XTRA DESSERTS BUSINESS PLAN PROPOSAL
I will be personally responsible for preparing and delivering the desserts to customers who will include food retail outlets and individuals at their residences. Trading status The business will be opened as an unlimited company where the legal liability of the members or shareholders is not limited – therefore, the members will have a joint, several and non-limited obligations to settle any inadequacy in company assets to enhance its ability to take care of any outstanding financial liability. The range of services/products The purpose of the business is to introduce into the market innovative, ready to eat, and market-oriented desserts that will satisfy the culinary tastes of the food market. Moreover, the business will seek to fill the existing gap in the market for desserts that are accommodative to growing needs of consumers to maintain their bodies in a healthy state and for consumers with diversified taste such as vegetarians and diabetics.
The market is also rife with consumers who are concerned about the environmental impact of the processing of the food they consume-for instance, animal rights. My target market will include the younger and time-barred generation who include students and the working class. With an assortment of British dessert recipes from the classics to school dinner flashbacks, I expect that my customer base will be pleased by the wide variety of desserts presented to them. Therefore, my distribution of markets will essentially include learning institutions, corporate organizations, and settlements that are flocked by the younger generations. Assessment of viability and risk factors. I am confident in my ability to operate Xtra Desserts and will be expanding my knowledge and skills in the preparation and selling of desserts.
40% Of the businesses reported increased turnover from the previous year, while about 38% experienced similar turnover from the previous year while only about 19% had lower turnover. These facts are encouraging for a new brand into the market because they are indicative of good prospects for younger brands. Moreover, 71% of SMEs obtained all the finance they sought from external sources in 2014, an increase from 68% in 2012. In light of the market characteristics of small businesses in the UK, Xtra Desserts will confidently enter the food market as a small business with limited capital and good returns. Moreover, of expected obstacles to business success, according to the report, the economy was less a threat in 2014 at 13% as compared to 38% in 2012. My initial investments will also include cookbooks, cooking equipment, ingredients which I will buy in bulk to cut costs, and a website that will offer a catalog of my products and offer contact information.
By using a variety of websites that allow in to build a website and advertise their content like site123 and websitebuilder. com, I will be able to cheaply set up an online presence. I intend to also visit as many retailers as possible to secure deals that will see me supply them with tasty, innovative products. Working with food retailers will enable me to direct customers to retailers who operate 365 days a year and at most hours of the day, and thus ensure a steady supply for themselves. On the other hand, I will also be disadvantaged as a sole proprietor. I will be held liable for the obligations and debts of the business, will have to shoulder all the responsibilities and business decisions on my own, and will have a more difficult time wooing investors.
I can be expected to settle any debts including risks that extend to any liabilities incurred as a result of the activities of employees of the company. Mission, aims, and objectives Mission: To open a dessert business that will offer incredible quality at affordable pricing. Aims and objectives: 1. On the other hand, in case my business will grow into multiple premises –that is, numerous retail outlets selling food supplied by a single establishment, but all being under the same ownership-I will be registered under Regulation 852/2004. In light of the multiple considerations that exist before a food business can be classified and registered, I will submit a registration of a food establishment at least 28 days before commencing food operations. As for taxation, as a small business, I will not, as a sole proprietor, be required to make specific business tax payments but will be obligated to pay tax as part of my personal income tax payments.
I will need to start charging Value Added Tax which applies to most services and products sold in the United Kingdom. VAT is usually set at 20% of the price the customer pays for goods or services. The people plan (link with business operation) I will initially operate the business on my own. However, to be able to expand the business and handle increased demand especially that of retailers who prefer buying in bulk, I will have to consider staffing. Among the personnel would include a chef who will specialize in preparing desserts and making sure that Xtra desserts frequently puts out newer desserts through research and experimentation. Moreover, the business will require transporting services which could be contracted to drop supplies to customers who are far from the business premises.
With anticipated growth of the business, it would be more practical to secure a contract of a service with a specific driver who runs transporting services to make deliveries for the business. ” With no baggage in my business, I will be able to pursue demand in novel territory where existing brands would not go. UK retailers are also open to new brands, a factor that will make it easy to penetrate the retail market. Consumer demand for food producers to provide detailed information on how the food is produced has gathered pace and is an area where my marketing will take key focus. Moreover, vegan recipes and no added sugar products are now popular products in the diversified food market, and thus it would be my priority to recognize the diversity of the demand in the food market.
As a result, offering food products, in this case, desserts that respond to the growing need for healthier foods, and detailed information on the sourcing of ingredients and preparation techniques I will have an advantage over my competition. I will also avail as much information as possible on my website to ensure that customers can access me any time and place orders. Also, it will be favorable for me to use as many communication channels to receive as much feedback as possible that will enable me to transform my business style into a sustainable business by focusing on the changing needs of consumers. Also, my target customers will include the lactose intolerant population in the UK, and those who for one reason or another prefer dairy-free products.
Many types of desserts and cakes that are available in the market consist of milk products. That fact alone leaves out thousands of people who long for dessert but cannot consume it because of the associated symptoms of lactose intolerance. It, therefore, can be seen why there are not many daily free products available in the market- this is a gap that I will seek to fill, nonetheless. Xtra Desserts, will, for the sake of the lactose intolerant, consider substitutes to milk in what will be a variety of many daily free products. The idea will be to avail the same products that they could not consume, or would have loved to consume, in a safe, dairy free manner. Such substitutions that Xtra Desserts will put to use include water, which can be used in most baking recipes that call for milk.
Using 1 cup of water and 1 to ½ teaspoons of butter for every cup of mike recommended in the dessert recipe will produce an end product that will just be as moist and colorful Canned coconut milk is also another –used as in 1 part coconut milk for every one part of regular milk recommended in the dessert recipe- also moistens the food while adding a subtle sense of coconut flavor in it. The decreasing affection and allure that was previously associated with chocolate confectioneries and other sweet products including desserts is a direct consequence of the high burden of chronic communicable diseases in the United Kingdom. As a result, diet and nutrition are continuing critical health issues in the United Kingdom. In light of this factor, Xtra Desserts will make available sugar-free desserts that will obey recipes that will not necessarily skimp on flavor.
These desserts include Chocolate Avocado Pudding Pops- a creamy avocado provides the same texture as a milk pudding or ice cream pop, but devoid of all the fat- and Mini Custard Pie with Mango and Coconut Milk, Chocolate Lava Cake and Vanilla Cake with Fresh Strawberries which is both gluten-free and sugar-free. Competitors The existing competition in the dessert business includes well-funded giants like The Dessert Company and Mademoiselle Desserts. • The business will establish itself in a food market that embraces newer brands. • I have the necessary expertise in preparing and serving tasty desserts and offering quality service. • My pricing structure is set up with respect to existing market prices and being a bit lower than the prices on the menu of most food outlets in my area, is extremely competitive.
• I will be offering a wide variety of products, including ethnic food not served anywhere else. • There is significant demand for food varieties that could be considered as outliers; this includes sugar-free products and dairy-free products. They seek brands that they can identify with and feel proud to have uplifted a younger firm. • There is a gap in the market for desserts that allow the consumer to dictate his or her interests-whether in vegan recipes or no added sugar recipes. By operating a website that will enable me to acquire feedback to customers, it will be easy for me to narrow my aims and objectives, inclusive of business practices, toward more profitable products. Weaknesses • I am running it as a part-time project around my university studies- my university education will take first priority in some situations.
Therefore, customers who will want to place urgent orders within the time stipulated for my studies will experience delays and disappointment. A slight mistake might cost the business in a big way. For instance, recently in the UK a scandal has rocked food outlets which are said to have misled customers about the source of their ingredients. Customers in the Up generally prefer to have intimate knowledge of the farm to fork experience, and thus disapprove of lack of transparency in this process- a factor that could lead to loss of customers. • Expanding the business will involve overcoming bureaucracy at the offices of the regulatory body involved because all changes in the operations of the business must be reported and approved by a competent authority.
These multiple steps and charges could slow down the business. I included my desire to set my starting price at 4. 50 British pounds and got positive results. A vast majority of respondents claimed to be comfortable with the price (87% of those who answered my questionnaires. )From the answers I got from the questionnaires I printed out and collected, I concluded that %4% of dessert consumers would not mind paying more for dessert if they were under the impression that whatever type of dessert they were buying was prepared with extra caution, and in consideration of the health concerns of buyers. Moreover, 70% of those who participated in my study indicated a fear of harmful preservatives, added sugar and other components that could damage their health.
Because most of this money within the first year will be invested back into the business to expand the business and facilitate staffing, I expect to start making significant profits towards the end of the first year. Nonetheless, I will have returned my initial financial investment by the second month. I forecast that I will not make a considerable profit within the first eight months because of my expansion but will from the be able to produce up to 3,000 desserts a month which if sold could result monthly profits of 150,000 British pounds monthly for the first three years. Break-even analysis Assumptions Sales price: 4. 50 British pounds Contribution per unit= 1. 0 British pounds, a figure that many buyers will find hard to ignore. 2) High costs: To come up with innovative and highly competitive food products, unique ingredients will have to be sought.
Also, some customers may request dessert types that require special ingredients but which are hard to buy in small amounts. Therefore, I will aggressively set up a system with other similar business so that we can jointly purchase ingredients which would make it cheaper. Concluding summary and re-affirmation of commitment to the business In my opinion, there are several contributing factors that could make this business profitable: 1. uk/business/business-news/pudding-economy-how-desserts-became-9368264 (Accessed on 8 January 2018) Google. Dessert business opportunities in the UK. Available at: https://www. pointfranchise. co. Available at: https://www. google. com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjI6dfwtN3YAhUG6xQKHWC1BRUQFgglMAA&url=https%3A%2F%2Fwww. gov. uk%2Fgovernment%2Fpublications%2Fsmall-business-survey-2014-businesses-with-employees&usg=AOvVaw2q2m2WgIODHve7lHppvEwD (Accessed on 8 January 2018) Google.
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