Detailed Business Plan for Veggies on Fire Organic Food Cafe

This report details a comprehensive business plan for 'Veggies on Fire,' an organic food cafe, focusing on the growing demand for healthy eating options. The plan includes a thorough introduction, a marketing plan targeting health-conscious consumers in London, and industry analysis using Porter's Five Forces and STP model. It also covers the cafe's traditional London theme, online ordering system, and digital marketing strategies. Furthermore, the report provides a financial plan, discusses the management team and company structure, and emphasizes the importance of intellectual property rights. The sales process, pricing strategies, and market research are also key components. The cafe aims to capitalize on the increasing consumer interest in organic food, offering a unique dining experience that combines traditional ambiance with modern convenience.

Individual Business
Plan

Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
Marketing Plan ................................................................................................................................4
Financial Plan ..................................................................................................................................8
Management Team and Company Structure ...................................................................................8
CONCLUSION ...............................................................................................................................8
REFRENCES.................................................................................................................................10
Books and Journal......................................................................................................................10

INTRODUCTION
Business is an organisation that operates to sell goods and services for profit motive. It is
an organisation that is engaged in industrial, commercial, or professional activities. It can also
be defined as combined efforts of members to satisfy the needs and wants of customers. The
main motive of business is to earn profit while serving the customer needs. It is not an easy task
to start a new venture; there are various important points that need to be considered like money,
time, legalities and commitment. The food service industry is at boom. So, this report is based on
a business plan related to a cafe dealing in organic food products. The name of cafe is “Veggies
on fire.” It is common to open a restaurant and cafe that serves fast food to its customers.
Veggies on fire is a new concept and the focus is on providing organic food to all the customers.
The idea behind is to take care of overall health of the customer’s. It is innovative idea that is
converted into business idea.
Veggies on fire will use organic vegetables to prepare food. The raw materials are directly
purchased from farmers to maintain quality and health. Juices and drinks will also be provided
by the cafe. The cafe will be based on traditional theme of London. It will attract more
customers and help them to remind about the tradition of London. The theme helps to create
memorable experience to its customers. The ambience and style of decor makes the cafe unique.
Veggies on fire will enhance the experience of customers by providing them food made up of
organic vegetables and will serve that is traditional way. It is effective as the theme of restaurant
will let the customers remind the traditions and will create positivity environment. The company
will operate on both offline and online mode. There is option given to customers that they can
order the organic food through online mode. The company has its own application that will give
option to customers to order food online.
The marketing strategy used by company is use of digital platform to establish brand
image in the market. As the world is turning digital, there is requirement by every business to
turn digital and use digitalised ways to promote the business. Social media marketing will be
used by “Veggies on fire” to make existence in the market. As all the customers have presence
on social media it would be helpful for the business venture to capture the customers. Social
media increase the reach of business and help them attract more customers.
Intellectual property rights are valuable for a company. The intangible asset increases the
value of the business and makes time to price more successful. It is a vital task that protects the

intellectual property right in the life cycle of business. In relation to food industry intellectual
property right protection covers the ingredients and recipes used by the company. Various types
of intellectual property right in relation that are helpful for opening a new café are as follows:
Patent: It helps to gain monopoly by protecting the process of making food, composition
of food ingredient and packaging that is used by business to present the food. In relation to
“Veggies on fire” the business is using organic vegetables to make food it is important to gain
competitive advantage.
Trade secret if a business use new idea and that helps to gain competitive edge then trade
secret helps to keep that process secret. This is how intellectual property rights are important for
an organisation and help them to establish brand image in the market.
There are various benefits of opening a restaurant that provides organic food as it is a
new concept that will attract more customers. It is an opportunity in today’s time as people are
concerned about their health and hygiene. The use of organic vegetables makes the food more
nutritious. Along with that “Veggies on fire” will be based on traditional theme of London that
will also help to influence customers and attract them towards the new concept. The online
facility provided by business is also an advantage taken by the business. The plan will consist of
research made in the field. Marketing plan of business that includes target customers, industry
analysis and a study related to the competitors. To support further financial plan and sources of
finance are discussed. In the end there is discussion related to management team and company
structure of the company.
MAIN BODY
Marketing Plan
Marketing plan is combination of strategies that are used by a company to market its
product and services. It is a part of business plan. Effective marketing plan helps the organisation
to successfully launch a business. A well-structured plan helps the business to achieve the goals
on time. Marketing plan consist of list of actions that are important for an organisation to
establish an image in the market. Veggies on fire will target the customers of London. It is
important to decide the customer group to provide them services in an effective and efficient
way. The theme of cafe is traditional and that would help to target the customers easily. The
main focus is to target the people that are health conscious.

Mission
“ To provide nutritious food to customers.”
Vision
“To create a positive brand image in the market and attract the customers that are
concerned about their health.”
Values
“The value is that the organisation wants to provide health food and a peaceful
environment to its customers. Organisation will work with integrity and honestly.”
Objective
“To spread awarenesses about the business and capture market of London in time frame
of 2 years.”
Market Research
Market research helps top identify how customers and potential customer will react. Also
it provides assistance in analysing the gaps in customer expectations and knows there needs and
wants. Target market is also selected by conducting a proper research. A successful business has
once conducted a proper research. First of all it should be found out that how many competitors
are operating in the same area. Find out the places that provide eating facility and are any of
them providing organic food. It is also important to analyse the needs and wants of customers.
Are they happy with what the business is going to launch. Is there demand for products and
services offered by the business? Find out ways by which competitors are attracting customers
and find out better ways to attract customers. It is vital to know about the preference of
customers and the trend on the market as it would help the business to be successful. In relation
to Veggies on fire there is demand of organic food by customers as everyone is conscious about
the health. There are many benefits associated with organic food items like they are more
nutritious and free from preservatives and chemicals that will help the business to target the
customers and market their business. A proper survey of population will assist to know about the
needs and wants of the customers and help in serving them.
Porter five forces model
Porter five forces is a tool that helps to understand the dynamics of industry
Threat of new entrant: In case of establishing a new restaurant the challenge is to invest
capital. The new entrants have to bear the fixed operating cost no matter they earn profit or not.

Bargaining power of buyers: This factor discusses about the customers that are
important for an organisation. There is competition in the industry but the innovative idea would
help to attract and retain customers.
Bargaining power of suppliers: As “Veggies on fire” cafe will buy organic raw material
so the bargaining power of suppliers in high.
Threat of substitute products: There are many competitors of business in the industry but
not all the cafes and restaurants provide organic food. So there is moderate threat of substitute
products.
Competitive Rivalry: Competition is present is every sector. There are various cafes and
restaurant businesses in London, but “Veggies on fire” is providing organic food and is
following traditional theme that help them achieve competitive advantage.
STP
To identify and select the target customers STP model is used.
Segmentation: It is a process of dividing the heterogeneous population into homogeneous
group. It helps to divide universe into small groups according to their needs and wants. There are
various ways of segmentation. “Veggies on fire” is going to segment the customers on the basis
of the behaviours. The customers that prefer organic food are targeted by the company. Along
with that the people that like to visit new places are the target customers of “Veggies on fire” as
the cafe is based on traditional theme of London. Age is another factor as the parents of small
children are concerned about their health and prefer organic food for them. People of age 15-45
focus on nutrition and like focused about their health. Small children of age group 10-15 will
also be targeted by the cafe.
Targeting: Targeting is a process in which the focus of a business is to find potential
customers. The target customers of “Veggies on fire” are selected of the basis of their lifestyle.
The people that are concerned about healthy lifestyle are targeted by the company. It is important
to select a target group and serve them as it helps to become successful.
Positioning: It is the process of setting an image of business in front of customers. It is a
vital process as it is necessary to set positive image of the business in the market. Once an image
is set it is difficult to change that image. “Veggies on fire” is planning to set a image that it deals
in organic food items and is concerned about the health of customers. It will help the business to
attract the healthy and health conscious people.

Competition
It is important for a business to make a study about the competitors. Perceptual Mapping
is used by the business. It helps to analyse the position of company in relation to competitors.
Comparison is done between the product, brand of business and the competitors. The task is to
know the perception of customers about the competitors and develop the product of business
accordingly.
Sales process
Sales process that can be used by business is as follows:
Approach the client: This is the first step is the sales process where the business
approaches client and try to build relations with them.
Discover client needs: To satisfy the needs and wants of customers it is important to
understand and their needs and wants so further actions can be taken.
Provide a solution: Solution here means product as the need of customer is identified the
next step is to provide the products that satisfy the needs and wants of client.

Close the sale: This is the final step and time to provide the product to the customers and
try to sell it to the end users.
Complete the sale and follow up: The last step is to take the feedback from the customers
like are they satisfied by the product that is provided by the business. Measures can be taken
according tom the feedback of customers to boost the sales.
Has set targeted customers and have understood the need of organic products and are
launching the same to satisfy the need and wants of customers. Along with that business will use
digital platform to promote its product and boost the sales.
Pricing Strategy
There are various pricing strategies that can be adopted by business. It is an important
task to select the best strategy for the business. As profitability of the business organisation
depends on the pricing. As profitability of the business organisation depends on the pricing. To
gain competitive advantage and establish a good position in the market it is important for an
organisation to find the strategy that suits the business and make the business successful.
Penetration strategy can be used by business to attract buyers as according to the strategy
business offered low price for goods and services. The task is to draw attention of customers and
gain competitive advantage in the market. The focus is to make the product affordable and attract
customers towards the business. “Veggies on fire” will use this strategy to make presence in the
market and get a loyal customer base that will like the product offered by the business.
Financial Plan
Finance is back bone of every business. It is essential to forecast the requirement of
finance. Financial plan helps to identify current and future requirement of money in the business.
It is a step by step approach that is followed by company to achieve the targets on time. The
sources of fund that are available to business are as follows:
Funding through Personal loan: The first and foremost option that a business has is to
use the personal savings. It helps the entrepreneur to use personal savings and the benefit is they
do not have to pay interest on the savings.
Loan from bank: Another option that is available for business is loan. To start a new
business bank loan is one of the sources of finance. For which the business has to pay interest.
Loan is given for a specific period of time.

Loan from relatives: To start a business loan can be taken from relatives and family. As
they provide loan at lower interest rate and can repay the loan as and when required.
The statements that help the business to analyse its position and know bout profitability
are mentioned below:
Cash flow statement - In the field of accounts cash flow statement is mostly known as
statement of cash flows. It is a kind of financial statement which records all kind of cash
transaction which occur in the business world for a specific period of time. It show the
efficiency on managing the liquidity in the business, how well a company on repaying its debt.
Their are three main component of the cash flow statement which are like this - operating cash
flow, investing cash flow, financing cash flow. Operating cash flow records all the activity which
are related to operation for eg:- sales, lease, etc. Investing activity are those which are related to
purchase of companies assets for eg. Plant and equipments. Financing activity are those which
are related to sales or purchase of share or getting borrowing. It show how a change in income
statement and balance sheet are reflected in the statement of cash flows.
Income statement – Income statement is also known as profit and loss statement in
financial world in which company show its income and expense and at the end of calculation it
shows its status of profit and loss. It is process of showing how the revenues are converted into
profit and losses. Income statement is bifurcated in two part which are income and expense.
Income includes operating and non operating revenue and expenses are those which occurred
either in the primary for secondary process.
Cash Flow statement of of Veggies on Fire
Operating activities
Cash generated from operations 140501
Interest received 1921
Interest paid -1436
Tax paid -10252
Cash outflow from onerous lease provisions -4556
Cash outflow from acquisition and refinancing costs -6751
Net Cash Flow from operating activities 119427

Investing Activities
plant and equipment -14233
Purchase of intangible assets -15345
Purchase of property -16457
Proceeds from disposal of property, plant and equipment 27335
Purchase of subsidiaries -36510
Cash acquired on acquisition of subsidiaries 3927
Net cash flow from investing activities -51283
Financing Activities
Financing activities Net proceeds from issue of ordinary
Share capital 30581
Repayment of borrowings 27200
Drawdown of overdraft 950
Upfront loan facility fee paid -150
Dividends paid to shareholders -1752
Finance lease principal payments -170
Net Cash Flow from financing activities 56659
Net Increase / Decrease in Cash and equivalent to cash 124803
Cash at beginning of the year 20000
Cash and equivalent to cash at the end of the year 144803
Income Statement of Veggies on Fire
Revenue 175530
Cost of goods sold -105318
Gross Profit 70212
Administration Cost -8777

EBITDA 61436
Depreciation and Amortization -10577
EBIT 50859
Interest Payable -3244
Interest receivable 2321
EBT 49936
Tax on profit -9987
Profit After tax 39948
Break Even analysis
Sales 175530 15 11702
Variable
Cost -63190.8
Fixed Cost -42125
Total Cost -105318 175530
5.4
Units Fixed Cost
Variable
Cost Total Cost Sales Profit
4388 42125 23695.2 65820.2 65820 -0.2
4400 42125 23760 65885 66000 115
4323 42125 23344.2 65469.2 64845 -624.2
4324 42125 23349.6 65474.6 64860 -614.6
4325 42125 23355 65480 64875 -605
4326 42125 23360.4 65485.4 64890 -595.4
4327 42125 23365.8 65490.8 64905 -585.8
4328 42125 23371.2 65496.2 64920 -576.2
4329 42125 23376.6 65501.6 64935 -566.6
4330 42125 23382 65507 64950 -557
4331 42125 23387.4 65512.4 64965 -547.4
4332 42125 23392.8 65517.8 64980 -537.8

4333 42125 23398.2 65523.2 64995 -528.2
4334 42125 23403.6 65528.6 65010 -518.6
4335 42125 23409 65534 65025 -509
4336 42125 23414.4 65539.4 65040 -499.4
4337 42125 23419.8 65544.8 65055 -489.8
4338 42125 23425.2 65550.2 65070 -480.2
4339 42125 23430.6 65555.6 65085 -470.6
4340 42125 23436 65561 65100 -461
Break even
point of
sales is 4389
units
Balance sheet of of Veggies
on Fire
Current Asset
Inventory 1023
Other receivable 20566
Prepayments 5460
Cash and equivalents 144803
Assets of disposal group held
for sale 2046
Non current Assets
Intangible assets 15345
Property, plant and
equipment 39865
Fair value lease and assets 10534