MSC ENTREPRENEURSHIP & INNOVATION

Entrepreneurship and the Entrepreneur

Entrepreneurship and the Entrepreneurs have revolutionized the whole business industry. It has converted the old traditional ways of business into advanced methods that have reduced the risks and threats with assured growth in the market. It is said that every entrepreneur is a successful businessperson but not every businessperson is an entrepreneur. They are more focused on innovation and new technologies that can minimize the risks of loss and other threats.  Entrepreneurship brings solutions to current problems. Entrepreneurs are the ones who turn impossibilities into possibilities. They strengthen their ideas with data. (Ferreira & Ferreira, 2020).

In this modern world, every sector is growing rapidly. As the population is increasing day by day, so to facilitate more people up gradation in every sector is required. People want to live a healthy life in a natural environment. Some of the business ideas that can bring more benefits to the world are mentioned below.

1. Preparation of vaccine for COVID’19
2. Introducing EV Technology in the car industries
3. Online Education

Nostalgic Restaurants

Fitness Technology

Vegan Meat & Dairy Alternatives

Healthy, Artisan Food Trucks

Reusable Bags

Minimalist Watches

Home Security Systems

Why food industry?

Food as a necessity

In ancient ages, we have heard people living without clothes and telephones. We heard about cheap ways of transportation. There was no electricity at that time. However, the food was always considered mandatory for survival. Food has always been the basic need of people. As there can be no life without food so, we should cash this opportunity for a smart business plan.

Globalization and food

Food globalization started back from a long time ago. Many food industries supply their product round the world. With the help of the latest technology, it has become easy to maximize the number of outlets of concerned food restaurants to facilitate more people. This will eventually lead to more profit. (Ferreira & Ferreira, 2020).

Figure: Globalization effect on the change of food systems

In the above figure, it has been seen that enhanced technology has changed the food systems. The factors including urbanization and government policies have changed the food habits of people.

Therefore, investing in the food industry will help gain profit. However, we have to follow some of the basic steps to minimize the risks and threats.

EXECUTIVE SUMMARY

Knowing the importance of food, we are planning to open a new food chain named BLAKINN FOODS in the second half of 2021. The goal of BLAKINN FOODS will be to provide delicious traditional food. It will be located on the first Floor Cerniun Plaza, Ring Road New York, America.

Our food chain will provide a variety of products depending upon the timings. We will arrange a different menu for breakfast, brunch, lunch, supper, and dinner. The restaurant will have a dine in capacity of around 200 people. We aim to target all necessary food items under one roof including alcoholic beverages. The total staff will be around 70 employees. We aim to hire the best chefs in the world.

Structure of Lean Canvas for Business Plan

Analysis of lean canvas for business planning:

Organizational plan of Blakinn Foods

Blakinn Foods aims to provide a vast range of fast foods in NY City. Our focus is to grab the attention of every age group.  As we are expecting a huge crowd on our opening, so we will increase the labor and timings of the restaurant. We will offer a 25% discount to our valuable customers. People of NY like spicy foods. As customer, satisfaction is our priority so we will cook our dishes according to the traditional taste of local people. We will increase the number of branches if we get a positive response from our worth customers. (Ferreira & Ferreira, 2020).

Products

The following are some of the products that we will offer initially. Over time, we will bring more variety to our menu.

1. Seafood
2. Italian food
3. Thai food
4. burgers and pizza’s
5. meat food
6. Russian food
7. Wide range of pastas, lasagna etc.
8. Cheese sandwiches and slices of bacon.
9. Barbecue platters
10. Desserts

Mission

Our goal of launching this business is to meet customer needs. Everyone in the country should be aware of our food products. The best way to accomplish our mission is to provide the fine quality of readily available foods. Our food taste must be welcoming.

Competitive Advantages and Possible Strategic Partnerships

We have decided on the best market place to open our restaurant. It will the center of the whole city and our prime location will grab the attention of every visitor. There is no other fine dining restaurant in the whole market. We have cashed this opportunity by providing the best quality of food in the whole town.

We are planning to offer delivery services to customers who live far away from our restaurant. This will engage our customers permanently.  Different discount packages will be announced for students and adults to grab their attention. The customer will pay less and eat more.

Organizational Structure

We will hire experienced candidates from all over the world.  We aim to hire three generals manages and seven experienced chefs. Moreover, we are planning to hire some lower staff for other purposes. The employees will have to go through certain training before joining the restaurant. The hiring will be purely on merit basis. The owner will manage the HR department and supervise the whole staff. The general managers have to report weekly to the owner with all the data of sales etc.  

Entry market and growth strategy

Our greatest strength is our fine quality of food products. Offering healthy discounts initially will help us to create our name in the market. By engaging with loyal customers, we can increase our growth. We will increase our dine in capacity after checking the customer’s responsibility. Moreover, if we can hit a huge start, we will figure out to open more branches in the town.

Potential difficulties and Risk Management

Risks or threats can be divided into three potential categories:

1. Hazard risks
2. Financial risks
3. Operational risks.

The operational risks can be controlled by training our staff. The employees have to pass written and physical tests before they start performing their duties officially. The owner must follow certain policies to handle financial risks and threats.

Industry overview of Blakinn Foods

 Direct Competition

Our direct competition is with 4 star restaurants that have already created a name in the market. It will tough for us to grab the attention of their loyal customers. For this, we will offer healthy discount packages for students and adults. Our location is prime if we focus on our quality we can easily beat our competitors. We must focus on quality over quantity.

Analysis of the environment

To obtain summarized relevant information of the market and external environment, PEST analysis is done which is based on the following steps that are mentioned below: 

1. Political influence
2. Economical influence
3. Sociocultural influence
4. Technological influence

Porter’s Five Forces Model

This work can offer a limited Porter’s analysis. No doubts big food industries have a competitive advantage because of their large market power and resources.  There are certain threats to our restaurant. We may not get the attention of customers. Moreover, our new taste may not be according to the customer’s demand. Buyers have certain powers. It is important to take care of customer needs. We must be careful from another competitive food restaurant that can draw the attention of our loyal customers.

Marketing plan of Blankinn Food

Our marketing plan includes the following steps:

1. The Goal of the Marketing Strategy
2. Target Market
3. Pricing Policy
4. Distribution

Advertising and Promotion

Blakinn Foods will be advertised through three main channels, which are mentioned below:

• Online advertising
• Traditional advertising
• Cooperating with the international student club

SWOT Analysis

Strengths

1. Competitive Price as compared to that of market.
2. Premium Delivery on time.
3. Concrete marketing strategy
4. Premium Location, which attracts the customer’s attention.

Weaknesses

1. No experience in owning a restaurant can have a negative impact.
2. The low offer of healthy food, which is one of the major weakness.

Opportunities

1. Opening a new location in other parts of the city center
2. Learning through experience with flexible environment.
3. Offer healthier options than other marketing places.

Threats

1. Something different to people of NY
2. Saturated market with big brands as competitors

Figure: SWOT analysis of Blakinn Foods

Financial plan of Blakinn Food

Blakinn Food is registered as a self employed individual. It means that the owner with all

his private assets will be responsible for all the activities. The detailed breakdown of the amount that will be needed for this startup is given below:

Financial Statements Analysis

The financial analysis applied for Blakinn Food can be calculated by the following methods.

Gross Profit Margin     =    

Operating Profit Margin   =     

Net Profit Margin =  

Efficiency coefficient =   

Investment analysis

For small businesses, this analysis is one of the most important. In this business, plan ROIC

Will be utilized to see how profitably Blakinn Food that it gets from its owner invests the money.

ROIC =

Cash payback method

It represents the expected period between investment and recovery of the invested amount in cash only.

Cash payback period =

CONCLUSION

Our conclusion answers the following questions.

1. Is it viable to make a business plan with the idea of opening a food restaurant in New York, which will offer food from the Blakinn?
2. If the idea is viable, how it will be conducted?
3. If the idea were viable, would it be profitable?

As New York is one of the main cities of America holding a population of 8.9 million, it will be best for a new food startup. The people of NY are foody and we must take advantage of it. Our restaurant will be in the center of the city grabbing the attention of every customer. There is no similar restaurant in the whole city with the capacity of facilitating 200 people at the same time. People love meat and we will offer them a variety of meat products. Life in New York is very fast. People are so busy with the work that they find cooking at home quite tough. This habit of the customers will benefit our restaurant in the short and long term. As government, policies are positive towards the food and hotel industry so it is the best time to initiate this idea. The people of New York are wealthy; the affordability of our food products will not be an issue for them. We can engage them with providing fine quality over quantity. The poor delivery services of other restaurants have created a bad impact on the customers. People want a variety of food under one roof and no food chain has filled this gap. Therefore, our idea will fill this gap. All the above discussion proved that the idea to be viable and led to the creation of the business plan.

We will apply the most feasible method to obtain our goal. Mix method approach that covers both qualitative and quantitative research is considered as the most relevant approach in developing a business plan. The plan must be analyzed by primary and secondary data both.

SWOT, PEST, and POTER analysis will help develop a comprehensive business plan.  After focusing on all the aspects, one must establish a final decision or master plan to proceed with his idea.

As the city is populated and the nature of people is, foody so there are great chances of profit in the food industry. People are loving fast food more than conventional food.  Moreover, a wide variety of food with fine quality will assure our successful growth. With our unique quality of products, we can grab the attention of people of every age group. Our location will play a vital role in grabbing visitor’s attention. As all factors have been proved positive, hence this business proposal will be successful in the future.

References:

KunitzkyStrategic, Ron (n.d.): „9 Key Components of a Startup Business Model – The Lean Canvas“. LinkedIn. Retrieved am 21.05.2020 from https://www.linkedin.com/pulse/9 key components startup business model lean canvas ron kunitzky.

anon. (2020): „10 Values that Contribute to Business Success BusinessTown“. Business Town. Retrieved am 21.05.2020 from https://businesstown.com/10 values contribute business success/.

Kenton, Will (2020): „Financial Statement Analysis“. Investopedia. Investopedia Retrieved am 21.05.2020 from https://www.investopedia.com/terms/f/financial statement analysis.asp.

Ferreira, Martins; Ferreira, Nicole Martins (2020): „What it Means to Be An Entrepreneur“. Oberlo. Retrieved am 21.05.2020 from https://www.oberlo.com/blog/what is entrepreneurship.