This report is related with entrepreneurship. In this report, different factors that are useful in making an entrepreneur successful will be discussed. Entrepreneurship is considered to be an important procedure, related with designing, initiating and operating a new business concern (Deakins and Freel, 2009). It begins as a small business and then becomes successful with a passage of time. Huge risk is involved in the entrepreneurship business. There are individual that have business minds, they get the maximum benefit out of business opportunities and start their own business. Usually, an entrepreneur is an individual who organizes and manages any venture and faces different types of risks. He/she is considered to be an innovator that comes up with new business ideas. Entrepreneurs can run small, medium as well as large businesses. In this report, being an entrepreneur, a new business will be launched. A complete business plan for new business venture is included in this report, and it will be useful in starting up and securing funds from investors.

 

 

1. Background of entrepreneurship and business concept

As an entrepreneur, I have worked on different types of businesses. I have a keen interest in business and able to see business opportunities. In past 5 years, I have started different types of small scale businesses including bakery, wine shop, tuck shop as well as flower shop. The businesses are running effectively and now fast food sector will be focused. Any business can run and become successful if the owner is committed, devoted and passionate about it. The business selected by entrepreneur is fast food business. The fast food industry is getting importance in UK market. In the view of Lisa (2013), the changes in the social trends have given birth to different opportunities for restaurant business. Fast food restaurant will be opened by entrepreneur in famous city of UK, named London. This place is selected by entrepreneur because of high customer base. The fast food business will be a new addition in the fast food business in UK. The aim of new business will be to provide healthy food to the customers by focusing on healthy ways of manufacturing. The business will be launched at a small scale and with the passage of time, products will be increased. The restaurant will be opened in a small building and free home delivery services will also be offered. The name of restaurant will be “Yum Spot”.

 

 

Vision statement of Yum Spot:

“To become major player in fast food industry by improving people’s health”

 

Mission statement

“To provide yummy, healthy and safe food to customers”

 

 

Objectives of Yum Spot:

The objectives of Yum Spot are:

• To understand the customer needs for taste
• To provide best quality of food and services to customers
• To grow small scaled business into big business
• To earn huge profits by fulfilling the needs of customers
• To build a strong organizational culture

Size of business                               

Yum Spot will be a small scale business. It will be run by a CEO, financial manager, HR manager as well as marketing and production manager, along with employees (cooks, chefs, helpers, sweepers and security guards).

3. Assessment of product, service, industry, market, organizational and financial feasibility

 

1. Product assessment

 

Products offered

Different types of products will be offered by Yum Spot. All of the products are included in fast food. The offered products will be:

• Burgers
• Chicken wings
• French fries
• Cold drinks
• Coffees
• Ice creams
• Pizza

The above mentioned products will be highly useful to attract customers. Those customers will be attracted by Yum Spot that do not want to cook food at home and like to eat readymade food.

Industry analysis

 

The fast food industry in UK is highly developed. There are different types of factors that will affect the working of Yum Spot in UK. These factors will be analyzed with the help of PEST analysis. The PEST analysis is as under:

Political factors

Yum Spot will have to comply with different types of political requirements in UK. As per Trienekens and Zuurbier (2008) the rules and regulations related with hygiene, safety and quality are different in different countries and can have an impact on the overall quality of products. In UK, fast food businesses are responsible for healthy eating of customers and that is why, companies are writing calorie information on their goods (BBC, 2011). Yum Spot will consider these factors for making business strategies.

Economic

As per The Economist (2010), the amount of money spent on fast food has increased because such kind of food is easily available as well as cheap. This indicates that there is a scope and potential in fast food industry of UK and Yum Spot will definitely become successful in the market.

Social

The consumer behavior is changing because of their increasing awareness. As per BBC (2011), the awareness of customers about healthy lifestyle is increasing, due to which, fast-food companies are making healthy products. Yum Spot will consider this factor and provide healthy and low calorie products. According to The Times (2010), the fast food industry is highly criticized for including toys in the children meal. Such factors can impact the working of Yum Spot in UK market.

Technological

Technology is improving and lot of technological advancements is observed from past many years. The customers are becoming familiar with different types of applications and technological systems.  Business companies including fast food businesses are using different types of technologies. Social media is getting importance and companies are interacting with customers and marketing their products at Facebook, twitter, YouTube and many other social websites. As per CNBC (2012), the Facebook page of McDonalds is 9^th most like brand. Yum Spot can also use social media to get engaged with the customers. The marketing manager will make Facebook page to interact with customers and to get online orders for home deliveries. As consumer familiarity with new technology increases, fast-food firms are using channels such as social media websites to engage with their customers.

 

Competitor’s analysis

There are wide number of businesses in UK that are busy in producing and selling fast food products. The major players that will act as competitors of Yum Spot include McDonalds, KFC, Burger King, Pizza Hut as well as Domino’s Pizza and Subway. These fast food companies have huge market shares and customer base in UK. Yum Spot will have to compete against highly developed brands and it will be quite difficult for it to operate in highly competitive market environment.

Organizational structure

The organizational structure of Yum Spot will be simple. This is a small scale business thus will be comprised of one manger each from every department. The departments include marketing, finance, HR and operations. Furthermore, 5 waiters, 5 cooks, 2 sweepers and 1 security guard will be included.

 

 

Financial feasibility

The total amount that will be invested by entrepreneur for start-up of Yum Spot is $500,000. This amount will be used to meet different types of expenditures. The forecasted expenditures that will incur one time are as under:

1. Rent of building for 3 years = $20,000

2. Registration of Yum Spot = $ 5000

3. Production equipment = $ 10,000

4. Furniture and decoration = $ 15000

5. VAT or value added tax = $ 6500

6. Painting, fixture and fitting = $ 4000

 

Expenses throughout three years:

Expenses	Year 1	Year 2	Year 3
Administrative	$ 10,000	$12000	$13000
Salaries	$20,000	$22,000	$24,000
Depreciation	$2000	$2200	$2400
Bills (electricity, telephone, gas)	$8000	$9000	$10,000
Total	$40,000	$45,200	$49,400

 

Revenue in 3 years

	Year 1	Year 2	Year 3
Forecasted revenue	$50,000	$60,000	$70,000
Expenses	$40,000	$45,200	$49,400
Balance	$10,000	$14,800	$20,600

 

The table indicates that Yum Spot will work well and earn profit for the owner. With the passage of time, Yum Spot will become highly profitable.

 

 

 

 

 

 

4. Key components of the proposed business model canvas in relation to Yum Spot

 

The business model canvas is considered to be highly useful technique that is used for the documentation of new or existing businesses Osterwalder and Pigneur, (2010). There are nine blocks in the business canvas model and each of them explains about factors that are important for the business concern. Business canvas model is made for “Yum Spot”. This model will explain about the useful resources, business partners, customers, channels, revenue stream as well as cost structures, major activities, customer relationships and value propositions for Yum Spot. All of the useful components are discussed in the model below:

Key partners   Designers Builders Architectures Suppliers	Key activities marketing great cooking dedicated serving cleaning good customer service bright color schemes promotion	Value proposition Easily accessible  High quality food Hygienic environment Wide range of products Best quality service		Customer relationships Greeting Online service Quick delivery of food Free home delivery Direct sales Discounts Personalized products (different flavors) Personal contacts Direct mailing Feedback	Customer segments youngsters children office employees students
	Key resources Infrastructure Utensils Set up(tables, chairs, decorating items) Human resource Finance Marketing staff Employees Social media Referrals Website			Channels Official website Social media(Facebook page, Twitter page, Instagram) Flyers Emails Advertisement (Newspaper and magazine ad)
Cost structure Marketing cost Salaries Bills Production expenses Selling expenses Cleaning Building rent Telephone bills Electricity bills Hiring expenses Advertisement expenses			Revenue stream Cash sales Online sales (home delivery orders)

 

 

5. HR Strategy for Yum Spot

 

Effective human resource department is considered to be an important factor in success of any business. In restaurant business, HR plays different types of roles and functions. Likewise, the HR manager of Yum Spot will have to make an effective HR strategy to become successful in the market. The roles that will be played by HR manager of Yum Spot are as under:

Recruitment and selection

HR's essential function and duties include selection and recruitment of the most suitable employees Boxall and Steeneveld, (1999). The HR manager of Yum Spot will select the most suitable candidates for different types of job. He will be making the job descriptions, giving advertisement about the vacant job posts, conducting interviews and selecting the pay scale. HR manager will recruit cooks, cleaners, receptionists, waiters as well as operations and production manager for Yum Spot. The selection and recruitment will be done on the basis of KSAs.

On-Boarding programs and orientation

HR manager of Yum Spot will develop suitable orientation and on-boarding programs for the newly hired people. The objective of on-boarding orientation and programs is to make new employees informed about restaurant policies, environment as well as rules and standards Boxall and Purcell, (2011).  Different factors will be covered in the orientation, including customer service timing, plate presentation along with preparation and cooking of food.

 

HR Training

Every person working in an organization must be trained about his/her roles and duties Bamberger et al., (2014). The employees hired by Yum Spot will be given training about their roles. Training about performance issues, workplace concerns as well as employee relations will be given by HR manager of Yum Spot. Cooks will be trained for preparing different products, offered by Yum Spot. Waiters will be trained about serving and ordering process. Likewise, the marketing manager will be trained about different advertisement and marketing tools or techniques. Staff members of Yum Spot will also be given information about hygienic factors. They will be trained to make and serve food that is healthy, delicious and as per customer taste.

Employee compensation and benefits

The wages, salaries as well as other benefits to be given to employees will be decided by HR manager, in collaboration with management and owner of Yum Spot.

6. Conclusion

It can be concluded that entrepreneur can run a business and make it successful. Yum Spot will be highly successful in UK market because people are getting attracted towards fast food. Yum Spot will be initiated at a small scale and number of factors will affect its working. It is forecasted that Yum Spot will be a profitable business and will become successful with the passage of time. Every department of Yum Spot will perform their jobs and tasks. Effective HR strategy is built for efficient management of workforce.

 

 

 

 

 

 

References

Bamberger, P.A., Biron, M. and Meshoulam, I., 2014. Human resource strategy: Formulation, implementation, and impact. London: Routledge.

BBC, “Junk food ad ban comes into force”. Available at: http://news.bbc.co.uk/1/hi/health/6515245.stm.  [Accessed: 23 October 2016]

Boxall, P. and Steeneveld, M., 1999. Human resource strategy and competitive advantage: A longitudinal study of engineering consultancies. Journal of Management studies, 36(4), pp.443-463.

Boxall, P. and Purcell, J., 2011. Strategy and human resource management. New York: Palgrave Macmillan.

CNBC, “The World’s Most ‘Liked’ Brands”. Available at: http://www.cnbc.com/id/45582325/The_World_s_Most_Liked_Brands?slide=8. [Accessed: 24^th Oct 2016]

Deakins, D. and Freel, M.S., 2009. Entrepreneurship and small firms. New York: McGraw-Hill

Lisa, K., 2013. Customer accounting and marketing performance measures in the hotel industry: Evidence from Australia.  International Journal of Hospitality Management, 33(1), pp. 140-152

Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries, game changers, and challengers. London: John Wiley & Sons.

McManus, L., 2013. Customer accounting and marketing performance measures in the hotel industry: Evidence from Australia. International Journal of Hospitality Management, 33, pp.140-152

Trienekens, J. and Zuurbier, P., 2008. Quality and safety standards in the food industry, developments and challenges. International Journal of Production Economics, 113(1), pp.107-122

The Economist, “Good and Hungry”. Available at: http://www.economist.com/node/16380043. [Accessed: 23 October 2016]

The Times 100, “McDonald’s: Recruiting, selecting and training for success” Available at: http://businesscasestudies.co.uk/. [Accessed: 24 Oct 2016]