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EPPK6094 Business Plan For New Enterprise

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Course Code: EPPK6094
University: Universiti Kebangsaan Malaysia

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Country: Malaysia


The paper features the basic components of the marketable strategy and is partitioned into two sections. Section one managing which the strategy for success and section two handling the financing necessities. It plots the strategy for success of Discovery undertaking which is situated in the United Kingdom to serve individuals with Asian beverages, seeds and cakes.
Therefore, as the name recommends, the business will bring new sorts of beverages that are devoured in Asian nations in the United Kingdom. some f the beverages incorporate; espresso, tea, reviving milk, corn drain, pumpkin seeds, pistachio, sunflower seeds and a few kinds of cake, for example, biscuit, lemon cake, tiramisu among others. The upper hand of Discovery is that it is putting forth unique beverages, seeds and cakes which are not locally accessible in the United Kingdom and they are natural, characteristic, and sound beverages for every one of the clients.
Disclosure will likewise grasp innovation where clients will put arranges before they get to our shops to unwind while making the most of their beverages. The business has anticipated a yearly income of 316,542 Pound Sterling in the primary year, despite the fact that it won’t equal the initial investment in the main year however following multi year and four months. It is financed through individual reserve funds, exchange credit, bank advances and investment firms.

Business plan
General description of the business – Discovery
Discovery is the name for the business entering in the food industry offering Asian drinks, seeds and cakes, as a newcomer with very promising future. It will be located in Northern part of England in the United Kingdom and later on, it will expand to entire parts of United Kingdom. It is established to serve customers better than the rival by providing Asian quality products and services thus meeting the customer needs at reasonable prices. This is because the local beverages providers are providing drinks, which are not organic, natural and healthy in the England according to the customers’ needs. This makes customers who want organic, natural and healthy drinks not satisfied, thus providing an opportunity to satisfy that need. (Burnett and Burnett, 2013). It is also established to change the taste of the consumers who are used to local drinks. Such drinks are ginger tea cooked by fresh tea leaves and fresh thin slices of ginger not dry tea bags, milk-ice coffee among others which are processed by the workers of the shop. It also offers efficient customer services such as embracing the appropriate technology to serve the customers through the website and social media platforms, unlike its rivals. These are what differentiate our business from the other players in the industry who are offering similar products and services.
Discover targets students and older people for their drinks, seeds and cakes. This is because young people want to explore and take new stuffs including drinks and older people are very keen on their diet by taking prescribed food most of them are organic and natural. Thus we mostly target young people who want to discover new drinks and essential coffee tastes and looking for a place to chat and relax. In addition to that, we also target older people who want to enjoy different drinks that are recommended to them as they relax. We are aiming to become the most trusted brand in offering Asian and local drinks in future. Our mission and vision concerns offering quality Asian drinks to our customers to satisfy their needs fully and expand in all parts of United Kingdom and across the world.
Market analysis and opportunity
The target population for the Discovery is the young generation and older people in England. The weather in the United Kingdom such as in England and Scotland has been very cold over the years and the increase in demand for drinks has been high. People thus are taking a lot of hot drinks to make their bodies warm and refreshers (Kendon and McCarthy, 2015). They have been used to the local types of drinks which they also similar to the one they prepare at their homesteads, thus, Discovery comes in with new types of drinks from Asia that are very natural, organic and healthy. The market opportunity and the gap that exists due to lack of an alternative drinks that are most of the time recommended for healthy purposes. Often customers do not get a steady supply of the drinks and cakes especially from the small shops offering drinks, because of financing and stock out problems, Discovery sought to bridge that market gap by offering steady and all-the-time drinks, which are also takeaways. The market leaders in the food industry have also concentrated on offering drinks to the high profiled individuals and state functions, so Discovery comes in place to cater for individual customers who are middle and low-income earners because it offers different quality of drinks with different prices for all our customers (Buttriss, 2018).
Discovery’s target market in the United Kingdom is based demographic, geographic, and behavioral characteristics as shown below;
Target market analysis
Table 1 Target Market Analysis



Both male and female (Young and older ages)
Different ages reasonably from 15 to 25 and above 50 years
Not Applicable
High, middle and low-income earners
The United Kingdom and international people







North England

Behavioral characteristics

Benefits of drinks

Natural drinks because they are from fruits.
Healthy drinks because they are from fruits, they contain vitamins, and others are energized.
Organic drinks
Clean services

Rate of use



Strong and medium

Product & Service Description
Discovery offers all types of drinks from Asian and other healthy from the United Kingdom, seeds, and cakes. It also specializes in supplying all types of function on orders and individual takeaway services to its customers. Their drinks from Asian include;
Table 2 Products Description

Name of drink


Ginger tea

Fresh tea leaves
Fresh thin slice of ginger

Tamarin and Dracontomelon



Milk-ice coffee


Condensed milk

Hot water


These are not only the drinks from our shop, there are other, which we only blend, import when they are ready for consumption, order from high profile fruit vendors and supermarkets.
Sales and market strategy
SWOT analysis
SWOT analysis is displayed in the appendices as appendix 1
Marketing objectives
Discovery enterprise plans to diversify its business in several cities in Northern part of England areas where there is an opportunity, increase customer base and quality services in order to build its business income consistently and years. The development rate every year is assessed to be 15% and offers of 100,000 units of all beverages all in all per annum as per the venture’ deals conjectures
Marketing tactics
Disclosure will create deals and showcasing systems, for example, valuing procedures, advancement techniques, put methodologies among others keeping in mind the end goal to enter into the market and gets expanding piece of the pie.
Evaluating methodology
Disclosure represents considerable authority in beverages, for example, ginger tea cooked by crisp tea leaves and new thin cuts of ginger not dry tea sacks, drain ice espresso among others. Infiltration estimating methodology will be utilized as a part of first to advance the association’s items through augmenting its topographical scope and offering of bundles of merchandise at bring down costs than a solitary item, to build their client base inside the briefest time conceivable, at that point other suitable valuing procedures will be embraced with due time, for example, evaluating at premium and economy valuing. Disclosure offers its beverages at a fluctuated value contrasted with the quality and amount.
Location strategy
The firm will initially set up its fundamental store in Manchester and extend to cover the North Part of England, at that point cover the whole United Kingdom and make remote direct speculations while executing its area procedure (Popescu and Wu, 2007). As Discovery fundamentally offers Asian beverages in the United Kingdom, it has joins from the Suppliers from Asia, from the United Kingdom for the beverages, those are locally accessible, from Asia’s providers from different nations and the end clients.
Discovery is located in a strategic place to enable it to distribute its products in a wide market. The location also helps the business to evaluate its competitors since it is easy to access big markets like Asia.
Promotion strategy
To advance its items, Discovery publicizes and makes consciousness of its reality through deals advancements, truck promoting, attention, and advertising, web-based showcasing and through the regular media (Vassileva and Nikolov, 2016). These techniques are received in light of the fact that they are generally shabby and are broadly utilized as a part of advancing items and administrations. With a specific end goal to bring issues to light through the brand mindfulness over the brand through the conveyance systems, Discovery embraces the force technique.
Competitor analysis
The principal contenders of Discovery endeavor are the Starbuck, Costa, and Café Nero, which offer Asian beverages in happy seasons and amid occasions. They are the market pioneers with the qualities of having better administration groups, low operational costs, forceful, centered promoting, solid capital base, and make steadfast clients (Bohari, et al., 2017). Disclosure will receive focused systems, for example, Anoff lattice as they develop, separation among others so as to counter the adversary contenders (Richardson and Evans, 2007). Deeside and Sivery Tweed firms have not put well in innovation where clients can put orders, in this manner Discovery will guarantee it has a task site with each one of those highlights.Table 3 Competitor Analysis




Café Nero

Nature and History

Opened in the year 1971 in a place called pike

Founded in 1971 in London

Founded in London in the year 1990

Product/Service range

This is the largest coffee house

A UK second largest coffee house

It serves the cold and worm delights in Europe

Price range

Venti Filtered coffee £2.25 among others

Flat white-primo on average £2.50 among others

Espresso (In) £1.65 among others

Competitive advantage
Despite having several rival firms in the industry offering similar drinks, seeds and cakes, Discovery has some competitive edges, which it uses to compete in the industry in order to survive and expand in future. These competitive advantages include:

Asian drinks which are not locally available such as ginger tea cooked by fresh tea leaves and fresh thin slices of ginger not dry tea bags, milk-ice coffee among others
Organic and natural drinks
Healthy and clean drinks
Better customer services such as efficient communication channels
After sales services such as packing and free deliveries for an interval of one-kilometer radius
Online services such as online ordering and all information on the website

Business Model Canvas
Discovery’s business model is described as follows:
Table 4 Business Model Canvas

Key Partners
· Asian suppliers
· United Kingdom suppliers
· Ingredients from Farmers
· Customers
· Logistics partners

Key activities
· Processing drinks
· Serving customers
· After sale services

Value Proposition
· Organic drinks
· Healthy drinks
· Natural drinks
· Use of technology

Customer Relationship
· Customers’ feedback
· Direct customer contact
· Loyalty cards

Cost structures
· Input materials
· Transportation
· Employees salaries
· Online services e.g. website
· others

Key resources
· Fresh ingredients
· Fruits
· Condensed milk
· Fresh tea leaves
· Fresh thin slices of ginger

· Hotlines for deliveries
· Online marketing
· Physical location

Customer Segment
· Demographic: Young people between 15-24 years and older people from 50 years
· Geographical: Leeds and Chester
· Behavioral: search for a reliable alternative for Asian drinks that have health benefits.

Revenue streams
· Revenue from the sale of drinks, seeds, and cake.



Operational structure
Operational structure involves the way in which exchanges and business forms are being done (Foss and Knudsen, 2013). Revelation is going by the general chief who settles on key choices of the undertaking and administers the general execution of the firm. Disclosure embraces the level authoritative structure to limit the levels of pecking order and administration (Bolman and Deal, 2017). For a new company, a compliment hierarchical structure is more proper to diminish the administration costs and for closer and solid connections between the supervisors and the workers. There are offices including a couple of representatives and others workers are in excess of one office in light of the fact that the business is in its underlying phases of development and extension. Such divisions are; human asset, Accountant, stock office, tasks, and specialized office, authorities and different administrations. Every one of the divisions work as an inseparable unit with the goal that clients can be completely fulfilled by sticking to their particular requests. The operational structure will extend in future to cook for every particular region of concentrate, for example, innovative work, showcasing divisions among others to upgrade self-sufficiency, specialization, and duty bookkeeping.The organizational structure of Discovery
Profit and Loss Statement  
For the financial year ending December 2019

Profit and Los




Sales revenue per month




less cost of goods sold




Gross profit/net sales












Advertising & marketing




Utilities (electricity, gas, water)




Bank charges








Rent & rates




 Repairs & maintenance




Stationery & printing








Total expenses




NET PROFIT before tax(Net Income)




The expenditure for the first year is 195,118.71+ 70,000.01 (on start up one time expenditure) to amount to 265,118.71 Pound Sterling.
Cash flow for the year ending 31st May 2019


Pound Sterling



Cost of goods sold


Gross profit






Advertising & marketing




Bank charges




Repairs & maintenance




printing & Stationery




Total expenses per year


One-time expenses


Balance carried forward


Break even analysis
From the information given in the balance sheet, the profits have not break even in 2019. We expect that, it will break even by the end of 2019. The business is targeting to make 15000 starling pounds by the end of 2019. However, the business profitability is not stable still to achieve this. Therefore, it sells at 10 starling pounds per unit.
15000/ (100-80) = 7500 units
The business must sell 7500 units to achieve its dreams by 2019. The continuous raise of the losses in the 3 years need to be addressed by the marketing and financial strategies.
Analysis of the forecast financial statements
For the first year of the business, Discovery won’t equal the initial investment, yet it is promising to begin having positive figures in the benefit before assessing. Deals are expanding bit by bit, it is contributed by the forceful advertising of the undertaking and productive in the activities. A considerable lot of the costs, for example, pay rates and repairs and upkeep are expanding on the grounds that the firm will build its client base in this way requiring numerous workers and because of expanded tasks and machine limit along these lines expanding their adjusting. Net benefits are encountering expanding pattern throughout the months because of increment in deals and cost of merchandise individually. Best Farm is especially centered around marketing and advancing its items and administrations to infiltrate into the market throughout the months. This is appeared in the expanding pattern throughout the years from June and May in the Profit and Loss. Bank charges, which are speaking to the bank credits from Royal Bank of Scotland and Standard Chartered Bank, are steady, this implies the loan costs are settled throughout the months, the back cost will be allotted similarly in months (Drake, et al., 2017).
Discovery limited
Balance sheet for the year ending 31 December 2019
Current assets       Pounds                Pounds
Cash   20 000
 Accounts receivable 15 000
 stock 150 000
 Total Current Assets  185 000
 Non-Current Assets    
 Plant and equipment   50 000
 Business premises 650,000
 Vehicle  70,000
 Total Non-Current Assets   770 000
Total assert        955 000
 Current Liabilities 
 Accounts payable   25 000
Tax    45 000
Total Current Liabilities  70 000
Non-Current Liabilities   
 Long term business loan     500 000
Total Non-Current Liabilities 500 000
NET ASSETS  385 000
Budgeting plans
The business is planning to budget the available funds among many activities like, transportation, marketing, advertising, remunerations, rewards, repair and maintenance, cleaning and purchasing of raw materials. It has come to its discovery that, it needs to increase the budget to increase the efficiency and productivity levels.
The business also must include in the budget the legal fees which varies according to the performance of the business. Sometimes if this is not planed, it may get the business as a surprise. It has also to keep money for emergencies like market change, natural factors, accidents and many more.
The discovery business is looking forward to improving its productivity by improvement in managerial sector, operational sector, marketing and advertising. It is now planning to grab a wider market share and increase its capitalization. The marketing strategies explained is the crucial part which will create the impact on the sales and hence the profitability.
Nevertheless, the business is doing well with the economy as it becomes a clonal changer. It must adapt to various economic environments which have different strengths of risks. Risk analysis here is the fundamental factor considered most. The risk solved is the profit gained. If every step is followed, then the business has a great future (Richardson, M, & Evans, C 2007).  
The cashflows depends on the expertise of the management. The management should have a good planning technique to foretell the future of the business by just playing with the figures. This has also a great impact in coffee sales revenues.
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