Introduction
Opportunities as well as time are limited and therefore time in the process of identifying and exploiting opportunities matters. This basic principle of opportunity matters a lot in the business world and it determines the success and failure of a business venture. As Wickham (1998) explains in his strategic window metaphor, identifying a business opportunity is an important skill and this skill distinguishes managers and entrepreneurs.
This concept implies that time is an important factor both in the identification and acting processes. Therefore, the window of opportunity in entrepreneurship is the limited time within which an opportunity should be utilized. After identification of the business opportunity, the next key step is to make a business plan that should be implemented. A business plan should be based on the potential of the opportunity and this determines the expected growth of the proposed business.
The potential of a business opportunity determines how realistic the business plan is as compared to the other missed opportunities. This implies that the business plan should have a period as well as a geographical boundary that determines its scope. In addition to this, a business plan should be explicit on how to create new customers from potential clients. Secondly, the business plan should have a long-term projection on the expected growth and competitiveness.
This paper presents a report on the viability of the proposed business opportunity presented as a business plan for a fast-food business venture in the United Kingdom. The paper, therefore, evaluates the viability of the proposed business by analyzing the available potentials and the expected growth in the business. The potential of a business is determined by the potentials identified in a business idea or by competence, attributes as well as skills. The paper, therefore, analyzes the potentials of the proposed business idea. Finally, the paper presents a reflection on experience resulting from studying entrepreneurship and business creation.
Window Identification
According to Harper (2006), an entrepreneur needs to consider the size and the action time on a business window of opportunity after the identification process. Harper goes on to state that the duration within which the window of opportunity opens before closing is also important to the entrepreneur. From this explanation, time is the main determinant in the identification of a business window and the time within which the entrepreneur should act on his plans.
To begin with, the proposed business targets the college and high school students as the main customers. The period within which the business can enjoy this as its customers are determined by various factors that make it a window of opportunity in the business. The college and high school students are available as customers to the business for only a limited duration within which the business should fully utilize the opportunity. Within this period, the business will be lucrative and the managers should, therefore, be prepared to handle the demands. This window opens when the schools are in session and closes during school holidays and public holidays. The time within which different colleges in the UK are out of session varies and therefore the business will not be affected severely by lack of clients.
The age factor is the second window of opportunity for the business and according to the business plan, the business targets the youths. The youths are the main consumers of fast foods although people from other age groups are also consumers. The target group has a time limit since the youths will not remain as youths for the rest of their lives. Secondly, the youths from the majority of the citizens and their number keeps on increasing as compared to the other age groups. Thirdly, the business will focus on cold candies during summer and hot candies during winter. This window of cold and hot candy is determined by the climate of the United Kingdom and therefore the business should utilize the window appropriately.
According to Burns (2007), the time within which a business starts is important since it determines its growth trends. The proposed business seeks to start its operations in summer when people are in the spending mood. This will provide the business with the funds required to run it and a good customer base. The business, therefore, looks forward to utilizing the summer window of opportunity. Finally, the business aims at utilizing the window of creation of place utility by delivering its products to the customers, unlike other competitive businesses. The business aims at utilizing this window before other competitive businesses do so.
Window Location
The location of the business is determined by various factors such as price, and strategic location with the aim of enhancing customer satisfaction (Bridge, Cromie & Neill, 2009). This statement implies that the customer is the most important factor in any business and therefore customer satisfaction is vital to the success and growth of a business. The proposed business has high school and college students as the main customers.
This group of customers has limited finances from their savings and other financial allocations from their parents and guardians. The business has therefore proposed packaging its products in quantities that are affordable to the targeted customers. The business’ plan also proposes delivery services to customers as a method of cutting costs incurred by the final consumer. Finally, the business proposes a low price for its commodities as compared to the cost of other competitive products.
The location of a business also determines its success since it determines the business available to targeted customers (Rae, 2007). The business plan of the proposed business has fully taken into consideration the location factor by selecting the main cities in the UK as the best. Secondly, the business plan targets city parks as the second important locations for the business. It will also have branches near institutions of learning such as schools and colleges to take care of the available customers. Finally, the business is aware that mobile business is more competitive than a fixed one and therefore it has considered the introduction of delivery services to its customers.
Measuring the Window
In business, measuring the business window is of equal importance to the identification and location of the window. This is the third stage that is important in strategic entrepreneurship and it involves analyzing the available opportunity (Spinelli & Timmons, 2008). This implies that the business requires evaluating the potential customer by looking at the quantity and their purchasing power. Secondly, the business needs to estimate the demands for its products in order to come up with a plan to meet the demands.
The business, therefore, needs to have reliable data from which it can estimate potential customers. To obtain data on the existing number of students in the specific towns, the new business should send a representative to various schools within the towns to collect the actual figures. The representatives can then obtain the data from the school authorities and school register to determine the number of students in each school. The representatives should also conduct a qualitative survey to determine the number of students interested in fast foods. From this frequency, the managers of the business can estimate the number of potential customers that can visit their shops on a given day.
It is also important for the managers of the business to have data on the purchasing power of the business by applying several techniques to obtain the data. To begin with, the business can carry out qualitative surveys to determine how much money the students have at a particular time. The business can then conduct a qualitative survey to determine how much the students are willing to spend on fast food considering their other expenditures (Denzin, 1978). The census reports for the cities within the United Kingdom will also be important sources of data for determining the potential customers to the business.
The business should have accurate data regarding the expected demands for its products in order to determine the strategies for meeting the demand. Data on expected demand can be obtained from various sources that can be either direct or indirect. The existing businesses are the best sources of data required in the new business to predict demand and the purchasing power of the expected customers. In order for the business to collect reliable data, it should send representatives to the selected business who will pose as customers.
The representatives can then use observation to determine the number of young people who visit these shops at particular time intervals. The representatives should also collect data on the amount spent by the customers at the fast-food shop. The second important method in data collection is obtaining direct sales and purchases accounting records from the selected stores. The data obtained from the two sources should then be analyzed to determine the mean and the expected value. Basing on the assumption that the new business will compete favorably in the new market, the expected mean represents the expected demand and production capacity.
Opening the Window
The fourth stage in the strategic window management is the opening of the window that involves the resources needed to run the business (Chell, 2007). The following resources were found to be the basic requirements in the running of the proposed business.
- • Starting capital
- • Business premises
- • Delivery equipment and motorcycles
- Motorcycle riders
- • Staff
- Auxiliary businesses and services
Closing the Window
The final stage in strategic window management is the closing of the business window and this involves the establishment of long-term competitive advantage (Wickham, 2001). The proposed business has set out plans that create the difference between its operations and the operations of other competitive businesses. To begin with, the business seeks to start delivery services for its customers in order to cut the cost they incur in obtaining the products.
Secondly, the business also aims to offer its products at a competitive price to the customers and this will give it a competitive advantage over its opponents. The business will also be selling packaged and unpackaged products where the customer will be involved in determining their choices. This aims at reducing the cost of the products to the customers and creating customers’ concerns. Unlike the other competitive businesses, the proposed business aims at establishing services and products to the customers that fit their needs. The business has therefore proposed stocking of hot candies during winter and cold candies during summer to cater to the specific needs of the customers.
The potentials of the proposed business idea
According to Adler & Kwon (2002), the potentials in a business’ idea determines the heights within which the actual business can reach. This statement implies that the potentials in a business plan reflect on the abilities of the actual business in terms of its competitiveness and sustainability. Potentials in business ideas are the unseen abilities of the proposed business that are contained in the business plan (Cope & Watts, 2000). This statement implies that the abilities of a business idea will determine the abilities of the potential business.
The proposed business idea has much potential that will be evident once the actual business is established. This argument is valid because the business plan is customer-focused and therefore the business will have the advantage of a well-established customer base (Rae, 2007). The plan proposes that the business should be established in areas frequented by the youth in order to benefit from the already existing customer. In this endeavor, the plan proposes that the customers are the most important factors in the business and therefore the business should be conveniently located for the customers.
Setting the business in convenient locations to the customers will not only benefit the customers but the business will benefit from the reduced cost of operation (Alistair and Anderson, 1998). The business plan also proposes that the products of the business should be according to the needs and preferences of the customers. This implies that the customers have more options on the products of the business as compared to the products of other competitive businesses. In particular, the business plan proposes a choice between packed and unpacked products for its customers. This proposal is aimed at enhancing customer’s concern as well as their loyalty.
The proposed business idea targets the youths as the main customers of the business and therefore it is guaranteed a strong customer base for its products. The youth population forms the biggest percentage in the countries’ demographic composition and therefore there is an assurance for the business of continuous supply of customers. The youths are also the main consumers of candies and other fast foods and therefore the business looks forward to having a good customer base.
Youths form a growing population and therefore the business stand to benefit from the growing number of customers for its proposed growth. In addition, the customers of business mainly determine the trends within the business and determine the growth and its sustainability (Denzin, 1978). The youths are the dynamic group in any population and particularly in the UK. This implies that the youths in the country keep on changing to fit with the innovation trends and developments. On the other hand, the fast-food business is a business that highly depends on innovations and trends and therefore the dynamic characteristic of the youths will form a good basis for the needed changes.
The location of a business also determines the level of success in the business and in particular, the business should be located in a convenient location to the customers (Alistair & Anderson, 1998). From the given business proposal the actual business will be located in major UK streets and towns. The business proposal also states that the business should have shops near schools and colleges.
This strategic location of the proposed business will not only guarantee the business a good market for its products but it will ensure that the business cuts its operation cost. Operating from a strategic location will also ensure that the business offers better services to its customers as compared to other competitive businesses located far from its customers. Better services to the customers will create satisfied customers who are loyal to the business. This is important because the business is assured of increased sales that will result in good profit. The proposed business will, therefore, have grown from the good profits realized from good sales and low operation costs.
The business plan is sensitive to the fact that the business cannot be in operation in all possible areas and therefore it has proposed mobile business to cater to the customers who cannot access the business premises. Customers are very important to the business and therefore the business should apply all means to ensure that the customers of the business are satisfied with the services of the business (Shane, 2000). Delivering the products of the business to the customer will ensure that the business has a good customer base by creating new customers and maintaining the existing ones. Delivery services will also ensure that the business establishes customer’s loyalty that will ensure that it maintains its existing customers. The delivery services will, therefore, ensure that the business expands its territory and this will lead to improved sales resulting in good profits.
Obtaining the feedback from the customers concerning the business products is useful to both the customers and the business. As stated by (Perren, 1999), getting feedback from the market provides the business owner with information for meaningful evaluation. From the proposed business plan, the business will be located next to the customers and it will have delivery services for its customers. Convenient location and delivery services for the customers will ensure that the business obtains first-hand market information through interaction with the customers. This information from the market will be useful for business development and strategic planning of the business. The market information will also be important in the improvement of business products and services.
Personal Reflection
Entrepreneurship and new business creation have been the best unit in my entire study in the business school. Through entrepreneurship and new business creation studies, I have acquired skills and competence that are not only important in solving exams in school but also in solving other real-world problems. The real world requires unique skills that are viable and realistic. Entrepreneurship and new business creation course have enabled me to attain these important skills. The business world also requires entrepreneurial skills and competencies that I have acquired in this course.
In any undertaking skills, are important and they determine the difference between failure and success. In the business world, skills are of equal importance since they determine a successful and stagnant business. Through this course, I have learned the skill of creating a good business proposal that is viable. The course has also enabled me to evaluate the viability of a business proposal if given a task to evaluate proposals.
Through the course, I have realized that a business idea is very important to the business since it assists the business owner in planning and in the evaluation of the proposed income from the business project. Through the business proposal, the business owner can also estimate the projected growth of the business considering the other important factors. The studies have also made me realize that creating a good business idea is a skill that should be learned by any person intending to set up a business.
Through studying entrepreneurship and new business creation in the business school, I have realized that implementing a business plan is important for the success of a business. The implementation of a business plan requires that the business should be set at a time when the customers need its services most. Further, the business should be set according to the customer’s needs and preferences although it is important to consider other important factors. From this course, I have realized that customer satisfaction implies success in any business venture (Denzin, 1978).
Unlike in other courses offered at the business school, entrepreneurship and new business creation course have enabled me to acquire competence that is not only important in the business field but also in other disciplines. The course has enabled me to make my arguments based on facts and logic judgment. I have acquired this skill through the creation of viable business plans and projects.
Finally, the course has enabled me to gain project development and management skills that are not only important in business development but in other fields. With the skills and competence of projects, I have the ability to oversee a project from the development to completion stage (Dunn & Rooks, 2009). This important skill is important in real life since everything we do is a project and its success is important.
References
Adler, P & Kwon, S 2002, ‘Social capital: Prospects for a new concept’, Academy of Management Review, Vol. 27, No. 1, pp. 17-40.
Alistair R & Anderson, P 1998, “Strategic entrepreneurship”, International Journal of Entrepreneurial Behaviour & Research, Vol. 4, no. 2, pp. 178 – 181.
Bridge, S, Cromie, S & Neill, K 2009, Understanding enterprise, entrepreneurship and small business (3rd ed), Macmillan, Basingstoke.
Burns, P 2007, Entrepreneurship and small business (2nd ed), Palgrave, Basingstoke.
Chell, E 2007, ‘Social enterprise and entrepreneurship: Towards a convergent theory of the entrepreneurial process’, International Small Business Journal, vol. 25, no. 1.
Cope, J 2003, ‘Entrepreneurial learning and critical reflection: Discontinuous events as triggers for higher-level learning’, Management Learning, vol. 34, no.4.
Denzin, N 1978, The research act: A theoretical introduction to sociological methods, McGraw-Hill, New York.
Dunn, P & Rooks, J 2009, Business & professional ethics for directors, executives & accountants, Centigage, London
Harper, S 2007, Extraordinary entrepreneurship, The Professional’s guide to starting an existing business enterprise, John Wiley & Sons, New York.
Perren, L 1999, ‘Factors in the growth of micro-enterprises (Part 1): Developing a framework’, Journal of Small Business and Enterprise Development, vol. 6: no. 4.
Rae, D 2007, Entrepreneurship: From opportunity to action, Palgrave Macmillan, Basingstoke.
Shane, S 2000, ‘Prior knowledge and the discovery of entrepreneurial opportunities’, Organization Science, vol. 11, no. 4.
Spinelli, S &Timmons, J 2008, New centre creation for the 21st century, McGraw Hill.
Wickham, P 2001, Strategic entrepreneurship: a decision-making approach to a new creation and management, Finance Time Prentice Hall, New York.