1. The Enterprising individual- skills, attitudes and knowledge needed
Any enterprising individual needs to have the capacity to generate new ideas and make the right decisions concerning opportunities and potential possibilities. One of the most important skills is creativity. An enterprising person needs to come up with sound solutions to issues that the venture is facing. It is clear that in this business plan, the initial capital has been drastically reduced in proposing the buying of a second-hand catering trailer instead of acquiring a new one. In so doing, the finances required to establish this business become minimized. A second-hand car fitted with a tow bar will be adequate. The individual can thus be said to recognize opportunities. The second-hand trailer will be sufficient in accommodating two staff members to prepare and sell the food. It is also in good condition thereby making the price of £5,995 quite reasonable. Cars are widely available at the cost of only £1,000.
The second aspect that is required is that of planning. It will necessitate having the necessary knowledge and skills to achieve a business’ goals. In the plan, it is evident that business and venture-specific knowledge was used in compiling it. While calculating the initial costs of acquiring the car, several factors have been considered including tax, car insurance, and petrol. Secondly, it has recognized that the space will need to be paid for, and an agreement with the university campus will amount to about £100 each week. Thirdly, other costs that will be incurred have been factored in. Each worker will need to have a COSHH certificate to operate, which will last for three years besides costing £50 for each. A Health and Safety workplace certificate will need about £35 for each staff member with it also continuing for three years. Each of the team members will need to possess a food hygiene certificate, which will amount to £34.80 for each individual.
Additionally, getting public liability insurance is necessary with it needing to be renewed annually. Also, the trailer will need to be assessed on its conditions and the threats it may pose to the health of any individuals. The Environmental Health Services will be contracted for this task with their fee amounting to £30. Moreover, the business will need to have a Street Traders License for it to engage in transactions in the streets. The owner will also be required to undergo registration as an employer in addition to also acquiring employer’s liability.
Another enterprising skill that is necessary is that of organizing, which is influential on the efficiency and success of the business. It will necessitate coordinating the different people to realize these objectives. The business plan proposes that the organization have two cooks and two employees for delivery. The chefs will prepare the food with one needing to have a license to enable the driving of the car and trailer to and from the owner’s home. Consequently, the delivery staff will take the orders and promptly deliver them to the customers’ doors. One of them will be needed to be available after 11 pm to facilitate deliveries. The owner will also be involved by having the car parked at their home besides being responsible for cleaning the van. It will also be their task to ensure that all insurances and certificates are up to date and the stocking of the business. Also, the ideal staff team will be first-year students with their schedules being used for the opening or closing of the trailer.
2. The identification of opportunity and growth proposals
A market analysis has been conducted that has allowed the identification of the different aspects concerning the industry including its attractiveness, anticipated growth, market size, and growth prospects. The plan acknowledges that the Home Delivery food market is expected to be worth about £1.87 billion in 2014. This projection also factors in previous figures that are indicative of a steady increase even though this sector is still very much in its growth stage. Therefore, establishing a catering trailer at the University of Northampton would be instrumental in capitalizing on this growth being experienced in the market. This growth has been highly influenced by the convenience that people get in ordering food to be delivered to their homes rather than cooking for themselves. There are different ways for making orders including via phone calls or on the website thereby enabling people to eat without having to cook. Hence, an understanding of the market has been realized.
Secondly, the plan indicates that it has deliberated on the customers and customer development. It has been illustrated in the way the business has identified its target market besides having an idea of what they need, the amount they are willing to pay, and how they would like the services being delivered. This business is mainly modeled for students since they do not have the time to prepare their own food or would just prefer not to. It is also an optimal option for those that return from a night of having fun in town and are famished. These aspects mean that students will be the primary targets for the business. Other target markets will be university staff and people residing in the local area. Therefore, locating the catering trailer on the campus grounds is based on its proximity to the target market.
Additionally, this business plan recognizes that it will face competition. The proposal has clearly shown all the other players that serve that area. Each of the current firms has been assessed in terms of the market share they have and pricing strategies they use. It is noted that Domino’s Pizza is the business with the leading market share in the local area. Even though they offer a range of pizzas accompanied by sides, it is very high priced when compared to other independent takeaways. However, their position in the market has been cemented by the quality it offers in addition to the amount of staff it has in its organizational structure that enable it to deliver value to the customer. The other takeaway establishments offer them at reasonable prices when compared to Domino’s. They include Mansion Fish Bar and Delush.
The business plan has also analyzed the way it will need to position itself to establish itself in the local market as a new entity. In so doing, the catering trailer will overcome competition from the already established takeaway businesses. Consequently, it has shown the disadvantages that the competitors have that will serve as its advantages once it is up and running. It is imperative to note that the business will have reduced costs of renting a building and engaging a massive organizational structure compared to the rest. This factor shows that the trailer will be able to offer the same products at lower prices. Also, being on campus will help to be closer to the customer base thus assuring them faster delivery of food that will be hotter due to the short distance that will need to be covered from the point of preparation to the customer’s location.
3. The role of innovation and creativity in developing the new venture
Today, entrepreneurs are very critical in the economic world due to their capacity to come up with more opportunities in the industry. Nevertheless, some characteristics such as creativity and innovation set it apart in the economy. An entrepreneur’s mind is always preoccupied with thoughts and prospects for exploitation. They must thus engage in a conscious and frequent endeavor to look for niches and accept the risks that come with entering a particular sector. The catering trailer is entering a very competitive field of selling takeaway to students, university staff, and other locals living in the area. This decision to use a trailer is based on the fact the others are set up in brick and mortar establishments. The aspect of being mobile has not been utilized by the others. It will enable the business to save up on the fixed and variable costs that its competitors face. This saved expenditure will pass on to the client by having cheap menu items without compromising on the quality of the food.
Also, the speed of delivery will be more efficient compared to its competitors. The fact that it is nearer to its target market compared to the other established businesses means that it has an advantage of seeming more promising to students whenever they need to eat. They will be assured of having hot food being delivered to them. Therefore, this business plan has done a close examination of the existing business norms in addition to devising a new way to carry out transactions in a more effective and efficient way that saves time and money. In so doing, it is successful in delivering an idea that optimizes the takeaway sector in that area, which will serve as an advantage in establishing itself in the market. By superseding existing new norms, a wide range of opportunities and growth are available to exploit the new niche.
Creativity has also been employed to propose an idea that will be instrumental in entering a market where consumers have access to a myriad of products ranging in price and quality besides having trusted preferences. Several characteristics of this business plan are proof that innovative thinking that was used in developing the venture. Firstly, it adheres to rules such as licensing and certification as they will add value besides showing the customers that it is safe to consume food at the trailer. Secondly, it is clear that trying out a new idea in a competitive area indicates that the fear of losing has been eradicated even though the brand is not known. An exit strategy has also been formulated in the eventuality that the business fails by continuously being unable to reach the breakeven point. A creative thinker is not afraid to share a new idea and get feedback that will help in refining it. The presentation of this proposal shows the willingness to introduce new services for takeaways. In so doing, it is also prone to be corrected to make it better placed for successful entry and establishment of the trailer.
4. The business proposal (plan), its quality and recommendations for improving/correcting it
There are several aspects that must be present for a business proposal to be comprehensive for it to be considered an entirely qualitative plan. The catering trailer plan has included a few of them. However, there are other essential ones that it will need to include to provide the full picture of the way the startup will be established. Some of the elements it has include the executive summary, which is imperative in having any reader get an overview of what the proposal is suggesting. The products and services that the catering trailer will offer have also been provided. Their prices have also been availed. Thirdly, an organizational structure has been presented. The proposal has indicated the number of personnel that will be needed. Consequently, the tasks that either the cooks or delivery staff will need to complete each day have been detailed. The owner’s responsibilities have also been shown.
Also, the operations have been clearly outlined by showing how the equipment will be sourced and the other expenses that are expected. Additionally, a competitive analysis has been provided. The plan has shown the different businesses in the area besides showing their advantages and disadvantages. In so doing, it has indicated the way it is going to gain a competitive edge over them. Also, the management team has been shown only to be composed of the owner. A financial summary has also been availed. The startup costs have been indicated in addition to several financial statements being provided. The forecasts that have been availed are for three years besides accommodating the periods that the business will be closed. Also, an exit strategy has been indicated showing the options that are available in case the business fails.
Nevertheless, there are some aspects that have been vaguely deliberated on in this proposal. Concerning the business description, some characteristics of the catering trailer have been discussed such as opportunities, competitors, the pricing strategy, and the target market. However, there is no mention of the goals and objectives of the business, the name of the venture, and the mission and vision statements, which are paramount in the articulation of what the business is trying to create. Also, the legal structure under which the business operate under has not been availed, which is instrumental in knowing the kind of liability the owner can expect.
Secondly, a projection of the market share it expects has not been discussed. This aspect is significant in illustrating the way the current consumer base can be converted into the business’ clientele. A sale cycle is necessary to indicate the way market growth will occur by demonstrating the different stages from early pioneers leading up to declining with the late users. Additionally, the risk assessment in this business proposal has only dealt with how competition may affect the business. Nonetheless, there are other risks that should have been identified such as those that could occur during the development stage, which could be brought about by financial issues, technical matters, poor marketing, and ineffective personnel.