Entrepreneurship Report: Charcoal Travel Agent Business Plan Analysis

This report examines the entrepreneurial aspects of the Charcoal Travel Agent, a tour operator and travel agent in the United Kingdom. It begins by defining entrepreneurship and highlighting key traits such as passion, work ethic, determination, and competitiveness. The report then delves into entrepreneurial skills like decision-making and the ability to learn, identifying strengths and weaknesses. It analyzes a growth strategy used by Brain Kelly, a successful travel and tourism entrepreneur, focusing on market penetration, product development, market development, and diversification. The report also explores various sources of finance essential for starting a business, including long-term, medium-term, and short-term sources, and provides an overview of business plan components like market analysis, business analysis, and cash flow analysis, culminating in a persuasive business plan for Charcoal Travel Agents.

Travel and tourism entrepreneur

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Traits and skills of an entrepreneur..............................................................................................1
Strength and weakness to become successful entrepreneur.........................................................2
TASK 2............................................................................................................................................4
Development strategy that is being used by an entrepreneur......................................................4
TASK 3............................................................................................................................................5
Sources of finance........................................................................................................................5
Business plan ..............................................................................................................................5
Persuasive Business Plan.............................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneur refers to the person who sets business for the purpose of earning profit by
taking risk and uncertainties that is based on future course of action. It is broader term that is
used to describe an ability of an individual to earn something in life. An entrepreneur is
launching new business with new ideas and creativity by investing money. It finds new
opportunities for diversifying in different sectors of the economy (Kirzner, 2015).They act as a
manager in the company who is able to initiative of taking risk for future. Entrepreneurship
brings new opportunities and generate new creativity that will help in achieving goal of the
business. This include business plan that is being set by an entrepreneur and the resources that is
used for hiring people for the company.
Present study will be based on Charcoal Travel Agent company. It is dealing as tour
operator and travel agent in United Kingdom.
Present report will include entrepreneurial traits and skills to become a successful travel
and tourism entrepreneur. It also includes an entrepreneur and its development strategy for
success in the future. Furthermore, it will include business plan and different sources of finance
that is used to proposed project.
TASK 1
Traits and skills of an entrepreneur
Entrepreneurial traits are the characteristics that must be possessed by an individual to
become a successful entrepreneur in the future. Skills refers to the ability to manage things in the
company and become productive for getting success.
Entrepreneurial Traits
Passion:- An entrepreneur must be passionate to do work effectively and efficiently for
achieving success in the future course of action. They have to love what they are doing and have
ability to complete that task (Dees, 2017). They have to manage work for the future course of
action. For becoming successful travel and tourism entrepreneur one must be passionate to
complete his work on given period of time.
Work Ethic:- An entrepreneur must have strong work ethic and have to work according to the
company's rules and regulations. They have to follow all the policies and procedures to meet the
expectations in the business. A successful entrepreneur is always has to set their mind to do work
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anytime. Tourism entrepreneur must have to be follow all the ethics so that it will help in
achieving success for the future.
Determination:- An entrepreneur must be determinant to its work. If it gets failed then it is an
opportunity for it to do something new that will help in achieving success for future course of
action. They do not have to believe that this cannot be done always have determinant that
everything is possible. This trait helps in achieving success for the future course of action.
Competitive:- For becoming successful an entrepreneur must have trait to survive in the
competitive market (Zahra, and George, 2017).It is very important to be competitive as
companies are increasing day by day and that will lead to increase competition in the market. It
is a trait that helps an entrepreneur to achieve success in the future.
Entrepreneurial Skills
Decision making:- An entrepreneur must have decision making skills to achieve success in the
future. This skill is very important that every entrepreneur have to be built in it so that it will lead
to growth for business in the future. To become successful entrepreneur there decision making
skill is necessary.
Ability to learn:- Travel and tourism entrepreneur have ability to learn more and more in future
for achieving success. Learning help in gaining more knowledge that will be benefited for the
future course of action. Learning always helps in gaining extra every time that will be beneficial
for business and for itself as well.
Identify strength and weakness:- It must be able to identify strength and weakness that will
help in improving productivity in the business. Strength will help in improving more qualities
that is being needed to become successful (Eniola, 2018). Weakness helps in overcoming from
that and improve skills for achieving success. Strength will help in gaining more success and
ability to work.
Therefore, above traits and skills is necessary for becoming successful travel and tourism
entrepreneur.
Strength and weakness to become successful entrepreneur
Entrepreneurial traits
Confidence:- I am confident in starting every task and always able to take opportunities that will
help me in my growth as a travel and tourism entrepreneur. This confidence helps me in getting
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success and achieve more in life for gaining more opportunities in the future. Confidence always
leads to success in business. This will help in bringing more opportunities for future.
Disciplined:- I am doing work in disciplined manner in the company. Remaining disciplined
helps in achieving growth in the business. I do my work effective and efficiently for gaining
more success in the future. Discipline is the main trait that every individual have to maintain in
the business for getting involved into various activities of business.
Open minded:- I am open minded and always thinks of creating new every day that helps in
getting more opportunities for the business (Sastre‐Castillo, Peris‐Ortiz and Danvila‐Del Valle,
2015).This trait help me in getting success for future course of action in association of British
travel agent.
Entrepreneurial Skills
Communication:- My communication skill is good that helps me in interacting with people
easily. This helps in getting more involved in the business operations of association of British
travel agent.
Time management:- I am punctual and manages time accordingly completing given task on a
specified time period. As it is important to manage the time while doing work effectively and
efficiently.
Strength
My communication skill is good that will help me in interacting with different people and
gaining more customers towards business. It is important to attract more customers as it help in
earning more profit for future course of action. Time management skill is also plays an important
part in travel and tourism sector. This helps in gaining attention of customer towards business.
As travel agent it is necessary to build up new skills that will help in enhancing for future course
of action. Building networking with people through communication help in attracting more
customers and sales will be increased(Johnson, Freeman and Staudenmaier, 2015). I use finance
in effective manner so that there is no wastage of resources in the association of British travel
agent.
Weakness
My weakness is I am not strategic thinker as my decision making skill is weak I need
help from the people in taking decision. I can overcome from this weakness by taking light
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decision first and then try to improve my skill. I am not creative in as I am not able to implement
new ideas and innovation in business.
TASK 2
Development strategy that is being used by an entrepreneur
Brain Kelly is successful travel and tourism entrepreneur that is providing various
services to customers. It is using growth strategy for the development in business for future
course of action. This strategy consist of two axes one axes consist of product and another axes
consist of market. There are four quadrants in the growth matrix such as market penetration,
product development, market development and diversification.
Market Penetration:-This is the strategy that will try to grow in existing market by providing
existing offering to the customer. In this market share will increase according to the present
market scenario. This strategy will be achieved by providing various product and services that is
available in the marketplace. In this product price will decrease constantly.
Market development:- In this company will be expansing its market share by using existing
market offerings that will help in development of new product. In this different customer
segments are involved and operation will be expand in foreign markets.
Product development:- Under this company is trying to introduce new product and services in
the marketplace. There are various products that is available in the market. Investment is being
done in research and development of the product and services.
Diversification:- This strategy tries to grow in the marketplace by offering new product with
diversify range of products. This will create risk strategy for the company as both product and
market development is required so it need more investment in development process of product.
Brain Kelly is using product development strategy in the market that will help in success
of entrepreneur in the future (Kerr, Kerr and Xu, 2018). This strategy will be used by most of the
entrepreneur to attract more customers towards it. As Brain Kelly is using this strategy for
diversification of product in the marketplace.
Factors that will led to success of an entrepreneur are knowledge, creativity, skills,
intelligence and patience that will be needed to become successful in business. Teamwork also
helps in getting success in the future. Leadership is another factor that will lead to achieve
success in future course of action.
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TASK 3
Sources of finance
Source of finance refers to the capital that is required for starting up business for future.
Investment will be done by purchasing fixed assets for the company. There are different sources
of finance that is available to organize funds in the business. Long term sources, medium term
sources and short term sources is required to establish fund for the company.
Long term sources:- These sources are remained for the period of more than 5 years. It includes
debentures, long term borrowing and loans that is required in the project for longer period of
time.
Medium term Sources:- These sources are provided for more than one year or less than five
year. These sources will help in gaining fund for short period. This will provide fund that will be
available and helps in investing for growing business operation.
Short term Sources:- In this fund is not available for more than one year. Loan from
commercial bank will help in providing fund for future course of action.
Investor can invest in the company that will lead to create sources for the company.
While starting business personal investment is the first step to introduce fund in business.
Government grant will also help in providing finance to the project (Olivari, 2016). All these
sources of finance help in getting funding for the project or either taken loan from financial
institution. All these will help in getting funds and through this project can be proposed.
Business plan
Business plan refers to the document that contains objectives, budget for achieving
success in the organization. It contains market analysis, financial planning, marketing plan,
competitive analysis etc.
Market Analysis:- According to the survey it is being found that there are 600 tour operators
and 2300 travel agency companies is having more than 7000 offices that are responsible for
selling 90% of holiday packages. It is find in market analysis that association of British travel
agent is spending £ 32bn on holiday package.
Business Analysis:- It is being expected from market share that association of British travel
agent is growing faster as compared to other competitor of tourism sector (Abdullah, Hadi and
Dana, 2018). It is also analysed from market survey that in coming year expenses of the
company will increase as there are so many new entrants in the market.
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Cash Flow Analysis:- From the budget it is being said that capital that is to be invested in this
project is estimated as £100.00. Insurance expenses will also occur £150.00. There are other
expenses that will include in cash flow as marketing expenses £200.00. Operation and
administration expenses will be estimated as £300.00. All these expenses will help in
determining the cash flow in the company.
Persuasive Business Plan
Business Plan For The Charcoal Travel Agents
Executive Summary
The Charcoal Travel Agents (CTA) is a start up travel agent establishment in Lambeth,
London, England, United Kingdom (UK) (Meyer, 2016). The company is planning to build
strong customer base and gain strong market position in the London Company will focus and
offer their products to the middle to higher income segment along with local as well as tourists.
Aims & Objectives
The aims of the Company are as follows -
 To earn profits and gain competitive advantage over its local competitor
 To increase the customer value and baseThe Charcoal Travel Agents (CTA)
The objectives of the Company are as follows -
 To achieve sales of £5000 till the end of year
 To achieve 2% market share in local market till the end of year
 To achieve 30% profit till the end of year
Mission & Vision Statement
VISION – To become London's most trusted and creative company by providing qualitative
travel services.
MISSION – To provide every customers with the best experiences and assistance in traveling of
United Kingdom who choose us.
Company Background
The Charcoal Travel Agents (CTA) will incorporate in London which is owned and
managed by the three partners.
Mr. Ankit Sharma has an experience in management and was a senior manager in The
Association Of British Travel Agents (Hadi and Abdullah, 2018).Mr. John Lever has an
experience in finance and was a finance executive in Happy Company. Miss Leila Humb has an
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experience in Operational Management and was a deputy operational manager in The
Association Of British Travel Agents(Chernev, 2015).
Management & Operations
The Charcoal Travel Agents (CTA) will build the business structure which can help in
the growth of business. Below is the management and operation structure that will be created by
The Charcoal Travel Agents (CTA) company -
Product Description
Company will provide the same products and services which is being offered by another
companies in the same industry, but for differentiate, company will provide a different travel
service namely “SWIFT VEHICLES”. In this service, the tourists can take the vehicle on rent
from company. After completing their tour, they can leave their vehicle anywhere. This service
will be provided by the company through a mobile app which is linked to the vehicle software
and company software (Bikse, Rivz and Riemere, 2015). Through vehicle software, company
can track the tourists as well as the vehicles.
Marketing Plan
Company's marketing plan are mentioned below -
Product
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Chief
Executive
Officer
Travels and
Tours
Consultant
HR Manager Marketing and
Sales Manager
Finance
Manager
Customer
Care
Manager

Company will provide various kinds of services such as holiday packages, provide
vehicles on rental base, provide accommodation services, consultancy services and online
booking services etc.
Price
Company will use discount pricing, variable pricing and promotional pricing according to
the season and services demand by the customers.
Place
Company is providing their services at the national level means company will provide its
services in the UK.
Promotion
Company will use various promotion tools such as advertisement, online advertisement,
social media, setting point of sale, local fairs and through sponsorship etc.
SWOT Analysis
Swot analysis of The Charcoal Travel Agents (CTA) Company are as follows -
Strengths Weaknesses
 Company is providing new rental base
products which can attract the
customers.
Company's location is good which is quite
popular in tourism destination.
 Company has no experience in new
services.
 Due to new start-up, Company is not
able to gain steady growth pattern.
Opportunities Threats
 Swift Vehicle being new services can
help company to create a new market.
 Partnerships with hotels can help
company to grow more (The 10 Traits
That Define Entrepreneurial Success,
2019).
 Tough competition in local and national
market.
 High operation costs can become
reason behind the company's closure in
the future if not able to earn profit.
Financial Analysis
Financial analysis of the company are as follows -
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Expected Expenses for The Charcoal Travel Agents (CTA)
EXPENSES AMOUNTS
Business Capital £100.00
Business Insurance £150.00
Business Licensing £450.00
Vehicles £600.00
Marketing Expenses £200.00
Operation and Administration Expenses £300.00
Accommodation Services Expenses £120.00
Information and Digital Technological
Expenses
£650.00
Others Expenses £350.00
TOTAL £2920.00
Expected Revenues for The Charcoal Travel Agents (CTA)
REVENUES NO. OF
CUSTOMERS
PRICE AMOUNTS
Swift Vehicles
Services
15 customers £50.00 £750.00
Consultancy Services 20 Customers £20.00 £400.00
Commission From
Hotels
20 Customers £15.00 £300.00
Holiday Packages 10 Customers £25.00 £250.00
Other Revenues - - £300.00
TOTAL £3,000.00
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CONCLUSION
From the above study it can be concluded that for becoming successful entrepreneur
specific traits and skills is required to get success in the future. An entrepreneur must be
passionate, creative, having strong work ethic to complete task on given period. Skills that are
required such as ability to learn, taking decision, doing productive work etc. It also has an ability
to identify strength and weakness that will help in achieving success for future. It is necessary to
inbuilt entrepreneurial traits and skills that will help in beneficial for achieving something in life.
Entrepreneur have to take risk and uncertainties to compete in the market. It is important to gain
more knowledge that will help in building growth and bring more opportunities for future.
Determination helps in achieving many things in life if an individual is determinant to do work
effectively and efficiently that will help in growth of it. Therefore, skills and traits plays an
important part for running business. It is necessary to gain opportunities for future course and
building more skills that will help in competing in this competitive market. Hence, business plan
is being developed for arranging sources of finance for completing the project effectively
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REFERENCES
Books and Journal
Abdullah, N., Hadi, N.U. and Dana, L.P., 2018. The nexus between entrepreneur skills and
successful business: a decompositional analysis. International Journal of Entrepreneurship
and Small Business.34(2).pp.249-265.
Bikse, V., Rivza, B. and Riemere, I., 2015. The social entrepreneur as a promoter of social
advancement. Procedia-Social and Behavioral Sciences.185.p.469-478.
Chernev, A., 2015. The marketing plan handbook. Cerebellum Press.
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case studies in social
entrepreneurship and sustainability(pp. 34-42). Routledge.
Eniola, A.A., 2018. Entrepreneur-SME Manager Traits and Sources of Financing. In African
Entrepreneurship (pp. 223-259). Palgrave Macmillan, Cham.
Hadi, N.U. and Abdullah, N., 2018. The leverage of entrepreneur skills and entrepreneur traits to
business success: a case study of Pakistan's marble industry. International Journal of
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Johnson, S.L., Freeman, M.A. and Staudenmaier, P.J., 2015. Manic tendencies are not related to
being an entrepreneur, intending to become an entrepreneur, or succeeding as an
entrepreneur. Journal of affective disorders.173.pp.154-158.
Kerr, S.P., Kerr, W.R. and Xu, T., 2018. Personality traits of entrepreneurs: a review of recent
literature. Foundations and Trends® in Entrepreneurship.14(3).pp.279-356.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Meyer, P.H., 2016. A Parish Guide to the Use of Creative Problem Solving in Marketing Plan
Development.
Olivari, J., 2016. Entrepreneurial traits and firm innovation. Eurasian Business
Review.6(3).pp.339-360.
Sastre‐Castillo, M.A., Peris‐Ortiz, M. and Danvila‐Del Valle, I., 2015. What is different about
the profile of the social entrepreneur?. Nonprofit Management and
Leadership.25(4).pp.349-369.
Zahra, S.A. and George, G., 2017. International entrepreneurship: the current status of the field
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288.
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Online
The 10 Traits That Define Entrepreneurial Success.2019.[Online].Available
through<https://www.entrepreneur.com/article/271339>
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