Business Plan For Fresh Biological Food In Melbourne, Australia

Business Model Canvas

This report presents a business plan for starting a new business in Melbourne, Australia. A large number of people who are located in Melbourne prefer to have organic food. Therefore, this business plan is relied on to introduce an organic restaurant in Melbourne. At the same time, it can also be said that an organic restaurant is known as” Fresh Biological Food”. The main reason behind the selection of organic restaurant is to existence of a large number of health conscious people. In addition, on behalf of current scenario, people are busy in their daily life where they need a quality product to maintain health in long-term. Therefore, they give preference to have healthy and quality products rather than quantity products (Ahlstrom and Ding, 2014).    

The following points demonstrate key characteristics of” Fresh Biological Food”.   

• Many varieties of organic foods and energy drinks options.
• Employees are well trained and skilled.
• Comfortable and friendly environment
• Fresh Food in less time

The mission of Fresh Biological Food is “to regularly grow by innovation and keenness to quality together with producing unexpected food practices”. Along with this, the vision of this restaurant is to endorse an enthusiastic lifestyle. Similarly, the objective of the restaurant is to provide both fresh and organic food to a customer in one place with affordable cost. The sign of this restaurant will be an Eco Green (Dobbs, 2014).

The following table demonstrates the Business Model Canvas for Fresh Biological Food:

The feasibility analyses will be significant for an organization due to evaluating the market, techniques, customers, and finance for enhancing the growth of company in upcoming period (Zucchella, et al., 2016).  The following components indicate factors of feasibility analysis:    

The analysis of market and finance has a major role to successfully start any new business in new place. It demonstrates the possibility of market issues to start business effectively. It is a significant component for entrepreneurs because it supports to make effective decision together with estimating a specified amount that will be required in the business process.

 The following chart indicates an actual situation of industry in Australia:

Chart 1: Industry analysis

(Source: Autio, et al., 2015)

Referring to the last five years financial report found that the organic food restaurants has grown-up robustly due to enhancing health conscious customers within the Australia. Over the last five years, revenue of industry is estimated to grow by 17.4% in 2016-2017. At the same time, revenue estimate to obtain $919.2 million during 2016-17, which is grown by 7.2% as compared to the last year. On behalf of research addressed that Australia is the place, which is known for the largest organic country in the world because it covers more than 23.0 million hectares. At the same time, the employment rate is 7.427, which is higher rate means its positive impact on the growth of the economy in a significant manner (Autio, et al., 2015).  At the same time, it can be said that Porter’s five force model is used to analyze the actual situation of Australian food industry in a significant manner. The following chart indicates Porter’s five force model for organic food

Feasibility Analysis

Chart 2: Porter’s five force model

(Source: Bae, et al., 2014)

The bargaining power of buyer within organic industry is quite high due to having many organic products and services options in Australia. Buyers have more knowledge regarding products, therefore, they concentrate on the quality of product rather than price.  At the same time, buyers have also higher switching cost due to availably of more options in the market. Additionally, it can be said that entrepreneur will focus on attracting customers by making a positive image and makes a strong relationship with customers for significantly starting and retain the business in Australia.

The bargaining power of suppliers is low because of available a large number of substitute products in the marketplace. At the same time, suppliers make a strong relationship with customers due to enhancing the growth and profitability of the company in long-term. Moreover, the supplier offers their products at low cost with higher quantities, which could be supportive to makes an effective and long-term relationship with potential customers (Bae, et al., 2014).  

The higher availability of substitutes can create the issue for the organization, therefore, they have needed to control the switching cost of buyers by making a positive relationship with them. At the same time, an organization has also needed to market survey regarding the price of substitute product and then makes price decision due to attracting a large number of customers in long term (ebb, et al., 2014).   

The threat of new entrants is higher because entrance cost is not high, which enhances the probability of new entrants in the Australia. At the same time, the organic industry has rapidly grown together with quite a barrier, which also increases the possibility of the new entrance with in the marketplace. So, the organization has needed to keep in the mind regarding such kinds of activities before entering the Australian market (Baum, et al., 2014).      

In the organic food industry, rivalry among market players is high because of having a large number of existing competitors in the Australia. At the same time, a large number of existing competitors can enhance competition level, which can increase the probability of failure in marketplace. So, an organization has needed to focus on weaker area of competitors and replace such area to make a unique image in market together with enhancing the market share in long-term (Bruni, et al., 2014).        

In a new business, technical feasibility is needed to evaluate the new plan for successful implementation. It might be considered in each activity of entrepreneur for the purpose of determining the positivity and negativity of the planned plans and acts. From the analysis of techniques probability, entrepreneurs can be able to operate its business in the appropriate direction.

Technology supports organization to accomplish the specified goal in a specified time. At the same time, technology is an imperative part of the restaurant due to effectively run in long-term. The technology is vital equipment, which is essential to run the business such as microwave machine and it is generally used in by the restaurants. The “Fresh Biological Food” will also use EFTPOS due to making easy process of payment to their customers Urbano, et al., 2013).           

Market Possibility

It will incorporate touching base payment way wherein consumers would require knocking their credit or debit card on the payment tool. Consequently, the cash will be automatically taken by their accounts.       

In addition, another option that is required to focus is that the Fresh Biological Food can apply the NFC (Near Field Communication) method to attract customers in long-term. It is a significant payment way that can be applied to the smartphones and the specified amount will be taken by the organization from the account of users (Burrows, 2015).  

The required materials for Fresh Biological Food are land, furniture, techniques, skilled employees, and electrical connection. Others are raw materials and water connection to successfully operate the business.  The Fresh Biological Food will be needed to the high quality of organic food materials, but the materials are buying at the reasonable cost from the market.   

The whole process of business is significant for the organization because it directly affects the performance of venture in long term. Therefore, an entrepreneur has previously decided that which manufacturing process will be followed for the business together with identifying the ways of delivery and trades of goods and services significantly. Additionally, it can be said that once a food is made with in the restaurant from the request of consumers, the trades and delivery of product will take place in the restaurant (Carland, et al., 2015).    

In case any person starts new ventures then they are needed to follow some significant laws to securely operate a business. Firstly, the Fresh Biological Food has needed to take venture license to the local board and informed the appropriate consultant. Workers will be needed to ensure accurate training before beginning to business activity. At the same time, Australian government has enforced to the food organization to train the employees regarding food safety (Tidd, et al., 2015).  Hence, the Fresh Biological Food would make a plan regarding the employees to use recreational sports facility to effectively work with organization in long-term. Moreover, it is compulsory that the Fresh Biological Food has a Food Safety Manager who get the appropriate training and authorization together with they are registered to do work in the restaurant (Drucker, 2014).         

Ethics plays a significant role in an organization, therefore, it has needed to do any business activity in an ethical manner. At the same time, before the starting of business in specified place entrepreneur can remind about some significant factors such as environment, children’s, local farmers, and communities. Since, such components directly affect the performance of the organization in long-term (Storey, 2016). At the same time, an organization cannot purchase any raw material from those organizations, which have done their business activities by children. An organization can adopt the local farmers to fulfill the need of raw material and offer appropriate amount to farmers. It can be supportive for the organization for performing the business activities in an efficient manner (Fayolle, et al., 2015).                 

Changes in the technology are significant for any kind of business. Australian premium organic food restaurants have used mobile approach so as to attract and occupy the first-class consumers. The potential customers have attracted by sending a message about discounts, and coupons for organic food on daily basis. It could make a positive relation with specified customers significantly.           

Industry Analysis

Referred to appendix 1, the early startup will be $25570 at the same time the equipment/capital would be $89070. Referred to appendix 2, $316500 will be estimated during 2017while $525800 and $283103 for remaining two years. At the same time, it is analyzed the value is enhanced continuously (Kirzner, 2015). 

Table 1: Income Statement

Finance is the blood of any business, which cannot be performing in the absence of money. Therefore, it can be said that the Fresh Biological Food if initial phase of financing.  Therefore, they can use some significant kinds of sources to collect the finance such as equity fund and tread fund. The equity fund is collected by the fund of owners along with this it can be said that owners can collect the money from their friends and family members to successfully invest into the business. Additionally, from the application of trade credit, an entrepreneur is able to collect the resources or goods without make a payment to specified dealer together with excluding the interest. Therefore, it can be said that such kinds of funding sources can be effective for efficiently run the business in long-term (Kuratko, 2016).   

The workforce feasibility could be determined as a number of workers capital and incomes which will be incorporated into the business process. Therefore, it is significant for an organization to provide a right job to right people at right time within the working place. Since, it could directly influence the growth and financial performance of the business. The following factors are considered in the human resource feasibility:

As this trade turns into organic food making, it is significant for each member of the team that they aware of the basic practical skills. The Fresh Biological Food is a partnership business, where three people are incorporate to start this venture. Therefore, each member has a need to training regarding making organic food in a significant manner. I have depth knowledge regarding business operation and other team members are expert in Tourism& Hospitality and Management and Accounting. So, we exchange the information regarding each sector due to operating business in an effective manner (Levie, et al., 2014).              

The employees play a significant role in any kind of business because they are a person who makes a robust brand image in the marketplace together with making effective consumer experience. In addition, each member will be required at all movements due to successfully accomplish the task of an organization or business in a significant manner.  Each member has a different role in the restaurant where one can handle the order of customers similarly remaining members will be making food for customers.  At the same time, it can be said that the role of employees are not certain it will change as per the situation. Additionally, With the purpose of recruit workers, marketing or advertisement will be sent around the nearest university campus together with posting the recruitment information on organization website. Subsequently, individuals can inform their interest by sending email, resume, and in the restaurant. The owners of the restaurant can select the eligible candidates at appropriate compensation by using the interview method.  The selected employees will stay on this post until 3 months; afterward they will be permanent to perform the activities in an organization. The organization can also use some significant policies to retain the employees in long-term. The policies could be related to compensation, health and safety, personal issues, and holidays. It can keep the employees to work with the organization in long-run (McMullen, et al., 2013).

Porter’s Five Force Model

The “Fresh Biological Food” will be used the two significant growth strategies that incorporate Food product expansion and expansion of the market. Product expansion is significant to enhance the sales and profit of company through continuing to trade in the existing marketplace.  Therefore, the Fresh Biological Food will launch some different kinds of organic product in their restaurants such as organic rice, organic soup, and butter milk. At the same time, such products are significant to enhance the growth of the organization in long-term. In contrast, market expansion is also effective to introduce the existing products and services in the new market to enhance the growth and profitability of an organization in a significant manner (Ratten, 2014).  

At the same time, the market expansion will be also supportive to enhance the market share in long-term. By application of growth strategy, the Fresh Biological Food would be capable to enlarge the venture into different sectors around the specified place. Consequently, it can be supportive to generate more jobs and enhance the image of the brand.  In the beginning of any business, quality is necessary to retain in the marketplace, therefore, the organization has needed to maintain and manage the quality of goods and services. At the same time, an organization can execute the quality control approach and create an accessible management model to direct business operation significantly. In addition to this, an organization will also use the managerial approach to overcome the future employee hiring issues in an efficient way (O’Connor 2013).

References:

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Bae, T. J., Qian, S., Miao, C., & Fiet, J. O. (2014). The relationship between entrepreneurship education and entrepreneurial intentions: A meta?analytic review. Entrepreneurship theory and practice, 38(2), pp. 217-254.

Baum, J. R., Frese, M., & Baron, R. A. (Eds.). (2014). The psychology of entrepreneurship. USA: Psychology Press.

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Drucker, P. (2014). Innovation and entrepreneurship. UK: Routledge.

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