Module code and title: BM564 Enterprise and Entrepreneurship

Business sustainable growth plan

Name:
Bucks ID:
Lecturer:
Submission deadline:
Word count: 1512
Executive Summary
The First Bite is a forward-thinking cereal company that produces a variety of nutritious
breakfast foods. The First Bite targets the health-conscious consumer by providing a wide variety
of products that meet a variety of dietary restrictions and preferences, such as those that are low
in sugar, organic, or gluten-free. The company's mission is to become the go-to authority on
healthy breakfast options by offering cereals that are both delicious and good for you.

Table of Content
s
Executive Summary.........................................................................................................................1

Table of Contents.............................................................................................................................2

Introduction......................................................................................................................................3

Proposed Business...........................................................................................................................3

Customers........................................................................................................................................3

Competitors......................................................................................................................................4

Skill Analysis...................................................................................................................................5

Financials.........................................................................................................................................7

2-Year Profit & Loss Account.....................................................................................................7

2 Year Cash-flow Forecast..........................................................................................................8

Plans for Obtaining Resources.....................................................................................................8

Funding............................................................................................................................................9

Required MIS...................................................................................................................................9

Vision...............................................................................................................................................9

Conclusion.....................................................................................................................................10

References......................................................................................................................................11

Income Statement......................................................................................................................12

Cash flow statement:..................................................................................................................12

Introduction
The present document presents a synopsis of The First Bite, a pioneering cereal company that
specializes in providing nutritious breakfast alternatives. The objective of this discourse is to
examine the range of products offered by the brand, which are designed to meet the varying
preferences and dietary requirements of consumers, encompassing alternatives that are low in
sugar, organic, and devoid of gluten.

Proposed Business
The proposed enterprise, First Bites, endeavors to offer a nutritious breakfast alternative to
health-conscious adults and children. The product in question comprises a selection of breakfast
cereals that have been specifically formulated to cater to the requirements of our intended
consumer demographic. The cereals are formulated with a blend of saccharine and low-glycemic
components, accommodating individuals who adhere to a rigorously wholesome regimen as well
as those who adopt a more equitable perspective.

The cereals offered by our company contain nutritious components such as nuts and fruits, which
is consistent with the prevailing market trend where 37% of the cereal for breakfast consumers
exhibit a preference for such augmentations. According to recent statistics, a significant
proportion (71%) of individuals regard cereals as an optimal choice for commencing their daily
dietary intake. Our range of products provides a practical and wholesome alternative for
breakfast consumption (Barringer, 2016).

Our cereals are distinguished in the realm of innovation by integrating the advantages of a
wholesome way of life with a variety of tastes that cater to both the adult and juvenile
demographic. The incorporation of this distinct combination enables us to access a
specialized market segment and furnish exclusive services to our clientele with a focus on health
consciousness.

Trademarks for our company name and logo, as well as other forms of intellectual property
protection that may be necessary, can be acquired.
Customers
First Bites is aiming for the business-to-consumer sector, specifically parents and children who
are interested in living more healthily. Consumers who eat breakfast cereal in the morning and
are on the lookout for a healthy way to start the day are the target audience.

First Bites' USP is that it provides a variety of cereals that satisfy the cravings of those looking
for a sweet and decadent flavor in addition to those looking for low-sugar alternatives. The
company can now cater to a wider variety of tastes and dietary restrictions.

The product/service satisfies the market demand for a quick and easy morning meal. First Bites
capitalizes on the market trend that customers are seeking enhanced nutritional advantages in
their breakfast selections by putting nuts or fruits into the cereals. In addition, the firm is well-
positioned to capitalize on the need for nutritious breakfast choices as a result of its familiarity
with market research showing an increasing interest in healthier habits among adults.

Insights like the percentage of the population that eats breakfast cereal with extra nuts or fruit,
the average number of times per week that people consume cereal, and the general consensus
that cereals are a terrific way to kick off the day are all part of the fundamental study for the
target market. These numbers suggest that consumers are interested in purchasing healthier
breakfast options. First Bites may stand out from the competition and cement its place in the
market by adapting its offerings to this trend.

Competitors
Customers that value health and are looking for a nutritious breakfast are First Bite's ideal
clientele. The company's main target demographic consists of health-conscious consumers
looking for cereal options that support their dietary preferences and priorities.

Established cereal brands like Kellogg's, General Mills, and Nestlé are some of the competitors
in this sector. Due to their extensive history in the industry and varied product offerings, these
firms command a sizable portion of the market (Bannock, 2018). However, First Bite stands out
from the competition since it offers both sugary and low-sugar cereals, satisfying the needs of
health-conscious customers as well as those who like to indulge a little bit in the morning.
A recent survey found that 71% of people think that cereal is a great way to kick off the day and
that 37% of those people prefer types with extra nuts or fruits. First Bite can reach more people
with cereals that satisfy both health and taste concerns. For the 44% of individuals who choose a
"balanced" approach to their health, as well as the 41% who place a premium on a completely
healthy lifestyle, this strategy is ideal (Martin, 2023).

First Bite stands out from the competition because of its dedication to making cereals that satisfy
both health nuts and sugar fiends. First Bite attracts customers who want a more nutritious
breakfast without sacrificing taste by providing a variety of goods that strike a balance between
flavor and low sugar content. First Bite's ability to appeal to a wide variety of consumers and its
distinctive value proposition makes it a formidable competitor in the cereal for breakfast market.

Skill Analysis
Several of my abilities might be useful as we develop and launch The First Bite as a business:

1. Business Development: I am skilled at spotting lucrative business openings, formulating

winning strategies, and forming productive alliances with manufacturers and retailers.

2. Marketing and Branding: I can raise brand recognition and interest in our healthy
breakfast offerings while also reaching out to the health-conscious demographic I've
identified.

3. Product Development: Thanks to my background in nutrition and food science, I am able

to develop novel and nutritious breakfast options that appeal to our target demographic.

4. Operations Management: I know that timely product delivery relies on smooth

operations. I have the ability to put in place structures and procedures that improve the
efficiency of manufacturing and logistics.

5. Financial Management: I am able to make sound financial decisions, such as when

developing and implementing spending plans, estimating revenue, and assessing
profitability.

I propose the following methods for filling any potential skill gaps:
 1. Hiring Skilled Professionals: In order to fill any gaps in my knowledge, I would seek out
specialists in related fields, such as chefs, dietitians, and seasoned managers of
operations.

2. Collaboration and Partnerships: If I were to start my own firm, I would look for partners
in the form of consultants, mentors, and other professionals with expertise in the field.

3. Continuous Learning: To improve my abilities and keep up with current developments in

my field, I would put time and money into conferences, seminars, and online courses.

The First Bite has put together a management team with a wide range of experience and
knowledge to show investors that we are capable of carrying out our business plan and meeting
the needs of our target demographic, the health-conscious population.

Financials
2-Year Profit & Loss Account
2018 £ 2019 £

Sales (Revenue) £500,000 600,000

Less Cost of Sales

Raw Materials 150,000 180,000

Freight 20,000 25,000

Total Cost of Sales 170,000 205,000

GROSS PROFIT 330,000 395,000

Fewer Expenses (Operating expenses)

Wages 80,000 90,000

Electricity 10,000 12,000

Insurance 5,000 6,000

Rent 60,000 65,000

Depreciation 15,000 18,000

Office Supplies 5,000 6,000

Total Operating Expenses 175,000 197,000

Breakeven 35,000 42,000

NET PROFIT 155,000 198,000

2 Year Cash-flow Forecast

2018(£) 2019(£)

CASH INFLOWS

Investments 100,000 150,000

Loans 50,000 75,000

Total inflows 150,000 225,000

CASH OUTFLOWS

Marketing 40,000 50,000

Material 30,000 40,000

Wages 60,000 70,000

Other costs 30,000 30,000

 Total outflows 160,000 190,000

NET CASH FLOW (£10,000) £35,000

Plans for Obtaining Resources

Star-up resources needed Costs (£)
Equipment 180,000
Office Supplies 8,500
Marketing & Advertising 80,000
Staff Training and Development 20,000
R&D 105,000

Funding
A thorough evaluation of your assets, sources of funding, and potential partnerships can help you
determine if you have what it takes to realize your idea of delivering nutritious morning meal
options for a healthy audience. It is important to weigh the options of self-funding,
bootstrapping, equity funding, financing via debt, crowdfunding, strategic alliances, venture
capital, initial public offerings (IPOs), business angels, and leasing. Your business's viability can
be established by a careful analysis of these tools. Consult business and entrepreneurial resources
like Investopedia (www.investopedia.com) and the Small Business Administration
(www.sba.gov) for a thorough understanding of funding choices and non-financial resources.

Required MIS
A decentralized organization would be best for managing The First Bite and serving health-
conscious customers. An Enterprise Resource Planning (ERP) system, which would integrate
functions like inventory management, production, and client orders, would be among the
necessary management information systems. If you want to keep tabs on client feedback and
tailor your offerings to their needs, you'll need a customer relationship management (CRM)
system. Decisions and analyses of the market could be driven by data, thanks to a Business
Intelligence (BI) system (Barringer, 2016). Implementing SOPs, quality control methods, and
frequent performance reviews are all important ways to maintain order and consistency inside a
system. Success in a company depends on productivity and efficiency, both of which may be
boosted through continuous improvement initiatives.

Vision
The First Bite's ultimate goal is to open a chain of healthy breakfast cafes throughout the United
Kingdom. The company's goal is to become a worldwide recognized, trusted brand that helps
people lead healthier lives while catering to health-conscious consumers all over the world.

Conclusion
In the end, The First Bite plans to become the go-to place for people looking for nutritious
breakfast options in the future. Dedicated to its mission of empowering people to live healthier
lives, the company plans to expand its operations internationally while remaining true to its
founding principles.
References
Team. (2022). First Bites Business Plan.

Martin. (2023). Market Research Report: Healthy Lifestyles in the UK.

Bannock, G., & Brace, I. (2018). Entrepreneurship: An evidence-based guide. Palgrave.

Barringer, B. R., & Ireland, R. D. (2016). Entrepreneurship: Successfully launching new

ventures. Pearson.

Investopedia. (n.d.). Retrieved from https://www.investopedia.com/

Small Business Administration. (n.d.). Retrieved from https://www.sba.gov/

Appendices

Income Statement
2018 (£) 2019 (£)
Sales (Revenue) 500,000 £600,000
Cost of Sales:
Raw material 150,000 180,000
Freight 20,000 25,000
Gross profit 330,000 395,000
Operating expense
Wedges 80,000 90,000
Electricity 10,000 12,000
Insurance 5,000 6,000
Rent 60,000 65,000
Depreciation 15,000 18,000
Office Supplies 5,000 6,000
Total operating expense 175,000 197,000
Net Profit 155,000 198,000

Cash flow statement:

2018 (£) 2019 (£)
Cash Inflows
Investments 100,000 100,000
Loans 50,000 75,000
Total inflows 150,000 175,000
Cash outflows
Marketing 40,000 50,000
Materials 30,000 40,000
Wedges 60,000 70,000
Other costs 30,000 30,000
Total outflow 160,000 190,000
Net cash flow (£10,000) £15,000