Crave Cupcake: Entrepreneurial Opportunity and Business Plan Report

This report outlines a comprehensive business plan for Crave Cupcake, a new venture focused on offering unique and high-quality cupcakes. The introduction highlights the entrepreneurial spirit and the business concept, emphasizing the shop's location and product offerings, including customized cakes. The report details the uniqueness of the business, targeting customers with dietary restrictions and offering high-quality products at reasonable prices. It identifies the target market through demographic segmentation and defines the value proposition, focusing on both design and flavor. The report discusses customer acquisition through advertising and networking and details marketing strategies, including social media and traditional media. Entrepreneurial themes such as opportunity recognition and development are analyzed, along with step-by-step idea development. The operational plan covers resource management, market research findings, and a marketing mix strategy. Competitor analysis, financial planning (including startup costs and break-even analysis), and a references section complete the report. The business plan emphasizes customer satisfaction, product quality, and strategic market positioning to ensure the success of Crave Cupcake.

ENTREPRENEURIAL OPPORTUNITY
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Describe your business idea.........................................................................................................3
What is the uniqueness of your idea?..........................................................................................3
Who is your target market?..........................................................................................................3
State your value proposition........................................................................................................4
Who are our customers?..............................................................................................................4
How will we reach these customers?...........................................................................................4
What is it that our customers want and how do we know this?...................................................4
How does our business provide customer wants?.......................................................................5
Entrepreneurial themes....................................................................................................................5
How to develop idea: step by step...................................................................................................6
Operational plan...........................................................................................................................6
Resources needed including staff................................................................................................6
Carrying out market research.......................................................................................................7
Marketing plan and marketing strategy.......................................................................................7
Marketing mix.............................................................................................................................7
Competitors analysis....................................................................................................................8
What is the financial plan? How much needed for start-up.........................................................8
How would you make profit in the business?............................................................................10
What is the breakeven point?.....................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Entrepreneurship is known as the activity of setting up a business by taking a financial
risk in the hope of profit (Topaloff, 2015). To become an entrepreneur, it is important to come up
with new ideas for making innovative products and services. The present report is based on
generating a business known as Crave Cupcake. This report will cover different marketing
strategies and competitive analysis.
Describe your business idea
My business idea is to open a new cupcake shop which named a crave cupcake. It will be
located in the centre of city where people can easily visit and purchase bakery products. The
bakery will serve freshly prepared flavoured cupcakes and pastry products to customers. Along
with this, I used to decorate cake as per accordance to customers demand, which grab the
attention of large number of customers (Lu and Chang, 2015).
What is the uniqueness of your idea?
There are many people who have dietary restrictions, which lead to make it difficult for
them to eat traditional cupcakes. The uniqueness of my business ideas is that we will bake
cupcakes that accommodate a variety of dietary restrictions. This option will help in expanding
to an untapped consumer market (Bocken, Short and Evans, 2014). Along with this, Crave
Cupcake focuses on selling high quality products to customers at reasonable prices.
Who is your target market?
A target market is known as particular group of customers to whom products and services
is offered. It is important for me to target people who mostly prefer to buy cupcakes and other
bakery products. In order to sale products and services, cupcake show will target customers on
the basis of demographic segmentation (Burns and Dewhurst, 2016).
Demographic segmentation is a market segmentation on the basis of age, race, religious
family size. Therefore, company can target its customers on the basis of income, age, gender etc.
Different age people can be targeted in order to sale products such as children, adults and older
people. However, children mostly prefer to buy cupcakes that will help in increasing the sales
and profits of the firm (Boh, De-Haan and Strom, 2016).
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State your value proposition
Value proposition of my business is that I focus on both design and flavour at the same
time. As per my believed taste and decoration must be directly proportional to each other. We
don’t believe in any preservatives so we avoid adding it (McKenzie, 2015). Along with this,
everything you see in our cake leads to contribute the flavour and texture balance of cake. In
order to make sure quality, consistency and freshness, we used to bake cupcakes in small
batches.
Who are our customers?
Customers are important for any type of business that operate in business world. Therefore, my
customers will be children who mostly prefer to eat cupcakes. There are two simple ways to find
out customers (Schaper, Volery and Gibson, 2014).
 Advertising: The key to advertising lead to generate success in exchange of money
customer spends. It helps in offering a message that not only hits the target customers but
also showcases the value, which can be offered to them.
Networking and referrals: Through creating a strong network company can easily increase
build a strong connection. It is also known as the way to pick up customers who want to make
purchased more in same time. Further, referring help in building a connection with large number
of people (Demil, Lecocq and Zott, 2015).
Hence, it can be stated that through advertisting and netowring Crave cupcake can easily build
connection with customers and increase their sales and profit.
How will we reach these customers?
With respect to reaching customers, it is important for me to use different types of
marketing strategies. It will help in grabbing attention of large number of customers. At present,
social media is the most popular among people. So, I can use social media marketing strategy for
targeting customers. Along with this, I can also give advertisement in newspapers and on
television in relation to opening of new shops with attractive offers so that more people come to
know about my unique products and services.
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What is it that our customers want and how do we know this?
In order to know what customers, want it is important to carry out survey or take reviews
from customers (Ojala, 2016). Through conducting survey, it will become easy to identify needs
and requirements and company can easily modify its product. Furthermore, market research is
also one of the effective strategies that can help in understanding current demand of customers in
market. Hence with the use of all the above mentioned techniques, company can easily
understand the demands of customers.
How does our business provide customer wants?
Business will provide products and services after understanding the needs and
requirements of customers. It is important for company to assess their regular customers so that
changes can be made in products and services accordingly (Hamzah and Sutanto, 2016). Further,
company can focus on selling products of high quality at reasonable prices that help in grabbing
the attention of large number of customers. Further, it is important for me to hire highly skilled
employees who can make innovative products for customers as per their demands.
ENTREPRENEURIAL THEMES
Describe two themes and how it relates to your proposed business venture
Two themes that are related to the proposed business venture as follows:
 Entrepreneurial opportunity for sourcing the cupcake business idea
To be successful entrepreneur, it is important to continually innovate and looked for
growth opportunities within the business. There are different ways through which company’s
business opportunities can be identified. In order to grab new opportunities, a company can focus
on its potential customers and past leads (Fan, Lau and Zhao, 2015). While targeting potential
clients, a firm should listen to their needs, challenges and wants where they are operating.
Further, listening to potential customers and looking over the competitors also help in identifying
opportunities.
In order to gain sources of idea for business development, an entrepreneur can gain
knowledge of potential customers needs, watching emerging trends in demands for certain
products, ideas given by knowledgeable person or a new product introduced by competitors. It
can be said that no business can think to carry out business without customers. It is important for
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companies to ensure that their products and services lead to satisfy needs and demands of
customers. Entrepreneur should know the actual requirements of their customers.
Apart from this, one of the best ideas for an entrepreneur is to monitor their existing
products and services (Huang and Sarigöllü, 2014). Therefore, entrepreneur can conduct
competitive analysis, which helps in finding out shortcomings. There are many enterprises who
established and mainly offer best on their products and services over the existing ones.
Further, it is analysed that for an entrepreneur, it is important to collect funds from
different sources so that it can easily open its business. Distribution channel, which are also
called as market intermediaries can also serve as an effective source for new ideas for
entrepreneurs. The main reason is that they ultimately deal with large number of customers and
know about consumers taste and prefrence.
 Entrepreneurial development for developing the cupcake business idea development
For an entrepreneurial development, it is important to develop business idea. Without
proper development any of idea can be remained just a simple idea and due to this reason, it will
never become successful (Pavlou and Stewart, 2014). At the time of developing idea, it is
important to define the audience first. It is the first thing that an entrepreneur must do. It
produces with the aimed to solve particular problem which is faced within the industry by
companies. Then it is important to ensure that all issues are mapped up properly for establishing
a business.
Moreover, before moving further it is important to examine an idea from different
perspectives. Hence, entrepreneur first should think about prospective customers and consider
not only the people who make purchase of product and but to those who avoid it for specific
reasons. For development, it is important to carry out SWOT analysis, which helps in analysing
strengths and opportunities that company possess in this industry. Through identifying
opportunities, an entrepreneur can easily grab them and accomplish success.
Apart from this, to develop opportunities, it is important for company to focus on
requirements of customers then develop a new idea accordingly. Ideas are basically generating
from the known facts not from thin air. Business builders who make daring ideas lead to have a
high level of knowledge which is acquired by the study (Goworek, McGoldrick and McGoldrick,
2015).
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HOW TO DEVELOP IDEA: STEP BY STEP
In order to develop business idea, it is important to analyse the market where firm is
going to start. Through conducting a market research, it will become easy to understand
unresolved problems.
Operational plan
Operational management is regarded as essential function of an organisation, which is
entitled to manage all the aspects in right manner. With the help of operational management, it
will become easy to collect resources in an appropriate manner and accordance to the demands
of customers (Pyo, 2015). Hence, it can be stated that with the help of operation management, a
company can easily carry out the activities in a systematic manner. Through the support of this,
company can easily collect raw materials from feasible sources, which helps in avoiding the cost
of operations.
Resources needed including staff
Crave cupcake company should emphasize on the human resources management which
help in managing various aspects of the firm (Hajar, 2014). Hence, top authority is needed to
undertake decision which is related to hiring people for the firm who can handle various job roles
and responsibilities. Along with this, at the time of hiring people within the crave cupcake, it is
important to consider their roles and responsibilities to manage all the activities in an effective
manner. All the physical and financial resources should be available on time so that customers do
not face any kind of issues at the time of making purchase (Phillips, 2016).
Carrying out market research
It is important to carry out market research so that demand of products in the market can
be identified. From the research of different articles and report, it has been assessed that demand
of cupcake and bakery shop is high in restaurant market. Along with this, disposable income of
personnel leads to increase as compared to past years (Gupta, 2017). Therefore, living standard
of an individual increase due to which they prefer more quality products. Apart from this, people
prefer to give large number of orders on special occasions such as birthdays, festivals,
anniversaries etc. Hence, through considering all this aspects, it can be identified that demand of
bakery shop is high within the market.
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Marketing plan and marketing strategy
To accomplish success in the highly strategic and competitive business, it is important to
conduct STP (segmentation, targeting and positioning) strategy.
 Segmentation: Entrepreneur can segment its potential customers based on their age,
living standard and income. However, business entity leads to offer different facility to
younger and middle age people.
 Targeting: Differentiated targeting strategy will be employed by the Crave cupcake
which in turns will help in getting the desired level of outcome for success. Based on this
factor, business entity can prepare different menu for customers as per their requirements
(Demil, Lecocq and Zott, 2015). Demographic segmentation is market segmentation
which will be madeon the basis of age, race, and religious family size. Therefore,
company can target its customers on the basis of income, age, gender etc
Positioning: Company can easily build different images in the mind of customers related to the
Cupcake crave company through shedding light on its exclusivity. Furthermore, new people is
required to visit the restaurant which put focus on hygiene aspect (Boh, De-Haan and Strom,
2016).
Marketing Mix
Marketing mix play important role in respect to grab attention of customers and make
them aware of their company product. It considers following elements
 Product: Cupcake, cake, pastries and other bakery items
 Price: Due to new business Crave cupcake can use discounting pricing strategy which
helps in grabbing attention of people.
Place: it will be opened in mid of city so that people can easily visit without facing any
transportation issue (Burns and Dewhurst, 2016).
 Promotion: Crave cupcake will use social media marketing strategy which help in
targeting large number of customers in less time and cost.
Competitors analysis
Competitor analysis is known as essential aspect in order to measure the potential of
current business. It will be effective in order to identify the way new business can accomplish its
organisational objectives and grab attention of large number of customers. In order to carry out
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competitive analysis, porters five-force model can be referred where five factors will be
considered such as competitive rivalry, threat of new entrants, threat of substitute products and
services, bargaining power of suppliers and buyers. Due to high level of competition within the
market, it is important for Crave Cupcake Company to understand its competitor power. Due to
high number of competition, it is not easy to enter in a new market (Bocken, Short and Evans,
2014).
What is the financial plan? How much needed for start-up?
Financial Feasibility: for measuring the extent to which project is financial viable
feasibility study is required to conducted by the entrepreneur through undertaking below
provided assumptions
Assumptions:
 Sales of Cupcake will be increased by 12% each year
 Working days will be 365 and price charged from customer is £75. Target is to daily
sever maximum 20 customers.
 Working capital of the pre-operating year will be £800.
Income Statement
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How would you make profit in the business?
In order to make profit in the business, it is important for company to devise different
strategies. Along with this, company must focus on retaining customers through providing them
different offers on services (Lu and Chang, 2015). It will help in increasing repeat purchase of
products and services from the side of customers. Further, company can focus on taking review
from their customers related to products and services and on the basis of that; it will become easy
to modify products that helps in retaining customers.
What is the breakeven point?
Break Even
Analysis
Amount
(£)
Average
Selling Price
27
Variable Cost 8.09
Contribution 18.91
Total Fixed
Cost
45000
BEP (In
Units): Fixed
Cost
/Contribution
2380
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CONCLUSION
From the above report, it is concluded that for starting a new business, it is important to
conduct market research so that customers needs and wants can be identified. Further, company
can use different promotional strategies, which helps in grabbing attention of large number of
customers. Further, it is concluded to make unique and quality products by the company who
should hire highly skilled employees and trained them. Entrepreneur can segment its potential
customers based on their age, living standard and income for targeting them.
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