Business Finance and Planning for Entrepreneurship at Sainsbury's

This report examines the entrepreneurial strategies of Sainsbury's, focusing on business finance and planning within the context of integrating new technology, specifically robot technology, to improve its operations. The report details the creation of a business plan, including executive summaries, mission, vision, and strategic objectives aimed at increasing customer numbers and market share. It explores various sources of business finance, such as bank loans, business credit cards, merchant cash advances, invoice factoring, and crowdfunding, recommending bank loans for investment in new technology. The report also outlines an action plan, industry analysis, marketing strategies, and financial plans, including a budget for initial investments, borrowings, and promotional activities. The analysis emphasizes the importance of strategic objectives, efficient operational management, and the utilization of modern marketing tools to enhance Sainsbury's market position and consumer engagement. The report provides a comprehensive overview of how Sainsbury's can leverage financial resources and technological advancements to achieve sustainable business growth and profitability.

Entrepreneurship

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Entrepreneurship define as the activity and procedure of creating, launching and operating a
new business that is often originally a small business, or as the capability and willingness to
improve conduct and administrate a business enterprise along with any of its threats to make a
revenue and profitability. It is crucial as it has the capacity to develop benchmarks of living and
create wealth not only for the entrepreneurs, but also for connected businesses. Business persons
also assist drive change with innovation, where new and developed commodities assist new
markets to be improved (Fairlie and Fossen, 2018). For the completion of this assessment,
Sainsbury is the business firm which is considered and operate its business at global scale. This
report will consider information about alternative sources of business finance and their relevance
the contemporary business practice and business plan ideas as well as concepts.
MAIN BODY
From the assessment 1, this has been analysed that by using and making implementation of
new technology in the business an establishment can make development in its business activities
and operations in term of running and operating them. Along with this, by making use of Robot
technology, the administration of Sainsbury can operate its business in more successful manner.
In context of this adaptation of new robot technology, the business plan of respective venture is
defined as under:
Business plan
It is a written report and a blueprint of the future business. This plan lays out a written
description from marketing, financial and operational perspective. The key objective of a
business plan is to identify efficient new ideas and scope. Business plan is majorly included as
format framework is made to offer business a true and required framework to carry out its
business operation (Hilorme and et. al., 2018). Sainsbury is a well known business venture and a
supermarket which is going to make innovation in its business by adopting a new technology
“Robot Technology” that will assist in making development in its business profits and
productivity. The business plan will be framed in reference to utilisation and implementation of
new technology with the purpose of offering effective services and improving revenue and
efficiency.
Executive summary/ Business description
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Business plan is a document that reviews the operational and financial objectives of a
business. It is a business road map to develop with brief plans and budgets that demonstrate how
the objectives will be understood. This plan is in context of Sainsbury’s business which is going
to adopt and implement new technology in its business in context of making improvement in its
business operations and developing its revenue as well as productivity (Audretsch and Moog,
2020). Sainsbury is the second largest chain of supermarkets in the UK. The plan will consider
appropriate aspects of business plan and the description of them as below:
Mission- The motive of Sainsbury to offer quality services and to be the customer’s first
choice for food, delivering commodities of outstanding quality and immense facility at a rivalry
cost by working faster, simpler and together.
Vision- The aim of Sainsbury is to be the most trusted retailer, where individual love to
work and shop.
Strategic objectives- It is the most essential for an establishment to develop strategically
impersonal efficiently that help in providing the company with directions as well as eventual
cognitive content to compass by its strategy and maneuver. There are some strategic objectives
that Sainsbury would effectively accomplish with the assistance of enlarging its business in to
new market:
 To make improvement in the number of customer by 5% within year.
 The management of the firm can also devise plan of maximizing market share of the
establishment by 10% with 2 years.
Source of investment/source of business finance- It is the funds needed to set up, run activities
and increase in the future. Funds are particularly needed several purchase type of tangible assets
or resource such as machinery, building, offices, factories and intangible resources like patents,
technical expertise and trademarks etc. It refers to that area where a company can raise fund from
financial establishments to run the business of the firm. Bank loans, business credit cards,
business cash advance and many more are some source of investment from where the
administration from where the management of Sainsbury can arrange finance for operating the
business actions of the organization (Shepherd and Zacharakis, 2018). The key objective of
raising capital from financial institutions is that the establishments can make development in its
market share and expansion in its business.
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Sources of capital and finance is the most exportable area especially for the business
person that are about to start a new business and make development in their business. It is
possibly the toughest and complex section of all the effectiveness (Eckhardt, Ciuchta and
Carpenter, 2018). There is several capital sources which can be consider by the management of
respective company in context of raise fund. The explanation of some of them is defined as
under:
Bank Loan-It is the most appropriate type of corporate loan. Basically, the bank finance
is dependent upon their plan, value and time in which the company will return the money. The
bank finance is a very genuine and assurance source of corporate loans. Banks can give huge
amounts of money for a long time with decent interest rates. An origin of investment for doing
mass purchase or increasing a business like Sainsbury with a best credit profile. Bank finances
aren't suitable for the requirement of small enterprise in mind. The conditions they provided are a
little bit difficult and loans in it are difficult until they have a good income source. Moreover, the
business scheme is in itself very difficult and time taken including various fees.
Business credit cards-It is the simpler form of business loan. As these are easy for
business, these physically also put your business on theft or fraud. These are beneficial for the
business where the purchasing stock is required on the daily basis. A credit card is obviously fast
and simple for purchasing when it's urgent. It is not so hard to get the card and the cost is very
low, if you repay in every month. In other ways, it is also risky as it is very expensive and
interest increases quickly if you didn't pay in time. This is basically used for small transactions
so if you require a huge amount, it's time to go for other options.
Merchant/Business Cash Advances- This is a micro-term funding scheme which is
basically launched for businesses which require card payments. It also gives a facility that the
firm only needs to pay for bank when their customer pays. It is good for the enterprises which
have seasonal business. In this, only a fixed amount is to pay so it gives a certainty in budgeting.
It also gives a benefit that if the business is at top, the firm will soon or if it is down, it will pay
in more time- all these are at same percentage (McKenzie and Sansone, 2019). The application
process is also very simple and less time taken. One condition is that their account should receive
a minimum amount from the customer side on a monthly basis.
Invoice factoring- It is a type of borrower loan in which businesses sell their open invoices to an
enterprise which is available there. It is good for businesses which have issues invoices and
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require daily funding to maintain the flow of expenses. It is a reliable debting scheme. In this, the
amount which is borrowed increases as sales increases (Ferreras-Garcia, Hernández-Lara and
Serradell-López, 2019). Moreover, the loan is unsecured which shows that theirr property is not
at risk. In this, factoring can be dangerous as the factors can own their debts which mean the
invoices they raised can be considered as there. Lack of knowledge regarding also fines
companies to pay at more interest rate.
Crowd funding- This is a famous way for businesses to raise loans for new innovations
and projects. This is a very easy process and application procedure is also simple. It is good for
start-ups with good ideas with best projects. For this funding, there is no need for good credit
history. For poor credit scorers, it is the best option. Moreover, there is no guarantee that the
venture like Sainsbury is going to raise all the funds, they applied for. This is good for everyday
purchasing; it's only good for the large projects.
From the above defined information, it has been suggested and recommended to
Sainsbury that the administration can consider bank loan in context of investment in adaptation
of new technology (Watson, McGowan and Cunningham, 2018). In addition to this, banks make
money by taking in funds from depositors and other source and then lending money out to
borrower. Along with this, they charge low interest rates, flexible in nature and maintain control.
Action plan- It is a document that include all the stages and phases that are assist in
accomplishing the specific aims and objectives. The purpose of action plan is to identify all the
assets that are require to accomplish the aim, formulating a timeline for specific task and project
to be completed and monitor needed assets. Sainsbury will develop plan of action and strategy in
context of adopting new technology so that it can make increment in its market share and number
of consumers. The administration of the firm will analyze the necessity of the needed assets so
that organization can run its business efficiently. In term of utilization of this new technology,
the firm can operate its production, supply chain and logistic function in effective manner. Along
with this, it also assists in offering effective service to consumer in term of providing appropriate
delivery services and many more.
Industry analysis- It is a tool that assists a firm to acknowledge its position relative to other
firms that offer similar goods and services like it. Whereas taking into account the strategic
planning procedure, a firm has to particularly acknowledge the forces at work in the entire
sector. In this area of business plan, the management of Sainsbury can analyze the particular
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business sector of retail in context of use of robot technology that how this technology assist in
this business sector (Hopp and Greene, 2018). Along with this firm can analyze the need of
people and consumer in order to services with this technology. Because in current era whole
world is suffering with the problem of COVID 19 so people prefer drone and technical deliveries
of commodities. In this phase, the firm can also determine the competition and rivalry benefits
that this adaptation of new technology will assist it in term of offering competitive benefits.
Marketing plan
At the time of adopting new technology in its business, the establishment can consider
effective marketing tools like social media, internet, campaigns, TV and web advertisement etc.
It will assist in promoting the business of respective firm with its effective services which it will
offer with the execution of robot technology in its business (Fichter and Tiemann, 2020). In
current era, people utilize internet and active on social media sites so it is an appropriate form to
aware them about their innovation and changes within the services and commodities of the
particular establishment.
Financial plan
It is budget plans that consider and include visualized gross sales, volumes, revenues,
assets abstraction, compensation and expenditure, resource, liabilities and cash flows (Katz,
2018). Sainsbury’s can create and design a budget to its business operations so that it can have
data regarding fund that is used to by the administration of the firm in context of making
implementation of new technology for the development and improvement if business.
PARTICULARS 6 months 6 months 6 months
Initial investment 120000 150000 180000
Borrowings(Bank loans, credits) 600000 700000 90000
Retaining earnings 700000 800000 90000
TOTAL 2500000 3000000 4500000
MARKETING OUTLAY
Promotion activities 8000 10000 11000
Sales publicity 6000 10000 11000
Distribution and supply expenses 3000 10000 9000
TOTAL 42000 60000 76000
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CONCLUSION
This has been summarised from the above defined information that entrepreneurship is a
process and activity of converting and implementing new ideas and thoughts in to a start up and
business. In the business, when organisation make innovation by adopting new technology, the
administration design and frame a business plan for the development and success of company.
By borrow and raising business finance from different sources, the venture can make investment
in context of business development.
REFERENCES
Books & Journals
Fairlie, R.W. and Fossen, F.M., 2018. Opportunity versus necessity entrepreneurship: Two
components of business creation.
Hilorme, Т. and et. al., 2018. Model of energy saving forecast-ing in entrepreneurship.
Audretsch, D.B. and Moog, P., 2020. Democracy and Entrepreneurship. Entrepreneurship
Theory and Practice, p.1042258720943307.
Shepherd, D.A. and Zacharakis, A., 2018. Conjoint analysis: A window of opportunity for
entrepreneurship research. Reflections and extensions on key papers of the first twenty-five years
of advances, pp.149-183.
Eckhardt, J.T., Ciuchta, M.P. and Carpenter, M., 2018. Open innovation, information, and
entrepreneurship within platform ecosystems. Strategic entrepreneurship journal, 12(3), pp.369-
391.
McKenzie, D. and Sansone, D., 2019. Predicting entrepreneurial success is hard: Evidence from
a business plan competition in Nigeria. Journal of Development Economics, 141, p.102369.
Ferreras-Garcia, R., Hernández-Lara, A.B. and Serradell-López, E., 2019. Entrepreneurial
competences in a higher education business plan course. Education+ Training.
Watson, K., McGowan, P. and Cunningham, J.A., 2018. An exploration of the Business Plan
Competition as a methodology for effective nascent entrepreneurial learning. International
Journal of Entrepreneurial Behavior & Research.
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Hopp, C. and Greene, F.J., 2018. In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management Studies, 55(2),
pp.320-351.
Fichter, K. and Tiemann, I., 2020. Impacts of promoting sustainable entrepreneurship in generic
business plan competitions. Journal of Cleaner Production, p.122076.
Katz, J.A., 2018. The business plan: reports of its death have been greatly exaggerated. In Annals
of Entrepreneurship Education and Pedagogy–2018. Edward Elgar Publishing.
TOMASSONI, M., 2019. Development of a business plan for the expansion of CESI's operations
on the IFI hydropower market.
Online
Sources of Business Finance. 2020. [Online]. Available Through: <
https://www.liberis.co.uk/blog/Sources-Of-Business-Finance>.
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