Entrepreneurial Business Plan: Drinks & Donuts Restaurant Launch

This report presents a comprehensive business plan for Drinks & Donuts, a proposed food industry startup. The introduction outlines the rationale, vision, and mission of the business, emphasizing innovation in the donut market. The main body delves into a detailed review of the food industry and market conditions, utilizing PESTLE and SWOT analyses to assess the macro and micro environments. It includes competitor analysis using Porter's Five Forces model, and the STP model to identify segmentation, targeting, and positioning strategies. The report then explores marketing strategies, including the marketing mix (product, price, place, promotion, people, process, and physical evidence), market growth strategies, financial projections, and risk analysis. The conclusion summarizes the key findings and recommendations, providing a holistic overview of the business plan's feasibility and potential for success in a competitive market.

Entrepreneurship and
Business Development

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Rational for launch of business and its visions and mission.......................................................3
Review of industry and food market...........................................................................................4
Competitor analysis.....................................................................................................................5
STP..............................................................................................................................................6
Marketing strategy......................................................................................................................7
Market Growth Strategy..............................................................................................................8
Finance........................................................................................................................................9
Risk analysis..............................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business development is explicated as an activity and it is used to pursue strategic
opportunities which is related with a particular organisation and business. With development of
business an organisation consider which is used to assist and acquire more number of customers
that sell additional product and service in new market. This report is written from perspective of
Drinks & Donuts which is established in future in the form of restaurant. Innovation perspective
is used to enter in market and it also helps to introduce fresh baked Donuts which is main
product for business (Faghih, 2019). The aim of formulating business is to a new set-up to
become an entrepreneur. Moreover, this report highlights on rational of business including it's
vision and mission and review of industry and market to analyse current market conditions. In
the last, STP and marketing strategy for establishing business in a competitive market will also
included in the report.
MAIN BODY
Rational for launch of business and its visions and mission
Food industry is one of the major sector that is improving with constant process as the
demand of nutrients, vitamin and minerals etc. are required for human body on daily basis. So
the scope for food is constant in market. Along with this the another reason to start a new venture
in food sector define that margin and operation or food cost is easy to manage with guidance of
professional. It is complex to enter in food business because the economic of food sector is
oligopoly. This refers a large number of firms operate and perform their business in market. So
some other reason that boost morale to start food business is that business offer creativity and
passion to add in restaurant such as development of infrastructure which show theme that define
Drinks & Donuts provide healthy products to customers (Kwilinski and et. al., 2019).
VISION
The vision of food organisation is to serve happiness by offering delicious and healthy
products to customers.
MISSION
The mission of Drinks & Donuts relates with perspective that is used for entering into
market by making healthy food.

Review of industry and food market
To understand macro environment of food industry PESTLE analysis is used and it aids
to analyse market that impacts on food operations. Some aspects of food sector are mention as
follow:
 Political aspect- Government across all over the world generate expansive regulatory
framework for each aspect of food industry. In context of food sector, cleanliness of
commercial kitchens, standards to store food and transporting procedure with high wage
of food is an important aspect for food business. So it is important to follow while
establishing Drinks and Donuts restaurant.
 Economical aspect- One of the general trend relate with economic is to get rich but due
to pandemic conditions whole world and business is impacted. This results different
challenges faced by individuals and organisation both to manage and establish new
venture in all sector (Sergi and Scanlon, 2019). Decrease of disposal income create
problems for attract customers in food market.
 Social aspect- This refer to trend that exists in market and they impact on organisation.
From perspective of food market health consciousness is specially relates with current
trend. Form the perspective of Drinks and Dounts fresh baked Donuts is totally healthy
and useful which is used to eat food related with personal health. In simple terms, baked
donuts offer healthy and tasty food to customers.
 Technological aspect- One of the major trend that is related with business define there
are different task performed by management and with use of technology all operations
and functions of food are managed in proper manner. Drinks & Donuts utilise
technology to complete all task with innovation aspect as it helps to bake donuts in easy
manner.
 Legal aspect- There are different legal aspect developed by government and they are
used by management to complete their work according to decided legislation. Safety
standards work as a section which is used by food industry for making food that is
healthy and appropriate for individuals (Drobyazko and et. al., 2019).
 Environmental aspect- In present scenario, environment perform an important role and
it is used for improving the environmental repercussion related with food. This is

prepared in food section. Within context of developing Drinks & Donuts business it is
identified it is easy to manage business by low environment aspects.
Micro environment
To understand micro environment it is important SWOT analysis of food sector is
implemented that aids Drinks & Donuts to manage work in proper manner.
Strength
 Strong distribution network helps to
order and receive ingredients from all
places.
 Food is prepared with economic of
scale so it work as another strength for
business.
Weakness
 Weak research and development
generate complexity to establish
business in proper manner.
 Inventory cost generate problem for
organisation and it work as a weak
point for management.
Opportunities Online order offer opportunity in
market to perform their work with food
and beverage industry with both aspect.
 Tourism sector is linked with restaurant
and hotel business. So it also attract
more number of customers.
Threats
 Competition is a major threat and it
impact on sales of food product.
 Change in customer taste generate
problem on food business. It create
threat to work with right trend.
Competitor analysis
With implement of competitive analysis framework it is easy to generate research that is
used to complete research related with competitors. This also aids individuals to collect specific
information which is used to enter in food sector in proper manner (Ismoilov and et. al., 2020) .
Porter's five force model is used to understand and interpret business related with food
organisation and market. Some steps of Porter's five force is discussed as below:
 Competition among competitors- One of the major strategy which is related with
competition define that competitors aids management to provide competitive-edge
against rival organisation. Food sector defines high number of market players exists in
market. So the power of competitors is high in market and it impacts on Drinks & Donuts
because it generate difficulties for organisation to manage and enter in food market.

Creative channel perform an important role for managing work with competitive-edge to
manage task with innovation.
 Bargain power of buyer- Customers perform an important role and in context of food
sector bargain enhance and increase the power of buyers. This is because prices of
product that are decided in Oligopoly market create problems. To work with competitive-
edge innovation in donuts to bake them perform an important role in managing buyers.
 Bargain power of supplier- The food sector is too huge and it refers that various
individuals are engage in market (Turgunpulatovich and Bulturbayevich, 2020). Drink
and Donuts and other restaurant order food from external source so supplier are in
moderate power to manage work in proper manner.
 Threat to enter in new market- Threats which is related which entry of new food
organisation is too high. So in context of new entrants such as Drinks & Donuts
management face complexity to enter in new market. Thus, the aspect to enter in market
is high and it results Baked Donuts provide possibility to enter in food market.
 Substitute of existing product- It is related with those products that exists outside
industry. In context of Baked donuts the probability to make healthy and tasty food is too
low. This results it generate some possible aspects for respective organisation to attract
more number of customers through use of competitive-edge that is baked Donuts.
STP
All food organisation offer and categories different segments that is used to match with
the needs of marketplace. Drinks and Donuts utilise STP model through which it is easy for
management to establish restaurant in competitive market in easy manner.
 Segmentation- The term segmentation start with divide of market and it is related with
market segmentation. In simple terms, segmentation refer to division of mass market into
identifiable groups. Drinks and Donuts segment the audience on price factors that is paid
by customers for their order. In context of food section, price perform an important role
because respective idea relates with implement of food innovation that is used to deliver
food products related that are baked and innovative.
 Targeting-Second part of STP model related with targeting and it refers that
organisation determine different changes which is required to generate target market
(He, Lu and Qian, 2019). From the perspective of Drinks and Donuts to identify number

of domestic aspects that is used for performing work by which all task is completed in
easy manner. This is also used to attract individuals that are interested in consumption of
healthy food specifically target market.
 Positioning- The last step, define positioning aspects and this is related with motive of
developing position that is used to manage work with develop of positive image in mind
of customers. With understand of individual market it is easy to guide methods by which
work is completed by analysing market position (Komarova and et. al., 2019). Drinks
and Donuts utilise digital marketing trends through which persons complete their work
and position products at different locations.
Marketing strategy
Marketing mix depict as the suitable set of marketing techniques by which company
tends to effectively use and pursue the marketing objectives in order to target market. This
practice is essential regarding the success of company in terms of developing strengths and
neglecting weaknesses, effectively making sure about the competitiveness of company and also
make sure the internal unit of company tends to work closely. For this, suitable elements are
mentioned as: Product: Drinks and Doughnuts tends to put emphasis on selling wide variety of products
including the baked cookies, muffins, doughnuts and so on. Currently, company tends to
launch freshly baked doughnuts which are sugar free and gluten free and also beneficial
for the health of individuals in order to attract large number of people. In regard of this,
total sales represent the 8-9% of the revenues the comes from the effective sale of
doughnuts. Price: Drinks and Doughnuts tends to use moderate pricing in order to remain
competitive in market and closely oversee suitable competition by which company need
to make things more affordable to attract maximum number of people. The pricing
strategy which is used by company is also relies on the country in which they are present
and also tends to make sure suitable quality of offerings at the affordable prices to their
potential customers (Kuzieva, 2020). Place: Drinks and Doughnuts effective establish them in UK and open its outlets in the
busy area to attract large number of young urban crowd. For this, the new market of

company regarding the expansion zone is China by opening its franchise model and
producing freshly produced eatables products to their potential customers. Promotion: Drinks and Doughnuts tends to promote their brand by effectively making
their brand quite memorable and put good impression on the mind of individuals. For
this, company also tends to use online advertisements, websites, television and so on in
terms of promoting their product. People: Drinks and doughnuts effectively know the significance of serving products to
their customers and undertake their staff at the store which are quite trained and skilled in
order to serve products as per the suitable needs of customers (Mitra, 2019). Process: Drinks and doughnuts tends to undertake effective business process which is
useful for the growth and development of business and for this, they consider the
procurement of raw materials, preparing food products and distributing for the various
locations to attract large number of customers.
 Physical Evidence: Drinks and doughnuts tends to expand their business by expanding
their business at the large level and for this, they tends to effectively use various things to
attract customers like mugs, branding, boxes, merchandise and so on.
Market Growth Strategy
Growth strategies are terms as the effective development of market that leads to entail the
suitable selling of existing commodities within the new market area. In regard of this, small
organisations also tends to use market expansion strategies for their new product or acquiring
new market area. For this, few strategies are mentioned as: Market penetration: It effectively represent the growth of business strategies and for this,
company tends to use market penetration in order to decide regarding launch of current
products in existing market area. It effective depict the method in order to grow by using
current products and market in order to enhance their market share. For this, the best way
for improve market share is by lowering down the prices that leads to increase the
suitable share of market. Market development: This strategy is considered as the market expansion as it tends to
entail the suitable selling of existing products in the new market area and for represent
various reasons for considering this strategy (Kowo, Sabitu and Bola, 2019). In regard of
this, company is beneficial in order to get new market segment by developing new

market with existing product with good strategy. For this, company tends to expand their
services in new market and it quite risk then market penetration strategy. Moreover, the
core competencies of company is related with the particular product instead of overall
experience. Product development: As per this strategy, it is related with suitable expansion of
product line in order to add new features and characteristics in order to enhance the
profitability and sales. For this, venture tends to employ suitable product expansion
strategy by continuously selling new and unique product in existing market. It is effective
and concerned with the particular customers instead of prominent product. Undertaking
the overall situation, they tends to leverage prominent strength in order to develop new
product by targeting their existing customers. Therefore, it is considered as quite risky
strategy as in this new product is being developed by company in order to gain and
enhance market share.
 Diversification: It is undertaken as the risky strategy among all because in this product
and market both are new and also expensive for company. In this, company need to
effectively conduct suitable market research in order to acquire market area and increase
their share (Doern, Williams and Vorley, 2019). Along with this, it is also beneficial
considering the potential to increase the foothold for attractive sector by eliminating risk
of business portfolio.
Therefore, it is analysed that product development is opted by Drinks and Doughnuts as
they are launching new product in market and for this, company need to conduct effective market
research in order to launch their product in market and acquire market share by their potential
customers by gaining their faith and trust.
Finance
Initial investment: The beginning statement for the venture of doughnuts would be
£300,000.
Sources of finance:It effectively represent acquiring funds for business considering
several methods that tends to allow business to choose the best solution by considering the
requirements and needs. For this, few methods are discussed as: Bank loan: It is undertaken as the most traditional form of business finance and in this,
bank offer loan to business which is effectively based on the value of money and develop

effective business plan by perceiving the capability in order to pay back the loan. It is
best suited for the company who has good credit in terms of seeking for the lump sum
regarding the investment. Moreover, it can be opted by Drinks and doughnuts as
company can effectively trust this source and also tends to lend prominent sources for the
longer period of time with effective interest rate (Owers and Sergi, 2019). As it is
beneficial in order to make large purchase with good image.
 Crowdfunding: It has grown more famous undertaking the method of doing business that
leads to raise finance for the new idea and project and it also tends to promote the
suitable campaign prominently in order to motivate donations. It is best suited for the
start-ups with big ideas or also for the existing businesses with exciting project plan.
Therefore, by considering the above discussion, it is identified that crowdfunding is best
suited for company in order to have effective funds and capital regarding the launch and growth
of business which is beneficial in terms of successful and effective expansion for the smooth
running of company.
Revenue/sales: Approximately 85% of total income will be generated from the sales of
doughnuts and the rest of 15% will be generated from beverage sales.
Financial Breakdown: It effectively represent the setup expenses for the new product
which is freshly baked doughnuts which is presented as below:

Risk analysis
RISK CONTIGENCY PLAN MITIGATION PLAN
BREXIT It is undertaken as the most essential risk
undertaking the range of UK. In terms of
overcoming this factor, company tends
to effective put emphasis on keeping
their cost low as their strategy in order
to attract maximum number of
individuals despite from the prominent
fluctuations that tends to cause regarding
the disposable income (Vuong, 2019) .
In order to reduce this risk, company
tends to effectively focus on expanding
the scale regarding the suitable
operations of company by which
effective activities does not get
impacted for the large magnitude
undertaking the factors like BREXIT.
Financial
risk
It is undertaken as the another risk that
can be suitably encountered by the new
entrants and ventures. In terms of
dealing with this factor, company need
to put emphasis on bringing low budget
equipments in order to prepare food
products. It also tends to expand the
prominent cost of freshly baked
doughnuts.
In order to effectively reduce this
situation, Drinks and Doughnuts tends
to focus on suitable attraction of several
number of investors in terms of
presenting the suitable innovative ideas.
Customer
in-
attractivene
ss
To reduce this factor, organisation need
to focus on the offering prominent
discounts and also undertake suitable
extra benefits. It is useful in order to
inflate the attractiveness of consumers
regarding their offerings of
commodities.
To suitably reduce this factor of risk,
company need to undertake feedback of
their customers regarding the
prominent services which is offered by
company (Li, ur Rehman and Asim,
2019). In regard of this, they can also
tends to consider feedback form which
is being filled by their customers. For
this, company is capable regarding the

expectations of individuals and
undertake prominent services of an
organisation.
CONCLUSION
By undertaking the above discussion, it is identified that idea development is important
for the company in order to make their suitable position and also useful undertaking the
economic issues which are being faced by the specific country. The report tends to discuss
regarding the development of new product with the help of suitable strategies which is beneficial
for Drinks and Doughnuts and company also tends to face suitable challenges at the time of
introducing their product. In regard of this, they need to conduct effective market analysis
considering suitable frameworks which are useful in identifying risk factor and gaining
competitive advantage of company. Besides this, sources of finance is discussed which is
beneficial in order to fund the suitable product of company by analysing risk by developing
suitable plans.