Start Up A Small Business

Write a 4– page paper

1.Propose the value proposition of the product or service the business will offer and explain the rationale.
2.Outline the competitive market and the industry in which the business will operate.
3.Determine at least two strategies for protecting each of the following:
The branding.
The logo.
The product or service.
The technology (if applicable).
1.Suggest methods to test the product idea for feasibility.
2.Suggest at least three strategies to incentivize the founding management team.
3.Estimate the amount of cash needed to start the business. Provide a rationale to support your estimation

ANSWER

1. Propose the value proposition of the product or service the business will offer and explain the rationale.

Bean N’ Cream will be a specialty shop since it only offers natural products. Our coffee beans will be organic and grown without pesticides or any other chemicals. We will obtain the coffee beans directly from farmers in different parts of the world and grind them to ensure that we deliver fresh coffee. We will also ensure that customers are satisfied by offering the best services. Customer service is our top priority, and we will uphold it by serving the best to our clients and offering them the best experience. The menu will also be comprehensive; we will offer a variety of snacks and other accompaniments of their choice at affordable prices. Since our main target customers are the students at the college, we will ensure that the prices are set within reason, and the prices will be relatively lower compared to our competitors such as Starbucks. Moreover, Bean N’ Cream will ensure that the customers have a conducive place to hold meetings or meet their friends; thus, we will have both indoor and outdoor seating that one can choose from.

2. Outline the competitive market and the industry in which the business will operate.

The target market will be mainly the students at the campus. However, we will also sell to adults and other working individuals living around the place. The industry in which we will be operating is the specialty eatery industry. Thus, the competition will be other coffee shops around the university and other restaurants that offer similar products and services.   These competitors will be direct and indirect. From our market analysis, the main competitor will be Starbucks since it has established itself well in the market and also because of its wide variety of products and services. Nevertheless, Bean N’ Cream Coffee shop will offer products and services that will give it an edge over its competitors. For instance, it will provide exceptional customer service that will focus on customized orders for each customer.

3. Determine at least two strategies for protecting each of the following:

The branding

One of the strategies to protect our brand will be to register copyrights and trademarks. Copyrights and trademarks will ensure that no competitor can steal our brand name or products. They will be legally protected, and anyone who uses them without our permission can be sued. We will register our brand colours, latte art, aesthetics, and brand images. Another strategy that will be useful in protecting our brand is through being consistent and avoiding any changes in our brand that might be confusing for our clients and our competitors. Any changes that are made will be communicated through our official websites.

The logo

One of the strategies that we will use to protect the Bean N’ Cream logo will be through registering trademarks. Trademarks will prevent any confusion in the market and give the business owner of the logo a right to sue a party that infringes on it.

Another strategy is to register for copyright protection of the logo, which declares the ownership of that logo by Bean N’ Cream.

The product or service

New products will be protected through patents. If the business invents a new product, such as a new beverage, it will be patented to ensure that no other business can copy, make, or sell the exact product without our consent (Chairi et al., 2021). However, the patent will be for a limited period, and maintenance fees are required after a certain period.

Trade secrets is another way to protect the organization’s products and services. Trade secrets protect formulas, processes, recipes, and any other information whose value is obtained from secrecy, and this will be the most appropriate in protecting our unique coffee blends.

4. Suggest methods to test the product idea for feasibility.

We will conduct various types of tests to determine the feasibility of our products and business idea. They will include legal, economic, and technical analyses. Technical analysis will assess the available technical resources and technical team within the organization (Kaniawati et al., 2021). Economic feasibility will conduct a cost-benefit analysis to determine if the business is viable before allocating resources. The legal feasibility will entail investigating whether the business idea is in conflict with any legal requirements.

5. Suggest at least three strategies to incentivize the founding management team.

There are many strategies that we will adopt to incentivize the founding management. First, we will offer them flexible schedules that will enable them to balance their work and personal lives more effectively. We will have split shifts that can allow managers to take breaks and focus on other personal matters and ensure that they stay productive and happy.

Another incentive that we will offer our founding management team will be professional development and a chance for them to grow (Hendricks, et al., 2019). We will offer them professional memberships, which will allow them to attend regular meetings and a chance to interact with others from different departments. Moreover, we will offer the managers real and perceived business ownership (Delfgaauw et al., 2022). To motivate our founding management team and enable them to feel like a part of the organization, we will offer them a share of the business. Ten per cent of the business will go to the founding management. This strategy will ensure management has a sense of shared purpose and responsibility and will work harder to achieve the objectives of the business.

Besides, I will involve the management when setting the incentives. I understand that each individual has different preferences and needs. I will ask them what motivates them to work hard and any other thing that gives them satisfaction. From their responses, I can develop a more focused and customized incentive to ensure that each of their needs is prioritized.

3. Estimate the amount of cash needed to start the business. Provide a rationale to support your estimation

The estimated cash that will be required at the start of Bean N’ Cream will be approximately $ 200,000. This amount will be required to cover different expenses such as business formation, location and building re-design, licensing, initial hiring, and equipment purchase.

For the location and building re-design, several other expenses will be incurred. They will include, which will be approximately $ 3500 per month. Design and layout will cost approximately $ 7000 and $ 10000, including the installation of countertops and other necessities such as sinks. Other expenses related to the location will include furniture, which will cost approximately $2000 for tables and chairs for both indoors and the outside. Under the equipment expenses, the related costs will be the espresso machine, the water filtration machine, refrigerators, coffee makers, espresso grinders, and serving items, all of which will cost approximately $20,000.

The start-up costs also include the hiring costs of operational staff such as managers and baristas.   It will also include professionals such as lawyers who will deal with all the legal issues during formation and accountants. For the lawyer, the initial consultation that will be budgeted for will be $ 500, and accountants will be paid between $30 t0 $ 40 an hour. The business will budget $ 50,000 for the first year for payment of all the staff. Licensing permits, and insurance will cost approximately $ 1000.

References

Chairi, Z., Saidin, T. K., & Purba, H. (2021, October). Protecting Micro, Small, and Medium Enterprise Products through Trade Secrets as the Intellectual Property in Indonesia. In ICOLEG 2021: Proceedings of the 2nd International Conference on Law, Economic, Governance, ICOLEG 2021, 29-30 June 2021, Semarang, Indonesia (p. 353). European Alliance for Innovation.

Delfgaauw, J., Dur, R., Onemu, O., & Sol, J. (2022). Team incentives, social cohesion, and performance: A natural field experiment. Management Science, 68(1), 230-256.

Hendricks, B., Howell, T., & Bingham, C. (2019). How much do top management teams matter in founder‐led firms?. Strategic Management Journal, 40(6), 959-986.

Kaniawati, K., Nuri, N., Sinaga, O., & Roespinoedji, R. (2021). Coffee Business Development https://www.pexels.com/photo/do-something-creative-everyday-text-3831729/

Model. Review of International Geographical Education Online, 11(6), 432-443.

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