Executive Summary
Establishing a comprehensive business plan is essential in determining the steps and circumstances to be considered when constructing a business. The aim is to open a healthy meal delivery company specializing in lengthy meal plans based on fresh ingredients. The business is predicted to be profitable and has a strong vision that will generate interest in the audience and the prospect of growing and advancing. The company will be named Chef’s Kit, and financial, legal, and workforce considerations are required to enter the market efficiently. Additionally, social media marketing and the selection of high-quality suppliers will assist with establishing a loyal consumer base.
Chef’s Kit will be a business specializing in healthy meals and meal plans available for daily consumer delivery. Transformational leadership will be implemented to manage the human resources of eight employees. The company’s mission is to facilitate healthier options for busy individuals, which will be achieved by selecting ethical suppliers for raw materials and following high standards for food preparation.
Currently, competition is high, as per the situation analysis, yet new actors can enter the market for healthy food, specifically as the market is saturated with fast food. The company requires extensive investment alongside the existing financial resources invested in equipment and the workforce, yet the investors will regain their capital. All legal considerations will be implemented at all stages, and extensive attention will be allocated to online marketing. Chef’s Kit will employ a production-by-assembly strategy with various operations, from product design to product delivery to consumers. The preferred exit strategy is a merger with a more prominent company, preserving Chef’s Kit’s vision and goals.
Leadership
The objective is to establish transformational leadership at Chef’s Kiss. Transformational leadership has been linked to employee satisfaction and reduced burnout (Khan et al., 2020). As a leader, the objective is to lead by example, motivate other team members, and encourage them to operate collectively rather than individually. As a small business, the model implies direct cooperation and closeness with employees. Creating an environment where the leader is a mentor and guide rather than a supervisor is a goal. This does not imply a lack of performance assessment and low regard for efficiency.
Chef’s Kiss will start as a small business without managers and supervisors hired to oversee the employees’ work. However, the owner will take the role of the leader and, through presence and guidance, maximize organizational productivity and the fulfillment of professional standards. Researchers also highlight the importance of organizational mindfulness (Lusiantoro et al., 2021). At Chef’s Kiss, the goal is to establish a team in which the leader and the employees have a common corporate objective and work to fulfill it daily.
Mission & Strategy
Chef’s Kit’s mission is to improve the health and well-being of the general population through proper nutrition. In today’s day and age, the fast pace of life limits people’s options to live healthily. Working full days implies a lack of time to cook fresh meals and become informed on nutrition. Convenience has become more critical than the quality of food. However, with convenience, individuals are more likely to opt for high-calorie fast food. The decreasing quality of food and the preference for high-sugar options with high contents of saturated fat is one of the leading causes of obesity (Keenan et al., 2020). Chef’s Kit’s mission is to construct a convenient and straightforward way to be healthy in the modern day in which time is limited. As a result, meal prepping, planning, and grocery shopping for fresh produce are not necessary. Instead, individuals can access a variety of balanced meals that are delivered and align with all clients’ requirements.
A dynamic strategy will be employed to fulfill the mission above. The goal is to reach 300 daily customers after a year of operation. Another strategy that directly correlates with improving competitive advantage is having an official website that 500 new audience members visit daily. This will be achieved through marketing, which will generate success and elevate Chef’s Kit over competitors (Farida & Setiawan, 2022).
Such strategies are generated due to the vision to make the best meals for individuals with busy lifestyles. Hence, believing in the idea implies that the strategies set are relatively difficult to achieve. Nonetheless, the business is predicted to be successful and profitable. A large audience will undoubtedly be interested in trying Chef’s Kit and enjoying their experiences enough to continue seeking the products and meals proposed by the company.
Situation Analysis
Porter’s Five Forces will be applied to conduct a situation analysis. Hence, competition, new entrants, suppliers, consumers, and substitutes will be examined. Regarding competition, the food industry is universally a highly competitive market. Researchers highlight that DoorDash is an example of a highly competitive company. (Zhang, 2021). However, DoorDash, GrubHub, and Uber Eats mainly specialize in fast food delivery. Hence, Chef’s Kit will compete in a slightly less competitive market as the focus is healthy food. Nonetheless, various companies offer similar services, which is why overall competition can be deemed moderate.
In terms of new entrants, the threat is high, as starting a healthy meal delivery business does not require extended investments. Moreover, the trends in food preferences shifted towards healthier options, a phenomenon that was noticed during the COVID-19 lockdown (Janssen et al., 2021). Hence, similar businesses are expected to be established, and new entrants will be considered from the perspective of establishing a loyal consumer base, attractive prices, and innovative business ideas.
The suppliers for Chef’s Kit will be independent farmers, as one of the goals is to support local, organic farms producing high-quality and ethical products. Researchers say such suppliers have moderate bargaining power and can impact prices (Malak-Rawlikowska et al., 2019). However, it is not high as the industrial farms offer goods at much lower prices, and local producers are willing to compete. One of the elements of competition is maintaining adequate prices. Simultaneously, farming correlates with a high dependency on external factors, such as the weather.
Hence, the segment is somewhat risky, but the objective is to find suppliers with experience who are aware of risks and how to minimize or address them. Additionally, the power of consumers is similarly high due to the existence of a variety of similar businesses that may offer more affordable prices. The power of substitutes is moderate, as not many food companies operate with healthier options.
Financial Management
The financial goals correlating with the business plan are to raise resources to invest in the business. Specifically, the initial present investment is $30,000, yet additional investors are needed to generate more opportunities for the business to start. First and foremost, a location was found where Chef’s Kit could open the kitchen for meal preparations. It is estimated that the needed industrial kitchen equipment will cost $200,000. This includes professional ovens, ventilation, prep stations, fridges, counters, electric ranges, food processors, mixers, microwaves, and refrigerators. Additionally, the rent for the location was found to be $4,000 per month. Despite the relatively small space selected, it is located in the city center, making the delivery to customers more efficient.
The aim is to generate investment for a year of rent until the business becomes fully independent and can cover the initial costs through profit. Additional smaller-scale kitchen utensils have been estimated to require the sum of $4,000. Furthermore, the initial Chef’s Kit needs to hire three chefs, two prep chefs, one administrator responsible for customer communication, and two delivery employees. The goal is to acquire investment for half a year’s wages until the business is entirely reliant, which constitutes $200,000.
Last but not least, two vehicles are needed for the meals to be delivered to the customers, which requires a $50,000 investment. $8,000 is estimated for Chef’s Kit’s marketing campaign. Considering the existing $30,000, the goal is to raise $480,000. The business is predicted to become profitable after six months, an estimation highlighting the potential for Chef’s Kiss to become one of the most prominent actors in this sector.
Legal Implications
The legal structure of the business has been selected as a sole proprietorship. According to researchers, a business with one primary actor controlling its activities can often correspond to the dynamic, ever-changing market under the condition of a small business (Olazabal & Avila, 2022). To limit other entities from registering the company under the same name, Chef’s Kit will be trademarked, limiting legal implications that could create barriers in the future.
A local business license, registration, sales privilege license, and food handler’s license will be acquired. The paperwork above will ensure that the company is fully legal and under legislative pretenses. Furthermore, such certifications ensure the quality of the offered products and protect consumers from accessing low-quality services and goods. A catering license will also be obtained to deliver the meals to the consumers.
To be certified, a health and safety inspection will be passed. This will ensure that all the measures to facilitate a hygienic and professional workplace will be implemented (Konstantinou et al., 2020). It is additionally critical under the condition that food will be handled at Chef’s Kit. One of the main reasons legal considerations are being highlighted at such an early stage of the business being opened is the prioritizing of risk mitigation. By following the legal requirements, Chef’s Kitchen will be safe for investors who will not experience additional expenses due to legal issues, customers who will not acquire low-quality goods, and workers who will operate under efficient conditions.
Human Resources
As highlighted previously, the initial goal is to establish a team of nine employees, including the owner, who will be the manager of Chef’s Kit. Three cooks, two prep cooks, two drivers, and one administrator will be hired. The intention is to establish the team via online platforms. Chef’s Kit is an equal opportunity employer to promote inclusivity and diversity in the workplace (Thirusanku & Singh, 2021).
The hiring strategy is to prioritize individuals with experience working in a kitchen regarding the position of cooks and meal prep cooks. As Chef’s Kit will be a small, new business, training expenses must be minimal. However, the chefs will be informed of the food regulations and procedures to keep the workplaces clean and the food non-contaminated. Regarding the drivers for meal delivery, individuals with valid driver’s licenses will be accepted, preferably those with experience in this line of work.
Additionally, the administrator will be selected based on personal skills and past professional experiences. Chef’s Kit will start as a part-time employer, only requiring employees to operate during the first half of the day, so medical insurance will not be provided. However, this will change when the company grows. The manager will monitor performance, and compensation will be provided in cases where productivity is deemed excellent. Productivity will be determined through the assessment of Key Performance Indicators (KPIs) established by the manager (Cruz Villazón et al., 2020). As a result, the workforce will be efficient in fulfilling organizational objectives.
Marketing
As highlighted, Chef’s Kit aims to appeal to a particular demographic. The target consumers are digitally literate and professional and aim to maintain a healthier lifestyle, which implies following healthier food trends. Such consumers respond to marketing in their realms and aim to focus solely on online marketing. Digital marketing allows for more consumer content to be recommended depending on preferences in content (Dwivedi et al., 2021).
For example, Chef’s Kit will be marketed through small influencers, potentially ones with sport-related online presence. As the influencers are small, Chef’s Kit will maintain a reasonable budget while accessing an audience with a potential interest in its products and services. Furthermore, advertising companies through influencers generate loyalty due to the trustworthiness of the people recommending the brand. Hence, customers are more likely not to be hesitant to invest in the company.
Social media marketing will additionally be addressed through ads. Researchers mention that such strategies are effective as platforms have various algorithms that imply that the target consumer will watch the advertisements (Jamil et al., 2022). Chef’s Kit will not have extended resources to invest in extensive marketing campaigns as a small business. Nonetheless, it is essential to establish a presence and become a recognizable name in the eyes of potential customers. The relatively small marketing budget mentioned previously implies modest initiations into advertising the brand. However, the plan is to expand the segment further and allocate more resources to social media ads. By creating attention directed at the brands, more people will know of their existence and be confident in investing in their goods. Hence, profit will be generated.
Production & Operations
Chef’s Kit will specialize in production by assembly. The raw materials, including all the food products acquired from farmers, will be transformed through the labor of the company and its capital. As a result, the input will be transformed into the output and sold to consumers. Chef’s Kit will also apply some aspects of intelligent manufacturing (Zhou et al., 2021). This is the case for self-optimization through the analysis of consumer preferences and a focus on services and products that are more likely to become preferred. As highlighted previously, production will start by selecting raw materials from ethical sources.
Manufacturing operations include the steps between product design and delivery to consumers. First and foremost, product design will be established, including through planning (Zhou et al., 2021). Secondly, it is essential to generate efficient relationships with raw materials suppliers. Even though most of the products will be bought from farmers, preferably local ones, certain goods will be purchased from organic stores, such as oils and condiments.
Relationships with each actor will be constructed based on mutual advantages and collaboration. They will be prepared in Chef’s Kit’s kitchen, aligning with all quality control measures. The administration will inspect specific meal kits during the initial process of the business activity to ensure that all the goods coincide with the company’s high standards. Last but not least, based on the customer’s selection of meals, the products will be delivered directly to individuals.
Exit Strategy
An existing strategy is to be established to protect the business, its owner, and investors from unexpected situations. First and foremost, it is critical to establish the goals for exit. For Chef’s Kit, the goals include returning the investment, leaving a legacy in the healthy food industry, and having more than 20,000 customers throughout the company’s life. It is predicted that the exit strategy timeline will be six months.
Because the brand’s vision is to change consumer behavior, it has a social value. Hence, it should merge with another corporation with similar values or offer the same services and products, such as Hello Fresh. Exis strategies are often collational, limiting decision-making regarding the initial owner (Hohen & Schweizer, 2021). Despite this being a possibility, Chef’s Kit’s goals must remain present regardless of the nature of the organization.
Merging the company is profitable for investors and linked to an increased value for the company. Hence, despite Chef’s Kit potentially changing its operation, its value is predicted to remain high as per the exit strategy (Shepard, 2021). The strategy to merge Chef’s Kit with another parent company correlates with various benefits, such as the highlighted prior increased value and the continuation of the fulfillment of organizational goals. Its only drawback is the potential lack of opportunities for the owners to limit involvement in the business. Nonetheless, the option is the most positive exit.
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