Business Plan. After putting a lot of thought into what kind of business we would set up we came up with a unique proposal of choosing a milkshake bar with a twist.

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Introduction

The purpose of the unit for this year is to create our own business plan. We could either work individually or in a group. The reason for making and managing our own business is to show us how companies manage their finances and other resources. The business has put a lot of thought into what kind of trade it wanted to create as there are many factors that would have to come into consideration. We wanted to design a business that would be unique and have something different to offer.

When creating the business we decided it needed to have a unique selling point so that customers would choose us rather than our competitors. The aims and objectives that have been set for the business need to be met. For example we need to think about how much money would need to come in each month to keep the business standing, and then we would need to reach that target. One of the main goals would be to expand the business so that it would become successful. We need to decide what form of ownership we would want for the business, and take into consideration what the good points and bad points would be for the chosen ownership. If we want to create a business we would need quite a large amount of money to help us start off then we would have to think about stakeholders and what input that they would have in the business, also how they would affect it. With a lot of research we can find out what would be the right choice in what business we choose to create.

We are researching and investigating the setting up of a small business, which provides a service to the local community. We need to come up with a realistic idea to achieve a successful business.

The business activities need to be managed carefully such as measuring their financial performance and health. The resources need to be considered in terms of quality control, quality assurance and total quality management. The understanding and importance of profitability in a business, the difference between assets, liabilities, expenses and revenues.

The business will have to consider how spreadsheets are used for cash flow and profit forecasting, budgeting and break-even analysis. We need to know how businesses use specialist software, how they use the internet as a source of information and email for communication and e-commerce as a method of trading. For the business we need to appreciate the main legal and corporate issues associated with using ICT in a business environment, such as data protection, confidentiality and health and safety factors.

However before starting my business I need to carry out a self-analysis in order to know my strengths and weaknesses.

I need to ask myself questions such as:

  • Am I realistic about my capabilities?
  • Can I accept the risks for my business?
  • Am I enthusiastic?
  • Can I learn from my mistakes?
  • What are my strengths and weaknesses?
  • What are the risks?
  • Can I make careful decisions?

These types of questions will give me a clearer understanding of my position when starting up a business and how I can improve to make myself a more determined person.

Business ideas

Sandwiches on wheels: The idea is to sell sandwiches in a specialized van with a built in kitchen in the Vale Do Lobo area. By doing this people would eat a lot healthier as there are many fast food restaurants around and people are becoming overweight by the overwhelming amounts of food readily available to us. I am interested in this idea as there are not any sandwich vans around in the area and I think it would be a good business to create. As healthier advertisements are becoming more popular, people are becoming aware of the dangers of being overweight. The only competition I have is that there are sandwich bars around which could possibly offer more than this business as they are all bigger sandwich bars.

Golf Shop: The idea is to open a golf shop which sells a wide variety of golfing equipment at a cheap price. Most golf shops around do not sell a good choice of golf gear so I would sell everything in this business from golf clubs to golf buggies. The only problem is that there are many golf shops around in the area and even though my business would offer more, it may fail which means that I would lose money.

Portuguese Style Fish and Chip shop: This idea is to create an English fish and chip shop but in a Portuguese style. It would sell English food but with Portuguese ingredients. I think this business would work as there is nothing like it in the area but the only dilemma is that the Portuguese may not like it as it is not what they are familiar with so this could make this business fail.

A milkshake bar: I came up with this idea as there are no milkshake bars in the area. The only places that sell milkshakes are restaurants. I thought this was a good business to create as Portugal is a hot country so they are more likely to be bought than in England for example. I thought that if I set up in a good location, such as the beach then this business could really work. I didn’t see any downsides in creating this business.

-After putting a lot of thought into what kind of business we would set up we came up with a unique proposal of choosing a milkshake bar with a twist. The milkshake business is unique in its market and the thing that makes it different is that the customers can select their favourite from a wide variety of chocolate bars, sweets, cereals, biscuits and toppings accustomed to their individual likes and dislikes. We would like the customer to walk into the bar, choose as much or as little ingredients as they would like and then for us to make it into a milkshake. After the product has been created, the customer can select from a variety of toppings such as syrup, extra chocolate, Oreos, etc.

The Name of the Business

Any person or company uses a name to represent a business. It gives the business its own identification. So when choosing the name I had to think about whether the name gives out a good image to my target market. I also had to think about whether my target market would respond to the name and I had to justify how they may observe it. I needed the name of my business short and catchy so that it is appealing to the younger generation. A business name that not only symbolizes the business but makes it a high popularity as this name has to stay the same for the whole of the business venture. Some business may relate their name to their profession as this then gives a clear, instant idea of what the business actually does for example ‘AC electrical services’ this then prevents any misunderstandings and gives an instant communication with his/hers customers because the name is telling us exactly what the profession is.

Business idea names:

  • Milkshake heaven
  • Shake-About
  • Wacky Milkshakes
  • Shaking

After a lot of thought I came to the conclusion of naming my milkshake company, Shake-About. I decided on this name as I believe that it is catchy and symbolizes the service given to the public. I also believe that the name is neither complicated nor hard to remember so it will appeal to my target market, which is teenagers.

I have done a lot of research into other milkshake companies to confirm that I am not copywriting another businesses name as this would be breaking the law and I could be at risk of being sued.

Business plan

Choosing the right business

After a lot of research into what kind of business I wanted to design I came to the conclusion that I wanted to go into the catering business. The reason I wanted to go into this sort of business was mainly because I thought it could be an interesting business to get involved into and also I have had past experience in the sector. It will be a seasonal business meaning in summer we will have more business than in winter.

Innovation and enterprise

Innovation and enterprise is important in this business because if it wasn’t unique then it wouldn’t stand out from amongst the competitors and so our market share would remain at a standstill. Our idea will shine out amongst the competition and so we hope it will bring us more customers. We keep enterprising in mind, and therefore we are always thinking of new ideas to improve it, such as setting up a mobile business from a customized van like an ice cream van. This van will circle round the city to local hang-out spots like parks and playgrounds. Using this initiative, we will be able to sell our products to a wider audience as it will be easier for us to go to them, rather than them coming to us. Extra costs will have to be added for fuel, etc.

Choosing the right form of ownership

As an entrepreneur I have chosen to work within a partnership as once the business has expanded I would need more people to help me keep up with the work loads. Also I felt that having another person in my business would give me diversity and would be good to have another person’s input rather than just my own. Also if I had a day where I am not able to come into work for example I was on holiday or ill I would still be able to keep my business going as I have another person to help me out.

Risks and advantages of the business

We have calculated and weighed up the risks of the business as a number of small businesses start up and then fail so we are prepared if that situation arises. We are very hopeful about this business as it is a one of a kind on the Algarve; with the right mind set we will be able to make this a successful reality. We believe our customers will love it as the temperature in Portugal can get extremely high therefore a nice milkshake on a warm day will appeal to many people.

Design

We will focus much energy on the design of the milkshake bar, we want to create something that will be eye-catching and so it will look appealing when customers walk past it. The tables and chairs will be decorated colourful, to further add style to the area. We aim to make every customer who enters the room feel comfortable. We want to encourage them to want to stay in a relaxed, friendly and nice environment.

Advice

We obtained a lot of advice when thinking of setting up this business, from all different sources such as websites, business links, speaking with solicitors, banks, trade associations, accountants and estate agents, DTI and Advisory Conciliation and Arbitration Service (ACAS). We communicated with accountants to get advice about business finances, taxes, employee contributions etc, banks to find out about loans and business accounts and finally solicitors to talk about legal advice such as ownership, premises, contract, leases etc.

Location

The business needs to be in the right location where it will attract maximum customers and tourists. Therefore, we need to have a look round to see what places are available and good for the business. We need to look out for an acceptably sized lot, one that has the right shape and feel to it and one in a perfect location. When we spoke to an estate agent they told us we need to sell our product in a busy built up location which will give us more potential to attract as many customers as possible. The building will need to have kitchen facilities where we can produce the milkshakes.

Competition

We have done a lot of research into who our competitors are. We found out that some local restaurants sell milkshakes. I think that we will have more of a success with our customers than our competitors as we have more to offer. We are offering a completely new service.

Mission statement

A mission statement defines the purpose of a business. It tells the customers what the business stands for; why I have decided to do this and what I intend to do for them. I have set a mission statement to explain the awareness of what my business intends to do.

To give myself an idea of what a mission statement is, I researched into other company’s statements to see what they had and how they use it to communicate with their customers.

Google:  ‘To organize the worlds’ information and make it universally accessible and useful’

EBay: ‘To provide a global trading platform where anyone can practically trade anything’

Virgin Atlantic: ‘Safety, security and consistent delivery of the basics are the foundation of everything we do’

BBC:  ‘To enrich people’s live with programs and services that inform, educate and entertain’

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Apple: ‘Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings’

After researching into some of the worlds most successful businesses mission statements, I now have a clearer understanding of how I can create my own.

My Mission Statement

Our milkshake, our mission:

-“A happy customer is a returning customer. We aim to satisfy our customers with the products and service offered and as a company we will ensure that our customers receive a prompt, friendly and reliable service.

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