Venture Concept and Technical Feasibility - Assignment Example

Feasibility I Venture Concept Venture concept is an idea in business individual search to undertake to big profits. New business idea involves more than just introducing a new proposal expecting its target customers support and accept it and regard it a success. Venturing out new ideas in business involves taking high risks because there is uncertainty in determining if the targeted customers will acknowledge the new business proposal; consequently, planning for victory takes more than the plan. It takes intensive researching, preparation, and planning before the targeted customer experience the new trading idea. Venture concept refers to a start-up entity built with the intention of benefiting financially. A business endeavor may also be deemed a small business. Numerous ventures will be advanced by one or more groups or individuals with the anticipation of the business raising a financial benefit for all sponsors. Most business ideas are generated on an insufficient supply in the market or the market demand. If the new venture is accepted by entrepreneurs or investors the growth of the new proposal will start and all supporting players will help expand and market the new venture to gain financially. The Food retail industry, for instance, particularly bake products has continued to develop into consumer demand. Rolls, fresh bread, cakes, and pastries are products customers seek on a daily basis. The new venture notion of Innovative bakery services and goods consumer is what Sweet Berry Company seeks about to establish. Introducing New Business Proposal –Sweet Berry Company The company makes customized pastries. What this means is that the clients log onto our website choose the product, for example, a cake then choose the ingredients that they want to be used to make a cake. The advantages of this are numerous as we can specify needs such as health or medical concerns for the clients. For example, clients who are lactose intolerant can place an order where the cake is made without the use of dairy products. Technical Feasibility This is where a business owner takes into consideration factors such as labor, location, suppliers, transportation amongst other factors (EPA, 2008). Investors are usually able to gauge a good business plan from the information contained in the technical feasibility. It is used to asses costs, long-term planning and troubleshooting. For our particular model of business, we have no competitors for this particular brand locally. The model that we have taken is from companies such as Indulge bakery in Colorado and sweet themes bakery in Seattle. The companies both offer customized cakes or cupcakes for their customers to pick up or have delivered. We, on the other hand, are going the extra mile by offering to make more customized products such as bread made from sweet potato flour. The initial cost for the company is with the bakery equipment, suppliers for the different types of flour and location. The location of the company will need to be close to the central business district. We will also need two delivery motorcycles. The reason why we take into consideration the above is so that we can be able to balance our financial projections against realistic expenses. The business being the first of its kind in the market we will need to run a marketing and advertising campaign to create awareness for our products. This can be done by running small ads in the daily papers and approaching the morning shows that run on most TV stations. Initial Market Assessment The market that we envisage is the young working professional mother, middle class older ladies and the older age group. Value proposition is a statement within a company that shows the advantage of their product over others. Our statement will be "Healthy is Tasty". The target market has been carefully chosen. We are going to position ourselves for convenience, cost effectiveness and quality. The young working professional woman is likely a young mother. That means although she has some disposable income she does not have the time to bake products that are not only tasty, but healthy for her family. This is where that sweet berry company comes in. By advertising widely we will inform customers of our website. Once a potential client, logs in to the website. They then choose the type of pastry they want the ingredients to be used, and we deliver within 24hrs. The client also has an option of coming to our shop and buying readymade products. This was the reason we needed the two motorcycles as they would be used in making deliveries. Payment can be made with two options online via our website or by cash payment on delivery of the product. The niche market we also want to tap into is the elderly and individuals with special dietary requirements. It is quite difficult to buy readymade pastries that cater for such individuals. We will create a section of special pastries that cater for individuals such as diabetes patients. The older customers also prefer products that are made with more exotic ingredients such as millet, cassava and so forth we will create a range of products that specifically targets this age group. They also may not be able to get up and about a lot. We can deliver at a nominal fee out of the CBD as the motorcycles fuel consumption will be nominal. The competitors to our business are the traditional bakery or pastry shops. They do not afford the customer the option of choosing the ingredients to make the pastry or cake with. They also do not deliver as they have enjoyed a major monopoly within the town centre for a while. The other competitors we have are the supermarkets that have readymade pastries for customers to buy as they finish up on their grocery shopping. The advantage we have over the supermarkets apart from the fact that they do not offer a unique mix for the clients is that they cannot make customized products for the customers. The other advantage we have is the equipment we use gives a turnaround of 24hrs. All the other bakeries or pastry shops need a 72hr grace period in order to complete a customs order. The advantage we also hold over traditional bakery is the use of exotic ingredients that are healthier than the regular wheat flour. We also have an online presence which makes us have a wider customer base. Local deliveries are within the specified period of 24 hrs but out of state deliveries will have to be shipped using one of the delivery services. The company has also contacted the various suppliers of our products. We have come to an agreement on the cost of the goods we will purchase from them. The advantage we will have from this is we will not experience fluctuations in our costs or expenditure as the projected expenses for our supplies will remain constant throughout the agreed period. The second factor that we need to be careful about is any new competitors that may attempt to join the market using our strategy. The best way to meet such a challenge is by offering quality, cost effective and efficient service. Once the customers of our products, realize that they are getting value for their money. It will be difficult for the existing or new entrants in the market to take a slice from our market share. We will also make specialty cakes that can be produced en masse and supplied to the supermarkets within our area (Bowen, 2009). If the sales from these products as projected are good, we can then look for a way to use the franchise stores as conduits of selling our products out of state. The advantage of not opening another branch is by using the already existing infrastructure we can be able to cut down on costs. Another product that will place us above our competition is we can customize the cakes decorations in a unique way. We have in house artists who can draw the face of the recipient of the cake making special. The other novel idea we have envisaged is instead of sending someone a fruit basket or flowers why dont you send them a cupcake basket. It’s unique and will leave a memorable impression to the client. References Bowen, J. (2009). How we design feasibilty. Retrieved from www.ncbi.nlm.nih.gov/ EPA. (2008). Feasibility studies what they entail. Retrieved from www.ncbi.nlm.nih.gov/ Read More