The Candle Shop: Feasibility, Strategy, and Financial Planning Report

This report provides a comprehensive analysis of 'The Candle Shop,' a new venture focused on home-made candles. It begins by identifying the concepts of effectuation, causation, and feasibility studies for the business, exploring the relationship between innovation and entrepreneurship. The report then assesses competitors and conducts an STP analysis to evaluate market opportunities and the feasibility of the business. Drawing on Osterwalder's Business Model Canvas and Porter's Value Chain, the proposed business model is discussed, explaining how and why the new venture is expected to succeed. Furthermore, the report outlines effective business and marketing strategies, along with financial techniques and planning tools to assess and mitigate risks. The analysis includes detailed sections on competitor analysis, STP analysis, and the application of business model frameworks, concluding with a discussion on the venture's potential for success and sustainability.

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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Identification of concept of effectuation, causation and feasibility study for new venture as
well as exploring the relationship between innovation and entrepreneurship............................3
Assessment of competitor and STP analysis for evaluating the opportunity gap in market and
discussion about feasibility of business......................................................................................5
Drawing on Osterwalder’s business model canvass and Porter’s value chain, discuss your
proposed business model and explain how and why you think your new venture will work.....8
Business and marketing strategies should be adopted by entrepreneurs.....................................9
What are the financial techniques, planning tools and decision-making models that you could
use to assess and mitigate your risks?.........................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship refereed to ability and readiness in order to develop, organise and run a
business enterprises along with any uncertainties by which they can generate new profits. This
also helps in he analysing the capabilities of the people in order to run the new start-up business
in an most effective and efficient manner(Ikebuaku and Dinbabo, 2018). This concept of
business development focuses on short term and long term objectives which are set to attract the
customers by which they can contribute to the growth of them. For this report, the new start-up
business is The Candle Shop, which deals in the new innovative idea of designing home-made
candle. Furthermore, this report aims to analyse the consideration of entrepreneurship with the
help of new business start-up of The Candle shop. This also evaluate the relationship between
the entrepreneurship and innovation. Furthermore, it deals with the market strategies which are
use by the entrepreneur in order to maximise the growth of new business. This also give the
qualitative and quantitative technique to measure and reduce the risk associated with the
business.
MAIN BODY
Identification of concept of effectuation, causation and feasibility study for new venture as
well as exploring the relationship between innovation and entrepreneurship
Describe the concept of causation and effectuation for conducting feasibility study of new
venture.
It is being identified that there are entrepreneurial strategies which are termed as the
causation and effectuation in order to evaluate the performance of the given business. The
causation process helps in methods and means in order to attains the predetermined goals and
objectives of the entrepreneurship. Such strategies are effective tool which leads to survive in the
given competitive market(Mikhno and et. al., 2021). This simply means that both strategies are
effective which helps in the proper formation in the business so that they can sustain in the target
market for longer period of time. Decision-making approach is basically used to analyse the
entrepreneur environment as it is considered as the contingent and uncertain. As per this
approach, entrepreneur makes the plans and policies by which they can further implement in the
given business.

This concept of effectuation is basically termed as a practice which emphasis on
analysing the short-term objectives and certain opportunities in order to meet the available
resources in setting up new business. Firstly, they focuses on creating new means and methods in
order to make better use of technology. With the help of effectuation approach, new market can
be created in order to build the group or the network of the people which helps in analysing the
in order to achieve the success in the rival market. Effectuation is the better approach through
which contingency can be analysed, whereas causation helps in gaining the more knowledge
from the given sources of competitive advantages.
Feasibility study refereed to the practice which leads to analyse whether the plan is viable
in the given business condition or not. This respective study aims to analyse the certain factors
which are directly affecting the given business performance. This also leads to have success of
start-up business in the rival market. This respective feasibility study the new business model of
The Candle Shop which are given below:
 Conduct preliminary analysis: It is the first stage in which the feasibility studies
includes the screening of the business ideas and efforts which contribute to to the growth.
Moreover, the survey is being conducted for The Candle Shop is order to have better idea
for such type of business. This study also find the huge customers in the United Kingdom
in which people use home-made candle and also develop the interest to use in that
products. The new business startup does not have the more capital and also having
advantage of influencing the large customer base in the nation.
 Preparation of estimated income statement: After the analysis, enterprise expenses,
liabilities and assets are analyses. These are the major factor in order to analyses the
financial position of the business. This also eliminates the revenue capacity of new
business.
 Performing market survey: It is vital to analyses the geographical boundaries of the
buyer, purchasing capacity of potential buyer. This has been analyses that the market
share is quite impressive and it is growing well(Kitsios, and Kamariotou, 2019), There
are certain customers in UK who wants to buy the candles in order to have the interiors,
public places etc.
 Planning business operations: This is considered that day-to-day operations must be
analyses and evaluate on daily basis, cost of activities which are incurred within the

business enterprise. In context to new start-up business, The Candle Shop, effects and
planning to analyses the capital, availability of given resource in order to diversify the
given business through he dissemination of such information.
 Review and evaluate collected data: In this the review data helps in analyzing and
change such data as per the availability of demand of the target market. In this case, The
Candle Shop needs to observe the risk which includes the internal and external factors.
 Decision making Phase: In this step, entrepreneur take decisions that they want to
expand the business or not as per the gather data ad the information. In relation to The
Candle Shop, they took decisions as per the potential growth and the preferences of
buyer.
Relationship between innovation and entrepreneurship
Innovation is deals with the inventive step that depicts which bring the new ideas and
develop new products. This does not means to launch the the new but focuses on improvement in
the given products and services which is called as the innovation (Yan, Zhu and Yang, 2018).
This is somehow related to the entrepreneurial practice which helps the people to setup new
business ideas in order to offer new products and services in order to deal in the given market
place. Entrepreneurship is defined as the ability of the people in order to think the market
expectation and trends that includes the opportunities to get new ideas and view point.
Assessment of competitor and STP analysis for evaluating the opportunity gap in market and
discussion about feasibility of business.
Competitors analysis is defined as the feature, quality, price ad business strategies on the
given basis of the view point of customer and their feedback. This basically contributes the
analysing the needs and demand of the target market. The Candle Shop succeeds for offering
better quality fragrance goods at the affordable prices which is competitive advantages for the
entrepreneur. Further the competitive analysis is illustrated below:
Basis of difference The Candle Shop 5 Wytches Candles &
Gifts
Best Kept Secrets
Products offered This respective model
is being sued by The
They are dealing in
vegan free candles
This also provides the
varieties of candles

Candle Shop, they are
offering home-made
candles to its
respective customers
for designing places
that includes the
homes, hotels etc.
with less carbons. It is
the small scale
business.
with different
fragrance. They also
offer the discount on
given occasion that
includes the birthday
or festival.
Pricing strategy They are basically
operating by using
pricing unique
strategies and also
offer the discount at
initial days of their
new business. They
also offer the special
business in order to
attract the large group
of customer.
This pricing strategy
which is used by 5
Wytches facilities
premium pricing that
also helps in
maintaining the overall
products exclusive and
effective aspects
among the customers.
They are offering their
products and services
at affordable prices to
their prospective
buyers.
Advertising channels The Candle Shop is
operating with their
official website and
also using the
advertising channels
by which they can
promote the goods on
larger scale. This is the
social media which
also contributes the
candles.
The entrepreneur of 5
Wytches which is
using the traditional
aspects of promotional
their products through
television,
advertisement etc.

STP Analysis
It is considered as the model which emphasis for the better analysis of the given goods
and services, effective communication medium and also provide the information to their
potential customers. This is used to help the company in order to enhance the personalized and
give messages to all the work which create the common interest of the consumer. This analysis is
being establish the by the entrepreneurs of The Candle Shop in order to explore the market gap
and develop strategies which is related to market.
 Segmentation: it is the step in which the consumer are being segregated into small parts
as per the characteristics and the attributes. This also leads the entrepreneur of The
Candle Shop is focusing on segmented customer and deliver personalized message
instead of messaging among large audiences. Usually, consumer segregate their market
and divided as the factors such as geographical boundaries, trends, value etc. In relation
to The Candle Shop, segmentation has been initiated in the basis of personality, interest
and the new business start-ups.
 Targeting: In this step, company identify the audience and the given target market of
consumer. Thus, the entrepreneur of The Candle Shop choosing the profitable market
segment in order to have the profit by involving in the given market segment(Chen,
2018). Positioning: In this stage, the owner of the company use the valuable approach in order
to select the target group of audience. This also focuses on creating the effective
marketing strategies that includes the tools & analyses the specific unique selling prices
so that they can engage large consumer base.
Discussion about feasibility of new business venture
This business idea of designing candles is flexible and feasible in nature. This study
shows the market position of the given products this has been stated that the company is focuses
on the overall development in the company by which they are designing and offering home made
candles with such candles. Social interest of UK tends to buy such candle with the good aroma in
given occasions. This is the small business with the low capital cost and other related to the
equipment. This highlights small business with low cost and other equipment.

Drawing on Osterwalder’s business model canvass and Porter’s value chain, discuss your
proposed business model and explain how and why you think your new venture will work.
In order to effectiveness of the new business enterprise the business model of the Jessica candle
has been discussed below: -
Name of business venture The Candle Shop
Executive Summary This respective business is based on the home-made candle which
required less cost and capital. The company deals in excellent
quality can with good fragrance.
Vision The vision is-to be the known and popular brand in its industry.
Mission They focuses is to offer the excellent quality of decorative candles
with the various type, at low prices.
Objectives They are working to have the sustainable practices of business
within the company by which they can have the good brand image
in the market.
Marketing mix In context to the The Candle Shop, marketing mix is explained as
follows:
Product:- The Candle Shop is offering the home-made candles
with different fragrance and size.
Price:- The Candle Shop is offering discounted pricing in order to
attract the large customer group.
Promotion: - they are using social media platforms by which they
can make sure the good relationship in the given market.
Place:- they are basically following the goods and services to be
sell is the website for taking the orders from their customers.
Situational analysis Strengths:- they are working with the main strength that they are
dealing with different type of candles and utilize the waste material
for its manufacturing.
Weaknesses:- The Candle Shop is having the less knowledge
about the given market and they do not have much experience.

Opportunities:- This respective firms is having the opportunities
in which they can try methods of making candles with use if
innovative technology.
Threats:- The firm s not well known in the market and incurred
huge investment at initial stage of manufacturing.
Business and marketing strategies should be adopted by entrepreneurs.
Entrepreneurs requires to adopt various marketing strategies by which they can ensure
huge success and growth. There are various strategies which must be taken in each stage of
starting new business as The Candle Shop which are given below:
 Start - up Phase: In this phase, The Candle Shop needs to anlyse the innovative ideas
and plans. They needs to aware and create the corrent method of innovation which can be
reliable to thei business(Shin, Perdue and Kang, 2019).
 Growth Phase: In this, the owner of The Candle Shop require to perform the analysis
of Ansoff's growth strategies that do help them in choosing the appropiate strategy over
its competitors. They also use the penetration strategy in which they need to understasnd
the grwoth by selling the existing products in the given market. Morte over they can
futher go with rst of the three strategies to choose the business strategy to introduce its
products. As sugested, they must use the market penentration as this is the ne busines
which leads to help them in its initial stages.
 Integration Phase: In this phase, The Candle Shop needs to grow their products lines
and increase the channels of distribution. An entrepreneur must needed to create a
corporate image at the inital stage and maintain in this respective sector.
 Underperformance Phase: In this phase, Entrepreneur must focuses on difficult
decisons so that they can enhance their productivity and working. The Candle Shop needs
to conduct the wide research and development in order to keep the traack ofth business.
What are the financial techniques, planning tools and decision-making models that you
could use to assess and mitigate your risks?
Assessment of qualitative planning tools for identifying and minimizing risks

In considertion to the The Candle Shop, quality planing tool which are commonly used by the
business which are given below: Prediction: - Forecasting is focusing on the methods that is entrepreneur which utilizes to
measure the future. This is vital for the entrepreneur in order to analyse the risk which
can be utlised by the entrepreneur for the better proactive approaches. This also helps in
proper planning to chnage so that they can sustain in the dynamic market (Nelson and
Lima, 2020). Emergency Response Plan:- This is defined as the exercise in choosing the another
course of action in order to meet the demands of the given situation. Entrepreneurs can
analyse the tool plan as tis helps The Candle Shop in order to identify the risk in the
chnaging business environment.
Assessment of quantitative planning tools for identifying and mitigating risks
For accessing and identifying the mitigate the risk which can be rightly used by the entrepreneur
which are givene below: Data mining: This is analysed as the combination of the given programming and the
given statical techniques. This particular practice slowly with the growth of data across
the globe. The Candle Shop can use it for data collection with a variety of data trends
which are running in the market. The data is being collected with the proper assistance to
the company by which they can analyse and plan for the risk mitigation. Linear programming:- This is the method of quantitative method which helps the
administration in order to plan and the better allocation of resoruces(Jones, Ram and
Villares-Varela, 2018). This also helps The Candle Shop entrepreneur in order to
identify the goo profit which help them to mise the overall operating cost. This
respective technology helps the business and its owners with the given business
probelms, they can buy machines and hire a workforce. This also help them to analyse
the risk with the gien bsuiness activities and migrate them.
Common mistakes made by entrepreneurs
There are common probelms which are made by the entepreneur as tey are not spending
on the given resoruces, considering the shortage of rvals and not directing the acheivable goals.
The inability of The Candle Shop to produce the appropiate financial statement which is
affecting the entire position of the market. Thinking of no direct competiton which are avaiale in

the given market. Consideting the appropiate products will not iterfere with the given bsuiness
which is the naother mistake that the entrepreneur does. The major mistake done by the
entrepreneurs make is that they do not set their goals because they did not have the appropiate
direction.
CONCLUSION
It is concluded from the above report that entrepreneurship and the innovation are closely
related to each other and that need to be analysed at the given time. Innovation is the introduction
of fresh and innovative ideas also the thought of the people in the business management activity.
Moreover , the Business plan is being made in order to analyse the product, price, place and the
market strategy in order to develop the appropriate market to the firm. In order to solve the given
problems, entrepreneur needs to plan in certain ways. They effectively utilise certain tools in
order to develop the plan effectively.

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