Introduction to Managerial Skills and Entrepreneurship
New venture concept involves different activities in creating a business that needs to be competitive in the UK market. Thus, through such way, many individuals come up with the unique business idea and develop it by generating a product or service. However, there are varied risks assessed while starting a new venture such as financial requirement, skilled human resources and updated technology etc. In the present business plan, the new venture concept that has been focused is starting Fast Food Restaurant business plan. A new venture named Zara is a fast food restaurant in UK which helps in attracting both young and business class people to enjoy their meals. The venture will provide them quick made food at affordable prices which they can enjoy with their friends and family. Further, it involves different conditions that need to be overcome so that failure of business can be avoided.
It can be assessed that starting a business is a multi-step process therefore; entrepreneur needs to focus upon the business idea and he is required to undertake varied licenses and permission in order to carry out the business in a particular country. Also, they need to assess varied management skills which are required to start a new venture. Moreover, certain experience is required to be obtained by the entrepreneur so that they can assess the actual requirement of firm in order to attain profitability condition in the future. Also, they should be able to forecast the financial requirement and related risk in the near future and to execute the operations effectively.
Task 1: New Venture Concept
The new venture concept is Zara Fast Food Restaurant business which will locally own the fast food outlet in UK market which focuses on attracting young and business people who are busy in their daily lives. Therefore, restaurant will provide them quick made food at cheap prices which they can enjoy with their friends and relatives. Further, in the coming future, business will also plan to position it as an international franchise through our creative approach in order to develop company's image. Zara will provide a unique combination of excellent food at value pricing with fun packaging and lively atmosphere. The entrepreneur is planning to launch the new business idea because of increasing demand for quick made food which is easily consumed while carrying out window shopping or while walking around inside a shopping mall.
Another aim of business is to start the outlet in crowded area like mall where they can easily catch the attention of clients and attract them to visit the restaurant. Later, while planning for expansion, Zara can launch its several retail outlets through franchise in different countries and attain profitability. However, through preparing this business plan, it helps in deciding the location for initial startup of venture. Thus, for this, the marketing team of restaurant is required to carry out proper market research and to analyze the place where potential target customers reside. Then, they can decide to launch the outlet at such place. In addition to this, entrepreneur needs to determine different sources from where they will obtain funds such as individual investor or financial institution. It assists them to start up a new venture concept and launches it in market to grab the attention of target customers. Further, additional financing planning will also be required in order to secure the funds for further expansion in different countries and to open the subsequent outlets. However, the initial capital investment will allow Zara to provide its clients with a value driven, the best entertaining experience and luxury feeling.
Business possesses varied opportunities in future in order to expand its operations in different countries to attain results. However, it is essential for the entrepreneur to attain competitive edge of quick made food at value pricing so that they can attain the advantages in such a competitive era. There are various other restaurant outlets which provide similar food therefore, in order to gain attention, they need to build effective competitive advantage and to attract potential clients (McKeever, 2012). Also, there is high demand among young customers of such a quick made food. Therefore, it attracts them to visit the place and spend time with their family and friends. However, the business plan helps to start up first restaurant outlet and to build the concrete goals.
The new venture concept of Zara Fast Food Restaurant needs to collect adequate amount of finance from different sources such as investors and financial institutions which helps them to start the business. Financial projections will be estimated through preparing detailed financial accounts and by obtaining the break even analysis to attain maximum profits. Thus, financial requirements will be fulfilled from financial lenders and private investors. The mission of Zara restaurant outlet is to provide the best environment to clients and also deliver the highest standards of excellence to the food production, preparation and service to the clients. The objectives of new venture concept are as follows...
- To set up a successful fast food outlet and to attract the clients.
- To expand the business into a number of outlets in different countries.
The vision of Zara is to become one of the successful fast food outlets which sell quick made food and satisfy the client’s demand. The focus of business is on serving high quality food at great value.
Pricing and cost control
The business is new in market and also has varied competitors that are available with selling similar products or services. Therefore, business is required to set unique prices at initial startup and also adopt cost control method in order to save money and resources by adopting competitive pricing model. Daily average spending and earnings need to be calculated in order to analyze the potential aspects of earning maximum returns.
To start a fast food restaurant in crowded area will help in attracting both young and business class people in order to obtain quick made food at value price. Therefore, there is a wide range of opportunity in market of starting such a restaurant outlet which delivers a wide range of menu and provide excellent experience to clients. Through, comparing any other business in market as per the customer demand, it has high opportunity in enhancing the sales and profitability. Thus, launching restaurant business assesses high opportunity gap in market in order to attract the potential clients and for satisfying their demand as well. Here, Zara’s marketing team needs to identify the target market where business will be focusing to attract potential clients and to achieve the final results. Zara targets both young and business class people as they have less time of consuming food. Therefore, restaurant provides quick made food which is easily consumed and business plans to start its venture in a crowded area like shopping mall.
In spite of being mature, there are wide opportunities that are available in fast food business which can be started to attract the young potential clients. Because there is high demand of such quick made food among them as it saves their time and provides value pricing. Also, such a new start up business is found to be feasible because entrepreneur can introduce varied variations in food range and taste so that it assists in gaining attention of clients. Zara Fast Food restaurant can launch particular outlet which offers the products and services as per the needs of clients. Thus, through assessing such factors, it helps in gaining confidence that this new business is feasible and will earn profits in the future.
Task 2: Requirements For New Business Start Up
There are varied requirements for the new business startup in order to attain the desired results. These are as follows...
1.Structural Engineering and design consultant
It can be assessed that new start up business requires an efficient consultant who designs the interior and exterior structure of restaurant outlet so that customers can be attracted easily. However, it needs to be designed effectively so that business would give tough competition to other rivals.
Financial
It is the foremost requirement of newly launch business that they need to arrange the financial sources in order to obtain funds. Therefore, entrepreneur needs to attract different private investors to invest in business and also to take loan from financial institutions in order to gain investment.
Manpower
It is another requirement of startup business as it requires skilled and talented human resources in different fields such as marketing, customer service, waiter, chef etc. Therefore, it is significant for restaurant to select the best skilled employees which helps them to provide the best quality service to guests and to satisfy their needs as well.
Systems and Equipment
It is also essential for business to obtain updated systems and equipment so that fast service as well as production and preparation of food can be developed. With the help of such advanced technology equipment, it assists in attaining the desired objectives for new venture. New start up restaurant outlet requires computer systems for billing and maintaining the record of clients and employees. Also, there are different equipment which are required in business such as dishwasher, glass washer as well as cutlery and kitchen equipment etc.
Market Information
New start up restaurant business needs to undertake effective marketing team so that they can assess the market information about the tastes and preferences of clients. Through carrying out proper market research and development, it helps in gaining useful information about launching up of new business and for attaining the outcomes.
Location
Also, it is significant for a new business to select appropriate location such as crowded place i.e. shopping mall where they can attract maximum young clients who visit for window shopping and can consume quick made food while moving around.
Legal requirement
Further, it is essential for the entrepreneur to obtain different legal requirements such as patent, copyright and trademark so that they can carry out their unique business idea in the market.
Capital
It is one of the crucial requirements of business as it is essential for new start up business is required to attain initial investment for setting up the venture. Entrepreneur needs to obtain funds to start the business idea and thus, to attain revenue in terms of profits.
Furthermore, there are different management skills which are required to be there in entrepreneur in order to make the new start up business successful. These are as follows...
Leadership skills
An entrepreneur is required to possess effectual leadership skills in order to launch the business successfully in market. Thus, through having such ability, it assists the individuals to initiate and lead in order to develop accurate decisions that results in the growth of firm.
Risk taking
It can be evaluated that there is no guarantee that new launch business would result in achieving success. It is because; it involves greater risk as it requires varied resources and investment. Therefore, it is necessary for the businessperson to have certain experience and to obtain risk attitude that would help in attaining success in the business.
Problem solving
The individual is required to obtain problem solving skills in order to resolve the conflicts among workers and to attain success in business. Therefore, it is crucial for businessman to gain confidence in decision making ability and to develop the relationship with employees to achieve success in new start up business.
Communication
It is another important management skill which is required among individuals which helps them to develop effective communication within employees. By developing the best communication, it helps workers to understand the requirement of employer and to provide them suitable results to attain the success of new start up.
Financial and market awareness
It is a crucial management skill which is required among entrepreneur in making evaluation of the prospects for getting an edge in the market. Through this, efficient system of working can be developed by the entrepreneur and success in market can be attained.
Interpersonal skills
As the new start up business have varied growth opportunities and provides unique services and products to clients which satisfies their needs, therefore, it is significant for him to possess suitable interpersonal skills as it would help them in developing the business activities and in making the startup business successful.
Creativity
It is another skill which needs to be obtained by the entrepreneur while launching the new business venture. Thus, through creative ideas, it assists the individuals to develop varied unique business ideas and to attain maximum results. It also helps them to attain competitive advantage from other firms as the concept of organization is unique which is not used by any other competitor in market.
Customer focus
Entrepreneur needs to obtain such skill also as customers are the main part of any business. Therefore, it is essential for him to focus on the needs and requirements of clients and to satisfy their wants. Having good customer focus will state that every individual's need is fulfilled that would ultimately help in attaining success of new start up business.
Task 3: Proposed Business Model That How New Venture Will Work To Achieve Positive Financial Results And By When
It can be evaluated that the proposed business model for new fast food venture will require appropriate financial projection in order to attain positive financial results and to gain the profitability. Through developing financial statements, it assists in analyzing the time when the business will start earning profits on the investment made. Through break even analysis, the year in which profits will be earned can be assessed. However, in the initial start-up, business is required to control the cost so that the best outcomes can be attained.
Key assumptions
There are varied assumptions that need to be made while determining the finance of new venture. These are as follows...
- It has been assumed that fast food market is already at growth rate therefore, business faces various difficulties to attract potential customers and thus, enhances the sales of firm.
- Further, it has been assessed that it requires varied expenses for the organization to start a new venture. With the increase in sale, the expenditure of firm is also increasing every year.
- However, it can be assumed that because of uniqueness in products and services, it helps in increasing the profitability of firm in the market.
- Business has to pay interest to financial institutions and to private money lenders.
Sources and uses of funds
It is essential for the firm to make initial investment in order to carry out the results. Also, there are varied sources from which funds can be collected such as internal and external sources of finance. New venture has taken loan from bank which is the liability and it helps the firm in fulfilling its long term requirement. However, bank loan acts as an effective source that is used by the organization in meeting the needs appropriately. Business requires huge requirement of fundfor purchasing the land or building for starting its operations However, both these sources have helped the firm in satisfying long term business requirements effectively and efficiently.
Further, there are varied other sources that have been identified in order to finance the new venture concept i.e. Zara Fast Food Restaurant. However, business can obtain funds through overdraft facility in order to meet the working capital requirements. Thus, here, business can withdraw money more than what is actually present in the account. Also, it can be used for the further expansion. In order to utilize such amount, business needs to pay extra rate of interest to the bank.
Task 4: Proposing To Manage Business Risks
It can be evaluated that any start up business idea will face enough risk in order to execute the business plan. The entrepreneur is required to carry out risk analysis before launching the product or service in market. Thus, through risk analysis, individuals can obtain useful information about the probable risks that business can face in future and thus, proper measures can also be taken in order to manage the business risks. These are as follows-
Product risk
In such type of risk, it can be assessed that business owns the risk regarding manufacturing of similar products or services which are required by the clients. Therefore, there is risk in the market that clients will like the product or service developed and will they be ready to pay value for the same. Thus, it is essential for the entrepreneur to assess such risk and to carry out proper market research in order to assess the needs and preferences of consumers and then, to develop the product to satisfy customer’s demand.
Market risk
In such type of risk, it involves market risk which states that the market will develop differently than expected. Through evaluation, it can be assessed that sometimes, markets take long time to develop and thus, reduces the availability of cash. Therefore, being a fast food restaurant business, entrepreneur is required to carry out proper promotional activities to attract the potential customers and to manage the market risk.
People risk
In every company, there is risk of certain kinds of employees who are skilled. However, it is essential for the firm to satisfy the needs of people and to make them happy otherwise they will leave the job. Thus, in order to minimize the attrition rate of employees from firm and to save the cost of training, it is essential for new start up business to provide motivation to their workers and to manage the risk.
Financial risk
Here, company faces risk of obtaining funds from different sources. Therefore, at the time of new start up business, there is huge financial risk because business has taken loan from several investors. Thus, it is important for the entrepreneur to smartly manage the risk otherwise poor investment policies can sink them.
Competitive risk
It is the risk that a competitive product or service will be able to win in the market. There are several fast food businesses which possess high competitive risk as they can be started with few investors and have no effective way of locking the clients. Thus, in order to manage such risk, it is crucial for startup venture to deliver the best quality food and services to gain the attention of customers and to retain them for long time within firm.
Task 5: Conditions Which Must Prevail To Avoid Failure
At the time of starting up new business, it is essential for the entrepreneur to focus upon the failure factors. Through addressing the failure factors, it is essential to overcome such reasons of failure from business and thus, to attain the results. Here, businessman should obtain expert opinions so that they can survive in the market and avoid different failures from business. These are as follows-
Lack of planning
It is essential for every business to carry out certain planning before launching the business in market. Planning needs to be done regarding different factors such as business product or service, financial requirement, analyzing competition etc. Thus, all these factors need to be planned in advance otherwise it will lead to business failure. However, through obtaining a team of professionals who have expertise in planning, the requirement of new concept venture helps in developing effectual business idea that attains the business goals and objectives.
Poor management
There are varied reports which cites that main reason of business failure is poor management. However, new business owners lack proper management expertise in different areas such as finance, marketing and sales etc. Thus, they need to gain knowledge regarding such subjects in order to avoid the failure. Also, they need to develop strategic thinking and build better vision of firm so that poor management can be avoided by new start up of fast food business.
Insufficient capital
It is a common failure for many businesses such as they possess insufficient operating funds. Entrepreneurs are not able to make proper estimate regarding the extent to which funds will be required in order to start up new venture. Also, they may have unrealistic expectation of incoming revenues from sales. Thus, business owner should undertake the help from financial analyst in order to predict the requirement of funds at the time of startup of business so that it would assist in avoiding failure.
Location
It is one of the critical success factors of business. But at the same time, it is also essential for the entrepreneur to decide suitable location for starting up the new concept such as crowded area so that potential clients can be attracted and maximum revenues can be earned. It should be at probable distance from the competitor’s business. Thus, in order to avoid such failure, it is crucial for the owner to place business at appropriate location and to attract the target customers.
Conclusion
From the above accomplished business plan, it can be determined that a new Fast Food Restaurant named Zara is going to start in the UK market. However, the new venture concept has the main opportunity gap that there are varied young and business class people who prefer quick made food. Also, business has the aim to launch several outlets as the expansion plan in different countries. Thus, for this, they need to adopt the best skilled and talented workforce so that they can carry out effective operations in the business. Such type of food outlet needs to be opened in the crowded area so that target clients can be attracted. It is essential for the entrepreneur to possess varied management skills such as communication, customer focus and interpersonal skills so that they can attain successful launching of new business. Further, financial projections have been made so that business can assess the time when they can actually start earning profits.
References
- Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures. Pearson.
- Behery, M., Jabeen, F. and Parakandi, M., 2014. Adopting a contemporary performance management system: A fast-growth small-to-medium enterprise (FGSME) in the UAE. International Journal of Productivity and Performance Management.
- Butler, R. D., 2015. So You Need to Write a Business Plan. Journal of Small Business Strategy.
- Connolly, K., Wolfgram, L. and Santos, J., 2012. Steps to Leading Change: A Transportation Agency's Business Plan Approach. Transportation Research Record: Journal of the Transportation Research Board.
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