First Report of Business PlanIntroduction
Entrepreneurship involves the setting up of a business that will aim at achieving a particular objective or filling up a gap in the market. In entrepreneurial development, the entrepreneur must have a target gap in mind that they are aiming at filling and a strategy that they will use in covering the market gap. The most important step in the entrepreneurial development is the analysis of the market and development of ideas that will bridge the gaps that exist in the market. An entrepreneurship must develop ideas that fit the market needs; hence, the great need for a market analysis in order to expose the market gaps for investment. After the launch of the idea in the market, the idea grows as more people buy into the idea and finally develop a platform that consists of irresistible idea growth platforms. This paper analyzes the evolution of an idea in the real market into a complete business that serves a need in the market, with reference to the Paris Crepe shop.
The entrepreneur and their development into innovation
The entrepreneur who was interviewed, Yingzhi Wang took over a café, which was in poor conditions in 2006. The café was named Paris café, but he renamed it to Paris Crepe and restructured the business, developing it into a strong crepe empire. The business has now developed, with two investors joining him in order to run the business. Yingzhi Wang proves that the experience one has in their development is essential in the development and maturity of the entrepreneurial cultures in an individual. An individual must have an innovative and entrepreneurial mentality in order for them to succeed in entrepreneurship. Firstly, the entrepreneur must have the right educational background in order to prepare for the entrepreneurial life. Yingzhi Wang, who owns and manages Paris Crepe, a coffee selling shop, went to the University of Montreal that prepared him for the entrepreneurial life and helped him to discover his passion.
As much as the academic background is imperative, an entrepreneur must have the right networks in order to succeed. Yingzhi Wang picked the coffee shop on a poor condition but found profitable partners with marketing and management backgrounds who helped him to nurture and develop the business. Furthermore, in the development of an entrepreneurial mindset, creativity is necessary. An entrepreneur should be innovative to identify new opportunities. One must be able to feature the best decorations, floor planning and innovative products that will attract people. However, this only happens when the person has the right goal for the business. Yingzhi Wang did not know the exact goals that he had for the coffee shop at the start of the venture but understood the model later. When he understood his objectives, he invested in the right innovative models that greatly enhanced the development of the business.
Evolution of the business idea
In the evolution of a business idea, the first step is market analysis to evaluate the salability and viability of an idea in the market. The idea is then developed and incubated so that the entrepreneur has some time to test how effectively the idea can be incepted into the market. Yingzhi Wang grew up in Montreal and went to university in the area. He, therefore, understood the market in the area and knew that crepes would sell effectively in the area. An entrepreneur should also know about the working hours and general behavior of the market in order to know how to nurture and develop an idea. Yingzhi Wang knows that the best working hours in Montréal are from 8.30am to midnight, which is the best time for coffee drinkers. He also knew that shorterer hours are required during winter in order to minimize costs. Market alienation is important in the development and adoption of an idea in the market.
The employment strategy is imperative in the development of an idea. In Yingzhi Wang’s case, the business only employs people who will add value to the entity and promote the vision of the shop. The employment culture of a business determines the level of development of a business as it may increase productivity and costs concurrently or increase costs only. Essentially, number and quality of employees determines the level of development of the business. Paris Crepe has 15-20 employees depending on the season and the time. The business also has 1 manager and 2-3 assistant managers to help in running the activities of the café.
The business must also understand the idea and competitive advantage that it has in the market in order to enhance easy evolution and adoption of the business idea in the market. When the business understands what puts it ahead of the others, it will possibly exploit the benefit in order to outdo the competition. Paris crepe understands that the location of the business gives them an edge over the rest of the competitors. Located in a busy area and high traffic area, the business attracts large numbers of people from different backgrounds who consume coffee and crepes at the business. Yingzhi Wang stated in the interview that they make the most location to attract more customers. Their principle of the Café is high speed, fast service, and high turnover rate of tables. Therefore, they are unable to provide table service. This has facilitated the growth of the business because it increases the turnover of the customers meaning more people can be served in a short time hence more revenue is generated.
In order to move an idea into a fully sustainable business, the entrepreneur must establish a compact long-term management in order to aid the development of the business. In Paris Crepe, Yingzhi Wang and the two co-investors are the top management officers in the business. They have served the business for a long time. The structure has helped to cement the growth of the business as they deal with specific areas to ensure that the business develops efficiently.
The business targets three kinds of markets namely visitors, the shopping crowds, and the people going to the bar. The visitors shop for the first times in the shop while the shopping crowds are the normal customers frequenting the shop. The people going to the bar pass by the shop to buy fast foods, which they eat on their way to the bar.
The Canadian market comprises of market establishments where the patrons select food at the counter, order by phone, or select at the bar or cafeteria and pay before eating. This establishment offers a variety of snacks to alcoholic drinks. Some of the businesses that operate in the same industry with the coffee shop include coffee shops, doughnut shops, drive-in restaurants, fast food restaurants, ice cream parlor, soup and sandwich shop, and take-out restaurants. The market analysis for an idea takes a number of steps depending on the industry that one wishes to invest into it. Firstly, the trends in the market are imperative in determining the market orientation for the idea. One must understand the innovations and technological developments in the industry. In the coffee industry, the trend involves portable coffee containers, and conference drinks in order for people to undertake the coffee culture in their daily practices. The trends in the market mainly help in understanding the systems that the business must adopt to survive in the market. This highlights the need of conducting extensive market research. The computerization culture and the technological advancements in the market are imperative in case one wants to venture in any business in the market.
The industrial information on the products or services that an individual would like to innovate in is imperative in the development of an idea into real products. An individual must understand the market where he is operating in order for them to fit into the market efficiently. For example, in the coffee market, Yingzhi Wang understands that people consume coffee and crepes until late night when the sales start lowering. Consequently, the business is open until late hours in order to attract the market from the people who consume in late hours. The entrepreneur also understands that, during the winter, people consume more coffee and crepes than the rest of the year due to the cold weather. The business; thus, operates longer hours during the winter in order to capture a larger portion of the consumer market that presents itself during the season.
The business also understands the nature of decision making necessary in the market. The market needs quick decision making in order to enhance customer satisfaction. The management must consult in decision-making; hence, the larger the management, the slower the decision-making process. Yingzhi Wang and the co-investors have thus maintained a smaller management to enhance decision making in the business.
Future trends are more likely to influence the industry in a great way. First, technological changes will influence the industry as more café emphasize on online reservations and wi-fi connections in the cafes. With the Canadian legislations requiring high health standards for the consumed foods in the country, this will likely increase the costs for the business, as they will hire people to monitor the quality of the crepes and coffee before service.
Growth, expansion, and diversification concept in the business
The concept of growth, expansion, and diversification in the business depends on the nature and preferences of the customers. The customers for Paris Crepe have become more concerned with the health issues and allergic products in the market. The business must consider producing healthier products and products less susceptible to allergies in order to win the market more easily. This is a trend in many businesses now as customers are more selective with the foods that they take.
When the business is growing and expanding, the investor must understand what is desirable and add it to the business only if it makes the business better and more profitable. Some of the customers may complain about facilities that will reduce the revenue of the business. Yingzhi Wang stated in the interview that they were not planning to add wireless internet connection to the business although most of the customers requested for it. This is because the customers would sit in the café longer and block more customers from accessing the facility. However, the investor is ready to invest in a brand new espresso coffee machine in order to make the services more efficient and less costly. The investors is also planning to add new crepes made of buckwheat and are gluten-free in order to attract more customers and match the customer needs.
The investment and expansion plan must contain the opening and launching of new cafes and businesses in order to catch a wider customer base. The Paris Crepe does not offer table services, which is the policy of the investor in order to increase the turnover rates for efficiency. However, the investor plans to open two new cafes in the area that will offer the table services in order to help satisfy the customers more. The new cafes will offer the table services and other services but will not have the perfect location like the current one. The new ventures that one opens should offer better services to compete successfully. Yingzhi Wang plans to make the new coffee shops valuable in terms of the dinning environments. H also plans to offer table services in order to enhance the customer attraction.
Entrepreneurship is one of the best ways of doing business in the society. However, one must understand the idea that he/ she stands for and develop the strategies that will help him/ her to further the idea into a profitable business model. In the case of Yingzhi Wang, he had knowledge of the coffee market in Montréal. Yingzhi Wang also benefited from his educational background and experience in the coffee business. However, in advancement of his idea, understanding the market helped him in developing the business as he could easily analyze the competition in order to determine the success rate. The plans of the business involve expansion through building two new cafes that will offer better services than the current café in order to give the customers wider experience.