Write a draft for ENTREPRENEURSHIP & NEW VENTURE CREATION course
Tymofii
EntrepreneurshipNewVentureCreationmid.docx
Mid-term assignment
Tymofii Dovhal
Entrepreneurship & New Venture Creation
BCO215-BCN14564
Emma Pivetta
19.06.2021
Table of Contents:
1) Cover Page
2) Business Plan of “BOOSTED” Company
1. Executive Summary
2. Business/Industry Overview
3. Analysis of Market and Competition
4. Sales and Marketing Plan or What Makes “BOOSTED” Unique?
5. Ownership and Management Plan
6. Operating Plan
7. Financial plan
3)
Business Plan of “BOOSTED” Company
Executive Summary
It is will be a Ukrainian healthy food delivery company. It will provide personalized meal delivery for anybody interested in sport or, just having a fresh meal quickly.
Our goal for the company is to create a “BOOSTED” franchise in all big Ukrainian cities and finally expand in countries neighbours, like Russia and Belarus.
Suggested target market or the market when we want to start, it is my motherland Ukraine, particularly Cherkasy city.
In food delivery competition is quite significant, but only a few which can cook healthy food for such demands as to lose weight, to perform better in sports, to follow a therapeutic diet.
Our management team are Dovhal Tymofii (with no experience) and Alexander Litvinov (1-year experience in food delivery company on logistic-manager post).
We expected to earn the initial investment in two years, and we calculate a 5-6% return on sales in our financial outlook.
Business/Industry Overview
The idea of “BOOSTED” based on marketplace needs for services in Ukraine, which are about being quick, dependable and high-quality.
The mission is to make it easier for busy people to eat properly by providing healthy food delivery service and finally make Ukrainians nation healthier.
Philosophy, goals and values of the company it is to make our dishes only from high-quality ingredients, take into account customer`s wishes and all of that for an affordable price.
The vision is to craft the brand and food that people love, which will improve their lives and become the reliable best friend for people who do not have time for cooking.
Analysis of Market and Competition
The 2020 pandemic affected many areas of business, someone was on the verge of closing, someone's number of users and orders increased significantly. I am talking about delivery services, for example, delivery applications (in particular, food delivery from restaurants and shops) like Glovo which leads this market with a share 75-80%, they also estimate that the Ukrainian delivery market grew 6-7 times in 2020 compared to last year.
Regarding delivery from restaurants, the AIN.UA is forecasting for 2021 to grow by another 3-4 times due to the growth of digital services. However, the delivery market is still small in Ukraine: about 0.3 orders per person per month, compared to 4.9 in Britain or 11.5 in South Korea.
What about the global health crisis which continues evolving? According to Innova Insights the new trend is rising on the market known as “In Tune with Immune” which is about the tendency of buying more frequently food and beverage goods which support their immune health increasingly by customers. (Coronavirus Pandemic Triggers Surge in Demand for Healthy Foods | foodcircle, 2020) Furthermore, Nielsen Insights also put “Proactive Health-Minded Buying” at first place in “Six Consumer Behaviour Thresholds of Concerns Related to COVID-19” analysis. (Key consumer behavior thresholds identified as the coronavirus outbreak evolves - NielsenIQ, 2020) This case it is all about relationships between social change > market change > new needs> business opportunities. (Innova identifies top 10 food and beverage trends to accelerate innovation in 2021, 2021)
The main competitor in the same food delivery industry is FoodEx based in the capital of Ukraine and has franchises in 4 big cities, it has well brand image, developed marketing and sales strategies, but few week points which we will use to take their market share. Firstly, if we know where their business located, we will start own indifferent, Cherkasy will be the perfect place for start. Secondly, the FoodEx meal programs have 22 specific dishes, which they will bring you every morning among weak. (Karpenko, 2020)
Sales and Marketing Plan or What Makes “BOOSTED” Unique?
In “BOOSTED” there will be not just standard dishes which will be focused on general goals, but also meals that customer can change for own tastes. Moreover, we will provide delivery for the whole day and in days which clients whish. Additionally, at the start, we will create a 10% savings card, which will allow a consumer to gain part of his order price for a personal account in the company. Discounts will be able first 100 clients for 20%. However, for holidays like New Year, Halloween and Black Friday, the menu of dishes will be stylized and changed as well as packaging. Regarding the company`s pricing strategy we will put affordable prices for each city, and post-sales support will play a significant role, because of our personalized orientation and desire to be dependable in customer minds. (Ward, 2021)
Ownership and Management Plan
“BOOSTED” Ownership Structure will be a limited liability partnership registered in the state of Cherkasy. The business is 100% owned by T. Dovhal and A. Litvinov
T. Dovhal: 65 Class A Shares
A. Litvinov: 35 Class A Shares
Owners will co-manage the business. The deputy chef, junior chef, and two drivers will be recruited through job advertisement. The demands for recruited will be:
Deputy chef – 1 year or more of work experience, a college cooking degree required.
Junior chef - without work experience, college cooking degree required
Drivers – driver license.
About owners: The initial capital consists of 70% T. Dovhal money and only 30% of A. Letvinov, but Alexander brings to the table all necessary experience.
Tymofii Dovhal – CEO and Adviser of the company
Alexander Letvinov – commercial director, 1 year of work experience.
Anton Kozlovskyi – Accounting manager, 5 years work experience.
Elizaveta Buzovskaya – The chef, 3 years of work experience, college cooking degree.
Logistic manager – 1 year of work experience, Logistics and supply chain management degree.
(Ward, 2021)
External Resources and Services
“Way Up” – will be contracted for marketing and design service
Operating Plan
Regarding Facilities, we have chosen one, located at Shevchenka 156, Cherkasy. The space features:
A three-year lease at $700/month
120 square meters building
Well-maintained building located in the centre
Security service in owner’s responsibilities
Utilities are estimated to be $295 per month
The café was the previous tenant, and kitchen and washroom facilities already installed.
(Ward, 2021)
Equipment
We will buy
Vehicles Citroen Berlingo 2012 (Two) – $6500
Furniture and stationery - $4000
(Ward, 2021)
Supplies
All paper, including wraps, packages, boxes and napkins will be supplied by Papir-Mal corporation.
(Ward, 2021)
Financial plan
In the first year of business completely dependent on capital. No cash-flows prepared.
Capital - $180000
(Ward, 2021)
List of references
Ward, S., 2021. Here's What Your Coffee Shop Business Plan Should Look Like. [online] The Balance Small Business. Available at: <https://www.thebalancesmb.com/a-coffee-shop-business-plan-4153010#section-6-operating-plan> [Accessed 19 June 2021].
Innovamarketinsights.com. 2021. Innova identifies top 10 food and beverage trends to accelerate innovation in 2021. [online] Available at: <https://www.innovamarketinsights.com/press-release/innova-identifies-top-10-food-and-beverage-trends-to-accelerate-innovation-in-2021/> [Accessed 19 June 2021].
NielsenIQ. 2020. Key consumer behavior thresholds identified as the coronavirus outbreak evolves - NielsenIQ. [online] Available at: <https://nielseniq.com/global/en/insights/analysis/2020/key-consumer-behavior-thresholds-identified-as-the-coronavirus-outbreak-evolves-2/> [Accessed 19 June 2021].
Foodcircle.com. 2020. Coronavirus Pandemic Triggers Surge in Demand for Healthy Foods | foodcircle. [online] Available at: <https://www.foodcircle.com/magazine/increase-healthy-foods-health-conscious-consumers> [Accessed 19 June 2021].
Karpenko, O., 2020. Итоги-2020. Как в пандемию развивались службы доставки. [online] AIN.UA. Available at: <https://ain.ua/2020/12/18/itogi-2021-kak-razvivalis-sluzhby-dostavki/> [Accessed 19 June 2021].
Lattanzio, D., 2021. Reasons Why a Business Plan Is Important for Entrepreneurs. Available at: <https://www.wsifranchise.com/blog/5-reasons-why-a-business-plan-is-important-for-entrepreneurs> [Accessed 19 June 2021].
