Table of ContentsIntroduction...........................................................................................................................................3

Task1- Research and Report..................................................................................................................4

a) Different types of business organisations that you could set up and an analysis of the potential benefits, limitations and risks associated with each (AC 1.1).............................................4

b) An analysis of the sources of finance for each type of business organisation (AC1.2) analysed in (a)......................................................................................................................................................5

c) An evaluation of the legal considerations relevant to planning a business venture (AC 1.3).........6

d) An analysis of the market conditions that will impact on setting up your new business venture (AC 2.1)..............................................................................................................................................7

Task 2 Business Planning.....................................................................................................................10

a) The organisation..........................................................................................................................10

You will need to develop the mission, vision, aims and objectives of the business (AC 3.1)..........10

Propose business structures and systems that will deliver the business aims and objectives.........11

b) The product.................................................................................................................................12

Analyse gaps in the market for potential products (AC 2.2)............................................................12

Analyse target markets for your business venture (AC 2.3).............................................................12

Interpret the external factors and market conditions you analysed in your report to justify the need for your product (AC 3.2).......................................................................................................13

Specify your business products to meet the needs of the target market (AC 3.3)..........................14

c) Forecasts......................................................................................................................................15

Produce business planning forecasts based on targets (AC 3.5)......................................................15

Identify your business responses if these targets are not met (AC 3.6)..........................................16

Task 3 Your Pitch.................................................................................................................................17

Pitch for backer’s funding of your business proposal (AC 4.1).........................................................17

Provide him with the documentation you have produced (AC 4.2) to support your pitch i.e. your report and business plan, including forecasts...................................................................................17

Conclusion...........................................................................................................................................21

References...........................................................................................................................................22

2

IntroductionThe report comprises of a food and beverage industry business venture that is named as Brew

which comprises of Café, Bistro and Coffeehouse. It is a sole proprietorship business venture

that is located in south-east London at Greenwich. There is a detailed business plan with

market segmentation, business funding and response as well as the financial and sales

forecast attested with it.

3

Task1- Research and Report

a) Different types of business organisations that you could set up and an analysis of the potential benefits, limitations and risks associated with each (AC 1.1)

When a person plans to organise and set up a new business, it is the main outline and

arrangement of ideas that are put up so as to form a proper business venture. There are

various types of business organisations that function which are:

1. Sole proprietorships- There are many people who plan and emerge with a new

business venture as sole traders who simply work by their own, either from home or

from the place they wish to begin their business with. They are the sole benefiters of

the revenue generated from the business but there isn’t anyone to help or to encourage

them in sole proprietorship (Wright, 2014). Potential risk is that with the death of the

owner, the business would die; finance issues, unlimited liability, bankruptcy etc. and

potential limitations are that business would take time to grow and build goodwill as

well.

2. Franchise- This kind of business is the one where the owner tries to market its

business so that it can progression of the business chain can be developed and the

person agreeing to run the franchise needs to make a payment to run that franchise

that fortifies the resources and equipment’s of the business. Potential risks are to

sustain the business image which might lead to ugly consequences in case the

reputation of business is hampered; Potential limitations are that the business can face

finance issues and operational management issues as well(Bryman, et.al, 2015)..

Advantages & Disadvantages:

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Sole proprietorship- The business is comparatively easy and doesn’t involve comprehensive

tasks. The legal formalities that need to be done are just the certification of the business along

with license and permits. Individuality and authority is another advantage of sole

proprietorship and that is the main reason why people choose this business along with sole

profit, shelter income, single tax etc. (Weske, 2012).

Disadvantages of sole proprietorship are that there are limited resources and

the sole proprietor doesn’t have financial support or backing. The economic liability of the

sole proprietor is not shared and is unlimited which makes it difficult. There is no legacy

which is taken forward and if the sole proprietor dies, even the business has no future.

There are many advantages and disadvantages of the aforementioned business types; they

directly impact the business venture and must be considered before planning the business

venture.

However, the business venture is of a Café/Bistro/Coffeehouse that is named Brew which is

sole proprietorship business organisation that is going to be operated with the help of this

business venture.

b) An analysis of the sources of finance for each type of business organisation (AC1.2) analysed in (a)To hold sufficient funds at every stage of the business venture is very important for the

development and progression of the business. The sources of finance for the business

organisations are many which are listed below:

The sources of finances for sole proprietorship are-

1. Small business administration that comprises of many loan procedures which can

help the business to succeed and prosper. This administration doesn’t funds the

loans but helps in the lending procedure through loan programs which include the

funding of the resources in the business like for Brew, the administration can

5

finance company expenditures like building renovations, working capital,

leasehold improvements and furniture (Peirson, et.al, 2014).

2. Private investors- There are many private businesses which back and support the

sole proprietorship businesses. These private investors offer equipment leases,

loan, capital and various other credit lines so as to support them (Gartner, et.al,

2012). There are many other people or business partners who can fund the

proprietors that have cash but they don’t have a desire to pursue or to actively take

part in the business.

3. Angel Investors- These sources are the people who offer private equity to the sole

proprietors so as to support new business ventures. The proprietors just have to

show their business plan to these investors, and after proper observation,

screening and review these angel investors fund the sole proprietors.

4. Business grants- The local government offers certain grants to the sole proprietors.

These grants are offered which assist these proprietors to make a grip in the

financial and monetary matters (Brigham, et.al, 2013).

c) An evaluation of the legal considerations relevant to planning a business venture (AC 1.3)While planning to start up this Café/Bistro/Coffeehouse, it is very important to consider the

legal considerations as they equally impact the business. The sole trader legal structure in this

business has to consider various legal issues that are:

1. Licence- To start this Café/Bistro/Coffeehouse, there is a licence which is needed to

begin with the venture as it also deals with food and drinks which definitely

necessitate a licence. Registration must be done under the health and safety act so as

to assure that the food and drinks which are served to the customers are free of any

such hazards (Marcum, et.al, 2011).

6

2. Health and safety- There are an assortment of accountabilities with respect to health

and safety. This is because there are thousands of customers who would intake the

drinks and consumes the food provided by the venture so a risk assessment plan must

also be carried out.

3. Business insurance- It being a Café/Bistro/Coffeehouse, the staff would be there so

liability insurance of the employers is another mandatory legal necessity. If the

venture is not secured, there would be risks that would be involved with it (Bain, et.al,

2013).

4. VAT registration- If the business yearly revenue outdoes the onset that is listed which

is £81,000 for the year of 2014 to 2015; the business is accountable to become VAT

registered (Steingold, 2015).

d) An analysis of the market conditions that will impact on setting up your new business venture (AC 2.1)The Café/Bistro/Coffeehouse comes under the restaurant and hospitality industry which has

emerged as a thriving sector this year. But since the second half of the year, the industry

hasn’t performed as per the expectations.

7

Source: http://www.restaurant.org/Restaurant/media/Restaurant/SiteImages/News%20and

%20Research/RPI/Restaurant-Performance-Index-Oct-2015.jpg

The sector has emerged being successful and has grown since two decades, till now. However

there are some market conditions that would impact the business which are-

The economic sequence considerably impacts when people plan to eat or dine outside

or simply drink coffee at cafes and coffeehouses. When the economy is good then

people visit these places more and when the economy isn’t doing well, there is a

decline in the visits by the customers (Sebastiani, et.al, 2014).

The consumer expenditure quantity as well as fuel prices are two of the factors which

impact the Café/Bistro/Coffeehouse market.

Another aspect is the competitor analysis which is conducted through a SWOT

competitor analysis wherein the SWOT is performed so as to analyse and gauge the

competitors in the emerging market which would help the business venture to survive

8

Source: http://driveyoursuccess.typepad.com/.a/6a0120a80567b0970b017d4079a500970c-pi

Task 2 Business Planning

a) The organisation

You will need to develop the mission, vision, aims and objectives of the business (AC 3.1)Brew is a full-fledged Café/Bistro/Coffeehouse which is located in Greenwich, London.

Brew is the destination which locals, tourists and the people need around the city. It

comprises of fascinating features along with books so that people can read along with sipping

coffee, there is a separate area to dine in the Bistro which has magnificent paintings and

design art as well.

Mission-

9

Brew is a business venture which aims at taking the full-fledged experience to sip a coffee,

read books; spend leisure time, dine at the Bistro or have snacks at the Café and it provides a

wonderful experience. It is a destination which would be accredited by the locals as well as

the tourists and business persons. The mission of Brew is also to provide a complete

experience of drinks, snacks and food at one place which is designed as per the needs of the

contemporary age.

The café provides a sophisticated feel which is casual yet it is unique. Bistro provides the

pleasant feel and is sanitized as well. And the coffeehouse experience for the Greenwich

locals, and the people around London; also for the travellers and tourists are something that

they are going to cherish for a lifetime. It isn’t priced very high and is within the means of

people. The menu is also organised and made as per the needs of today’s customers.

Vision

The vision of this business venture Brew is to top the chain of Café/Bistro/Coffeehouses in

Greenwich and around London within a year and expand its chain and convert it into a

franchise after one year, with accreditation and success.

Objectives-

The objectives of Brew are to-

To meet the needs of the target customers and to aim at sales of at least 1 million that

successfully develop and grow the business venture

To target at customers and sustain net profit of at least 5-10% at the end of six months

and to try and increase it by the end of this year

To promote and nurture regular sales of the month to keep increasing with each

passing month to make it at least 120,000 and to witness a significant hike by the end

of first year.

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Propose business structures and systems that will deliver the business aims and objectivesBrew is a sole proprietorship with communication and customer service structure which

comprises of a sole owner who would employ veteran staff that helps in running the business

smoothly. The keys which would help in achieving the aims and objectives are-

1. Superior quality- the quality of the beverages, drinks, food and snacks has to be

excellent so as to attract more customers and build awareness and goodwill of the

business venture (Barrow, et.al, 2012)

2. Marketing- the audience has to be targeted so that the people in and around London

can be aware of Brew which would open shortly

3. Service- the staff has to be well-trained and developed to provide a service which is

noteworthy and laudable

4. Management- There has to be a hold on the cost of the products served and the entire

experience has to be noteworthy so as to motivate and encourage the staff as well as

attract the customers for a word-of-mouth credibility.

b) The product

Analyse gaps in the market for potential products (AC 2.2)Nowadays, the emerging trends in the sector are many which might impact the business

venture as the main purpose of the business is to meet the needs and requirements of the

customers. Therefore, it is essential to cope up with the emerging trends that are-

1. Drinks, coffee and dishes served at Café/Bistro/Coffeehouses are attested with

advertising and promotional techniques (Barringer, 2012).

2. There is so much more variety of newer beverages and drinks and businesses are

facing a hard time to cope with it

3. Majorly, customers are becoming health conscious which is making them stick to

health conscious menus and diets. Therefore, the Café/Bistro/Coffeehouses are trying

11

their level best in the emerging markets to come up with healthy drinks and food so

that they can meet the requirements of the customers.

4. Also, the ambience of the Café/Bistro/Coffeehouses are getting better and enhanced

with music, visually attractive atmosphere, hospitable service and all-in-all a

memorable experience.

Analyse target markets for your business venture (AC 2.3)The market segmentation is also an important thing which impacts the business-

Example of the target market for BREW

Source: http://www.bplans.com/ethnic_food_restaurant_business_plan/images/

550x318x3e805368b2884a6e8cc94f8ec2bbe6f6.png.pagespeed.ic.Ak1H1BBmTX.png

The market segmentation for Brew so as to target the prospective audience to boost sales is:

1. Business People

2. Couples in Greenwich

3. Tourists visiting Greenwich and London

4. Customers, Locals

5. Singles

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6. Teenagers

Interpret the external factors and market conditions you analysed in your report to justify the need for your product (AC 3.2)The external factors and market conditions are-

External Factors Internal Factors

Opportunities

Full-fledged experience would give

an opportunity to Brew for boosting

the sales and profit

Strengths

Full-fledged experience

Contemporary infrastructure

Well-trained and veteran staff

Hospitable experience

Threats

Many more coffeehouses, bistro and

cafes around Greenwich than can

pose a threat to this new business

venture

Weakness

No experience in the past to run this

type of venture

not a broad market segmentation

PEST analysis is essentially an indicative factor to gauge the impact on the business venture-

13

Source: http://driveyoursuccess.typepad.com/.a/6a0120a80567b0970b01901d1ea7cb970b-pi

Specify your business products to meet the needs of the target market (AC 3.3)Brew is equipped to meet the needs of the customers and the segmented target market.

The café provides a sophisticated feel which is casual yet it is unique. Bistro provides the

pleasant feel and is sanitized as well. And the coffeehouse experience for the Greenwich

locals, and the people around London; also for the travellers and tourists are something that

they are going to cherish for a lifetime. It isn’t priced very high and is within the means of

people. The menu is also organised and made as per the needs of today’s customers (Allen,

2015).

The purpose of Brew is perhaps, to give such an experience to the consumers that they don’t

feel like going to any other competitive Café/Bistro/Restaurant. Also, the strength of this

business venture is that it comprises of the three main things which any customer would want

and the customers don’t have to loiter around places and search for drinks, coffee or snacks

because Brew provides all these things into one business venture. The pricing is set which is

not very expensive and is affordable as well (Van Auken, 2015).

14

c) Forecasts

Produce business planning forecasts based on targets (AC 3.5)Start-up Necessities

Legal $2000

Brochures $500

Consultants $1500

License and Tax $12000

Employee recruitment and payroll $27000

Accounting + Brew Opening expenses $5000

Miscellaneous $2000

Total Start-up Necessity Expenses $50000

Start-up Assets Necessities

Money required $100000

Inventory $50000

Total Start-up Assets $150000

Total requirements $200000

Investor backing $100000

Borrowing $50000

Loss at Start-up $50000

Total Funding $250000

Brew is a business venture which aims at taking the full-fledged experience to sip a coffee,

read books; spend leisure time, dine at the Bistro or have snacks at the Café and it provides a

wonderful experience. It is a destination which would be accredited by the locals as well as

the tourists and business persons (Chesbrough, 2013). Sales forecast is to increase the sale

15

from $1million which we are aspiring to achieve at the end of the year to increase with 5-

10% hike in the next year.

Identify your business responses if these targets are not met (AC 3.6)If the targets are not met then Brew can face various issues like Closure of the venture,

insolvency and becoming bankrupt, emergence of new markets out shadowing it as well.

Therefore, the business venture can come up with-

Risk assessment and risk management tactics so as to cope up with such issues

Strategic management and use of contingency funds

Human resource management programs

Cutting short of inventory and expenses so as to meet the business response in a

positive manner (Glackin, 2013)

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Task 3 Your Pitch

Pitch for backer’s funding of your business proposal (AC 4.1)

Provide him with the documentation you have produced (AC 4.2) to support your pitch i.e. your report and business plan, including forecastsBREW (Where quality and quintessence reigns supreme)

Benefit line- It is a business venture that comprises of a Café, Bistro and Coffeehouse

experience for the locals in Greenwich and around London, for business people,

singles/couples, teenagers and various tourists who visit the city as well.

Problem being addressed- There is an immediate need of this kind of a business venture

which comprises of all the three main things Café, Bistro and Coffeehouse which the

customers want and require, all at one place without loitering around from place to place.

Insights- The café provides a sophisticated feel which is casual yet it is unique. Bistro

provides the pleasant feel and is sanitized as well. And the coffeehouse experience for the

Greenwich locals, and the people around London; also for the travellers and tourists are

something that they are going to cherish for a lifetime. It isn’t priced very high and is within

the means of people. The menu is also organised and made as per the needs of today’s

customers (Klotz, et.al, 2014).

SWOT-

Opportunities

Full-fledged experience would give

an opportunity to Brew for boosting

the sales and profit

Strengths

Full-fledged experience

Contemporary infrastructure

Well-trained and veteran staff

Hospitable experience

Threats

Many more coffeehouses, bistro and

Weakness

No experience in the past to run this

17

cafes around Greenwich than can

pose a threat to this new business

venture

type of venture

not a broad market segmentation

Proposition- Brew is a business venture which aims at taking the full-fledged experience to

sip a coffee, read books; spend leisure time, dine at the Bistro or have snacks at the Café and

it provides a wonderful experience. It is a destination which would be accredited by the locals

as well as the tourists and business persons.

Working- Brew comprises of a communication and customer service structure. It would

encase proper training and development practices.

Source: http://image.slidesharecdn.com/restaurantproject-121124083735-phpapp02/95/

restaurant-project-5-638.jpg?cb=1353746294

The objectives of Brew are to-

To meet the needs of the target customers and to aim at sales of at least 1 million that

successfully develop and grow the business venture

18

To target at customers and sustain net profit of at least 5-10% at the end of six months

and to try and increase it by the end of this year

To promote and nurture regular sales of the month to keep increasing with each

passing month to make it at least 120,000 and to witness a significant hike by the end

of first year.

Business systems-

Risk assessment and risk management tactics so as to cope up with such issues

Strategic management and use of contingency funds

Human resource management programs

Cutting short of inventory and expenses so as to meet the business response in a

positive manner

Forecasts-

Start-up Necessities

Legal $2000

Brochures $500

Consultants $1500

License and Tax $12000

Employee recruitment and payroll $27000

Accounting + Brew Opening expenses $5000

Miscellaneous $2000

Total Start-up Necessity Expenses $50000

Start-up Assets Necessities

Money required $100000

Inventory $50000

Total Start-up Assets $150000

Total requirements $200000

19

Investor backing $100000

Borrowing $50000

Loss at Start-up $50000

Total Funding $250000

Sales forecast is to increase the sale from $1million which we are aspiring to achieve at the

end of the year to increase with 5-10% hike in the next year (Hatten, 2015).

20

ConclusionThis business venture is planned and structured for BREW which is a Café, Bistro and

Coffeehouse altogether providing an enriching experience. It is located in Greenwich, south-

east London where there are many travellers, the locals and business people are addicted to

such quality food, snacks and coffee and BREW provides all of it. The report comprises of

the detailed business plan, financial forecasts and details that would be required to start a new

business venture.

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