Business Plan

Requirements for the business plan: Around 20-30 pages.

I. Executive Summary

II. Company Description

a. Company Name

b. Mission Statement/Objectives

c. Form of Business

d. Products or Services

e. Management/Leadership

III. Industry Analysis & Trends

a. Size and Growth Rate of Industry

b. Industry Maturity

c. Sensitivity to Economic Cycles

d. Seasonal Factors

e. Anticipated Changes and Trends in Industry

IV. The Target Market

a. Demographics/Geographics

b. Lifestyle and Psychographics

c. Market Size and Trends

V. The Competition

a. Competitive Position

b. Market Share Distribution

c. Future Competition

VI. Strategic Position & Risk Assessment

a. Industry Trends

b. Company SWOT Analysis

c. Risks Assessment

VII. Marketing Plan & Sales Strategy

a. Company’s Message

b. Marketing Strategy

c. Marketing Tactics

d. Online Marketing Tactics

VIII. Management & Organization

a. Key Employees/Principals

b. Compensation and Incentives

c. Organizational Chart

IX. Social Responsibility & Sustainability

a. Social Responsibility Goals

b. Company Policy

X. The Financials

a. Income Statement: Annual by Quarter

b. Cash Flow Projection: Annual by Quarter

c. Balance Sheet

Food Delivery: Foodaholic

Executive Summary

Foodaholic is an online food delivery business that seeks to deliver quality food of consumer’s choice at their doorstep with a convenient method of ordering and paying, it belongs to the food industry. Foodaholic is a web-based and has mobile web integration that allows users to order their food online and wait for the delivery of the food. Foodaholic are very careful in providing a quality online food delivery business that offers the best food and the quickest dining experience.

The Business

Foodaholic is a business that aims to serve individuals, families, college students as well as people on business trips. The system makes it possible for people to order their food from several restaurants that are subscribed to Foodaholic. According to research, 60% of US consumers order delivery once a week. Also, it’s estimated that mobile orders will become a $38 billion industry by 2020 (Resendes, 2020). Foodaholic intends to incorporate social media platforms such as Facebook, Instagram, YouTube and Twitter, among others in the marketing strategy. Using our subscribed restaurants to post attractive pictures of their delicious food, having promoted advertisements will surely increase contact with customers. Also, collaborating with influencers will go a long way in boosting the business targeting their audience as potential clients. However, Foodaholic expects competition from GrubHub and Postmates companies and intends to remain the best in the market to beat such competition.

Competitive Advantages

Foodaholic has several outstanding features that make it the ideal delivery company for clients. The business provides the quickest transport services around to desired destinations for its clients. Offers discounts and free deliveries on special occasions such as, thanksgiving, new year’s, Memorial Day etc. Also, Foodaholic is also going to provide a monthly delivery subscription that charges customers a small amount but offers free delivery throughout the month. The company also has plans to expand to more states and more college campuses. To improve integration, Foodaholic has automated customer communication, and easy refund policies.

Foodaholic is positioning itself as a national entity and expect annual growth of ten percent for the next five years. The business will have a great gross margin by the second year and a modest net margin in its third year. By the time it is the fifth year, the business will have grown an enormous annual net profit.

References:

Resendes, S. (2020, August 18). 31 Online Ordering Statistics Every Restaurateur Should Know in 2020. Retrieved October, 2020, from https://upserve.com/restaurant-insider/online-ordering-statistics/

Describe your company’s philosophy in terms of the areas listed below. Range/Nature of Products or Services Offered: Foodaholic food delivery intends to deliver food to customers in different destinations. It is a courier service in which a restaurant delivers food to a customer. The delivered items can include entrees, sides, drink, and desserts which are typically delivered in boxes or bags.

Quality: to ensure the quality of food and our delivery services, Foodaholic is going to develop systems and procedures to track delivery service activities and other variables affecting food quality and safety. These actions ensure that critical aspects of the food products delivered to consumers and the delivery process are consistent with the specifications of the delivery service.

Price: Since Foodaholic is relatively new in the market, it is necessary that we set a price that will allow our customers patronize our services and for this purpose, Foodaholic would offer it services at a reduced rate for the first 6 months of operation. However, lowering the price won’t be as significant as we don’t with Foodaholic business to crumble.

Service: Foodaholic food delivery intends to deliver food to customers in different destinations.

Overall Relationship to Customer: Foodaholic is a business that deals constantly with customers, our employees are highly trained in customer care and are able to provide excellent customer care. They are available during operating hours through calls or emails.

Management Style/Relationship to Employees: Foodaholic employees are professionals who understand the business thoroughly. Employees are all assigned to the right available positions and are allowed the freedom to be able to draft strategies and implement plans. It is important that all employees Remain satisfied and productive at work. Foodaholic ensures that they work in a conducive environment and that they have good welfare packages.

Nature of Work Environment: Foodaholic is a very friendly environment, all employees are treated as family, and flexible. It can be challenging but it helps all employees to be engage more and supports their growth.

Relationship to Rest of Industry: the e-commerce industry has really helped the delivery industry. As well as the food industry. The delivery business industry is a huge one and not one where demand is likely to die anytime soon. So, this business could continue to boom for a long time.

Incorporation of New Technology: Foodaholic is looking to incorporate more online payment options on the website and the phone application. As well as, using search engine optimized (SEO) to be able to pop out during searches for goods delivery businesses.

Growth/Profitability Goals: This business has a big room for growth since the number of people that shop online or buy via phones are increasing by the day. Therefore, it means that the demand for goods delivery service will continually increase. Foodaholic expects annual growth of ten percent for the next five years. The business will have a great gross margin by the second year and a modest net margin in its third year. By the time it is the fifth year, the business will have grown an enormous annual net profit.

Relationship to Community/Environment/Other Social Responsibility Goals: Ensure that Foodaholic customers are treated right.

Employees have fair growth opportunities at work and constantly trained.

Maintain a good reputation with customers and the restaurants we work with.

Other Personal/Management Goals: Using Foodaholic savings and sale stocks to generate capital Expand delivery services to different targe

CONSUMER

Family Stage: Adult (24).

Vacation Choices: a city vacation, trip to beaches, and resort vacations.

Television Shows Watched: Games (Football, Basketball, Superbowl), Trendy programs and shows (The Bachelor, Game of Thrown).

Favorite Websites: Shopping websites (ASOS, ZARA).

Hobbies/Sports/Other Entertainment: Basketball, go to concerts.

Publication Subscriptions: NY times.

Organizations/Affiliations: National association of Accountants.

Political Affiliation: Democratic

Type of Car Owned: Lexus nx 300.Other:

What is the current approximate size of your target market? Currently, the approximate size of my target market is between 35 to 40 percent. This is out of the current approximate figures of about 60 percent of people who order deliveries once a week. However, through sound marketing strategies and delivering high-quality food, I expect to attract new clients into making new orders and grow the target market even further.

What is the rate of growth of your target market? More and more people are becoming more technology savvy as days go by. They are adopting the use of mobile phones and computers and embracing the convenience they give on shopping online. This being so, new online shoppers are being recorded every day. Besides, the convenience of food being delivered at people’s doorsteps is drawing them to order online. The rate of growth of the target market is around twenty percent and this is expected to be more in the future.

What changes are occurring in the makeup of the market? The food delivery industry is experiencing changes in the makeup of the market. Previously, online food orders were being made by few individuals probably in a home setting, but the market is rapidly changing to incorporate many persons including huge gatherings. This has changed the market dynamics as even corporate meetings and occasions have joined in. Another change is that the older generation has also embraced the idea of buying food online and joined the market of the young people who are the majority consumers of online purchasing (Shang & Wu, 2017).

What changes in social values and concerns are affecting the product/service? One major social concern affecting this service is the quality of food being sold. People are concerned about its preparation, diet, and whether it is fit for human consumption. Another social change is the need to use environmentally friendly packaging of food items which have called for packaging diversification.

Description of competition and competitors likely to expand efforts and competitors potentially leaving the field:

The food delivery business is facing a lot of competition as there already exists financially strong firms that are offering tough competition. Competition however is good for both business and consumers as they get quality deliveries and businesses get to improve their operations and efficiency. Competitors who are likely to expand their efforts include Uber Eats and Grubhub. However, appealing this type of business is, some competitors such as Amazon and Postmates Inc are exiting the food delivery business (Shang & Wu, 2017).

Market Share Distribution:

The market share distribution in this industry is a little uneven because the market leader which is Grubhub has a market share of 34 percent and the closest competitor, Uber Eats, has 24 percent. The remaining 48 percent is shared unevenly among the other players though room for growth and gaining more market share and even gaining new customers from the leaders is a very achievable task given the prevailing conditions.

Competitive Positions:

The competitive positions include understanding the interests of customers and the age groups of the target clients. These two positions are key propellers because if you offer what the people want and you make inroads on the target age group, then the business would flourish.

Barriers to entry and potential future competitors:

There are no many barriers to entry, but the most common ones are cost, quality, and delivery modes. Cost and quality need to be addressed well such that deliveries are done effectively while maintaining the set margins and satisfying people’s needs. Future potential competitors are firms that will adopt the use of smartwatches and crypto food orders that will offer more convenience to those ordering foods.

Strategic Opportunities:

Strategic opportunities in this industry include embracing online payment options which make it more convenient for buyers and delivering food in recyclable containers as more people are embracing environmental conservation.

Reference

Shang, D., & Wu, W. (2017). Understanding mobile shopping consumers’ continuance

intention. Industrial Management Data Systems.

Industry Trends:

Food delivery business is a huge business that has seen a positive growth in the service industry, this is because more people now prefer to order online through their phones. It is easy and quick. Also, the food delivery business has allowed more businesses to penetrate their target market as food can now be delivered to these customers regardless of where they stay. Customers are willing to pay for this extra charge because it is more convenient to have it delivered. Another trend for the food delivery business is the trend of timed delivery. Customers no longer have to wait a long time to receive their food as then can receive it within a short time (up to 60-75 minutes). Delivery businesses that offer express delivery have also cropped up therefore raising the bars in the delivery industry. The main reason behind the spike in delivery business is the internet. It is now being used towards ensuring that innovative entrepreneurs reach out to customers. Websites and social media platforms are being used to lure customers and also create awareness about the business.

On the other hand, there are extreme external competition from load of new food-services concepts and an increase in health consciousness among consumers which works against the growth of the industry. In the face of these challenges, many players in the industry have performed really well, adjusting their menus and investing in advanced technology which over time has become trendy. In fact, sophisticated we-based ordering systems are responsible for boosting efficiency and improving profit margins in the food delivery industry.

Another trend in the food delivery industry is that despite the fact that foods and drinks are usually delivered in specially designed boxes or in delivery bags, with the aid of an automobile, motor scooter, or bicycle. Some leading food delivery companies have started perfecting plans to employ the use of drones to deliver food and drinks.

Lastly, local restaurants and food delivery companies have started teaming up with e-commerce companies to make ordering quicker and more precise. Some restaurants have embraced online ordering despite their lack of delivery systems, using it to manage pick-up orders or to take reservations.

Target Market:

When it comes to food and beverages, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who love the kind of foods, snacks and drinks that restaurants prepare and of course those who would want to try it out. Based on the market research, these are the groups of people we intend marketing our business to:

· Restaurants

· Students

· Tourist

· Sports men/women

· Children

· Households

· Businesspeople

· Everyone who resides in our target location

Competitive Environment, Strengths Relative to the Competition:

Our food delivery business has a wide range of restaurants that can meet the needs of various customers including vegetarians, vegans, etc. Also, our delivery drivers will have a Point of Sale (POS) machine for customers who do not have cash and didn’t pay in advance but intend to pay once the food have been delivered. Also, we hire only competent employees who not only have the experience but are also attuned to the vision of the company in becoming the best. They will be trained in customer care servicers so that they effectively communicate our business whenever they represent us to customers. We will meet the expectations of our customers and exceed it as well. Also, employees will be well taken care of, and their welfare package will be among the best within our category meaning that they will be more than willing to build the business with us and help deliver our set goals.

Risks:

Our main risk is food safety. Maintaining the right temperature as the food are being delivered. Also, how is the food being transported and the appropriate delivery bags and boxes.

Provide at least three in each SWOT category:

Strengths · Growing market and population within it · Strong market and consumer demographics · Hometown familiarity advantage · Wide range of restaurants	Weaknesses · Dependence on restaurants · Limit resources at start (Labor, Cars) · We are not the only food delivery service in the area
Opportunities · High growth market · Cooperation with other local restaurants · Expand within college campuses and other states · Expand on the delivery of goods and groceries as well	Threats · Potential competition entering · Shaky economy (Due to COVID) · Irresponsible drivers.

Website:

How will your website promote your products or services or add credibility to your business? What are the primary objectives of your website and selling your products and services?

The Foodaholic website will help promote the services by providing means by which customers can contact us and also make orders for their foods to be delivered. The website will also help promote our services by displaying samples of food offered by the restaurants subscribed in our system, therefore, acting as an evidence and persuasive tool for customers. It will indicate the range of products we deliver, and the restaurants involved. Therefore, the primary objective of the website is to provide more information to the target audience on the various food products they can order through our platform, the restaurants involved, and how to make orders and get their deliveries

SEO/SEM: Will you drive traffic to your website using wither paid or unpaid search engine marketing? If so, how?

Foodaholic will drive traffic to the website using search engine optimization (SEO) which is unpaid. This will be possible by having the most relevant content for specific keyword searches, therefore increasing the chances of earning a free spot in the search results. 

Email Newsletters: Will you connect with your customers through regular email communication? If so, how will you build the email list and what type of content will you use?

The Foodaholic Company will regularly communicate to the subscribers through email newsletters. The email list will entail all the customers subscribed to our company most specifically those who regularly consume our services. The content of the newsletters will generally entail any changes or updates made in our system and the links to our various social accounts. 

Social Media: Will you use social media? If so, what platforms and will you use paid advertisements?

Foodaholic will utilize various social media like Facebook, Instagram, YouTube, and Twitter due to the high use of these platforms in today’s society. The company will also use paid advertising to increase its reach to customers and as a promotion strategy. 

Other Online Advertising: Will you use paid advertising on other websites? If so, which ones?

Since Foodaholic Company will fully exploit social media and its paid advertising, I will not use paid advertising on other websites for now

Other Online Tactics: Will other resources be used (e.g., YouTube, podcast, etc.)

Foodaholic will regularly use both YouTube and podcast to advertise its services and to extend its reach to the target audience. 

How does your company’s management style fit with your corporate culture?

The corporate culture is how the business does its activities towards achieving its purpose and goal. The duties and activities of every member of the organization depend on and aim at achieving this culture (Resendes, 2020). Foodaholics management has displayed this by working and setting standards that are towards achieving their corporate culture like in its marketing. The decision it has on the marketing their products are one that will make them best in the market.

How do you develop a sense of teamwork among your employees?

Teamwork among the employees can be developed by first ensuring that the relationship between the workers is friendly and one to go by. Creating work groups is one way that Foodaholics Company will achieve teamwork. Letting the workers from similar sectors and departments to work on projects together by sharing ideas will build teamwork. This will only be possible if the relationship between all the workers is good. It is therefore a great idea to first have a good working environment. This way, the workers will find the opinion of their fellow work important.

What nonmonetary recognition do you provide?

One of the nonmonetary recognitions that Foodaholics offers for any employees whose performance has outshined others is awarding of promotions. These promotions come with benefits like good cars, better officers and chances like traveling (Resendes, 2020). Additionally, this company mentions their best performed workers the annual company magazine. This will make them feel recognized. Some also get the chance to be trained by the company in their field of specialization. This increases the skills they have in this sector.

Provide a flow chart for your organization.

Employees

Accountants

Financial Manager

Drivers

Logistics Manager

Human Resource

Sales and marketing officers

Customer Service Executive

Marketing Executive

CEO

References

Resendes, S. (2020, August 18). 31 Online Ordering Statistics Every Restaurateur Should Know in 2020. Retrieved October, 2020, from https://upserve.com/restaurant-insider/online-ordering-statistics/

CORPORATE CITIZENSHIP

Describe the ways you will ensure that your company:

Meeting the set-aside laws that need to be adhered to is an expectation. Some of those rules include paying taxes on time. To ensure that your company obeys the regulations, you can write them down to avoid forgetting or ignorance. Set aside some of your staff who will be personally responsible for attending to those laws (Windsor, 2017). To ensure that you treat the employees fairly and with respect, develop specific guidelines that will internally guide the workers. This will be in recruitment, compensation, promotion, and dismissal. Punish employees who mistreat others or have no respect.

Coming up with a culture on how to deal with clients and other stakeholders like suppliers is one way of maintaining them. The employees should be trained to treat all the clients and suppliers with respect. If they can't agree on specific issues, it is advised that they seek their superiors' help to avoid being on the wrong side (Windsor, 2017). Corporate social responsibility is a current trend that many companies are using to market themselves. It is for this company to help society by educating them or taking part in activities that are beneficial to them. Be keen not to pollute the environment, and if that is unavoidable, ensure that the waste is not harmful to the ground or the members.

ETHICS

How will your company handle issues such as:

Gifts to or from suppliers are aimed at enhancing the relationship the company has with its suppliers. Some suppliers will give assistance to retain the company as their client. This can be responded to with another gift that will indicate the company's willingness to trade with them (Purwanto et al., 2019). They should, therefore, be respectful gifts and done in good faith. Company property like telephones should not be used for personal use. Instead, this property should be limited to the company's activities to cut down on expenses and respect the company and employees. It is essential to determine our expense account to only that which cannot be avoided. The main aim of any business is to make profits. If the expenses outdo the income, the organization can make little profits or a loss.

References

Windsor, D. (2017). Corporate citizenship: Evolution and interpretation. In Perspectives on corporate citizenship (pp. 39-52). Routledge.

Purwanto, R. M., Mukharrom, T., Zhilyakov, D. I., Pamuji, E., & Shankar, K. (2019). Study the importance of business ethics and ethical marketing in the digital era. Journal of Critical Reviews, 6(5), 150-154.