1. Entrepreneurship and Innovation in the Hospitality and
Tourism Industries
Feasibility Report on Phoenix Café
Florentina Daniela Fatt – 23019661
Module Tutors: Phillip Goulding and Claire Holland
Word Count: 2744
Hand in date: 21 January 2014
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Figures
Fig. 1 – Business process for social enterprise (Fourth Sector, 2009)
Fig. 2 – The Entrepreneurial Process and GEM Operational Definitions (Kelley, et al., 2011, p. 13)
Fig. 3 - Phoenix Café Logo
Fig. 4– Phoenix Cafes Pyramid of goals. Adapted from (Barrow , et al., 2012)
Fig. 5– SWOT analysis for Phoenix Café
Fig. 6– PESTEL analysis
Fig. 7– Phoenix Cafes Customers – their needs circle – at w hat price
Fig. 8 – Porter’s Five Forces model; Adapted after (Porter, 1980)
Fig. 9– Female w orkforce participation, 1950-2030 (Barrow s, et al., 2012)
Fig.10 – Sectorialcentration of start-ups (nascent and new business ow ners) by gender (Hart & Levie, 2010) (Marlow , et al.,
2012)
Fig. 11 – The sources of startup funding (exclusive personal saving) reported by nascent entrepreneurs
Fig. 12 – Forecast Start-up Capital
Fig. 13 – Bank loan calculator (HSBC, 2014)
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1. Executive Summary
This executive summary will build a picture of the social enterprise, Phoenix Café
with the help of a feasibility study. In this particular case we looked into a unique
concept, a place which is aiming to bring to 11, 477 Wombwell residents, Barnsley,
South Yorkshire and it 12 neighboring wards, a new concept with a variety of
homemade products in an environment that is welcoming, unpretentious and
nonjudgmental, offering guidance and support to those that are looking to develop
from a personal and professional perspective.
The study concluded that the business idea will be viable after the market, industry,
target audience, competitors' research and analysis as well the relevant financial
projections, established strategies and recommendations have been analyzed. This
will be of great importance if to decide to go ahead with the next stages in the
business development process: the business plan and the actual startup.
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2. Introduction of the Business Model
In order to set up a business a
thorough assessment of one’s
suitability should be done and only
after the majority questions like: Are
you physically fit? Do you like
people? Can you cope with
eventualities? Are you happy to
spend lots of time thinking about
company’s financial situation? Are
you genuinely interested in food?
Can you handle wasting perfectly
good food? (Miller, 2002). And only
after se questions have been
answered affirmatively great deal of
thought into motivation, preparation,
and idea evaluation have been
analysed, the next parts of the
business development process or
entrepreneurial process (Fig. 1)
(Fourth Sector, 2009)&(Fig. 2)
(Kelley, et al., 2011) could be
approached: testing the idea, exploration (feasibility study), business planning.
All these parts the business development are meant to test if the idea is feasible or
not; if the feasibility study determines that the idea is feasible the next, and final the
startup of the business.
This feasibility study is a precursor to the business plan that will follow and part of the
business process for any business model, in this instance the type of business will be
focusing on is a social enterprise. The Royal Bank of Scotland (RBS) under their
marketing umbrella: Inspiring Youth, Inspiring Women and Inspiring Social as well as
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an outcome of the “State of Social Enterprise Survey 2013” have named social
enterprises as “the people’s business” (RBS, 2014).
The Department of Trade and Industry’s (DTI) definition of “a social enterprise is a
business with primarily social objectives, whose surpluses reinvested for the purpose
in the business or in the community” (DTI, 2004), hence the name 'the people’s
business' meanwhile the person which undertakes the task is the entrepreneur.
Entrepreneurship is a complex concept (Drucker, 1985) (Zafirovski, 1999) which has
attracted a fair amount interest in the past several years yet confusion over what it
really is about, and especially more-so over social entrepreneurship (Peredo &
McLean, 2006) (Witkamp, et al., 2011) (Humbert, 2012) (Nicholls, 2013).The
important characteristics of social entrepreneurship are: “the recognition and
(exploitation) of new opportunities to serve (the social) mission”; “engaging in the
process of”…” innovation”; “acting … without being limited by resources currently in
hand”; (Dees, 1998, p. 4) and “capacity to endure risk” (Tan, et al., 2005, p. 359).
“Social enterprises are concentrated in our most deprived communities: 38% of all
social enterprises work in the most deprived 20% of communities in the UK. The
more deprived the community, the more likely you will find a social enterprise working
there” (Villeneuve-Smith & Chung, 2013, p. 13).
At this point in time, the focus will be on the Feasibility Study of Phoenix Café by
trying to identify problems and opportunities, determining objectives, describing
situations, defining successful outcomes and assessing the range of costs and
benefits while giving recommendations and pinpointing limitation. These utilised to
assist the decision-making when determining the business concept is viable
(Thompson, 2005).
Phoenix Café is a unique concept which combines a passion for people, food and
coffee to bring a community together situated on the corner off High Street and
Cemetery Road, Wombwell, Barnsley, South Yorkshire (Appendices 1 & 2) The
wards profile, transport routes and proximity to nearby school are identified in
Appendix 3, 4 & 5).Our goal is to be the place which comes to people’s mind when
they are thinking of a relaxed environment where they can get a homemade meal
and reliable guidance.
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Our business model is thought out on the basis of the complementary nature of the
social aspect and food. The main streams of revenue will come from:
1) food/coffee retail and catering
2) facilities rental for parties, seminars, cooking/baking lessons
3) annual/monthly membership fee (offering a 10% discount to our products and
FREE entrance to our guidance support)
2.1 Logo
The logo gives reference to the “phoenix bird” mythology (Van den Brock, 1972,
p. 67) which is referring to revival due to the fact that personal and professional
development can be seen as a revival of oneself.
Our logo is exemplified in Fig. 3.
2.1 Vision & Mission
Phoenix Café, “a place that brings people together” is our vision. While our mission,
as a social enterprise is to serve the community by supplying unpretentious meals
and homemade cupcakes, scones, muffins, loaves soups, wraps, sandwiches, jams,
chutneys made from local produce whilst creating the space for our customers to
receive the guidance, support and assistance in their personal and professional
development.
2.2 Goals
Phoenix Cafes Pyramid of goals in
relation to the vision, mission and
objectives is described in the Fig. 4 the
main goals are:
- To make a difference in the
community to which Phoenix Café
opens its doors, one individual at a
time.
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- To open, establish, run and grow a profitable business in order to be able to make a
difference from a social perspective.
2.3 Objectives
Peter Drucker (1954) with reference to effectiveness (doing things right) and as
objective (doing the right thing) underlines the importance of having both in his
management by objectives theory (MBO) (Drucker, 1954), opinion which is shared
and valued by the owners of Phoenix Café. The objectives have been set with the
help of SMART targets (Appendix 6).
2.4 Marketing Mix
The marketing mix also known as thee 4P’s, is a mix of activities/a series of
strategies which involves the product itself, the product’s price, the place in which it
is offered, and promotion of the product (Barrows, et al., 2012)(Appendix 7).
Therefore, behind a successful marketing mix a successful business stands vigorous
market research. The following section of this feasibility study will investigate what
multifaceted market research concept is and how it influences the decision-making
process.
3. Market Research
The purpose of market research is to assist in making informed decisions concerning
the marketing strategies as regards to setting prices, quality and type of services,
choosing where and how to advertise any many other important factors (Hassanien,
et al., 2010). Former president of Harvard Business School said with regards to
research “if you think that knowledge is expensive, try ignorance” (Barrow, et al.,
2012, p. 73), meaning that by not doing your research with due diligence, you later
might end up costing much more.
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3.1 Wombwell, Barnsley
Barnsley is situated in South Yorkshire, Wombwell is one of its wards (Barnsley
Metropolitan Borough Council, 2013), there is the business's location, has a
population of 11,477 with a 63.7% working age (16-64) according to 2012 Barnsley
Metropolitan Borough Council and with a total number of 237 businesses, of which
57 are new business start-ups in 2012. There are 5,198 households in Wombwell
with 38.1% of adults in employment. 6.2% of no adults in employment in with
depending children (5.0% male lone parent: not in employment versus 43% female
lone parent: not in employment) (Barnsley Metropolitan Borough Council, 2013).
3.2 Research of the Industry
According to Allegra Strategies Ltd. (2013) there are in total 15,723 outlets in the UK
coffee shop market with estimated turnover in 2012 of £5.8 billion (Allegra Strategies
Ltd. , 2013). Furthermore, according to data Kantar Media’s Target Group Index
(TGI), survey for coffee and sandwich shops, “54.9% of adults stated that they had
visited a coffee shop during 2012. Women were more likely to have done so than
men, with 62.2% of women and 47.3% of men answering that they had visited a
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coffee shop” (Euromonitor International, 2013). The research upon the industry gives
a realistic picture of the environment in which the future business will perform,
reasons why it is important to undergo analysis of the current market place such as
SWOT and PESTEL analysis (Fig. 5 Fig. 6 illustrates detailed analyses).
3.3 Primary research – Surveymonkey.com
The market research of the industry (secondary research) led to the need of
primary research which materialised in the survey – designed, collected and
analysed with the help of (SurveyMonkey, 2014) (Fig 7.). The sample was 20
people: 15 female and 5 male. We offered anonymity and an easy to complete
survey and in exchange we received honest opinions with regards to the concept
as it can be seen in the below results: 75% of our participants' were women which
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demonstrated that we are on target regarding our target audience. Largest group
age was 21-29. All participants have said that there is nothing they dislike about
the concept and tend to underline its uniqueness and the fact there is a gap on
the market for such concept.
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3.4 Product / Service / Unique Selling Point (USP)
We intend to develop a series of products, down-to-earth and homemade, to satisfy
the customers need. Our USP will be the freshness, diversity and locally sourced raw
materials for our product, meanwhile our services are with confidentiality, unique and
non-judgmental in a relaxed environment with set open hours (Matzen & Harrison,
2007).
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4. Considerations
4.1 Target market
Target market is the
grouping of consumers
or business most likely
to purchase your
products or services
(Barrow, et al., 2012).
Determining
motives/needs of our
customers will allow us
to supply the right
product and service.
Fig. 8 illustrates our
customer’ needs circle
in relation to Maslow’s
Hierarchy of Needs and
the price we are
charging – the
customer’s needs at
entrance in our service is a lower one in contrast to exit. The guidance we want to
provide will be realistic and measurable according to Maslow's Hierarchy of Needs
which will be assets at the beginning and we target an improvement at the next
assessment. By analysing the market segmentation, “the division of a market into
distinctive clusters of consumers with similar wants and needs accords to different
types of factors (e.g. demographic, geographic, psychographic and behavioral”
(Hassanien, et al., 2010, p. 286) will allow the selection of the most suitable target
market segments and the strategies regarding them. This can be achieved even
more so by getting the precise answers to the questions in Appendix 8 (Tiffany &
Peterson, 2004) (Small Business BC, n.d.).
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4.2 Competition & Competitor Analysis
The term of competitor consists of “rival, present and prospective, that an
organisation must overcome in order to reach its objectives” (Fleisher & Bensoussan,
2007, p. 121). Researching and understanding the local competition will provide an
important source of information which could give an upper leverage when planning
our own activities and being critical in development of effective strategies (Lashley &
Lincoln, 2003)
The main competitors in Wombwell are Cole Bros Café, 69 High Street, Wombwell;
The Coffee Thyme, 67 High Street and Linda’s Café, 70 High Street, Wombwell.
They have all being in business for a long time, established a reputation but being
more or less family run businesses with little online presence. This is an opportunity
which we will take advantage of by because we preserve it as a weakness of our
competitors and a way to enter the market. We attend to design a friendly use
website with matching app when move to online ordering.
4.3 Porter’s Five Forces
Porter’s Five Forces (1980) model is
a description of the five competitive
forces (rivals, new entries, suppliers,
buyers and substitute products) and
their impact and strategic implication
on the organisation and the industry
as a whole (Porter, 1980) (Papp,
2001). All those forces and their
implications on Phoenix Café are
illustrated Fig. 9
4.4 Production/Operating Requirements
Every new catering business in order to start production has to register the premises
with the environmental health service at the local authority (Barnsley Metropolitan
Borough Council, 2014). The registration is free and cannot be refused however it
must be requested at least 28 days before start of trading and failing to do so is an
offence.
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4.5 Management and Personnel Requirements
The person whom undertakes activities to create a business is known also under the
term of nascent entrepreneurship (Reynolds & White, 1992) (Davidsson, 2006) (van
Gelderen, et al., 2006). In the case of social entrepreneurs, it is more or less a
lifestyle; due to the altruistic nature of the individuals. The process is even more
challenging if the individual is a
female such as in this case. “The
changes in our views of women
and the family have had an
enormous impact on the hospitality
industry over the last 100 years”
(Fig. 10) (Barrows, et al., 2012).
By targeting the Retail Trade,
Hotel & Restaurants sector
(Fig. 11) in which women have
been successful, we will find
more relevant secondary data
but also more motivation and
confidence in the success of
the business. A real advantage
can be obtained by undergoing
self assessment test ourselves
(Appendix 9) and risk
assessment regarding the business (Appendix 10). Setting your own example
undergoing continuous personal and professional development yourself (Appendix
11). The requirements for the personnel will be precise such as enthusiastic,
hardworking, and multitalented with people skills, adaptable, flexible and willing to go
that extra mile.
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5. Financial Projections
5.1 Financingthe business & Capital Requirements
The Fig. 12 shows the sources of start-up funding (excluding personal saving)
reported by nascent entrepreneurs. In the case of the finance for Phoenix Café will
come from grants
(Appendix 12) (£5,000 or
more depending on the
organizations) (Fig.13)
angel investors (£5,000),
bank loan (£20,000),
overdrafts (£2,000) as well
as the credits taken for
kitchen equipment and
furniture to design the whole
café (£15,000) repayable in
60 month- £265/month
(Fig.14).
5.2 Start-up costs
Start-up costs are a
projection of what it cost for
the first year of operation.
They are influenced by the size of
business and they vary from one business
to another (Peredo & McLean, 2006)
There are two types of start-up costs: one-
time costs, which as the name suggests
they are costs which the business will
incur once permits/licenses/installation
charges for equipment’s; continuing
costs such as rent, payroll, utilities, taxes,
inventory, (music licences (PRS for music,
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2013). Investigations of a few existent businesses (viewing of them due to the fact
they are for sale) have supplied us with more accurate running costs (Appendix 13).
5.3 Staffing costs
The staffing costs are explained in detail in the Sales Forecast & Staff Summary
Sheet (Appendix 14). There will be three employees including myself (drawing a
monthly salary which will pay for roles such as manager, front of house and kitchen
staff), the other two will be paid hourly £6.50 doing around 82 hours jointly in front of
house and respectively kitchen.
5.4 Income Statement Projections, Break-even Analysis &
Cash Flow Forecast
The figures shown that if the sales will be around £11,000 per month at the end of
first month will be in profit by £10 (Appendix 15 & 16). The projections are positives
but in the same time realistic and achievable. While the Cash Flow Forecast
(Appendix 17) reveals the fact that the projections for the start-up capital are a bit on
the large size and do not necessarily reflect the needs of the business.
6. Strategies
Strategies are actions taken by the business to pursue its objectives (Wickham,
2006) (Ireland, et al., 2010). Our immediate strategy is to establish ourselves on the
market and create a brand identity by offering our customers products and service
with value for money. In midterm we are looking in developing the online retail and
catering business while in the long term, once established the business model will be
able to duplicate throw franchising. The list of suppliers and help sources can assist
with the achievement of these strategies (Appendix 18) (Euromonitor International,
2013).
7. Recommendations
This section represents guidelines to be followed if chosen to proceed any further
with the business development. They have been drawn after taking under
consideration all the information that the research provided.
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Recommendation 1 – Rethink the amount asked as startup, as the Cash
Flow Forecasts has shown that half of the initial sum is needed. That will give
more chance to receive the loan from the bank.
Recommendation 2 – Invest in a reliable website, promo materials as the
market opportunity lies there.
Recommendation 3 – Invest in staff, people that are enthusiasts, eager to
learn and develop as they represent and sell our image.
Recommendation 4 – Take time to know and understand the customer, by
being positive, as the business is relying on repeat business. E.g.
campaigns/promotions that builds the customer base.
Recommendation 5 – Keep costs as minimum as possible but do not cut
corners.
Recommendation 6 – Be consistent regarding food stands, service, quality,
procedures, etc.
8. Conclusion
This paper has explored the processes involved in the execution of a feasibility study
for a new start up social enterprise in the catering sector. The assignment has been a
past part of the Entrepreneurship & Innovation Module but in the same time a
personal investigation in possibility of becoming an entrepreneur. After in-death
research, analysis and forecasts the conclusion of this feasibility study is that the
business in question is feasible but should proceed only if the recommendations give
will be follow with precision.
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9. Appendices
Appendix 1– Delimitation of the Wombwell wards (Barnsley Metropolitan Borough Council, 2013)
Appendix 2 – Map of the location of the business (Google Map a, 2014)
Appendix 3 – Wombwell Ward Profile (Barnsley Metropolitan Borough Council, 2013)
Appendix 4 – (Travel South Yorkshire, 2014)
Appendix 5 – (Google Map b, 2014)
Appendix 6 – Objectives – SMART targets for Phoenix Café
Appendix 7 – Marketing Mix for Phoenix Café
Appendix 8 – Market analysis
Appendix 9 – Self AssessmentTest: Am I an Entrepreneur?
Appendix 10 – Risk AssessmentMatrix Business PHOENIX CAFÉ
Appendix 11 – Continuous Personal and Professional Development
Appendix 12 – A guide to social entrepreneurship funding (Anglia Ruskin University,2009)
Appendix 13 – Existing businesses which have been visited
Appendix 14 – Sales Forecast& Staff SummarySheet
Appendix 15 – Income Statement12 months
Appendix 16 – Break-Even Analysis
Appendix 17 – Cash Flow Forecast12 months
Appendix 18 – Official Suppliers & Help Sources (Euromonitor International, 2013)
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Appendix 1 – Delimitation of the Wombwell wards (Barnsley Metropolitan Borough Council, 2013)
Appendix 2 – Map of the location of the business (Google Map a, 2014)
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Appendix 6 – Objectives – SMART targets for PhoenixCafé
Objectives
SMART TARGETS
Specific Measurable Agreed Realistic Timed
To develop
relationships
with the
community
wich will result
in credibility
and brand
image.
By using local
products,
offering
traceability,
sustainability.
By employing
residents.
Offeringevents
that engage the
community.
Having at all
times a
CommentBox in
the café and as
well as a
Facebook page
where our
customers will
give us constant
feedback.
The staffwill
put a constant
attentionin
delivering
excellent
customer
service and a
constantquality
of our products.
It will be a big
task but if we
are consistent
will be
achievable.
Long term
objective, it will
be reviewed
every year by
taking part of
market
research such
as survey to
evaluate new
strategies.
Promoting
local suppliers,
services,
events and
places.
Using
seasonal and
local products
will not only
to promote
the locality
but also to
keep our
costs low.
Networking
usually goes
both ways; in
return the
companies will
recommendus
as well.
The
promotion
process will
be an ongoing
one and up to
date.
It is a realistic
target which
will need
researching
and
developing.
Short term
objective, as
we will start
immediately
building are
suppliers and
customer
basis.
Keeping a By keeping a The record It is a realist Short term –
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Create an
affordable
homemade
range on
products
making the
Phoenix Café
brand
identifiable.
record of the
product and
how much
they sold.
Asking the
customer
which
products they
prefer/ not
prefer and
why.
record it gives
us a tool to be
able to replace
to products
that don’t sale.
will be kept at
all times and
the staff will
be made
aware of this
and explained
the reason
behind the
decision.
objective, it
will require a
bit more work
but in the long
run it will pay
off by not only
being acquire
as well as
sustainable.
in matter of
months the
system will be
in place and
give acquired
figures
related to the
sales.
Diversify via
the events,
courses, any
complementary
and lucrative
products and
services.
Organising
themed
parties where
we provide
the catering
(contra cost)
and the venue
(free) or the
other way
around.
Course,
workshops,
motivational
speakers, etc.
We are looking
at pre-booked
events which
will need a
certain amount
of bookings in
order to ensure
our bottom-line
plus 20%.
Agreed by all
the staff
members.
As long the
events are
proving to be
profitable and
well received
the public will
continue to
diversity.
After 10
events the
strategy will
be reviewed.
To provide a
reliebel service
in the form a
consultancy,
guidance,
group support.
All the group
session, one-
one session
will take place
after trade
hour to insure
the good
running of
both aspects
of the
business.
An information
area will be
provided
(leaflets,
newspapers,
magazines,
etc.) as well as
booking sheets
on the
principal first
come first
served.
The
informational
material will
be updated,
well
organized and
diverse. The
task will be
agreed and
distributed
among the
staff.
It is a realistic
objective and
one of great
importance
due to that
purpose of the
organisation
as a social
enterprise.
Short term
objective
which will be
monitored
daily – weekly
– monthly –
yearly.
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Appendix 7 – Marketing Mix for Phoenix Café
Product Homemade products such cupcakes, scones,
muffins,loafs, soups, wraps,sandwiches, meals,
jams, chutneys
Price Value for money – by sourcing local and in
session raw materials
Promotion Window displays as the venue is facing a road
with high foot and car traffic
Flyers
Napkins, recycled takeaway bags, cups
Internet – website
Social medias – Twitter & Facebook
Press release before to opening in the local
newspapers
Word-of-mouth: customers, suppliers,
organisations and institutions which whom we
will collaborate
Competitions such as basket of the month,
vouchers
Introducing the Suspended Coffee Scheme
(Thornhill, 2013)
Place The quote “Location location location” belongs
to visionary businessmen and hotelier E.M.
Statler accentuating the importance of location
in the food service (Barrow s, et al., 2012).
The cafes location is on busy High Street,
Wombwell, in the center of town
Surroundedby a fair amount of business, shops
Nearby a busy road with main busses routes
(Fig. 2) (Travel South Yorkshire, 2014)
Footpath to students and parents on their way to
Netherwood Advanced Learning Centre
(Netherw ood School, 2013) (Google Map b, 2014)
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Appendix 8 – Market analysis
Consumer Markets Business Markets
Who is the customer? -80% of Wombwell population + the day
visitors from the nearby wards
-Age between 10-85
-Female and Male
-All incomes and status
-retail shops in surrounding area
-small size ofcustomers but a steady
stream of revenue
Where is the customer? -Barnsley,Wombwell, Darfield,Elsecar,
Jump,Hoyland, Brampton,Hemingfiled,
Wath upon Dearne, Thurscoe
- Barnsley, Wombwell, Darfield,
Elsecar, Jump, Hoyland, Brampton,
Hemingfiled, Wath upon Dearne,
Thurscoe
When do they buy? - In session: Xmas, Easter, Valentine
Day, Halloween, children’s vacation
Of session: January - February
- small size of customers but a
steady stream of revenue
What do they buy? -Necessity
-Social status
-Necessity
Why do they buy? -Because of the value for money,
quality and the excellent service
-Because of the value for money,
quality and the excellent service
How much do they buy? -On average the spent per customer
will be £5/week
-On average the spent per customer
will be £8/week
Appendix 9– Self AssessmentTest: Am I an Entrepreneur?
Yes No
1 Do I really have the desire to be my own boss rather than work for someone else? x
2 Am I a self-starter? x
3 Do I have managementskills (managing finances,employees etc.?) x
4 Do I have experience in the type of business Iam interested in starting up? x
5 Do I see things through to the end? x
6 Am I a well-organised person? x
7 Do I have the desire to lead and directothers? x
8 Can I make decisions quicklyifI have to? x
9 Do I have good health and a high level of energy? x
10 Do I have the financial resources + good creditI need to begin? x
11 Can I cope with earning low moneyin the early years? x
12 Can people (customers and employees) trustwhatI say? x
13 Do I have the need to setand achieve difficultgoals and challenges? x
14 Do I have the desire to be innovative and creative? x
15 Do I prefer having a plan of action (business plan) before Ibegin an activity? x
16 Is my partner and / or family supportive of my plan? x
17 Am I on time for appointments? x
18 Am I willing to work the long hours it takes to be an entrepreneur? x
30. Florentina Daniela Fatt Feasibility report onPhoenix Café 23019661
30
Self-Assessment Test Results
The point of this test was to get YOU thinking more honestly about if you have what it
takes to start a business. We presented you with a series of scenarios/statements that a
typical entrepreneur may face each day in business. You decided whether the statement
applies to you or not. So let’s add up your scores.
Over 20 YES answer
You share the traits of an entrepreneur and probablyhave whatit takes to become an entrepreneur.
Between 10-19 YES answers
Whilstyou share traits of an entrepreneur you may need assistance to reinforce the areas where you are weak.
Between 0-10 YES answers
If the majorityof your answers are NO, then entrepreneurship will not come easilyto you and you may find it is
not the bestoption for you.
Appendix 10 – Risk AssessmentMatrix Business PHOENIX CAFÉ
Critical Risk Factor Criticality
(High / Medium
/ Low)
Causes Action Plan / Ways to limit
risk
Residual Risk
(High /
Medium / Low)
Reduction in /
difficulties obtaining
funding
High
Due to recession
Due to high
concurrence forthe
funds
Targeting the finance
institutions w hich are
more inclined to fund
socialenterprises
Medium
Increased interest
rates Medium
Due to the economy
in w hich major of
EU countries find
themselves
Making informed
decision w ith regards
borrow ing from
banks or any other
private institutions
Low
Loss of government
support High
Due to the funds
reduction or
termination
Research in-depth
the funds that w e
apply for
Medium
Loss of a key
member of staff Low
Due to the staff will
be on zero hours to
begging (2-3pers)
w ith the member
Paying attention to
the hiring process;
finding reliable
personal
Low
19 Do I have the desire to stick with the business even in troubled times? x
20 Am I willing to do all the tasks necessaryfor operating my business? x
21 Even though it’s scary to try something new,am Ithe kind who tries it? x
22 If I wantsomething,Iask for it rather than wait for someone to notice and justgive it to me? x
23 Even though people tell me it can’t be done,I have to find out for myself? x
24 I wantto be financiallyindependent. x
25 I'll speak up for an unpopular cause ifI believe in it. x
26 Can I take risks with money,that is,invest, and not know the outcome? x
27 Have I taken a risk in the last6 months? x
28 Do I like trying new food, new places,and totally new experiences? x
29 Can I walk up to a total stranger and strike up a conversation? X
TOTAL SCORE 28 1
31. Florentina Daniela Fatt Feasibility report onPhoenix Café 23019661
31
w illnot as high
Lack of business
grow th / business
grow stoo quickly
Medium
The grow s of the
business is
w elcome even a too
quickly; the lack of
business w illbe a
problem
In the case the
business grows too
quickly can by
monitoring by the
choose of location
and venue (choosing
a slightly bigger one)
Meantime if the
business w illbe lack
it can be
supplemented by
doing catering, party
deals (venue &
catering), etc.
Low
Competitors reduce
prices Medium
Due to the fact that
they see us as a
threat
Choosing the right
prices to begin w ith
(value for money)
Keep the prices,
increase the service-
quality-experience.
Low
One of your
suppliers goes out of
business
Medium
Due to a bad deal
or a slow period
Lack for liquidity
Be aw are of scarcity
Due to the fact w e
choose to promote
local produce the risk
w illalw aysexist
Medium
Failure management Medium Staff leaving
Not having enough
customers
“Success isnot final, failure
is not fatal; itisthe courage
to continue that counts”
Winston Churchill
To know w hen to cut
your loses
Low
Choosing the w rong
location
High Hidden charges
Conflict w ith the
landlord
Being realistic about
the potential of the
location
Investigate in-depth
Medium
Appendix 11 – Continuous Personal and Professional Development
Name of the
course/scheme
Aims/evidence Period
Innovation Award
Applied in
5/11/2013 been
denied but
advised to
reapply in
February 2014.
Career Mentoring
Scheme
PPD – netw orking, understanding the options out there after finishing this
course
Started
19/12/2013 – 4
meetings
Career
Adviser/Employment
Advisor
PPD – formulation a high quality CV, cover letter, mock interview s, targeting
the right job for my skills
Started
20/12/2013
continues until the
course finishes
32. Florentina Daniela Fatt Feasibility report onPhoenix Café 23019661
32
BBIC – Barnsley
Business Innovation
Centre
Started
14/01/2014 w hile
18/02/2014
Eventbrite – Legal
Structures and Financial
Implication Workshop
24/01/2014
HM Revenue & Customs One time of course Friday, 31st
January 2014
KICKOFFBUSINESS –
start-up business
w orkshop
60-07/03/2014
My Community Rights It is a scheme w hich is looking into existing business – public services and the
possibility to take over such establishments.
Ongoing
33. Florentina Daniela Fatt Feasibility report onPhoenix Café 23019661
33
Counseling qualification Looking in giving a qualification the w illhelp us get more revenue fromthe
guidance center (BACP, 2014)
Planned
Appendix 12 – A guide to social entrepreneurship funding (Anglia Ruskin University,2009)
Appendix 12 – continue
Appendix 13 – Existing businesses which have been visited
41. Florentina Daniela Fatt Feasibility report onPhoenix Café 23019661
41
Food Ingredients Europe
Food Standards Agency
Home Grown Cereals Authority
Institute of Grocery Distribution
International Coffee Organisation
International Tea Committee, The
Milk Development Council
Organic Milk Suppliers Cooperative
Organic Trade Board
Soil Association
Tea Council
The Soil Association
UK Herbal Infusions Association
UNESDA & CISDA
Trade Press
Beverage Daily
Beverage Net
Beverage World
Bloomberg
Brand Republic
Checkout
Chemist & Druggist
Convenience-Store.com
Dairy Reporter
Financial Times
Food & Drink International
Food Bev
Food Magazine
Grazia
International Herald & Tribune
Just-food.com
Licensing World
Mad.co.uk
Marketing
Publican, The
Real Coffee Magazine
Talkingretail.co.uk
The Drinks Business
The Grocer
The Guardian
Times Online
Company Sources
ADM Milling Ltd
Aimia Foods
Allied Bakeries
Andechser Lassi
Asda Plc
Baker Perkins Ltd
42. Florentina Daniela Fatt Feasibility report onPhoenix Café 23019661
42
Barr (AG) Plc
Belvoir Fruit Farms
Beverage Brands Plc
Bio-Synergy UK
Boost Drinks
Bottlegreen Drinks Co
British Bakels Ltd
British Bakeries Ltd
Britvic Plc
Cafedirect
Cafédirect Plc
Calypso Soft Drinks Ltd
Campden BRI
Cereform Ltd
Clipper Tea
Clipper Teas
Coca-Cola Enterprises Ltd
Coffee Republic
Co-op
Costa Coffee
Cott Beverages Ltd
Crussh
Danone Waters UK
Danone, Groupe
Del Monte Foods UK Ltd
Délifrance
Dorset Cereals
Douwe Egberts
Duchy Originals
Edme Ltd
Emmi UK Ltd
Feelfine
Fine Lady Bakeries
Food Brands Group
Forever Young Ltd
Frucor Beverages Ltd
Frutarom
Fuerst Day Lawson
Gala Coffee & Tea
GB Ingredients
Glanbia Plc
GlaxoSmithKline Plc
GoodnessDirect
Grove Fresh
GSK - Lucozade
Hartridges
Heinz Ltd
Highland Spring Water
43. Florentina Daniela Fatt Feasibility report onPhoenix Café 23019661
43
Innocent drinks
Innocent Drinks Ltd
Irwins Bakery
James White Drinks
Jordan Cereals Ltd
Juice Doctor
Kanegrade Ltd: Ingredients House
Kenco
Kenwood Ltd
Koninklijke Philips Electronics NV
Kraft Foods Inc
Kraft Foods UK
Lavazza Coffee (UK) Ltd
Lavazza SpA, Luigi
Lesaffre Group
Make Mine a Builder's
Marks & Spencer Plc
Marlow Foods Ltd
Musgrave Budgens Londis
Natural Beverages
Nespresso UK
Nestlé SA
Nestlé Waters
Nichols Foods Plc
Nisa Chill
Novartis AG
Nutricia Co Ltd
Ocean Spray Cranberries Inc
Orchard House
Percol Coffee
Premier Foods Plc
Princes Ltd
Procter & Gamble Co, The
Puratos Ltd
RDA Organic
Red Bush Tea Co
Redwood Wholefood Co Ltd, The
Roberts Bakery
Rombouts
Rowse Honey Ltd
Rubicon Drinks
Sainsbury plc, J
Sara Lee Corp
Scheckters Organic
Schweppes UK
Silver Spring Mineral Water Co
Spadel UK Ltd
Starbucks Corp
44. Florentina Daniela Fatt Feasibility report onPhoenix Café 23019661
44
Stute Foods
Sunraysia Natural Beverage Co, The
Sunsweet
Tata Global Beverages
Tata Global Beverages Ltd
Taylors of Harrogate
Taylor's of Harrogate
Tesco Plc
Tropicana UK Ltd
Trustin Unimerchants
Twining & Co Ltd R
Twining's
Ty Nant
Typhoo Ltd
Unilever UK Ltd
Unilever UK Plc
Valio Oy
Vandemoortele Group
Vimto
Waitrose
Warburtons Ltd
Well Well Well
Wellness Quest
William Jackson & Son Ltd
Yoplait UK Ltd
Zeelandia Ltd
Other Sources
Allegra Strategies
Ceoliac Society
Factiva
Foodmanufacture.co.uk
Foodnavigator.com
GranoVita Ltd
Just-drinks.com
MySupermarket
Ocado.com
Packaging News
Pennine Tea & Coffee Ltd
StartUp Loans to 18-24 year olds | www.startuploans.co.uk
Business Finance Explained & Finance Finder |
www.improve.businesslink.gov.uk/resources
Business Finance For You | www.businessfinanceforyou.co.uk
Better Business Finance | www.betterbusinessfinance.co.uk
Intuit Financial Fitness | www.intuit.co.uk/about/small-business-finance-training.jsp
45. Florentina Daniela Fatt Feasibility report onPhoenix Café 23019661
45
ICAEW business advice service | www.businessadviceservice.com
Microcredit CDFI loans | www.findingfinance.org.uk
The Next Generation Finance Consortium | www.ngfc.org.uk
British Business Angels Association | www.bbaa.org.uk
Becoming a Business Angel | www.bbaa.org.uk/be-an-angel
46. Florentina Daniela Fatt Feasibility report onPhoenix Café 23019661
46
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