The business plans the business model canvas is essential for a business. This assignment highlights the business plan and business model canvas for a start-up business for a restaurant. The various components of a business model canvas is highlighted along with all the building blocks of the canvas. Moreover, the importance of the feasibility analysis of the market has also been highlighted in this assignment. The in-depth business plan presented in this assignment highlights the market segmentation, the key resources, along with the key partnership of the business. Moreover, a proposed business needs to be launched, only if it is feasible. The feasibility analysis has been done in this assignment, highlighting whether the proposed project is technically and financially feasible.
The business model canvas is a tool that is used to describe a business model plan of a business organization along with in-depth analysis of the competitors of the business organization. The business model canvas could be seen as a shared language that describes the business plan in details as well as the new strategic alternatives (Thomas et al. 2016). Each of the components of the business model is used describe the business plan in details. The business plan for a start-up restaurant has been chosen in this assignment and the various components has been described in details. The various building blocks of the business model canvas are customer segmentation, value proposition, customer relations, channels, cost structure, revenue structure, MVP, key activities, the key partners, and the key resources for the business.
Customer segmentation is defined as the practice of diving the customers into various groups, based on certain ways such as age, interests, gender, spending habits. This building block highlights the most important customers for the business (Thomas et al. 2016). In case of a start-up restaurant, the most important customers are the young people of Australia, along with the office goers. Since the start-up restaurant is to be launched in a business hub, hence the most essential customers are the regular office goers. The various kinds of customer segments are mass market, niche market, segmented, diversified, multi-sided platforms. For the start-up restaurant, the niche market has been selected, since the sales of the products are targeted towards a specific kind of people, who are the office goers (DaSilva and Trkman 2014). Customer segmentation is essential in order to identify the key customers for the business as well as the customization of the products could also be done, according to the targeted customers. Thus, the customer segmentation has a key role to play in the business canvas model.
The values that are delivered to the customers include the commitment of delivering the best quality food to the customers. Moreover, the restaurant is dedicated to provide fresh and organic food to the customers along with regulating the price of the products to a minimum. Moreover, the satisfactions of the customers are to be achieved by the quality of food that is served to the customers. The values that are imparted also include the reduction in the waste as well as reduction in the power consumption (Thomas et al. 2016). Thus, energy conservation is also an essential part of the value proposition. Loyalty programs will be given to the customers in order to attract and retain more customers. The flexibility in the promotions are also an essential part and the start-up restaurant has to ensure that the flexibility in promotions are incorporated (DaSilva and Trkman 2014). The newness in the menu of the restaurant makes it even more attractive to the customers. The restaurant also offers adequate customization of their products and hence customer attraction and retention is done successfully.
Building a positive and effective customer relations have a key role to play in case of a start-up company. The customer relations are to be building in a strong way such that the customers are able to rely on the services provided by the customers (DaSilva and Trkman 2014). The employees need to be friendly and helpful, along with providing a positive ambience to the customers. The customers expect that the good services provided by the employees will be retained (Thomas et al. 2016). The start-up restaurant ensures that the customers are treated well, otherwise they will end up losing their customers. Moreover, the quality of food that is served has to be good enough, tasty and healthy, in order to ensure that the customers could be retained. Building a positive and effective customer relation is essential for the enhancement of business of a start-up company. The establishment of a positive and healthy relation with the customers is the first step of customer retention and building customer relationships (DaSilva and Trkman 2014).
The channels refer to the ways in which the customer could reach the start-up restaurant. These include mainly through the restaurant websites as well as the direct sales from the restaurant. These channels need to work effectively such that the customers are able to order the food online as well as get in touch with the restaurant in store (DaSilva and Trkman 2014). The advantages cards that are given to the customers are also sales channels that create a connection between the customers and the restaurant (Thomas et al. 2016). These channels have a great impact on the customer relation and purchase behaviour of the customers. The social media also has a key role to play in acting as a channel to establish a connection between the customers and the restaurant. The promotion and the feedback of the restaurant has a key role to play as an effective channel of communication and sales.
The minimum viable product refers to those products that have just the sufficient features to satisfy the customers initially. After the customers evaluate the MVP and the customers give the adequate feedback, the other products are launched. The MVP of the start-up restaurant are some of the basic products such as burger, pizzas, sandwiches (DaSilva and Trkman 2014). Once the customers consume these products and give the adequate feedback, other products are launched (Münch et al. 2013). Thus, the minimum viable product has to be made such that the customers are retained and the new customers could be attracted. If the MVP is not a good one, then it might result in lack of retention of the customers, along with lose of the niche market rapidly (Münch et al. 2013).
The key activities of the restaurant include the serving of fresh food to the customers along with ensuring that the quality of the food is a good one. Moreover, the restaurant’s key activities also include the serving of the customers with good ambience. The use of organic food by the restaurant needs to be one of the listed key activities (Finch 2016). The process of marketing via a third party along with using social networking sites for promotions are also essential key activities (McKeever 2016). Moreover, website development is also essential such that the customers are able to order food online. An efficient website has a key role to play in enhancement of the business of the restaurant. The key activities also include the establishment of the start-up business such as setting up the business, making their online presence more prominent.
The key resources for the start-up restaurant could be divided into the following types of resources. These are the as follows:
Physical resources: The physical resources include the furniture of the restaurant as well as the place that is taken in lease for the start-up restaurant. The physical resources have a key role to play for setting up an effective start-up business. The physical resources need to be used effectively such that the utilization of the resources could be carried out (DaSilva and Trkman 2014).
Human resources: The human resource is a key resource, which includes the employees of the restaurant. The human resources enables the restaurant to be established effectively along with the assurance of quality food being served at the restaurant (DaSilva and Trkman 2014). The human resource are a key resource and hence they have to be used effectively for the fulfilment of the organizational goals.
Financial resources: The financial resources are the funding and the capital that is required for the successful launch of the start-up restaurant. The financial resources are to be used effectively so that the business could be established in a limited amount of fund. Misuse of the financial resources might result in lack of successful establishment of the start-up business.
Intellectual resources: The intellectual resources include the intellectual properties such as branding, copyrights as well as brand value (DaSilva and Trkman 2014). The creation of the brand image and retaining the image is an essential intellectual resource that needs to be taken care by the start-up restaurant.
The key partners could be divided into two types. These are the key business partners and the key suppliers. Since the start-up business is in the restaurant domain, hence the key suppliers include various raw material suppliers. The restaurant is dependent on these suppliers for the establishment of the start-up business (Blank 2013). The suppliers need to ensure a steady supply of the organic raw materials such that the smooth operation of the restaurant could be ensured. The partners need to be motivated in order to inspire them for entering into partnership. The motivations include the optimization of economy, along with significant reduction in the risk and uncertainty of the business. Thus, with these motivations, the start-up restaurant is able to enter into an effective and strategic partnership.
The revenue structure highlights the value of the business for which the customers are willing to pay an adequate amount of money. This structure also highlights for what the customers pay in the current scenario and the in future for what the customers are willing to pay for. In the present context, the customers have been paying for the quality food and the ambience of the restaurant (Joyce and Paquin 2016). However, in future, the restaurant aims to establish themselves as a brand and the customers will be paying for the brand image of the restaurant, along with the services provided by them. Hence, the revenue structure has a key role to play in the building block of the business model canvas (DaSilva and Trkman 2014).
The cost structure of the business canvas highlights the essential costs of the business model. The key resources that are most expensive and then activities that cost the most for the company is mentioned in this cost structure. In case of a start-up business, the cost of establishment of the business and setting up of the business is the most expensive activity and hence it is reflected in the cost structure (Dudin et al. 2015). The activities such as the assurance of the customer satisfaction are the most expensive one and the cost that needs to be taken up, has to be incorporated. Thus, the cost structure is essential and the cost needed for the establishment of the business is estimated from the cost structure.
The business model canvas has a key role to play since the various building blocks of the business are highlighted effectively. Each of the building block has a significance in the enhancement of the business and in identification of the elements that play a major role for the business.
An in-depth analysis of a proposed project, to check whether the project is technically feasible, feasible within the cost that is estimated, along with the market and human feasibility determination is known as feasibility study (Varalakshmi 2016). The various types of feasibility analysis are described as follows:
The market feasibility highlights the concept, whether the market is feasible for the establishment of the business. The market feasibility studies the current market scenario of and the conditions of the market, whether the market is suitable enough for the establishment of the business or not (Kiel 2014). In order to open a start-up restaurant, the market condition needs to be researched and whether the conditions are suitable for the restaurant is highlighted (DaSilva and Trkman 2014). If it is seen that the conditions are feasible, then the restaurants plan is taken forward.
The technical feasibility highlights whether the business to be launched has the technical feasibility to support the technical requirements of the business or not. The technical support is necessary for the launch of the website, along with the online delivery of the food being ordered by the customers (Pinaud et al. 2013). Thus, the technical feasibility has to be analysed before the restaurant business is launched.
The human feasibility determines whether the skills among the people are found, that is inevitable for the launch of the new business. The correct skills among the employees are to be obtained such that restaurant could be operational (Amanullah et al. 2015). However, lack of adequate skills among the employees with make it difficult to launch the business. Thus, the human feasibility has a key role to play in determining the feasibility of the business. The right people, with the right skills need to be recruited by the start-up restaurant such that the business could be launched successfully. The human resources have a key role to play in any business hence, the human feasibility needs to be analysed (Amanullah et al. 2015).
In order to launch a start up business financial support and funding has a key role to play. Lack of adequate fund might abort the project in the middle, before it is successfully launched. The financial feasibility ensures that the business will get adequate funding to ensure successful launch (Aboah et al. 2014). Hence, the project needs to be accommodated within the available budget such that it could be financially feasible. Before the entrepreneur ventures into the establishment of a start-up project, it is to be ensured that the project is financially feasible. Moreover, a business is launched in order to make profit. However, if it is seen that the cost for launching is much more that the profit that will be incurred, the project is said to be financially less feasible.
Conclusion
The business plan that has been presented in this assignment is the business plan of a start-up restaurant. The business model canvas has been described in details, highlighting the various components of the business model. The building blocks of the canvas model include the key activities, key resources, key partnerships, and the revenue structure of the business. The cost structure of the business is also presented in this assignment. However, before the business plan is made, the conduction of the feasibility study is essential. The technical feasibility along with the financial feasibility and the human feasibility is done. If the project is financially and technically feasible, then the start-up restaurant will be launched successfully.
References
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