Business Plan Report: The Dough Knot Food and Beverage Establishment

This report presents a comprehensive business plan for "The Dough Knot," a proposed street food business specializing in doughnuts with various toppings, located in central London. The plan includes a detailed business description, market analysis highlighting the growing food and beverage sector and the target audience of working people and children, and an organizational management section. Sales strategies such as brochure distribution, marketing campaigns, social media engagement, and loyalty schemes are outlined. The report also covers funding requirements, including bank loans and personal savings, along with financial projections and an analysis of startup costs. The business aims to capture a significant market share by offering high-quality products at competitive prices, with a vision to achieve a leadership position in the industry. The plan also addresses the necessary licenses and regulations required to operate the business, including food hygiene certificates and pest control compliance. The report concludes with a discussion of the importance of organizational management and quality control systems to ensure the success and sustainability of the business.

Food and Beverage
Management

EXECUTIVE SUMMARY
The report will discuss the procedure which are required to establish food and beverage
business. Establishment of new business requires proper planning and arrangement in order to
ensure successful establishment of new venture. Business planning helps in identifying the
barriers which might occurs in launch of new business. The different norms which are required
to be followed by an individual in order to establish food and beverage business has been
highlighted in the report.

TABLE OF CONTENTS
Business description ...................................................................................................................4
Market analysis...........................................................................................................................5
Organisational management .......................................................................................................6
Sales strategies............................................................................................................................7
Funding requirements.................................................................................................................7
Financial projections...................................................................................................................7
REFERENCES..............................................................................................................................10

BUSINESS DESCRIPTION
The business plan is related to establishment of street business in central business which
will offer customers with Doughnuts which consists of different toppings. An entrepreneur has
Planned to establish such business as there is opportunity to earn high profit. The doughnut as a
food product has been selected as it is liked by all children and adults. The reason for selecting
to establish the food and beverage business is that it is the sector which is growing at very rapid
rate. The name of the new food and beverage business will be The dough Knot. The central
London is a place which is selected for establishing business, as it will be very much easier for
an enterprise to reach as well as attract the target audience (Nah, Eschenbrenner and Koob,
2019). In addition to this, other reason for establishing the street business in central London is
that it is a area where lots of people come, it will helpful for an enterprise to generate sales by
influencing people. The central London location is the place has been selected for establishing
business in order to provide customers with an ease to buy goods or services offered by an
organisation. The main objective of the establishing the food and beverage business is to earn
high revenue and profitability. The purpose of an enterprise will be to fulfil the needs of
customers by providing them with good quality of products or services. Jungle will be theme for
food and beverage business (Hameed, Hussin and Basheer, 2017.). Type of organisation will be
a private and sole proprietor business. An individual has planned to set up sole partnership
business as to get an ease in making decisions and managing business. In addition to this,
business owner of The dough not company doest not want to share their profit. An organisation
will have flat business model, this business model has been selected as entrepreneur will get an
ease in making quick decisions.
The idea of establishing street business has been developed while conducting the market
research for other organisation. During the market research an individual has analysed that most
of the people like doughnuts and they are waiting for a company to launch Dough nuts with
different as well as innovative toppings. Considering the demand of the specific food item in the
market, an entrepreneur of The Dough not company has planned to fulfil demand of such product
by introducing the Doughnuts with varieties of toppings in the market. In addition to this, during
the market research it has also been found that as people travelled from their homes and going to
business they often requires food and drinks, it is the factors which has encouraged business

owner of The Dough not firm to cater the needs of such people by providing them with food as
well as drink (Talip and Haris, 2018.). Key people in business will be business owner, cashier,
assistant and cleaner. The dough not organisation has planned to deliver wide varieties of Dough
nuts in order to provide customers with high value propositions. The objective of the Dough not
street food business is to earn profit. The objective of the company is to gain the customer
loyalty by delivering the good quality of products at reasonable price. In addition to this, vision
of an enterprise is to achieve leadership position in an industry. Mission of an enterprise is to
capture wide market share.
Licences required
According to the company law in UK, an individual is required to obtain licence before
establishing the food and beverage business. In context of The Dough not , an entrepreneur of an
enterprise is required to obtain licence from the food council in UK. In addition to this, business
entity is required to obtain the certificates as well as licence from food standard agency. In
addition to this, an entrepreneur of The Dough not company is required to obtained are food
hygiene certificate, insurance of restaurant, licence for music, food van licence etc. In addition to
this, firm is required to comply with Pest control regulation (Neubauer and Lank, 2016. ).
Market analysis
The retail companies in food and beverage industry in London has capture approx. 70
percent of market share. Since, last few years' food and beverage industry in UK is growing at
very rapid rate. In context of London, Food and beverage sector in nation is making a significant
contribution in generation of high sales and profitability of hospitality sector (Mason and Brown,
2014.). Due to increase in concerns related to the issues there has been decline in the demand for
the food products which has adversely effected the profitability of companies in food and
beverage industry. In addition to this, economic factors such as inflation, increase in tax rate
could have significant effect on the profitability of an enterprise. The technological advancement
could have both positive as well as negative effect ion business. For instance, an organisation by
using the advance technology for preparation of food can increase the efficiency as well as
productivity. An enterprise also can bring improvement in the quality of productivity or services.
But at the same time, emergence of new technology can give rise to stiff competition in industry

due to which an enterprise might have to face difficulty in maintaining its concentration on core
business tasks (Kirzner, 2015. ).
Considering this factors, business owner of The Dough Not company has decided to use
healthy as well as nutritious products for preparing the dough not. In context of UK, according
to the food and drink federation, the food and beverage industry in UK is among one of the
largest manufacturing industry in the nation (Allen and Ward, 2018). It accounts for nineteen
percent of total manufacturing sector in terms of turnover this is the factor which has encouraged
an entrepreneur of The Dough not to establish business in specific sector (Hatten,2015).As food
and beverage sector is very big, entry of small firm in specific sector will be quite difficult task,
therefore an individual planning to establish business in specific sector will make proper plans
as well as strategies for entering into particular sector (Fayolle and Gailly, 2015.). Food and
beverage industry is very big and there is intense competition among firms. The existing
companies in food and beverage sector which can give stiff competition to The dough not
organisation are Appy food and drinks, Food republic, Alvini etc. The dough company in order
to enter into food and beverage industry has planned to into Doughnuts with innovative varieties,
as by implementing this strategy an enterprise will get an ease in entering into specific sector.
Dough not is is planning to target working people both men as well as women, as these people
doest not have time to prepare food and they search for ready made food item. In addition to
this, company will also target children as they like the doughnut very much. Demographic
segmentation strategy will be adopted by an enterprise for segmenting the big market into small
segment. In addition to this, low cost pricing strategy will be implemented by firm for
positioning its goods into market.
Organisational management
Organisation management is crucial for establishing business as well as maintaining the
business sustainability for long time. In context of establishing business, business owner of The
dough not company is required to follow certain laws and regulations. Business owner of The
dough not is planning to implement the food and beverage control system in order to get an idea
about flow of food through the on restaurant (Davidsson and Gordon, 2012.). Food and beverage
control system will also assist business owner in determining the specific variety of the dough
nut which is liked by people. It is the system which will also help chef in managing the recipe
which is very much essential in order to maintain consistency in quality of food item. In addition

to this, business owner of The dough not has planned to implement the quality system in order to
maintain the quality of the food products.
In context of budging and menu costing, business owner of The dough not is planning to
implement advance accounting software. Nowadays consumer perceivers high price goods to be
as quality product, considering this fact business owner of The dough not organisation has
planned to adopt premium pricing strategy, after the successful launch of business entity will
adopt the competitive pricing strategy (Cunningham, Sinclair and Schulte, 2014). Business
owner has planned to appoint experts for providing the training to employees so that they could
develop the skills as well as knowledge which can be helpful in context of dealing with different
operational issues. There will be one person who will welcome customer and will provide them
with water as well as menu card which consist of the list of different varieties of Dough nuts, it is
the strategy which will be implemented by an organisation in order to provide guest with good
experience. Considering the heath issues faced by consumers, airfrier will be utilised for
preparing the dough nut. Quality check will be performed by the head chef.
Sales strategies
Brochure will be distributed by an enterprise, It is the marketing strategy which will
assist an enterprise in informing the people about new business and product. Market campaign
strategy will also provide firm an ease in reaching to the target audience and will assist an
organisation in influencing people to buy specific products or services. Marketing campaign will
be organised by The dough not company before and after launch of business as well as product.
In addition to this, social media will be utilised by an organisation for promoting business as well
as products. It will also be utilised by an enterprise for taking the feedback from customers, as it
is one of the best strategy for engaging customer in business. In addition to this, seasonal
discounts will be offered by business entity in order to attract customers. The loyalty scheme
will be introduced by an organisation, as it will assist an enterprise in ensuring the loyalty of
company towards specific brand.
Funding requirements
The financial resources is very much essential in order to establish and run business.
Bank loan will be taken by an entrepreneur of The dough not organisation for meeting the
business requirement. In addition to this, business owner will also fulfil the funds' requirement
by an enterprise through investing his personal saving in business. These two sources of funds

are selected at they are less costly (Ishak, Nordin and Bakar, 2018.). Bank loan has been selected
as a source of funds as it consist of less interest rate. Secondly, personal saving will be utilised as
it will not consist of additional cost such as interest rate.
Business start up costs
Funding Estimated Actual Over/Under
Investor funding 120000£ 100000£ Under
Loans 50000£ £80,000.00 Over
Estimated Actual Under/Over
Costs
Advertisement for
opening
Development of
website
Business cards
Internet set up
Machines and
equipments
Telephone
10000£
5000£
2000£
1000£
500£
12000£
4000£
1500£
500£
500£
Under
Under
Under
Under
Financial projections
Current assets Amount Liabilities Amount
Current assets
Cash
Accounts receivable
Current liabilities
Accounts payable
Ac cured wages

Inventory
Temporary
investment
Prepaid expenses
Income tax payable
Unearned revenue
Any other liabilities
Total current assets Total current
liabilities
Fixed Assets
Food van and
equipments
Leasehold
improvements
Equity and other
investments
Less accumulated
depreciation
10000£
5000£
500£
500£
Long term liabilities
Mort age
Other long-term
liabilities
200£
Total Net Fixed
assests
16000£ Shareholders Equity
Capital stock
Retained earnings
400£
450£
200£
Total shareholder
equity
1250£
Cash Flow
Cash outflows Start points 1 2
Costs of sales
Postage, printing,
Stationery
Equipment purchase
Transport and delivery
£100
£25
£1000
£50
£25
£500
£60
£25
£500

Insurance £600 £600 £600