
which are target by the business. Further the report will look at the competitor analysis at
marketplace and provide gap analysis of present and future situation of the business. This report
will consider the market research to support the viability of the business and determine market
potential by using sources. Lastly the report will summarise about the strengths and weaknesses
of the business idea and the opportunities of growth in the future.

MAIN BODY
Q1. Background information about those sources that inspired your idea and what motivated you
personally in wishing to set up your own business
For starting up the cafe the factors that are inspired to start the business are explained
with the help of Drucker’s 7 sources of innovation which are discussed below:
The Unexpected:
In this source Drucker explain that it can be the greater source of inspiration and
innovation because it surprises with not only unexpected failures but also with success
(Davidsson, 2015). Both the unexpected success and failure, should not stay unnoticed and not
be overlooked as an opportunity foe change. Unexpected situations are powerful in the business
as it inspire the owner and innovators to get other perspective on the business. For starting up of
The Biker's Cafe this factor may inspired the entrepreneur to set a cafe business for generating
more profit.
Incongruities:
The discrepancy between what is and what shout be or several things that are assumed by
the individuals (Jarvis, 2016). This source is key developing wildly successful businesses but it
is very tricky. Many firms are fall to designs appropriate research to determine the actual need
of target market. This conflict between what is and what supposed to be can lead the firm to a
downfall but it is also a great source of inspiration for innovation. It inspires the entrepreneur to
start the new business of The Biker's cafe.
Process Need:
This source of innovation is more task oriented rather than the situation. In this source of
opportunity for the innovation comes after the close evaluation of processes of the firm and
identifying the clear dark or weak spots and the ways of improvements of such spots (Ramoglou
and Zyglidopoulos, 2015). The Biker's cafe's owner knowing the weak links of the cafe after the
detailed evaluation of the capabilities of the cafe, this term will able to create more effectivity
and innovative solutions to build a successful cafe.
Industry and market structure:
This source explains that the Business industry and market are in continual flux. Changes
in policies and regulations and some goods lines are expanded and some are shrink. Organisation

may keeps eyes on these situations. The leader of The Biker's cafe may needs to monitoring the
changes and treat these changes not as threat but more than like opportunities for the business.
Demographics:
Firms are affected by the changes in the demographics. This changes may affects the
demand of the products which was determines before (Toli and Tengeh, 2017). Demographic
changes like education, level of income, employment. This may affects the direction of the firm
and can opens new opportunities for the firm which may inspires the entrepreneur to start up the
cafe businesses.
Changes in Perception:
Change in the perceptions over time and nowadays, due to the power of the social
network and high involvement of technology, these change happen faster (Todeschini and et.al.,
2017). Change in the perception opens the road for the other businesses to innovate and develops
the new goods and services that align with the new.
New Knowledge:
Gathering new knowledge can be used for the innovation of the firm. The speed of
technological revaluation increasing the number of opportunities for The Biker's cafe.
Q2. An introduction to your business idea and what it is, and who and where your potential
customers and target audience
There is a business plan to start The Biker's Cafe in the London. This cafe fulfilling the
food accompanied by the dirks (Ramoglou and Zyglidopoulos, 2015). In this business plan to
open a cafe is based on the theme as its name “The Biker's Cafe”. This place has the interior
which might be another home for any biker. In the cafe the Harley parked in front of the door
and helmets and other bike parts are hanging from the ceiling of the cafe which seems and sound
attractive and attracts the young age group of customers towards the cafe. This innovative idea of
theme based cafe will attract the teenagers who loves for bikes and riders. Its attractive interior
idea can makes anyone falls in love.
The cafe can target their customer by making market segmentation (Ojala, 2016). Market
segmentation is the activity of dividing the consumers into the sub groups of consumers on the
basis of some characteristics. The rationale for market segmentation is that in order to gain
competitive advantage and superior performance in the market. The Biker's Cafe identify their
customers on the basis of making following segmentation:

Behavioural segmentation:
Behavioural segmentation concerns on the particular reaction and the way customer go
through their decision making and buying processes (Jarvis, 2016). This segment divides the
market by behavior and decisions making pattern such as purchase, lifestyle, usage, and
consumption, brand loyalty and occasions. It has an advantage of using variables that are closely
related to product itself. The Biker's Cafe is using consumption and lifestyle based Behavioural
segmentation for identifying the potential consumers of their cafe.
Demographic segmentation:
Segmentation according to the demography is based on the consumer's demographic
variables such as income, age, gender, social class and family size (Toli and Tengeh, 2017). This
segmentation assumes that the potential consumer with the same demographic profile will
purchase or consumes the same pattern and their lifestyle, purchasing power are same. The
Biker's Cafe use the age and social class based segmentation which identify the young groups
with a social class who are potential to consumes their products.
Geographical Segmentation:
Geographic segmentation create the various target customers groups based on the
geographical boundaries (Todeschini and et.al., 2017). The variables of this segmentation are
country, region, population density zone, city and climatic zone. Whereas The Biker's Cafe is
using population density and city variables as a geographic segmentation.
Q3. A competitor analysis that looks at the competitive marketplace. Look at failures and
successes. What you can do differently? Is this a growth area with low and medium risk?
For making competitive analysis on The Biker's Cafe the firm is using porter five forces
analysis for gain competitive advantages:
Competitive Rivalry (strong force):
The Biker's Cafe has the strong forces of competitive rivalry on competition of the food
services and coffee house industries (Ramoglou and Zyglidopoulos, 2015).The competition in
this industry is survived because of law switching cost, which are the disadvantages to the
consumers when they shifting from one to other provider.
Bargaining power of customers (strong force):
The Biker's Cafe may experience the strong force of bargaining power of consumers.
This force is based on the influences of individual customers and groups of buyers on the

international business environment. Low switching cost, high substitute availability is the
external factors that contributes to the strong bargaining power of the buyers.
Bargaining power of suppliers (weak force):
Bargaining power of suppliers having a weak force on the market of The Biker's Cafe
Because of the moderate size of individual suppliers and high variety of supplier are available in
the market (Ojala, 2016). The high variety of suppliers weakens their bargaining power.
Threat of substitutes (strong force):
The Biker's Cafe experience the strong forces or threat of substitute. Higher availability
of substitutes and high affordability of such products are the external factors that are contributes
to the strong threat of substitution (Jarvis, 2016). The strong force of substitute have a negative
impact on the business of The Biker's Cafe because of the strong forces allows the buyers to buy
these substitutes instead of The Biker's Cafe products.
Threat of new entrants: (Moderate force):
The Biker's Cafe face moderate force of threat of new entrants (Davidsson, 2015).
Moderate supply chain and high cost on brand and interior development are the factors that are
contributes to mortared threat of new entry against The Biker's Cafe.
The growth area in this sector or business for The Biker's Cafe is having
with medium risk, because in this business the cafe enter in the market with an
innovative concept of the biker look of cafe which attracts the young generation.
So the firm may grow in this sector.
Q4 Draw Gap analysis and how you are looking to close the gaps?
Gap Analysis
Gap analysis is a method or the measurement tool which helps in assessing the difference in
performance between different business information system with the end motive of finding out
whether business requirement are being made (Gürel, E. and Tat, M., 2017). If not, than what
step should taken to meet the requirement. For my business, the gap analysis is as mention
below:
Objectives Current
State
Future
State
GAP
Identifica
tion
GAP
Description
Factors Remedial Action

Increase
profit by 15
percent
Profit is
declining
Increase
the profit
up to 15%
YES 8 percent is
difference
Outdated
technique is
used for
serving
consumer in
organization
.
Cost of the
company is
too high.
 Adoption
of new
technique
and
updated
technique.
 Proper
training
and
developm
ent
program
to be
organized
in the
organizati
on for
employee
and
managem
ent.
Increase sale
by 8 percent
Moderate
decline
in sales
of the
company
To
increase
sale of the
company
YES 4 percent is
difference
Not able to
survive the
competition
offer by the
competitor
in the
market.
 Need to
invest
heavily in
the
research
and
developm
ent
program
of an

organizati
on which
will help
the
company
in
understan
ding what
is
demanded
by the
customer
in the
market
and will
develop
the
services
based on
the same
informati
on.
Quality
Working
Environment
Lack of
good
working
environm
ent
Working
environme
nt need to
enhanced
YES Lack of
trust factor
among the
employee
and
managemen
t.
Lack of
communicat
Lack of
clarity
among the
employee
about work
to be done
in an
organization
 Proper
delegation
of roles
and
responsibi
lity will
be done
among the

ion in the
hotel.
. employee.
 Different
formal
and
informal
meeting
will be
organized
and all the
employee
will
allowed to
keep their
point of
view in
front of
other.
Employee
moral and
motivation
Lack of
employee
moral
and
motivatio
n
Employee
Moral and
motivation
need to be
enhanced
YES Unclear
policy of an
organization
Outdated
policy
 New
policy
need to be
adopt by
the hotel
regarding
satisfying
the need
of the
employee
in an
organizati
on.

 Need to
evaluate
and
modified
all the
policy in
an
organizati
on
regarding
Human
resources.
Q5 Market research to support viability for your business idea and identify market potential
using a range of sources that could be both primary and secondary
Primary Source: Primary data source is the original source of data collection. This source is the
one in which data are collected from the first-hand itself. Their are many types of Primary data
source which are generally used by the researcher such as observation, interview, Survey,
questionnaire and experiments (Phadermrod, Crowder and Wills, 2019). In the case of checking
the viability of the business idea Survey was used as a primary source of tool.
A Survey is defined as a research method used for collecting data from a pre-defined
group of respondents to gain information and insights on various topics of interest. For checking
the viability of the business idea a proper procedure was followed in which first step was to
decides the group of the responded which need to targeted by the survey. Next step was to frame
the question which need to be asked to the respondents. i.e. How often you love to go to the
Cafe, Is theme of the cafe used to have a impact on your decision making, What is the most
important thing you considered before selection of any cafe, How much you will recommend us
to open a new cafe in your location. After that questionnaire was presented to the selected group
of people and they were asked to fill the questionnaire (Mineraud, and et.al., 2016). In the end
all the result of the Questionnaire was arranged in such a way that it interrelated with the aim and
objective of the business.

Secondary Source: Secondary data source refers to the data which have been already collected
by and readily available from other sources. Some of the most common source of the Secondary
data are information collected by government departments, organizational records and data that
was originally collected for other research purposes. In the case of checking the viability of the
business idea internet was used as a basic secondary tool to collect the information regarding the
business aim and objective.
Secondary data has helped me in knowing the market area coverage and also proved
crucial in conducting the marketing research about the Idea. Internet has helped us in finding out
data related to business idea with many different sources such as Internet has helped us in finding
the number of the cafe available in the location, There are more than 24000 coffee shops all
across the UK and alone London is having 1522 cafe, from the data it can be analyzed that there
is a huge amount of the competition already present in the local market for The Bikers cafe (Lee.
and et.al., 2016). Internet has helped us in knowing that the interior of the cafe is the most
common thing which used to attract the customer toward the cafe, from that it can be said that
idea of biker cafe to launch a theme based cafe in the London is a viable idea for the organization
to make a investment. Data collected from the internet shows that for opening a potential cafe in
the UK it requires a paid up capital of dollar 80,000 to dollar 250,000. The data shows that the
cafe is in a good position to invest in a cafe.
Q6 Explain the Viability of the Business idea with the help of the SWOT Analysis
SWOT Analysis
A study undertaken by an organization to identify its internal strengths and weaknesses, as well
as its external opportunities and threats.
Strength
New Concept: One of the biggest strength of our business idea is that the concept of bringing
the theme cafe in the location is very new which will helps the cafe in attracting more young age
people toward the cafe as the data collected shows that the interior of the business is the main
reason which impact the decision making of the customer in choosing the cafe to visit.
Good Market Area: Another big strength of the business idea is that the location which has
been selected to open the cafe is a very good location as the number of the consumer in the
London is very high as compare to the other region. Population of London is 81.4 lakhs which is
to high as compare to other region of UK (Johnston, 2017).