Running Head: Business Start-Up Pre-Feasibility Report 1

BUSINESS START-UP PRE-FEASIBILITY REPORT

Business Start-Up Pre-Feasibility Report 2

Executive Summary
A business feasibility report helps in undermining the required framework and derivatives
that a start-up company is required to inherit in their overall business plan for proceeding
with their business operations within an accounting period. This report has analysed and
highlighted the operational and departmental functions of “Smart Cooking Ltd” which is a
confectionery start-up company situated at the centre of Acacia Avenue in Sheffield. In
addition, this report has also analysed the market gap and derivatives of the UK. In addition,
this report has also analysed an external environment analysis of Sheffield and the UK for
determining the consumer preferences and the environmental attributes that are going to
determine the growth and goodwill rates of this startup company based on the future financial
periods.
Investment considerations have also been highlighted in this report and have analysed that
investors are required to invest in this company for inheriting profitable benefits in the future
financial periods and once this company is stable in delivering their targetted revenues and
sales. On the other hand, major financial indicators with the help of measurable forecasts
such as cash flow, break-even point, and income statement have been prepared for
undermining the overall profitability factors of this company based on the future financial
periods.
Business Start-Up Pre-Feasibility Report 3

Table of Contents
1. Introduction............................................................................................................................4

2. Operational Features..............................................................................................................4

3. Management Overview..........................................................................................................5

4. Market gap and targets...........................................................................................................6

Reference List............................................................................................................................8
Business Start-Up Pre-Feasibility Report 4

1. Introduction

A business feasibility report inside a study helps a firm in attaining a larger picture and an
organised and detailed analysis related to the internal and external environment, profitability
functions, market gap and overview in which the company is currently pursuing their
business operations, management functions, and the overall considerations that have been
made by the respective investors inside an accounting period. This report is going to create a
business feasibility report on a start-up company named “Smart Cooking Ltd” that is looking
to set up its business operations in Sheffield. In addition, this report is going to analyse the
major determinants such as the market data and derivatives, motivating factors, business
operations, availability of customer mix, and overall external environment analysis. This
report is going to derive a major outline based on the requirements that a company is required
to undertake before proceeding with their start-up business operations in the UK during an
accounting period.

2. Operational Features

Operational features inside a start-up company are regarded as supporting business operations
that primarily help a business firm in proceeding with its business operations regularly
(Cadman, 2017). “Smart Cooking Ltd” primarily specialises in baking confectionery products
and is regarded as the “headline product” of this company. On the other hand, investing in
start-up companies is risky and the investors are required to take precautionary measures for
mitigating the risks that are incurred while investing inside a startup company (Smith, 2022).
Investors who are looking to invest in this startup company are required to undermine the
primary services and products of this company. In addition, he is also required to undermine
the external and internal factors that are going to determine the advanced sales and growth of
this company in the future financial periods.
Investors are required to diversify their portfolios and consider their investment options and
decisions very carefully. A startup company is always designated to incur huge losses at the
start of its overall business operations within an accounting period. Therefore, the investors
are required to undermine the primary methods that have been selected by “Smart Cooking
Ltd” for processing their business plans. As referred by Singhal et al. (2022), investors who
are looking to invest to invest in a startup company primarily incur less than 10 per cent of
the returns from the company in the first three months. This is due to the less recognition,
Business Start-Up Pre-Feasibility Report 5

customer base and business operations of the company. Therefore, the investors who are
looking to invest in this company are required to undermine these factors and decide the
range of their investment. In my opinion, the primary products of this company based on
confectionery products is going to attract a healthy customer base and increase the line of
profits within the first six months.

3. Management Overview

Management inside a startup company is an important determinant because effective

management and an efficient manager inside the firm’s internal environment are going to
help in increasing the reputation and goodwill of the business (Matthews, 2020). In addition,
effective management is also going to help in saving the rise of costs that can be an added
problem for startup companies. In addition, startups having a definite marketing manager is
going to enhance the rate of public relations and enhance the rate of marketing strategies
inside an accounting period. As referred by Chesbrough & Tucci (2020), effective
management inside a company is also going to help in bonding activities inside a startup
environment. In addition, based on the valuations of effective management the budget
determinations are also an important factor that can be finalised by the marketing team itself.
The management of this startup company is primarily comprised of two owners Mr. David
and Mr. Thames. In addition, they both hired 10 workers and 2 chief chefs that look over the
kitchen department. On the other hand, they also hired 5 workers for cleaning and sanitising
duties. The chefs are primarily skilled with master's degrees in cooking and valuable cooking
experiences in top restaurants. The other 10 workers in the kitchen have no prior experience
inside a restaurant or a kitchen. They previously worked for a departmental store in Sheffield.
On the other hand, the other workers who look after the cleaning, serving and sanitising
purposes are well trained and are designated to work for more than 8 hrs. as per the
requirement of the company. As reflected above from the designated positions this company
primarily lacks a manager. Therefore, the owners are required to undermine the importance
of incurring a manager for proceeding with their business operations and saving costs and
important business determinations.
Therefore, the key stakeholders or the owner of the “Smart Cooking Ltd” is required to
undermine the factorial changes based on their management perceptions. In addition, this
company is required to incur a marketing or operations manager for looking over these
important derivatives. Shaping the overall business operations and undermining the
Business Start-Up Pre-Feasibility Report 6

budgetary denotations of this company is going to help this company in incurring profitable
values that are positively going to be reflected in the cash flow and financial statements of the
company in every accounting period. These forecasts are going to help in undermining the
overall business operations and determinations of this company and incur definite business
plans for improving the numbers and its derivatives that are going to primarily encourage the
customer base.

4. Market gap and targets

Figure 1: Population of Sheffield from 2018 to 2020

(Source: MT, 2020)
Market gap and its targets are important derivatives that are required to be considered by this
company for increasing the level of sales and revenue in every financial period. The customer
segment is the primary market target that this company is required to focus on for improving
the level of sales and revenue structure for this company. The overall metro area population
of Sheffield in 2020 has been reflected at 730,000 which has been increased by 0.69 per cent
from the 2019 financial year (MT, 2020). Sheffield is regarded as the fourth largest city in
England and the economic rate of this city is regarded as the primary driving force and
primarily competes on a global stage. In addition, this city attracts talented people, inwards
the stakeholders and investors with major events and advanced tourist places (CC.UK, 2020).
In addition, Sheffield is regarded as the home of creative business firms and is now primarily
developing into a recognized city with major innovative places and clusters of "Sector-
specific hubs throughout the entire city".
Business Start-Up Pre-Feasibility Report 7

After the extensive impacts of Covid-19 in the UK, Sheffield’s mayor has started a scheme
based on the “Food and Drink Campaign” in the 2022 financial year which is going to help
the newly made business startups and events to shine (Ross, 2022). In addition, this campaign
is going to help this city in being recognised as one of the most attractive cities in the UK
also while enhancing the rate of tourist visits by 15 per cent every year. This campaign is
primarily going to be supported by the government of the UK making Sheffield a proper
place for people to enjoy a long weekend with their families. Based on the above
determinations it can be stated that the overall customer preferences, population, market
growth and rate are going to be enhanced in the future financial periods due to the
introduction of schemes and campaigns (Democracy.UK, 2020). In addition, Sheffield
primarily encourages and determines customer preferences as their primary method for
increasing the overall goodwill of the city. Therefore, the idea of starting the business in
Sheffield is going to help this company in attracting a healthy consumer base and increase the
line of profits for this company in the future financial periods. In addition, this business firm
is primarily going to exploit the campaign that is going to be introduced by the government of
the UK for attracting an enhanced customer base.
Business Start-Up Pre-Feasibility Report 8

Reference List

Cadman R, (2017) What does ‘operations’ mean at a tech startup?

https://medium.com/@richardcadman/what-does-operations-mean-at-a-tech-startup-
bb953d6a2802

CC.UK, (2020) Sheffield https://www.corecities.com/cities/cities/sheffield

Chesbrough, H., & Tucci, C. L. (2020). The interplay between open innovation and lean
startup, or, why large companies are not large versions of startups. Strategic Management
Review, 1(2), 277-303. https://leeds-faculty.colorado.edu/jere1232/Chesbrough%20and
%20Tucci.pdf

Democracy.UK, (2020) Customer Experience

https://democracy.sheffield.gov.uk/documents/s24610/OSMC%20Cust%20Experience%20-
%20Appendix%201.pdf

Matthews P, (2020) Why a Startup Team Needs Solid Management

https://innovationmanagement.se/2018/07/26/why-a-startup-team-needs-solid-management/

MT, (2020) Population of Sheffield

https://www.macrotrends.net/cities/22875/sheffield/population

Ross S, (2022) How Sheffield's food and drink scene could shine with new 2022 capital
campaign https://www.thestar.co.uk/lifestyle/food-and-drink/how-sheffields-food-and-drink-
scene-could-shine-with-new-2022-capital-campaign-3514793

Singhal, J., Rane, C., Wadalkar, Y., Joshi, M., & Deshpande, A. (2022, January). Data-
Driven Analysis for Startup Investments for Venture Capitalists. In 2022 International
Conference for Advancement in Technology (ICONAT) (pp. 1-6). IEEE.
https://research.spit.ac.in/storage/243/Data_Driven_Analysis_for_Startup_Investments_for_
Venture_Capitalists-(1).pdf

Smith D, (2022) How to invest in startups as a first-time investor

https://www.growthcapitalventures.co.uk/insights/blog/how-to-invest-in-startups-as-a-first-
time-investor
Business Start-Up Pre-Feasibility Report 9