Business plan for entrepreneurship

  • Category:
    Management
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    4
  • Words:
    2649

Executive Summary

The idea to have an airport café is one of a unique idea that an entrepreneur can have. It is an opportunity that is a venture by very few and those who have tried it testify of its success. It is a chance to have excellent rewards regarding meeting new people endearing about new cultures. The target market for an airport café is travelers, and Australian airports have more than 100,000 people annually. The essence of this research is understanding some of the dynamics that surrounding marketing and investing in an airport café. It will look at fourth major sections with a concluding summary of the major points discussed.

Contents

Executive Summary 2

Introduction 4

Market feasibility 4

Proposed Market Analysis 5

Financial feasibility 6

Human feasibility 8

Technical feasibility 10

Conclusion 12

References 13

Introduction

An airport café is an enterprise that offers foods and drinks for willing travelers. It is meant to be a relation paradise that provides a safe haven for the individuals willing to have their culinary needs met. The prices of the drinks and foods will be moderate. However, some will vary since some expensive foods are deferent depending on origin. Australian airports have more than 100,000 travelers each leaving in and out of the country and investing in such a venture is favored by the economic situation. The competition for airport cafes is not so great and as an entrepreneur, it is one’s duty to first of knowing the various products that can be offered (Livingstone et al., 2012). There are very few competitors since there is mot many cafes opened or operating near or at airports. Restaurant Cafe is an exciting venture and is guaranteed to have excellent returns.

Market feasibility

Owning an airport terminal restaurant can be one of the most interesting ventures to undertake as an entrepreneur. First of all, it is different from the normal daily routines that accompany the regular routines that surround operating an average café or restaurant. An airport restaurant in an Australian airport ensures that he entrepreneur interacts with numerous clients and can learn more about the business from an international perspective (Sun et al., 2013). With the Australian airport, the restaurant café business is estimated to be a $50 million industry with annual increases that range from 5% to 15%as more people seek to travel in and out of Australia. Establishing an airport café would provide the best food and beer opportunities for the more than 100,000 visitors who visit Australia. The best location for an airport restaurant is inside the airport is one the gates within the leading retail and food retail floors. The primary target market for the proposed restaurant is transit travelers, business travelers, and airport staff and holiday travelers.

Proposed Market Analysis

Establishing an airport café needs the study of the purpose numeral figures that need to be obtained from the Airport Authorities in Australia detailing some prudent strikes about the adverse weather conditions that enable people to fly in and out of the country.

Potential customers

Airport Staff

Holiday travelers

Business travelers

As noted earlier, thе airport café will be open o business traveler, holiday travelers, airport staff and relevant transit travelers. The proposed market size is expected to be between 100,000 to 200,000 passengers on an annual level with a proposed location near the exit gates as customers wait to board their flights. Other relevant market needs include ensuring the success of an airport café. There is thе need to have a full-time service that runs around the clock that aims to serve the needs of the local and international travelers (Lin and Chen, 2013). Another market need worth looking into is understanding some of the major airlines that operate through the Airport terminal being discussed. Knowing the airlines that navigate through the terminal allows the entrepreneur understand what products he or she can invest in proportion to the customers. A wise investor is always ready to invest in an unknown market and to depend on understanding what flights are necessary helps to prepare food and drink that may benefit those who are coming to Australia for the first time. The growth rate of the proposed market surges every year ad it is estimated to be from 5% onwards. Another factor that can be considered is the possibility of an expansion of the proposed airport terminal and will automatically lead to another surge growth in the market. Market analysis of the already existing airport cafes is estimated to be increasing by 10% every year. Hence n entrepreneur needs to understand the policies that govern the airport catering authority in Australia.

Financial feasibility

Marketing and sales of this project are relevant to the end by the investors to go through the airport as efficiently as possible while providing service to the many people wishing to travel in and out of Australia. To have the right financial feasibility structure, it is important to understand that there is a mix of travelers who will need to have different products depending on origin. Notably, so, the location of the Airport Café should be critical in attracting any new people who may be I retested in passing by the café (Bush and Storey, 2013). Financial feasibility will also depend on the competitive edge, value proposition and sales strategy that are relevant to the forecast of the proposed sales café. The airport restaurant can maintain a competitive advantage in several significant areas and should also adhere to the following standards and policies.

The facility’s location puts it in proximity to the number of travelers passing through a particular place. The site of the airport café should be at a strategic place where travelers need can have access to the proposed restaurant and sample its menu.

Achieving the right financial feasibility ensures that owners and the financial risk analysts are crucial since their many years of service will provide the entrepreneur with the needed skills to establish and grow his business. Creating the café on and near the exit gates allows the opportunity of success as many people will have access to it. As such the needed capital to begin the business is crucial since but with the right location and investor, the money can be quickly recovered and invested into more growing opportunities. The facilities location is important since it allows easy centration meant to achieve a better dining experience. The construction materials will therefore not be too expensive considering just how much of the Café type ventures since establishing a business at a convenient location ensures the organization achieves a competitive edge. A strategic location, easily constructible materials and easy to make fast foods provides less capital is used on the proposed café operation.

Achieving an amicable financial feasibility option also requires the organization to have a value proposition. Having a value proposition ensures that there is a clear objective on who and why there should be an encouragement to lure in more travelers mainly related to food and beverage products regarding the products (Seaman, 2011).

Sales Forecast for the proposed café or restaurant

Proposed Total Sales

Direct cost of sales

Restaurant

Gross profit

Indirect costs

Net profit and tax

Achieving market feasibility is crucially relevant to the following sales programs;

  • Festivities related events

  • Providing Wi-Fi for the customers

  • Special event sales

  • Have a quick menu

All the above programs are meant to ensure that there are developed opportunities not only for the customers, investors, and management of the proposed entrepreneur process. Establishing the best opportunities with other retailers is relevant.

Human feasibility

Beginning an entrepreneurial venture is crucial since it allows the people involved to understand any logistics involved when it comes to the planning of the necessary tools for discussion. As an entrepreneur, one will be required to cooperate with the binding partners like investors, managerial partners and other relevant personnel who can invest in the business. The human manpower will also be of interest to the firm since they also are the top people who will be strategizing on the needed materials to promote the product. As the leaders in the venture, it is relevant to understand that a product will only be successful about the concepts of integrity and excellent provision of services being hugely promoted. As the primary job to support the restaurant will be the company promoters who will be responsible for the marketing of the organization through special events and offers.

Another possible scenario featuring the human aspect is understanding that marketing is a result of hard work while using the right tools and people as well. As such, there is the ever-present compelling to comprehend just how much marketing is helpful to an organization. Venturing into the airport café requires an individual to market the product with the right marketing people who will work with the budget allocated. Every business has an annual budget and sticking to the budget is a consequence of discipline from the parties involved mainly investors and entrepreneurs. Regarding the individual who owns the cafe, it I safe to say that the management of the airport should, at last, have a percentage of ownership of the business hence other partners also need to be aware of the majority ownership. As the entrepreneur, it is set duty to make sure that a good percentage like 30 percent is within the limits laid down on an individual level while aiming to achieve the international goals set (Widarsyah, 2013).

During the holidays, it is crucial to her only the best part-time employees who make sure that the business can create employment and learning opportunities for other people. The management of the organization can also be under two managers who will make sure that all the needed and essential duties are undertaken. The strategy is known as hands-on, and it is responsible for ensuring that goals set by the people on the ground are achieved on an individual and professional level. There should be a plan that runs for about two to five years should help to identify the major perks that can be experienced by all departments. Adequate market research also needs to be carried out making sure that all the loopholes that may exist are indicated. Within two to five years, the entrepreneur should be able to run the operation on his or her own depending on the stakes that were involved. In case an individual had taken a loan, within the stated period of two to five years require the loan to be fully serviced. The goals set should also be relevant to the issue relating to the provisions established by the parameters of the investors.

Technical feasibility

Under technical feasibility, there is the growing concern of the newly available options that were present during the launch of the product. For example, there are their extreme views depending on who came with the product. As an entrepreneur, it is relevant to understand that one van do eh designs themselves, or they can hire a subcontractor to handle the design. The sense of having an airport are s making sure that travelers are well taken care of regarding their culinary needs. The entrepreneur needs to understand the different ways that the product can be launched depending on the resources and available capabilities. Starting running an airport café requires several technical feasibilities understanding. Some of the unknown products about a restaurant include people understanding of the major elements of operating a business in an airport (Lin and Chen, 2013). As the entrepreneur, the initial product design will involve having a license that helps the joint ventures in their obtaining of possible alternatives.

The primary focus for growth I through learning and achieving more profits. As such, one of the most important aspects is understanding the inventory turnover. ACCODI TO RESEARCH DNE BY marketers, the rate of turnover is dependent on technological turnover being done over a period of 4- 6 months. Such ensures that there are no losses through spoilage and their targets are achieved through the specified time and place (Lin and Chen, 2013). It is also vital to have and understand impotent assumptions from a technical point of view. Such is due to the understanding that fat assumptions need to be always studied to identify any loopholes. There’s the constant assumption that the economy is always the backbone of the business that is coming up understand how to move on with the organizations and significant market trend as well.

There is the also the informed assumption that there are no unforeseen changes in technology particularly the cost of equipment in a world where most terms become obsolete if not used.

There is also the assumption that оf and organization to survive and thrive in a known market, there is the need to have equity capital and sufficient financial technologies as shown in the table below

Plan Month

Current Interest Rate

Long-term Interest Rate

Another technical overview that needs consideration is the concept of understanding and evaluating project flow of cash for at least three years to determine where and when to manage money. It becomes the hope of each understand how crucial it is to understand the revenue process while at the same time try to understand how the market operates (Widarsyah, 2013). Understanding how the cash flows is relevant to the key financial indicators and comprehend how crucial it is to have a break even analysis. Once business picks up, it is essential to understand the balance point of the café and where there is constant cash flow. Such help to avoid any unique hinges that may arise and also look out for potential risks.

Conclusion

As seen in this research, there are many rows why investing in an airport café is one of the best ideas that an individual needs to have. Regarding making sure that each of the travelers needs are met, the is it offers an excellent opportunity to learn new aspects of people as well as new cultures that can later form formidable relationships. An airport café offers tranquility when travelers need a place to relax before entry catch their flight or where an individual can read before leaving to his or her destination. A seen in this essay; there are several logistics necessary to look before investing in an airport café, but the most important is making sure that investors and shareholders understand the risks they can undertake before investing. However, in a period do two to five ears, they can see the returns and can invest more on other airport cafes.

References

Bush, H. and Storey, D., 2013. The economics and regulation of onboard carriage of European airport retail sales. Recuperado el, 17, pp.02-15.

Flaherty, J.E., Shaw, W.J., Morris, V.R., Wilczak, J.M., White, A.B., Ayers, T., Jordan, J. and King, C.W., 2015. Installation and Initial Operation of DOE’s 449 MHz Wind Profiling Radars on the US West Coast (No. PNNL—24866). Pacific Northwest National Laboratory (PNNL), Richland, WA (US).

Freathy, P. and O’Connell, F., 2012. Spending time, spending money: passenger segmentation in an international airport. The International Review of Retail, Distribution and Consumer Research, 22(4), pp.397-416.

Kuo, S.Y. and Chen, S.C., Passengers’ Perspective toward Airport Service Quality: The Comparison between TPE and TSA.

Lin, Y.H. and Chen, C.F., 2013. Passengers’ shopping motivations and commercial activities at airports–The moderating effects of time pressure and impulse buying tendency. Tourism Management, 36, pp.426-434.

Seaman, B.A., 2011. The Airport Concession Industry: Important Issues and Trends. Georgia State University Andrew Young School of Policy Studies Research Paper Series, pp.11-31.

Sun, Y., Wang, S., Cui, B. and Yim, M.S., 2013. Energy performance enhancement of Hong Kong International Airport through chilled water system integration and control optimization. Applied Thermal Engineering, 60(1), pp.303-315.

Widarsyah, R., 2013. The Impact of Airport Service Quality Dimension on Overall Airport Experience and Impression

Livingstone, A., Popovic, V., Kraal, B.J. and Kirk, P.J., 2012. Understanding the airport passenger landside retail experience. DRS 2012 Bangkok–Research: Uncertainty, Contradiction and Value, 1.