Submission Coversheet (All Programmes)

Student ID Number
(Do not include student
name as anonymous
marking is implemented)
 
BSc Business Management
Programme Title

Entrepreneurial Development
Module Title

 
Module Code (listed on QAB020X613A
Moodle and in LTAFP)

Module Convener

Business Development Plan – ASAP Lunch 4 US

Coursework Title

Academic Declaration:
Students are reminded that the electronic copy of their essay may be checked, at
any point during their degree, with Turnitin or other plagiarism detection software
for plagiarised material.

 
Date
Word Count
Submitted
Table of Contents

1. Introduction.......................................................................................................3

2. Customer Value Proposition Canvas................................................................4

3. ‘Lean’ Business Model Canvas.........................................................................6

4. CEO level specialist contribution....................................................................10

5. Financial and Financing Plan..........................................................................11

6. Summary.........................................................................................................12

7. References......................................................................................................13

8. Appendices.....................................................................................................17

2
 1. Introduction

Innovations are driven “by entrepreneurship which is a potent mixture of vision,

enthusiasm, insight, passion and hard work which enables a good idea to become a
reality” (Bessant & Tidd, 2018:11). Entrepreneurs are people who take financial risks
to set up a business or organisation. The most famous entrepreneurs, for instance,
Jeff Bezos (CEO of the Amazon) Mark Zuckerberg (CEO of Facebook) and Michael
Bloomberg (CEO of Bloomberg) have similar characteristics such as strategic
thinking, excellent skills in managing people and determination which made them so
successful (Gupta, 2019).

The idea for our Lean Business Start Up Development of the new venture is “ASAP
Lunch 4US” which offers a service of food delivery to Roehampton students through
the app. Students will get their lunch delivered to the University which means they do
not need to waste time searching where to eat, stand in a queue, wait for the food to
be prepared and then walk back. We will offer a healthy, warm, home-made food
which will be delivered in a particular time slot. It will satisfy students need of
ordering food through the phone, receiving it in precise time slot for lunch and being
able to place an order from the previous day.

This report is written from the perspective of the CEO (chief executive officer) of the
company. In many cases, CEO is perceived as the company’s face and generally
gets the most publicity which reflects on company’s reputation. Researchers
discovered that the CEO has an impact on company’s financial characteristics:
financial performance, stock returns, profit and also non-financial features: business
confidence in financial industry, relationship of employees and the overall business
credibility (Fetscherin, 2015). A research indicates that even 50% of the image of the
company is represented by its CEO (Gaines-Ross, 2000).

In the first year of operation our business should earn a profit of £35,370; make
£144,000 revenue which will make a profit margin objective equal to 14,962.5 meals
per year. In the second-year profit should be £80,230, revenue £216,000 and a profit

3
margin objective 29,262.5 meals per year. Third year profit should reach £116,234,
revenue £288,000 and a profit margin objective 41,262.5 meals per year. Please find
calculations in Appendix A.
In the pages that follow, it will be discussed customer value proposition canvas,
‘Lean’ Business Model Canvas, CEO level specialist contribution, Financial and
Financing Plan which will together present a comprehensive business plan for a lean
business start-up ASAP Lunch 4US.

2. Customer Value Proposition Canvas

“It has been claimed that value proposition thinking is at the heart of any value-
focussed organisation, since it sharpens the way organisations work by focusing
activity so as to serve customers profitability” (Ayvari & Jyrama, 2017). To simplify, it
is why customer should pick one product instead of other. The Value Proposition
Canvas (VPC) can be explained as a tool which helps to understand whether a new
product or service is put across the consumers’ values and needs. It is a detailed
explanation of Value Proposition Map (product or service) and Customer Profile Map

4
(customer) which is used when a new service or product is being created from
scratch (B2B International, 2019).

First of all, the right-hand side of the VPC is being filled by analysing the consumers’
needs and what shapes our customers preferences and attitudes towards
purchasing decisions. It needs to be analysed what are the jobs, pains and gains of
the consumers’ (Jeffries, 2019). In the jobs section it needs to be analysed what
jobs need to be done to satisfy customer needs. For our company jobs are
straightforward- fresh and tasty food delivered in campus using the newest
technologies. Pains are people negative experiences, risks they face or the
problems that need to be solved. Pains for our customers are waist time in a queue,
there is not option of ordering food in campus so people need to go out in a bad
weather and they do not have an option of pre-ordering affordable price food. Gains
are the benefits and needs of our customers, it is ordering or pre-ordering healthy
home-made food, saving money and having more time to study (Osterwalder et al.,
2014).

The second part of the VPC is on the left-hand side and it analyses the design of the
product or service in order to meet customers’ needs (McGill, 2018). In
product/service section is explained how it creates value for the consumer, our
company offers fresh home-made meal deals with a beverage, dessert and
vegan/vegetarian options available which can be pre ordered at the most convenient
time for the customer. Gain creators section describes how product or service adds
value to the customer, in our case specific time slot for orders, precise order
receiving time and cashless payments. Pain killers defines how the customer pains
are alleviated; we offer time saving, eating healthy pre-ordered food in campus in
any weather at affordable price (Osterwalder et al., 2014).

VPC presents an unusual combination of products or services that add value to the
consumers by solving the consumers’ problem or by providing a unique value to the
consumers (Martin, 2015). Both parts of the VPC are closely related because every
part relates to each other: Products and Services provide Customer Jobs; Pain
Relievers ease Customer Pains and Gain Creators guarantee Gains.

5
 3. ‘Lean’ Business Model Canvas

“The Business Model Canvas (BMC) is a strategic management tool to quickly and
easily define and communicate a business idea or concept” (Ebinum, 2016).
Entrepreneurs used to write business plans as the main framework for organising
and providing information to the investors but nowadays Business Model Canvas is a
more popular template. For instance, Business Angels investors perceive BMC as a
crucial part of providing the general overview of the new venture and understanding
new venture’s materiality and intangibility (Sort & Nielsen, 2018).

BMC graphical template describes nine core components: „key partners, key
activities, value propositions, customer relationships, customer segments, key
resources, channels, cost structure and revenue streams”. Various elements
encourage consideration of the full scope of the company, while the format promotes
of how those elements co-operate together (Greenwald, 2012).

6
  Key partners

The most important partners of our company will be food suppliers, van suppliers,
employees and the University of Roehampton. We will be using one supplier to get
the raw materials such as meat, vegetables, fish, oil, fruit, flour and other dry goods,
milk, butter, sugar, salt, etc. Second supplier will deliver beverages and ready to eat
goods such as fizzy drinks, still and sparkling water, juices, tea bags, soft drinks,
protein bars, chocolate bars and mini packs of brownie. We will buy a van from a
second-hand van supplier who has the best recommendations and ratings. Further,
we are going to have only one external employee - the accountant, we will be
preparing, delivering food, managing and cleaning by ourselves. University of
Roehampton will also be our partner because we will be advertising our business
across the university.

 Key activities

We will have five key activities at the beginning of the business. First, we will hire the
IT specialist to develop the app, because it will be the platform to order food and it
must be done and tested on time. Then we will order flyers and distribute them
around the university in order to advertise the company. In the same time, we will
buy a food truck (because in the long term it will be cheaper than to rent it) and
materials necessary to prepare orders. Further, we will start collecting orders,
preparing them and delivering to customers.

 Value propositions

ASAP Lunch 4 US will be offering fresh, warm and home-made food meals which will
include the main meal, beverage and dessert for only £6. Customers will be able to
choose from a relatively broad menu consisting of chicken, fish, pork and
vegan/vegetarian dish options (Appendix B). We will offer an option of choosing and
ordering meal a day before receiving it and being able to use the app 24/7, so the
customers may place an order at any time of the day. Also, one of the main features

7
will be precise delivery time and location (exact time delivery to University of
Roehampton).

 Customer relationships

The app will offer an option of personalizing the meal, which means that a customer
will be able to add or remove ingredients based on their nutritional needs. Also, the
app will provide a detailed explanation of ingredients and allergens contained in the
food and calorie count for every meal. The primary data collection method (survey)
was used in order to analyse customer relationships. The results of 58 respondents
showed that 68.42% of our potential customers eat lunch out of the house every day
and 72.41% stated that food delivery to the campus would be extremely beneficial
(Appendix I.1, Q1 and Q2).

 Customer segments

Furthermore, 70.18% of the 58 survey respondents thinks that this service would be
extremely innovative and 75.86% ponders that this service is something they
definitely need (Appendix I.1, Q3 and Q4). 44 people assured that £5 meal deal is
extremely valuable (after comprehensive financial calculation the meal price was
increased to £6); 46 people answered that if the service was available today they are
very likely to buy the product and 44 are very likely to replace the current lunch
option (Appendix I.1, Q5, Q6, Q7). In the end, 82.76% respondents would
recommend our service to a friend or colleague; customers are most likely to order
chicken and fish dishes with a few options of pork and vegetarian dishes and most of
them would choose a fruit or a biscuit as a dessert (Appendix I.1, Q8, Q9, Q10).

 Key resources

Business key resources will be financial: investors or business loan, later revenue.
Physical: raw materials, other materials, packaging materials and food truck with
kitchen. Human: staff (chefs, driver, accountant). Intellectual: our brand ASAP
Lunch 4 US. Key business resources create value for the customers and together
are much more important than the capital alone (UN Women, 2016).

8
  Channels

Channels are directly linked with customer relationships and it is essential to

understand how to link a business to its targeted customer segment (Martin, 2015).
The most important will be virtual channel- mobile app. When the company will
consolidate the second virtual channel- website will be introduced and finally the
food will be also sold directly from the food truck (physical channel) not only
delivered (this is forecasted after three years of business activity). Also, collaboration
with the University of Roehampton will be used as a channel for marketing (verbal
agreement was already settled).

 Cost structure

Cost structure will be combined of fixed costs which “remains stable within a relevant
range of business activity” and a variable cost which “increases in line with business
activity” (Quinn, 2011:142). Fixed costs will be food truck, salaries, licence, app
development, accounting services, insurance and advertisement. Variable costs will
be raw materials, fuel, packaging and other materials such as beverages, fruits and
ready to eat desserts (protein bars, biscuits). The price of the meal (£6) is based on
the competitors’ food prices in the area such as local supermarkets, Pret A Manger
and Costa.

 Revenue streams

A distinct source of revenue is called revenue streams which is mostly documented

in business plan or strategy prepared for investment. Our business may be
considered as consumer services because it offers not only product (meal deal) but it
also offers an intangible value of comfort (Spacey, 2018).

9
 4. CEO level specialist contribution

One of the least known job roles of the company is Chief Executive Officer (CEO)
and many people think that CEOs are powerful, do not work hard and are
mysteriously competent. Robbins (2019) states that “a CEO means meeting the
needs of employees, customers, investors, communities, and the law”. A CEO may
take or delegate many tasks in the company but there are few of them that only CEO
may execute: to set a vision and strategy, to model company’s ethical, moral and
cultural values, create and lead senior management teams and assign the assets of
the business according to the goals of the company.

As a CEO of our company, first of all, I set a clear vision and strategy for our
company. Our main aim is to attract Roehampton students and staff to order a
healthy and warm food to the university and satisfy their need of getting food without
leaving the university building. Solving a quick and reliable lunch ordering problem
for Roehampton students and staff would deliver a measurable value to the largest
number of beneficiaries. This solution is unique to the problem and usable to the
customers every day (Aycan, 2012).

Today’s business scandals highlight the necessity of understanding the impact of

CEO principles on corporate ethical practices and behaviours. The most important
character traits for ethical leader are politeness, honesty, fairness, justice, concern of
others welfare and broadmindedness. Therefore, CEOs who exhibit these traits are
likely to promote ethical practices within the organisation (Hood, 2003). As a CEO I
will try to show the example of acting ethically to other employees and setting the
meetings in order to discuss any business concerns related to ethical or moral
employees’ values. I will establish a code of conduct for day to day business
operations which will set a clear core ethical and cultural values of our business.

“According to the Agency Theory, an agency problem exists when an agent, such as
CEO, has established an agenda which conflicts with the interest of the
stakeholders” (Attaway, 2000:77). The author also states that issues across the

10
business may occur if there is no financial interest from the perspective of CEO in
the decision-making outcomes. I entirely agree with the fact that CEO should respect
every aspect of the business. I am going to further support our business prototype
profitability by analysing the people attitudes of eating lunch and ordering food in the
UK.

For an everyday occasion even 50% of Londoners are eating lunch out of home
(which is even twice more than eating dinner out of home); 27% of people choose
fast food outlets which serve unhealthy food and 24% choose coffee shops for lunch.
Even 58% of people prefer to eat hot food for lunch. Furthermore, 63% choose
freshly made and 53% of people prefer regular calorie count (Mintel, 2019). We will
offer a healthy, hot, freshly made and regular calorie count lunch delivery (with
vegan, vegetarian and gluten free options) which will be all the people desired
components in one for a reasonable price of £6, so the clients do not need to choose
between quick, healthy and expensive; it also reconfirms the necessity of our
business. Appendix I.2 shows the justifications of the secondary market research.

Moreover, the NPD Group reported the predictions that in the next two years in the
UK, online takeaway and food delivery retailers market value could reach £5bn
(Banerjee, 2019). People tend to choose environment friendly companies nowadays
(especially business students and tutors who study about it) and trend to use less
plastic for food packaging is also increasing (Jones, 2019). From the perspective of
CEO, I will try to minimise the use of plastic, change it to the cardboard or paper and
also, I will keep tracking innovations and trends for lunch delivery in central London
in order to keep the business profitable and sustainable. Furthermore, in order to
further expand the business breakdown, secondary research PESTLE analysis can
be found in Appendix I.3.

5. Financial and Financing Plan

This chapter reviews the Cost Structure, Revenue Streams, Break Even Point
analysis, Cash Flow Analysis, Sources of Finance and Uses of Finance for the first
three years of the business activity. Cost structure table contains the breakdown of
fixed and variable costs business plan to incur. Cost structure total calculations for

11
the 1st year business activity is £108,630, 2 nd year £135,770 and 3 rd year £171,766;
the calculations are with regards of increased sales every year 100 units, 150 units
and 200 units (Appendix II.1). Revenue streams for our business will be revenue
from service of food meal sales (sale of physical product): this is our company’s main
operating revenue account and further we will name it sales revenue or service
revenue (CFI, 2019; Appendix II.2). Revenue streams for the 1 st year £144,000, 2nd
year £216,000, 3rd year £288,000. Break Even Point (BEP) analysis is the business
activity rate “when the total revenue exactly matches the total costs and the business
is not making a profit or a loss” (BBC, 2019). In the 1 st year BEP for our company will
be 9037.5 units of meals sold (9 weeks of business activity), 2 nd and 3rd year 6737.5
units because fixed cost remains the same for 2 nd and 3rd years (Ramsden, 2008;
Appendix II.3). Cash Flow Analysis shows the cash receipts and cash payments
the business expects to have each year and the cash, opening and closing balance
at the end of each year (Haigh, 2012; Appendix II.4). We are considering three types
of Sources of Finance: Crowdfunding, bank loan and Angel investment in order to
have a backup plan if out preferred type of sourcing will be rejected (Appendix II.5).
Uses of £50,000 Finance: capital will be to used pay all the fixed costs for the first
year of the operation which is £36,150 and the rest £13,850 will be used to pay off
the variable costs for the first 3 months (Appendix II.6). Additional justifications of
fixed, variable costs, meal price per unit, income statement and other can be found
in Appendix II.7.

6. Summary

This paper has analysed why ASAP Lunch 4US is investable and profitable ‘lean’
entrepreneurial opportunity. It highlighted the study of the Customer Value
Proposition Canvas, ‘Lean’ Business Model Canvas, CEO level specialist
contribution, Financial and Financing Plan. The evidence from this study suggests
that considering all the opportunities and risks the business would be beneficial for
the stakeholders; business would generate profit for the owners and deliver potential
augmented customers satisfaction of physical need- ordering affordable meal deal
through the app with cashless payment and receiving it into the university (Kotler,
2011).

12
ASAP Lunch 4US has a CEO with clear vision of the business, long-term business
plan, time management skills and hardworking team of CIO, CFO and CMO. We will
offer food delivery service which offers all the features that our competitors were not
able to provide. We designed a powerful pitch, researched the customers and
planned every detail thoroughly. Our team is perseverant, dedicated to the business
idea and confident about our business plan which the main elements of the
successful entrepreneurs (Spalton, 2010).

7. References

Addy, R. (2019) Food firms boost environmental work. Available at:

https://www.foodmanufacture.co.uk/Article/2019/01/30/Food-companies-reduce-
environmental-impact (Accessed: 28/11/19).

Attaway, M. C. (2000) A study of the relationship between company performance

and CEO compensation. American business review. 18(1) pp.17. Available at:
https://search.proquest.com/openview/4eb62126fa0b80bdd96f9c295c94b4f1/1?pq-
origsite=gscholar&cbl=31895 (Accessed: 13/11/19).

Aycan, D. (2012) Don’t Let the Minimum Win Over the Viable. Available at:
https://hbr.org/2012/05/dont-let-the-minimum-win-over (Accessed: 13/11/19).

Ayvari, A., Jyrama, A. (2017) Rethinking value proposition tools for living labs.
Journal of Service Theory and Practice. 27(5) pp.1024-1039. Available at:
https://www.emerald.com/insight/content/doi/10.1108/JSTP-09-2015-
0205/full/html#sec004 (Accessed: 12/11/19).

Banerjee, R. (2019) Why we need to talk about lunch. Available at:

https://www.newstatesman.com/spotlight/2019/09/why-we-need-talk-about-lunch
(Accessed: 14/11/19).

BBC (2019) Break even. Available at:

https://www.bbc.co.uk/bitesize/guides/zt2xn39/revision/1 (Accessed: 18/11/19).

Bestway Wholesale (2019) Grocery. Available at:

https://www.bestwaywholesale.co.uk/grocery (Accessed: 20/11/19).

Bessant, J., Tidd, J. (2018) Innovation and Entrepreneurship. (3rd ed.) Chichester:
John Wiley & Sons Ltd.
13
British Nutrition Foundation (2018) Nutrition science. Available at:
https://www.nutrition.org.uk/nutritionscience/nutrients-food-and-
ingredients/protein.html?start=4 (Accessed: 20/11/19).

Bromley, S., Day, J. (2019) 8 of the most popular business loans for 2019
compared. Available at:
https://www.simplybusiness.co.uk/knowledge/articles/2019/04/compare-the-best-
small-business-loans/ (Accessed: 13/11/19).

B2B International (2019) What is the Value Proposition Canvas? Available at:
https://www.b2binternational.com/research/methods/faq/what-is-the-value-
proposition-canvas/ (Accessed: 12/11/19).

CFI (2019) Revenue Streams. Available at:

https://corporatefinanceinstitute.com/resources/knowledge/accounting/revenue-
streams/ (Accessed: 12/11/19).

Chatham House (2019) Food Politic and Polices in Post-Brexit Britain. Available at:
https://www.chathamhouse.org/publication/food-politics-and-policies-post-brexit-
britain (Accessed: 28/11/19).

Doing Business (2019) Economy Profile United Kingdom Doing Business 2020.
Available at:
https://www.doingbusiness.org/content/dam/doingBusiness/country/u/united-
kingdom/GBR.pdf (Accessed: 28/11/19).

Ebinum, M. (2016) How To: Business Model Canvas Explained. Available at:
https://medium.com/seed-digital/how-to-business-model-canvas-explained-
ad3676b6fe4a (Accessed: 12/11/19).

Fetscherin, M. (2015) The CEO branding mix. Journal of Business Strategy. 36(6)
pp.22-28. Available at: https://www.emerald.com/insight/content/doi/10.1108/JBS-01-
2015-0004/full/html (Accessed: 13/11/19).

Finextra (2018) 10 Funding Options To Raise Startup Capital For Your Business.
Available at: https://www.finextra.com/blogposting/15065/10-funding-options-to-
raise-startup-capital-for-your-business (Accessed: 13/11/19).

Focus Economics (2019) UK Economic Forecast. Available at: https://www.focus-

economics.com/countries/united-kingdom (Accessed: 28/11/19).

Gaines-Ross, L. (2000) CEO reputation: a key factor in shareholder value. Company

Reputation Review. 3(4) pp.366-370. Available at:
https://www.researchgate.net/publication/233489799_CEO_Reputation_A_Key_Fact
or_in_Shareholder_Value (Accessed: 13/11/19).

Gov.uk (2019) Encouraging healthier ‘out of home’ food provision. Available at:
https://www.gov.uk/government/publications/encouraging-healthier-out-of-home-
food-provision (Accessed: 28/11/19).

14
Gov.uk (2019) National Minimum Wage and National Living Wage rates. Available
at: https://www.gov.uk/national-minimum-wage-rates (Accessed: 20/11/19).

Greenwald, T. (2012) Business Model Canvas: A Simple Tool For Designing

Innovative Business Models. Available at:
https://www.forbes.com/sites/tedgreenwald/2012/01/31/business-model-canvas-a-
simple-tool-for-designing-innovative-business-models/#336b002c16a7 (Accessed:
12/11/19).

Gupta, V. (2019) Top 10 Richest Entrepreneurs in 2019 & How They Made It.
Available at: https://www.bizain.com/top-10-richest-entrepreneurs-list/
(Accessed: 13/11/19).

Haigh, J. (2012) Finance for non-financial managers. Harlow: Financial Times

Publishing.

Hood, J. N. (2003) The relationship of leadership style and CEO values to

ethical practices in organizations. Journal of Business Ethics. 43(4) pp.263-
273. Available at: https://link.springer.com/content/pdf/10.1023%2FA
%3A1023085713600.pdf (Accessed: 13/11/19).

Hutchinson, A. (2019) Instagram Publishes New Report on Key Food and Drink
Content Trends in the UK. Available at:
https://www.socialmediatoday.com/news/instagram-publishes-new-report-on-key-
food-and-drink-content-trends-in-the/559963/ (Accessed: 28/11/19).

Jeffries, I. (2019) How To Fill In A Value Proposition Canvas? Available at:

https://isaacjeffries.com/blog/2018/2/27/how-to-fill-in-a-value-proposition-canvas
(Accessed: 12/11/19).

Jones, E. L. (2019) ‘Health, vegan & sustainability’: Food-to-go operators name their
key trends to watch. Available at: https://www.lunchshow.co.uk/health-vegan-
sustainability-food-to-go-operators-name-their-key-trends-to-watch/ (Accessed:
14/11/19).

Kotler, P. (2011) Marketing Management. (14th ed.) Harlow: Pearson Education

Limited.

Martin (2015) Business model canvas: Creating a Value Proposition. Available at:
https://www.cleverism.com/business-model-canvas-creating-value-proposition/
(Accessed: 12/11/19).

Martin (2015) Selecting and Managing Channels in Business Model Canvas.

Available at: https://www.cleverism.com/selecting-managing-channels-business-
model-canvas/ (Accessed: 13/11/19).

Martin, N. (2019) How Technology Is Transforming The Food Industry. Available at:
https://www.forbes.com/sites/nicolemartin1/2019/04/29/how-technology-is-
transforming-the-food-industry/ (Accessed: 28/11/19).

15
McGill, A. (2018) The Value Proposition Canvas. Available at:
https://www.ashtonmcgill.com/business-model-canvas-series-introducing-value-
proposition-canvas/ (Accessed: 12/11/19).

Miller, Z. (2019) The Entrepreneur’s Guide to the Fees on Crowdfunding Platforms.

Available at: https://www.thebalancesmb.com/entrepreneurs-guide-to-fees-on-
crowdfunding-platforms-985187 (Accessed: 21/11/19).

Mintel (2019) Attitudes towards Lunch Out-of-home -UK- June 2019. Available at:
https://academic.mintel.com/display/919638/ (Accessed: 14/11/19).

OECD (2019) United Kingdom. Available at:

http://www.oecd.org/economy/outlook/economic-forecast-summary-united-kingdom-
oecd-economic-outlook.pdf (Accessed: 28/11/19).

Olayanju, J. B. (2019) Top Trends Driving Change In The Food Industry. Available
at: https://www.forbes.com/sites/juliabolayanju/2019/02/16/top-trends-driving-
change-in-the-food-industry/#49082f456063 (Accessed: 28/11/19).

Osterwalder, A., Pigneur, Y., Bernarda, G., Smith, A. (2014) Value Proposition
Design: How to Create Products and Services Customers Want. Chichester: John
Wiley & Sons Ltd.

Quinn, M. (2011) Brilliant Accounting. Harlow: Pearson Education Limited.

Ramsden, P. (2008) Finance for non-financial managers. (3rd ed.) London: Hodder
Education.

Robbins, S. (2019) What do CEOs do? A CEO Job Description. Available at:
https://www.steverrobbins.com/articles/ceojob/ (Accessed: 13/11/19).

Sort, J., Nielsen, C. (2018) Using the business model canvas to improve investment
process. Journal of Research in Marketing and Entrepreneurship. 20(1) pp.10-33.
Available at: https://www.emerald.com/insight/content/doi/10.1108/JRME-11-2016-
0048/full/html (Accessed: 12/11/19).

Spacey, J. (2018) 19 Examples of a Revenue Stream. Available at:

https://simplicable.com/new/revenue-stream (Accessed: 13/11/19).

Spalton, P. (2010) Dragons’ Den The Perfect Pitch. London: Harper Collins
Publishers.

Tutor2u (2018) Sources of Finance: Bank Loans. Available at:

https://www.tutor2u.net/business/reference/sources-of-finance-bank-loans
(Accessed: 13/11/19).

UN Women (2016) Business Model: Key resources. Available at:

https://www.empowerwomen.org/en/ilearn/my-courses/business-
development/business-model/business-model-key-resources (Accessed: 13/11/19).

16
 8. Appendices

Appendix A

Revenue= number of units sold x unit price

1st year Revenue = 100 x £6 = £144,000

2nd year Revenue = 150 x £6 = £216,000
3rd year Revenue = 200 x £6 = £288,000

Profit= revenue – total costs

1st year Profit = £144,000 – £108,630 = £35,370

2nd year Profit = £216,000 – £135,770 = £80,230
3rd year Profit = £288,000 – £171,766 = £116,234

Profit margin objective (Margin of safety)

Margin of safety = planned units’ sales – BEP in units

1st year Margin of safety = 24,000 units per year - 9037.5 = 14,962.50 units (meals)
2nd year Margin of safety = 36,000 units per year - 6737.5 = 29,262.50 units (meals)
3rd year Margin of safety = 48,000 units per year - 6737.5 = 41,262.50 units (meals)

The assumption is that we will be selling

100 orders per day in the 1st year

150 orders per day in the 2nd year

200 orders per day in the 3rd year

17
Appendix B

ASAP Lunch 4 US Preliminary Menu

Monday Tuesday Wednesday Thursday Friday
Main Chicken fillet Chicken leg Chicken Chicken Creamy herb
dish* with rise and with mashed breast steak tikka masala chicken with
salad potatoes and with with rise and noodles and
steamed mushroom salad roasted
vegetables sauce and vegetables
buckwheat
Roasted cod Breaded Chili-salt Crispy Salmon curry
with rise, dorade with catfish with salmon with traybake with
peas and rise, butter mashed baby broccoli and
green sauce and potatoes and potatoes and buckwheat
vegetables salad chopped pickled salad
salad
Swedish Crispy pork Noodles with Spicy pork Pork loin steak
meatballs cutlets with pork and bowl with with mashed
with mashed steamed roasted baby potatoes and
potatoes and vegetables vegetables potatoes and beetroots
beetroot and rise steamed
carrots
Vegan/ Vegan/ Vegan/ Vegan/ Vegan/
Vegetarian Vegetarian Vegetarian Vegetarian Vegetarian
sweetcorn pea and leek mushroom spaghetti pasta with
and courgetti lasagne and broccoli with tomato creamy greens
fritters with noodles and basil and lemon
green sauce
vegetables
Dessert* Bar of Protein bar Mini brownie Vegetarian Biscuit
* chocolate bar of
chocolate
Drink** Fizzy drink Still or Soft drink Juice Black, red, or
sparkling green tea
water
Total £6 £6 £6 £6 £6
*One dish may be chosen from the chicken, fish, pork or vegan/vegetarian options
**Any drink or dessert may be chosen any day of the week

18
Appendix I.1

Available at: https://www.surveymonkey.co.uk/r/9WJF6LH

Survey responses

19
20
21
22
23
Appendix I.2

24
25
26
Available at: https://academic.mintel.com/display/919638/#

27
Appendix I.3

PESTLE analysis table for the ASAP Lunch 4 US

o Uncertainty and distresses after the Brexit referendum if it

happens; changes may be also implemented after the
general election which will be held on 12 of December
2019.
Political
o UK food industry may face large complications if the UK
will leave the EU with no deal Brexit and new political
influences of import and export will be implemented
(Chatham House, 2019).
Economic o The UK economy is likely to grow moderately next year,
held back by muted business investment. Focus
Economics panellists expect GDP growth of 1.0% in 2020
(Focus Economy, 2019).
o Economic UK growth is forecasted to slow in 2020,
inflation is above 2% due to the currency depreciation
from 2017, unemployment rate is the lowest from the
historical times, the labour market is tight and wages
grows moderately- those are relatively positive economic
factors of the country (OECD, 2019).
Social o Consumers choose brands that are transparent and
demand plant-based food. People choose meals that
comply with dietary requirements, they are influenced by
their colleagues and social media (Olayanju, 2019).
o Instagram is one of the most famous platforms to
advertise a broad range of food nowadays. Food & drink
holds the biggest share of interest (39%) on Instagram
and 44% of users follow food brands (Hutchinson, 2019).
Technological o New technologies allow customers to order food through
the app, add or remove the desired ingredients, choose a
specific delivery time slot and provide an absolute
convenient.
o There are 7.5bn people in the world which means a
higher demand for food every year, so food industry
professionals introduce robots, innovative machines and
3D printing as the technological industry improvements
(Martin, 2019).
Legal o Public Health England encourage people to choose
healthier food options when eating out of home as a
solution of reducing obesity (Gov.uk, 2019).
o UK paying taxes score is 86.2 out of 100 with the ranking
number 23 worldwide. Starting a business in London does
not have a minimum capital requirement and the score of
starting a business in the UK is 94.6 (Rank 18) worldwide
(Doing Business, 2019).
Environmenta o People tend to choose environment friendly companies
l nowadays and trend to use less plastic for food packaging

28
 is also increasing. Consumers choose social responsibly
companies (Jones, 2019).
o Food and Drink Federation set the target to reduce the
CO2 emission and water consumption significantly and to
minimise woof waste (Addy, 2019).

Appendix II
Appendix II.1

Cost structure
  Fixed costs Variable costs Fixed costs Variable costs Fixed costs Variable costs
  1st year   2nd year   3rd year  
Food truck £8,000.00   £1,000.00   £1,000.00  
Salaries £24,000.00   £24,000.00   £24,000.00  
Licence £350.00   £250.00   £250.00  
App development £2,000.00   £0.00   £0.00  
Accounting £600.00   £600.00   £600.00  
Insurance £1,000.00   £1,000.00   £1,000.00  
Advertisement £200.00   £100.00   £100.00  
Raw materials   £48,000.00   £72,000.00   £96,000.00
Fuel   £480.00   £720.00   £816.00
Packaging   £7,200.00   £10,800.00   £14,400.00
Other materials   £16,800.00   £25,300.00   £33,600.00
Subtotal £36,150.00 £72,480.00 £26,950.00 £108,820.00 £26,950.00 £144,816.00
Total £108,630.00 £135,770.00 £171,766.00

To recapitulate, the assumption is that we will be selling

100 orders per day in the 1st year

150 orders per day in the 2nd year

200 orders per day in the 3rd year

29
 Appendix II.2

Appendix II.3

30
 Appendix II.4

Cash flow analysis table

1st year 2nd year 3rd year
No. Sales 24000 36000 48000
Selling price £6
Sales revenue £144,000.00 £216,000.00 £288,000.00
Cash Budget for 3 years
Receipts (cash inflow)
Cash sales £144,000.00 £216,000.00 £288,000.00
Investment
Payments (cash outflow)
Food truck -£8,000.00 -£1,000.00 -£1,000.00
Salaries -£24,000.00 -£24,000.00 -£24,000.00
License -£350.00 -£250.00 -£250.00
App development -£2,000.00 £0.00 £0.00
Accounting -£600.00 -£600.00 -£600.00
Insurance -£1,000.00 -£1,000.00 -£1,000.00
Advertisement -£200.00 -£100.00 -£100.00
Raw materials -£48,000.00 -£72,000.00 -£96,000.00
Fuel -£480.00 -£720.00 -£816.00
Packaging -£7,200.00 -£10,800.00 -£14,400.00
Other materials -£16,800.00 -£25,300.00 -£33,600.00
Cash balance £35,370.00 £80,230.00 £116,234.00
Opening balance £0.00 £35,370.00 £115,600.00
Closing balance £35,370.00 £115,600.00 £231,834.00

31
 Appendix II.5

32
 Appendix II.6

Uses of Finance

Total external investment / Bank £50,000.0

loan 0
Van -8000
Licence -350
App development -2000
Accounting -600
Insurance -1000
Advertisement -200
-
£24,000.0
Salaries 0
£13,850.0
0
Money left after paying fixed
costs will be divided to pay
variable costs in order to start £13,850.0
making food 0
Raw materials -£7,450.00
Fuel -£200.00
Packaging -£1,500.00
Other materials -£4,700.00
£0.00

33
 Appendix II.7

Please note, all the prices in this section are rounded to the big side in case of rise in
prices during the preparation of the business plan.

Meal price per unit

Ingredient Quantity Recipe Cost per

required cost portion
Chicken fillet 110g. £1,1
Rise 80g. £0,4 £2
Salad 120g. £0,5
Fish 140g. £1,2
Rise 80g. £0,4
£2
Green 110g. £0,4
vegetables
Pork mince 100g. £0,9
Potatoes 80g. £0,6 £2
Beetroot 90g. £0,5
Sweetcorn 90g. £0,8
Courgette 90g. £0,8
£2
Green 110g. £0,4
vegetables

The calculations are made calculating an average price for a meal, assuming that
other day meals will be prepared using similar values and the price will vary
minimally. Every day will be prepared four different meals from chicken, fish, pork
and vegetables only, which production will cost £2 per portion according to dietary
requirements and raw materials prices in the UK (British Nutrition Foundation, 2018;
Bestway Wholesale, 2019). Oil, butter, eggs, flour and etc. is considered as other
materials and has a separate section as ‘other materials’ under variable cost section.

34
Food packaging price per unit

Fork £0,02
Knife £0,02
Takeaway container £0,18
Medium carrier bag £0,06
Napkins £0,02
Total £0,30

Available at: https://www.catering24.co.uk/catering-disposables/carrier-bags.html

35
Fuel price is counted considering that we will be driving about 2500 miles per year

Available at: https://www.fleetnews.co.uk/costs/fuel-cost-calculator/?

FuelType=0&PencePerLitre=126.43&Mileage=2500&ManufacturerId=84&Mpg=30

36
Other materials

Other materials will include dessert, drink, oil, butter, eggs, flour, etc. and gas &
electricity for food preparation.

Other materials will cost £1 per meal: £0,4 for dessert, £0,3 for drink, £0,1 other raw
materials and £0,2 gas and electricity (Bestway Wholesale, 2019).

Food truck

Cash flow table shows a food van price of £8000 which includes transportation fee to
central London (we will be able to drive it in London because it is being run by
unleaded fuel, not diesel).

Salaries
Salaries are calculated considered employing three employees who will be working
48 weeks per year, 5 days per week and 8 hours per day earning a minimum hourly

37
wage of £8.21 per hour. In order to start food truck business, we will need to register
in a government scheme which will cost £350 (Gov.uk, 2019).

App development

Available at: https://www.howmuchcostanapp.co.uk/

Accounting, Insurance, Advertisement

We plan to spend only £600 for accountant who will be checking our finances once
per month for a fee of £50, because we will be filling all the accounting documents
ourselves. Further, we chose a basic insurance plan which will cost £1000. Finally,
we will be advertising in the University of Roehampton only, where will be distributing
fliers around the building for a price of £200 for the first year and reducing the
number of fliers in the following years as we will already have a broad circle of
clients.

38
 ASAP Lunch 4 US income statement for a year ending 31 December 2022

1st year 2nd year 3rd year

£216,000.0 £288,000.0
Sales revenue £144,000.00 0 0
£111,216.0
Cost of sales £55,680.00 £83,520.00 0
£132,480.0 £176,784.0
Gross profit £88,320.00 0 0
Operating expenses
Food truck £8,000.00 £1,000.00 £1,000.00
Salaries £24,000.00 £24,000.00 £24,000.00
Licence £350.00 £250.00 £250.00
App development £2,000.00 £0.00 £0.00
Accounting £600.00 £600.00 £600.00
Insurance £1,000.00 £1,000.00 £1,000.00
Advertisement £200.00 £100.00 £100.00
£105,530.0 £149,834.0
Operating profit £52,170.00 0 0
Other expenses £16,800.00 £25,300.00 £33,600.00
£116,234.0
Profit for the year £35,370.00 £80,230.00 0

39