Entrepreneurship Of A New Business - Myassignmenthelp.Com

Question: Discuss about the Entrepreneurship Of A New Business. Answer: Introduction Entrepreneurship is a term often used to describe new business ventures. The setting up of a new business venture involves meticulous analysis of a variety of factors that are likely to impact its performance. The evaluation of probable causes, resources at hand, need for acquiring additional assets and the financial constraints are very essential to give a clearer framework for the start up to follow. The first stage of setting up a business starts with the planning and preparation of the business plan. A business plan can be referred as a road-map that helps to analyze the trends existing in the industry and an overview of future prospects with the available resources (McKenzie, 2015). It also helps in providing a prior insight to the enable the business prepare for the upcoming challenges it is likely to face in the future and the existing competition. Company/Product The business venture is proposed in the field of opening up of a 24 hour restaurant in Wigram Street, near the University of Western Sydney. The products in this context are the services offered in the restaurant, food, drinks, beverages, online gaming, board games and a reading room. The purpose is to provide a place where customers can come and find relaxation by enjoying food and drinks (Watson et al., 2016). The facilities for playing online games and board games will also be there and reading area where they can read their favorite books or, novels and be stress-free during their leisure hours and exams one 24 hour basis. The restaurant would also arrange for gaming consoles for the interested players providing. The sole aim of providing the facilities of reading section and gaming is to give additional facilities along with the conventional services of food and drinks served in restaurants normally on a 24 hours mode. The restaurant will also focus on providing healthy food where there will be a menu of few carbohydrate free dishes taking into account the calories involved in the dishes. The proposed name of the restaurant is Grill Chill. The aim behind keeping the name such is to give a feel of a stress free, tension free relaxation zone to the customers where they can come and enjoy dishes, cool drinks and play games with very high and customer focused service quality 24X7 (Finch, 2016). The proposed location spot of the restaurant Grill Chill is in Wigram Street which is near the premises of the University of Western Sydney. Mode of functioning The restaurant is designed in a manner that it can accommodate a total of 40 customers at a given period of time in the dining area. The gaming area can accommodate two players at a time and the reading lounge provides a space for ten people to sit and read. A structure of rotational time-table shifts is followed so that employees can work in shifts. At a particular shift, 1 manager, 3 employees in the cash counter and billing area and 10 waiters can work. In the game section, 2 employees can assist the customers. There will also be staff in the kitchen to help the chef prepare the dishes for the menu. There will be 1 chef and 3 other employees to assist him. During the night shifts, a similar structure will be followed as well. Market opportunity Business researchers in the recent times have found out that this principle is the sole reason that restaurant and hotel businesses base on (Blank, 2013). In order to understand the exclusive market opportunities that setting up a restaurant would have in the Wigram area a market research was conducted. Market survey A total of 40 respondents were selected by a method of probability sampling were selected to conduct the survey. The questions used for the survey were based on the Likert scale to understand the taste and preferences of the potential customers. Question 1 60% of the respondents visited a restaurant frequently highlighting the fact that the area was very potential for the location of a restaurant. Question 2 About 54% of the respondents did not prefer the services of the existing food joint nearby and 40% found it of average quality which indicated that since 60% of them went to restaurants frequently they must have to search and find other options. Question 3 It addressed the issue of the needs that drive customers in that area to the food joints. 48% of the respondents looked for additional offerings like games and music, while 32% also looked for music. Question 4 52% said that they would like to visit a restaurant with games, reading area and music along with food and drink services. Question 5 51.5% responded that they would like to use food, games and reading and 31% said food and games. Question 6 40% said that they looked for all the four facilities while, 26% looked for the quality of food and prices and 18% looked for quality of food and services. It helped in understanding the fact that students and youngsters want to have a place where they can play games, listen to good music and enjoy food and drinks at any time during the night or day. It also underlined the need of the customers to have a zone for them where they can relax and be stress free. Value proposition In the area of Wigram Street, there is no similar restaurant that offers such a wide and diverse service. The only such facility available is 1.8 kilometer away which is not very favorable as it is far. The existing restaurant in that area is Not just curries which mainly serves Asian cuisines. This differentiates the proposed restaurant from it with a focus on the tastes of the young customers and students from the nearby university. The facility to play games transforms the proposed restaurant as a place with great youthful vibrancy where the students can release their stress and relax. The flexible timing and the inclusion of the gaming facilities also provides a competitive advantage to Grill Chill as a restaurant business. Target customers It is also important to understand the fact that the restaurant located near the University would have two specific types of the customers. The first type would be the young students of the university and the others would be the general customers. The restaurant will be open for 24 hours for the students who are living in the campus for during the examinations. Segmentation Demographics The students who are studying in the university or college and between the age group of 18-27 years will be targeted. In addition to this, middle class and other regular customers will also be targeted. Customer relationships It is important to understand that the needs of customers are divergent and keep changing with time (Parsa et al., 2015). These measures that can be taken into consideration by the restaurant are: Analyzing customer preferences: Understanding the tastes, preferences, likes and dislikes of the customers is very important to deliver what they think is best for them (Jones et al., 2013). An efficient and skilled staff: The warm and friendly behavior, politeness, efficiency in providing the correct information and the commitment they showcase in delivering the best service will go a long way to build good customer relations (Tran, 2016). Integrating all channels of communication: It can also offer special offers, special offers to customers who make online bookings or orders, seasonal discounts and festival offers as in Christmas or Thanksgiving. Distribution Channels Food will be delivered to the customers in the restaurant based on orders. The restaurant set up will have a section where there will be the gaming consoles, another with a reading area in the form of a comfortable sitting lounge area. The customers can also avail the services by prior booking through the website. This will consist 10% of the customers. The facilities of membership are also available for customers whereby they can avail membership cards for a year and enjoy the services at discounted rates. The dishes served in the restaurant will be prepared in the kitchen afresh attached with the restaurant. This will also require the setting up of an inventory where the raw materials necessary will be kept largely procured from organic markets. Key activities The key activities involve: Procurement of raw materials like vegetables, meat, fish and other necessary ingredients for cooking, drinks and beverages, equipments to set up the gaming station, furniture, infrastructure to set up the restaurant. Manufacturing or cooking the dishes and beverages to be served keeping a check on the quality standards promised to the customers Engaging in solving the problems faced by customers related to issues like difficulty in choosing the appropriate dish, combo meals, combo offers, booking services Providing a network of effective customer handling staff well equipped and professionally groomed dedicated to deliver best services to customers Key Resources The resources which a firm employs in manufacturing a product or delivering a service are the key resources of the firm (Schaper et al., 2014). These include: Physical resources: the property or building, furniture, infrastructure, equipments Financial resources: investment in the raw materials, transportation charges, marketing, advertising budgets, salaries paid to employees, investment on procuring the daily raw materials, maintenance of the restaurant, game stations, investment on setting up the infrastructure and daily cash transactions Human resource: the employees, management and the valued customers Intangible resources: these include the trade secrets, special recipes, restaurant environment, brand goodwill, ability to create good customer satisfaction Key partnership The partnerships with the suppliers to acquire raw materials necessary are also included here (Thomas et al., 2014). The necessary vegetables, meat, dairy products can be procured from the wholesalers at lower prices. In the proposed restaurant business the partnerships with the suppliers of raw materials, equipments to set up the gaming station, the partnerships with e commerce websites to promote the restaurant in the online media, partnership with food industry critics for a time to time evaluation of the quality standards, local authorities and communities surrounding the restaurant are important. Cost structure The food cost comprises of the procurements like staff labor, food, vegetables, groceries, meat, drinks, alcohol, supplies or procurements etc. The other associated expenses like management, marketing, communications, insurance, taxes etc are also taken into account. Lastly there are capitalization costs like interest, depreciation and amortization (Carayannis, Sindakis Walter, 2015). The associated costs with food are food, procurements, labor and with beverages the associated expenses are of alcohols, drinks and procurements. The gaming section has procurements related to gaming consoles. The other costs like maintenance, renting, communication and depreciation can be rightly classified into the cost of operations as these do not pertain to any one particular revenue source. Financial Analysis Source: Created by Author The total cost that would be required to start up the restaurant business after taking into consideration all the relevant cost is projected as a cost of AUD76,200. Profit and loss forecast Source: Created by Author Since this a forcast of profit and loss statement, we can say that due to competition from various resturants the profits are going to fluctuate throughout the year. Cash flow forecast Source: Created by Author As we have forcasted the companies cash flow position is going to be satisfactory. Balance Sheet forecast Source: Created by Author As the restaurant is in the process of getting incorporated, hence for now we cannot draw an inference from this balance sheet forecast. Revenue Flows/Streams The typical sources are elucidated here: walk in customers that is probably the biggest revenue component, take away customers are also important, for keeping revenues uninterrupted they doing door delivery orders, and the last one is the bulk catering orders which is the most profitable one as it helps in tiding over lean days. In Grill Chill, certain other services are being provided that are also capable of generating revenues like gaming section. The games like biking, car racing, rodeo bull game, air tennis etc. would be chargeable generating revenue. Some of the most loved dishes by Australians are Fish and Chips, Sausage Rolls, Burgers, Lamingtons, Barbecued Shrimp, Pavlovas, Meat pie etc (Lubyckij, 2015). The restaurant has been continuously innovating and as a result lamingtons have been selling as hot cakes. The restaurant vision is that there food stands out in all customers aspects considering elements like texture, taste, spice levels and appearance (Helmrich, 2015). Drinks include soft drinks like Coke and beverages like hot chocolate. They will serve Turmeric Chai Latte in the hot beverage section. To attract the youngsters a gaming section has also been introduced. This gaming section would be providing access to both high end and basic level gaming. Some of the most favorite among customers are Jurassic Park, Minion Madness and Star Wars Battle Pod. Reading Lounges have been providing a more personalized feel to the customers. They can relax in the reading lounge while reading books and ordering themselves a cup of coffee or hot chocolate. The prices have been kept reasonable aiming the young Australian crowd. The gaming activities are also chargeable. The customers have to get themselves a card by paying some amount and as they play the amount in the card gets exhausted. The main source of revenue for restaurant is food services. About 75% of the revenue gets earned from the food served. Next, comes the beverages section including drinks, alcohol and generates about 15% of the restaurants revenue. Lastly the gaming section contributes to 10% of the revenues restaurant. (Source: As Created by Author) Venture Management Team This team includes the ownership, management and the experts on sales and marketing, non managed teams, advisory team, consultants and an executive board. The legal experts, solicitors are also included in it. The non managed teams refer to the temporary workers which are hired to set up the telecommunication network, setting the utilities. The consultants are the people who are consulted for expert advice. It is the collaborated planning, execution and efforts laid into it that determines the success of a new business venture. Conclusion The initiative to set up a restaurant in the area near the University of Western Sydney is aimed at targeting a largely young customer base. Hence the restaurant plan is to be prepared and executed taking into account this vital aspect. As the market research proves that the area is potential for setting up of a restaurant that provides not only food and drinks but also games. The students can go there and have an opportunity to be stress free after their studies. This would also serve as a place where they can be revitalized to continue their studies in an efficient manner. The customers are paying for the food and beverages being served to them. A policy of segmenting the customers is adopted to help understand the diverse needs of the customers. The prices have been kept reasonable aiming the young Australian crowd. It is therefore expected that the business by following the above plan will lead to profitable outcomes. References Agarwal, R., Dahm, M. J. (2015). 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