Executive Summary

Executive Summary

The first part of this report gives a summary of the business’ ownership structure, a description of the business itself and its mission, vision and objectives (Castrogovanni, 1996).

The next section focuses on its core competencies, its keys to success and also the range of products and services that it will be offering to the market. This is an indication of the elements that will keep this business afloat.

The section that talks about competitive advantage illustrates the ways in which Healthy Meals on wheels will survive the highly competitive market.

In Market research, the business plan shows the preliminary ground work that was done before deciding to set up base in Leeds. This takes into account both the primary data and secondary data.

The business model demonstrates how the firm will be operating on a day to day basis including. This is followed by a SWOT analysis that examines the firm’s internal and external business environments.

The economics of the food business we intend to run is also highlighted and this is followed by the potential barriers that may be faced. The final part has the financial analysis that summarizes the capital invested, its source, the repayment schedule and a projection of the first month’s profit and loss accounts.

General Description of the Company

As the name suggests, Healthy Meals on Wheels will be part of the food industry and more specifically in outside catering both as retail and also on a contract basis. This is basically the sale of and delivery of pre-packed meals to different customers/organizations as well as the sale of pre-packaged food at a mobile food stands in the form of a modified truck (Abrahams et al, 2003).

Mission Statement

The mission of Healthy Meals on Wheels is to be a market leader in the supply of pre-packaged foods in the city of Leeds and eventually the whole country.

The objectives of Healthy Meals on Wheels

Dynamic management that will ensure the business adapts appropriately to market conditions so as to ensure continued growth of the business and its personnel.

To ensure the provision of nutritional foods that are practical and affordable to our customers; this is to be achieved by application of factual nutritional data and stringent production standards. This will eventually guarantee a healthy customer base and thus a healthier community.

To ensure customer satisfaction by placing their interests first since they are the reason we are in business. The trend in today’s business environment is to provide customer-centric service. This will mean that the business has to fit snugly into the customer’s lifestyle with little if any interruption at all.

To make use of sustainable production methods that help cut on energy costs and also consider the environment. This will not only improve profitability but also enable Healthy Meals on Wheels to provide affordable culinary solutions to its customers. Such a move will ensure sustainability in the face of harsh economic times that have affected majority of the population.

Keys to Success

Punctuality of both the employees and that of our deliveries to clients. Time is a scarce resource that we should leverage in our favour as to maximize on business that can be carried out (Honig et al, 2004; 29).

Timely payment of money to supplier and other expenses as well as timely collection of monies owed to Healthy Meals on Wheels. This will be crucial as it will ease the process of budgeting and minimize if not eliminate shortages.

High quality products that will lead to customer loyalty and continued growth through recommendations by satisfied customers.

Professionalism in the day to day running of the firm’s activities and finally commitment to continued efforts in research and development of healthy and delicious foods.

A Summary of Healthy Meals on Wheels’ Products and Services

Our target market is the working population who have to focus on their occupation and hence limited time to prepare packed lunch or have very short lunch breaks and need to eat something nutritional to keep them going. Another segment that we hence target is institutions that are willing or interested in outsourcing their catering needs to an external organization.

The food industry as a whole is very dynamic in the City of Leeds and this presents the perfect opportunity for Healthy Meals on Wheels to curve out its own niche in this region. At present, Yorkshire is generating just over 12 % of the United Kingdom’s revenue from Food and Drink sales. Specific niche products that have been found to exhibit exceptional growth are ethnic foods as well as speciality foods with taking up a percentage contribution of 15% and 35% respectively to the city’s total food and beverage revenues. This data clearly shows that there is a ready market that is able and willing to spend their money on food outlets and for our business, this means high demand. Our key task will be to channel this customer traffic in our direction and maintain them (Leeds City Region, 2013).

Business Strengths and core competencies

One of the partners has a degree in Catering as well as two years’ experience in the management of several fast-food outlets all over the country. This has ensured exposure to the most efficient methods of producing food in large-scale with limited time, space and high output expectations in addition to high standards of food processing and packaging (Timmons and Spinelli, 1994).

The other partner is a nutritionist by training and has been in consultancy for the last five years. This brings on board an individual who knows how to ensure foods are of not just a high quality but also prepared in a manner that adheres to sound eating habits that are recommended by doctors to a society that is being plagued with lifestyle diseases.

There is an existing culture of reliance upon research and development in the food industry in Leeds and this will make it easier for our planned business to take advantage of the facilities that are present and perhaps also get the appropriate accreditation.

The business is run by only two people and this will ease decision making and thus ensure more time is spent running the business. Our target location, Yorkshire also has a wide pool of skilled and semi-skilled labour whose services shall be employed by Healthy Meals on wheels.

The Ownership of Healthy Meals on Wheels

This business is duly registered as a partnership with two partners involved in the ownership of the enterprise. Each partner has an equal stake in the company. This form of ownership was agreed upon because it is the easiest to register given the fact that the start-up idea was formulated by two individuals.

The nature of the business is also sensitive and this needs the decision makers to be highly qualified as well as accountable for the day to day operations. The food and drink industry is highly sensitive because of the direct health implication that is placed on the consumers’ health. In a highly litigious society such as the one that we are in today, it is essential that a business does all that it can, including preventive measures of avoiding civil or criminal suits against the firm for mostly unintended errors.

The shared responsibility will help the partners hold each other accountable.

Products and Services of Healthy Meals on Wheels

The products that will be provided by the business are healthy foods that are a blend of ethnic cuisines and speciality foods. These will be sold in retail from the back of specially designed vans that double up as production units of the foods that have already been pre-prepared and only require warming. This includes traditional as well as exotic meals that can be taken as lunch, breakfast or a healthy snack. The main ingredients of these meals will be chicken, vegetables and a variety of spices. These will be accompanied by fresh fruit, milk, yoghurt, juices and fruit salads. For conventional retail customers, there will be a counter on the side of the truck for them to make their purchases on the go. We will also be making deliveries to different offices as long as a threshold of at least 15 orders is met in the given premises (Vespar, 1990).

For outside catering, we will be stationing our vehicle at public events as well as in private functions like corporate functions, weddings and birthdays where we will provide meals on a contract basis.

Competitive Advantage

Healthy Meals on Wheels will maintain an active and strong online presence on the main social media networks such as Facebook, twitter and Google plus. This will ensure our customers who are online are aware of our current position as well as the different products we offer.

To achieve competitive advantage, we will employ a no-frills approach to our business. This means that we will only be focusing on our core business of providing quality foods. This means that our products will be largely homogenous as this will enable the business to cut costs by specialization and also economies of scale.

Our staff will also have to adapt quality customer service techniques such as always greeting them warmly with a smile and also paying attention to their questions and complaints. The staff will need to be knowledgeable on the nutritional information of the different foods that we prepare including the ingredients of the foods that we are offering so as to attend adequately to the customers’ queries. It will be important to pay attention to regular customers and address them by name as this will help to retain them (Karlsson et al, 2004; 32).

Initially, we will rent out a house which will be the main production centre for the different foods that will be delivered to the market. To cut costs of transportation, the location of our production facility will have to be close to the central business district as well as the Market where we will be sourcing our raw materials. The savings that will be made in this context are time and also money since both stock and supplies will be where they are needed at all times. The delivery of raw materials and supplies to the mobile van will be outsourced to another organization.

The assets that the business will purchase include the purpose-built catering van, communication equipment, Ovens, Microwaves, ice boxes, fridges, blenders and also the food mixers.

Marketing Plan

Research on the market healthy meals on wheels’ target market is important as it provides actual data that can be compared with the plans that the partners have for the business. This will help to make adjustments and also projections on the budget to be formulated and used. To get an accurate picture of the market conditions, two methods of research were used. These are primary research and secondary research.

Primary research

This is the most accurate as it is based on observations that have been made first hand on the ground. In regard to peak times for fast food outlets, we established that there are three periods when such establishments get packed with long queues of customers. These times are 7-9 am, 11am -2pm and also 4pm to 6pm. The rest of the times, some establishments close down to restock while others attend to the few customers who come intermittently.

In regard to the orders, it was noted that morning and evening sales were mainly made up of drinks and a simple snack while the midday shift was mostly made up of people purchasing more filling or heavier meals as well as fruit/vegetable salads.

Judging from the dressing of the customers, it is safe to state that majority of them are on a break from their place of work when they are buying the foods. It was also observed that people prefer to buy a meal from an outlet that is near the public parks where they can relax as they eat.

As for the workforce, it was seen that most establishments had one permanent employee who also doubled up as the supervisor at the outlets. The other two-to three who work here are usually semi-permanent workers paid per hour. These workers are mainly sourced from the surrounding universities.

Secondary Research

This is information that was gotten from publications and online articles about the food and drink industry in the city of Leeds. It emerged that this city is the largest in terms of sales of food and drink in the whole United Kingdom. Secondly, many large producers and suppliers of food and drink have set up their operations in Leeds and Yorkshire in particular. Coca-Cola for instance boasts that Leeds produces more of their product than any other location in Europe. In total, there are over 9000 food and drink companies that are carrying out their business in Leeds.

The population of Leeds is estimated to be approximately 2.5 million people and it is also important to note that it is a largely cosmopolitan region. Majority of these people fit into the middle –income category with an average annual income of £36000.

 

 

Business Model

Healthy Meals on Wheels will be operating as a standard catering truck operation does with the key difference being in the product offering and customer service. These trucks have not really picked up in the United Kingdom but have been booming business in the United States of America. The main business unit will be a fast food outlet that is operating from a trailer that is attached to a modified pick-up truck. This is a mobile unit that will be parked at a strategic location in the morning then moved at lunch time and then moved again in the evening depending on the amount of customer traffic. At any one time, this unit shall be manned by a permanent employee and two other workers and the other permanent employee.

The actual cooking will be taking place at the production house but the final preparation can be done at the production house where we have a fully equipped kitchen. Since there will be a large refrigeration units, food can be precooked even three days in advance and stored here. These will be delivered in three main shifts to the outlet and also occasionally an extra round when the demand is higher than usual.

Hot meals will however be delivered directly from the production centre to organizations that have outsourced our catering services for their workers.

 

 

A SWOT Analysis of Healthy Meals on Wheels

Strengths

The owners have a sound understanding of the industry’s market demands.

The combined experience of both partners will aid in minimizing common mistakes that occur.

The business shall employ staff who are flexible and able to handle the pressure that comes with the catering industry.

Weaknesses

None of the partners has a background in hands on entrepreneurship or running a personal business.

It may also take a long time to teach the employees the different preparation methods because of the detail and hygiene standards that are required.

Opportunities

The City has a large population of workers and these make up our potential customer base.

The fact that the city is cosmopolitan means that our healthy meals will have a wide appeal given the fact that they are based on traditional foods from different communities/ ethnicities.

Threats

The presence of an already huge number of established catering establishments all around the city.

Another potential threat is the resistance of customers to the new products that we are offering due to the loyalty they have to the existing brands.

It will be important to for the management of Healthy meals on wheels to capitalize greatly on its strengths and opportunities while taking measures to minimize the challenges and threats to business.

Economics

The current market for our products is expected to be about 250,000 potential customers who are employed in the city and its environs. At present, the outside catering industry is still growing through at times demand seems to outweigh supply of food to these people.

A trend that is being observed in this market is that consumers are increasingly shunning foods that are made from refined sugars and excessive salt.  This is in an effort to fight lifestyle diseases that are on the increase.

Since the industry is still in its initial stages of growth, a business like Healthy meals on wheels has an opportunity to expand and open more outlets as it established itself in the market.

Barriers to Entry in this Market

The initial cost of capital is quite high since we have to purchase commercial ovens, food mixers, pick-up truck, and a trailer, modify it and also equip it with the necessary enhancements to make it a mobile food kiosk. This will be overcome by leasing some of these assets where possible.

The cost of marketing on newspapers, radio and television are prohibitive yet they have the widest reach. To counter this, we can employ the use of a road show.

Another barrier is the effect of the economic downturn that is leading some customers to shy away from buying food and instead carrying packed lunch from home.

Pricing

Our pricing strategy will be one where a 40% mark-up is levied on the production costs. For the purpose of competition, portions and the type fop ingredients will be chosen relative to the desired cost/price and the market averages for similar foods.

Sourcing

The ingredients for the different products that we will have on offer will be gotten from the wholesalers who supply the supermarkets such as Asda and Morrisons. The spices however will be routinely delivered from the different markets around the country where they are sold.

Location

The facts that two major roads pass through Leeds means those Healthy meals on wheels have an ample opportunity to take advantage of this traffic. These roads are the M1 and M62 motorways. There is also the nearby port Humber that experiences a considerable amount of human traffic.
Management Summary

The two partners will be acting as full time managers who will be overseeing a total of 8 employees, two being permanent and six being temporary. Once the permanent employees have been adequately trained, they will then train the six temporary workers, three will be stationed at the production centre and three at the mobile premises.

Financial projections

Entry Strategy

Based on the budget that has been formulated, this business requires an initial investment of

£ 40,000 of which the two partners have raised 10,000. We will take up a loan of 30000 from a family member who intends to be repaid at the simple rate of 10% for of the amount for the next one year on a quarterly basis.

Investor Interest

First quarter of year	6000
Second quarter of the year	6000
Third quarter of the year	6000
Fourth quarter of year	6000
Total amount paid back at the end of the year	12000

This means that one of the business’ expenses is the monthly 1500 which has to be set aside.

Based on the operating expenses and other costs of doing business, we require about 6000 pounds a month to maintain operations and also pay back the debt that we owe. If business goes as projected, the amount will be successfully repaid by the end of the first year of operations.

 

 

Profit and Loss account

For the month ending May 30, 2013

Item	Pounds	Pounds
Sales		7500
LESS:  Cost of Sales		2000
Gross profit		5500
Wages and salaries	1500
Interest on loan	1500
transportation	700
Bills (water and power)	500
Total expenses	4200	(4200)
Net profit		1300

References

Abrams, Rhonda, and Rhonda M. Abrams. The successful business plan: secrets & strategies.       The Planning Shop, 2003.

Castro Giovanni, Gary J. “Pre-startup planning and the survival of new small businesses:   Theoretical linkages.” Journal of management 22, no. 6 (1996): 801-822.

Honig, Benson, and Tomas Karlsson. “Institutional forces and the written business plan.” Journal of Management 30, no. 1 (2004): 29-48.

Karlsson, Tomas, and Benson Honig. “Judging a business by its cover: An institutional      perspective on new ventures and the business plan.” Journal of Business Venturing 24, no. 1 (2009): 27-45.

Leeds City Region. “Leeds City Region LEP: Investor Support-Food and drink.” Retrieved from             http://business.leedscityregion.gov.uk/invest/sectors/food-drink/ on March 30, 2013.

Timmons, Jeffry A., and Stephen Spinelli. New venture creation: Entrepreneurship for the 21st                 century. Vol. 4. Homewood: Irwin, 1994.

Vesper, Karl. “New venture strategies.” University of Illinois at Urbana-Champaign’s Academy     for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship        (1990).

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