Business Idea And Its Most Essential Business Model Components

Question: Discuss about the Business Idea And Its Most Essential Business Model Components. Answer: Discussion: Ordering and delivering of food is not a new business idea. However, with the concept of innovation and advancement, the idea of food business has evolved with changing times. There have been various options for me to initiate a start-up regarding the grocery delivery, restaurant table booking, midnight food delivery, etc. I recognized that with the hectic schedule of people with high-stress factor and juggling of work at both work place and home, there is always a scarcity of time for cooking and preparing own food for work (Ebner, Buhnen Urbach, 2014). With the upheaval of a hectic lifestyle, there is a direct effect on the health of the people in a negative way. This inspired me to initiate a business idea regarding online delivery of meal boxes which are completely oriented to healthy dietary patterns. The meal boxes that my business would provide would have food dishes that are very customized by considering health and diet considerations. People can be very conveniently ordered for the dishes and meals according to their likeness and diet concerns as we do not use any excessive amount of oil, flours and other food items that pose adverse effects to health. People having a hectic work schedule and at the same time desire to have a completely structured diet through well prepared, light meals can very easily book order their meal boxes which will be delivered to them at their desired location within an hour (Ferretti, et al., 2015). They would also be able to have their meals customized which will allow them the liberty to have a mixed combination of food every day. My business of online food delivery of meal boxes also offers the facility for consumers to book meal boxes for the entire month where they can choose their meals every day at once (Lai, et al., 2016). Implementation Of Innovative Ideas: The business model that we follow is much in resonance with the objective of the business to provide healthy meals to people having a hectic schedule. Our business understands that having same boring meals may tend to bore any employee. In order to bring back the deliciousness into the lives of the employees along with removing the hassle of preparing food, our business model completely matches the mission of the business. The consumers will need to create a profile on our official website and get registered with the service platform. The users will be receiving a message regarding the available options for meals every day at a particular time so that they can very well be aware and notified regarding the meals without making any effort (Winfield, 2015). The interested users and consumers can very conveniently place the order and make the required payment online. We would then forward the order to our kitchen to prepare the meals box well accordance with the order of the consumer keeping his or her dietary requirements and preferences in consideration (Lai, et al., 2016). After the processing of the order has taken place, the meal platform will make the collection of the order and implement the delivery of the ordered meal box to the respective location (work place or home, etc) at the specified time. Description Of The Innovative Process The innovation process that would be used in the online dietary food delivery business involves the use of new and innovative software and technologies that would be handy to gain orders from the customers and along with timely notification to the customers about the ordering of the food. This innovative software requires capital as well. The use of such software would be useful for the maintaining records for the orders, the address where the order would be delivered, the items that have been ordered along with transactions undertaken for the business. It is essential to maintain all the records of the activities of the business so that the construction of the financial statements would be possible and this would lead to understanding the operational position of the business. The online food delivery business can be deemed as a business that is not new in the market, but it is seen that the innovative process has been the use of the dietary materials and healthy products that would make the healthy food along with reenergising the taste buds of the consumers. The USP of this business has been the assurance given to the consumers about the use of healthy and dietary products for the preparation of their food. The business would even expand with the help of receiving feedback from the consumers so that their suggestions and complaints can be considered and effective plans can be taken with the help of which the business and the operational activity would enhance and development. The development of the business is possible with the help of capital and the inflow and outflow of the cash and hence the projections with respect tofinance would be underlined in the following section. Financial Projections Cash Flow Cash Flow Year 1 Year 2 Cash Received $100,000 Cash From Operations $92,188 Sales $42,728 $58,000 Receivables $0 $0 Cash Flow from Operations $0 $0 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 New Current Borrowing $0 $0 New Other Liabilities (interest-free) $0 $0 New Long-term Liabilities $0 $0 Sales of Other Current Assets $0 $0 Sales of Long-term Assets $0 $0 New Investment Received $0 $0 SUBTOTAL CASH RECEIVED $142,728 $150,188 Expenditures Year 1 Year 2 Expenditures from Operations Cash Spending $2000 $3600 Bill Payments $6550 $3950 SUBTOTAL SPENT ON OPERATIONS $8550 $7550 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 Principal Repayment of Current Borrowing $0 $0 Other Liabilities Principal Repayment $0 $0 Long-term Liabilities Principal Repayment $0 $0 Purchase Other Current Assets $0 $0 Purchase Long-term Assets $0 $7550 Dividends $0 $0 SUBTOTAL CASH SPENT $8550 $7550 Net Cash Flow $134,178 $142,638 Cash Balance $92,188 $1,02,328 Overall Financial Report of the Business Year 1 Year 2 Industry Profile Sales Growth 0.00% 0.00% 8.79% Percent of Total Assets Accounts Receivable 0.00% 0.00% 28.12% Other Current Assets 0.00% 0.00% 44.18% Total Current Assets 24.61% 78.72% 76.27% Long-term Assets 75.39% 21.28% 23.73% TOTAL ASSETS 100.00% 100.00% 100.00% Current Liabilities 14.43% 13.77% 38.61% Long-term Liabilities 0.00% 0.00% 13.60% Total Liabilities 14.43% 13.77% 52.21% NET WORTH 85.57% 86.23% 47.79% Percent of Sales Sales 100.00% 100.00% 100.00% Gross Margin 0.00% 100.00% 100.00% Selling, General Administrative Expenses 0.00% 74.84% 82.68% Advertising Expenses 0.00% 1.00% 1.66% Profit Before Interest and Taxes 0.00% 33.55% 1.37% Main Ratios Current 1.71 5.72 1.59 Quick 1.71 5.72 1.22 Total Debt to Total Assets 14.43% 13.77% 60.22% Pre-tax Return on Net Worth -179.37% 101.73% 3.09% Pre-tax Return on Assets -153.49% 87.72% 7.76% Additional Ratios Year 1 Year 2 Industry Profile Net Profit Margin 0.00% 25.16% n.a Return on Equity -179.37% 76.30% n.a Activity Ratios Accounts Receivable Turnover 0 0 n.a Collection Days 0 0 n.a Accounts Payable Turnover 9.57 12.17 n.a Payment Days 27 19 n.a Total Asset Turnover 0 2.61 n.a Debt Ratios Debt to Net Worth 0.17 0.16 n.a Current Liab. to Liab. 1 1 n.a Liquidity Ratios Net Working Capital $177,000 $4,727,910 n.a Interest Coverage 0 0 n.a Additional Ratios Assets to Sales n.a. 0.38 n.a Current Debt/Total Assets 14% 14% n.a Acid Test 1.71 5.72 n.a Sales/Net Worth 0 3.03 n.a Dividend Payout 0 0 n.a Break-even Analysis Break-even Analysis Monthly Revenue Break-even $222,417 Assumptions: Average Percent Variable Cost 0% Estimated Monthly Fixed Cost $222,417 Use Of Social Media In the current era, with the development of the science and technology, there has been use of various online as well as media services by the consumers globally. In the current era, there has been development of the social media like Facebook, Twitter etc where the consumers communicate with each other and stay connected with the activities all over the globe. Hence, the businesses has been exploiting these social media websites in order to gain knowledge about the consumers as well as communicate and advertise their business in such websites in order to attract the consumers about their business and convince them to become their customers. The business therefore has created a page in Twitter and in Facebook where the details about the business along with the services offered and the benefit of the services are even highlighted. This would be influential for the undertaking an effective promotional plan for the business. The food menu as well as the rate charts is even provided in or der to create a clear view about the online food delivery business to the consumers. As discussed above, the main aim of the business has been to provide healthy and dietary food to the consumers and hence the business even uploads videos with respect to the procedures used for the preparation of the food items so that the consumers would have an idea about the products used and the safety measures taken so that the consumers can order and purchase their meal boxes trustworthily. Hence, the use of the social media can be useful for the establishment of the business effectively. Refrences: Ebner, K., Buhnen, T., Urbach, N. (2014, January). Think big with Big Data: Identifying suitable Big Data strategies in corporate environments. In System Sciences (HICSS), 2014 47th Hawaii International Conference on (pp. 3748-3757). IEEE. Ferretti, A., Colombo, D., Fumagalli, A., Novali, F., Rucci, A. (2015). InSAR data for monitoring land subsidence: time to think big. Proceedings of the International Association of Hydrological Sciences, 372, 331. Lai, J., Leow, W. K., Sim, T., Sharma, V. (2016, March). Think big, solve small: Scaling up robust PCA with coupled dictionaries. In Applications of Computer Vision (WACV), 2016 IEEE Winter Conference on (pp. 1-8). IEEE. Winfield, L. (2015). Student life-Catalyst for ideas: A prize for third-year Plymouth University students encourages them to think big, says lecturer Louise Winfield. Nursing Standard,andfinance 29(40), 66-66