Explanation of the Business Proposal 2
Business Objectives 2
Market Analysis 2
Financial Viability 3
Competitor Analysis 3
Operational Aspects 4
Identification of the Factors Influencing the Viability of your Business Proposal 5
Influence Diagram 5
Analysis of the Decision Making Methods 6
Influence Diagram 6
Project Management and use of Project Plans 6
Financial Modelling 7
Sensitivity Analysis 7
Explanation of the Business Proposal
The business opportunity we chose was 'Monster Sandwich' - a small sandwich business operating from mobile trailers, targeting the local (Sheffield) student market, also providing drinks and snacks to complement the sandwiches we sell.
We chose this idea due to the knowledge and experience the group shared in the small and medium business sector, we saw a gap in the market for mobile trading and we believed it would suit our style of operating and team work. We're all students living in Sheffield and visit cafés and delis on a regular basis as well as purchasing meal deals from the local supermarkets.
Our short term objectives include capturing a proportion of the student market in Sheffield and hopefully gain market share in Sheffield's sandwich market. This will include selling sandwiches in and around the city centre at the majority of student-orientated areas.
Medium term objectives are to establish our business in the market and gain a loyal customer base across Sheffield and the main areas of operation including both Hallam and University campuses. Hopefully we will be able to cater for more exclusive events such as Tramlines in the summer, increasing our brand image.
Long term objectives are to acquire another Van and expand the staff numbers, as well as competing heavily with the smaller cafés for market share and operating in a number of new locations. Our staff base would have to increase if we acquired another van, this would allow us to exploit the locational advantage further, such as trading across 3 areas 12am-3am.
Our target market will be the local student population, offering them a healthy and filling meal at a low price. We will have meal deals on daily as well as specials available for them. There are over 30,000 students in Sheffield and the main locations they visit are in and around the city centre as well as both Universities, so our mobile vans will be able to tap into the high level of potential demand.
Also, as there is little loyalty from students towards businesses such as Sainsbury's or Subway we will be able to gain sales by just having the prime location at heavily demanded times; 9am lectures, 12pm-2pm, 4pm-6pm and 12am-3am.
We will be positioned in the main areas across the two University campuses; City (Howard Street), Collegiate (Collegiate Crescent), University of Sheffield (Ranmoor and Endcliffe Student villages), as well as City Hall, West Street, Carver Street and outside Leadmill and Plug (Night clubs). This will be key to our business opportunity, as we will be in coordination with the students' daily routine and possibly, eating habits.
Advertisement is crucial for all new businesses, particularly among students as they are bombarded with adverts for "new and improved" business ideas daily. We must stand out and have an immediate impact; advertise heavily to fresher's (First Years) as these are the easiest to influence as well as international students and other undergraduates. The more they are aware of the business, its prices, products and promotions, the more likely they will spread this information by word-of-mouth, which is an asset to any business.
When looking at the financial viability of the business opportunity we all agreed to place £5,000 of our own savings into Monster Sandwich, totalling £20,000. Also, to secure a bank loan of £5,000 each which would give us £40,000 to start up the business across two…