BUS3005NFC-Start a Healthy Food Business with Nourish Eats Case Study

Introduction - Key Steps to Launch a Successful Food Business

The report describes the structure of a business and it generates a business idea for entrepreneurs. Starting a business is a big step and requires careful planning, research, and execution. Whether an entrepreneur is starting from scratch or building on existing ideas, there are many important factors to consider to ensure that the business is successful and sustainable (Massa et.al. 2017). This report will explore various elements of starting a healthy food business, including generating innovative business ideas, crafting a compelling mission statement, choosing the right business sector, selecting the right legal structure, sourcing finance, and implementing key HR policies. The report will help to develop a comprehensive understanding of what it takes to start and run a successful healthy food business. The name of the business is Nourish Eats and I have chosen the business of healthy foods and eating.

Tagline of nourish eats “Nourish your body, satisfy your taste buds”

Task 1. A short overview of Nourish Eats structure using the template

1. Company’s product or service offering.

• Our company offers a range of healthy food and wellness products, including meal subscription service, healthy snack boxes, smoothie bowls and juice bar, plant-based supplements, herbal teas, and health and wellness workshops (Geissdoerfer et.al. 2018).
• Our products and services are designed for busy professionals and health-conscious individuals who want to eat healthily but struggle to find the time or knowledge to prepare their meals.
• Our offerings solve the problem of access to convenient and nutritious food options and promote a healthy lifestyle through education and inspiration.

• Company’s core values.

• Our company is unique in our commitment to sourcing only the freshest and finest ingredients from local and organic farmers and preparing meals that are both nutritious and delicious.
• When people hear our company, they think of high-quality, convenient, and affordable healthy food options.
• We are dedicated to promoting sustainability, reducing waste, and educating our customers about the benefits of a healthy lifestyle (Ibarra et.al. 2018).

• Connect how the company's offering (product or services) aligns with your values.

• Our meal subscription service, healthy snack boxes, smoothie bowls and juice bars, plant-based supplements, herbal teas, and wellness workshops all serve our core values by providing convenient, nutritious, and sustainable food options to our customers.
• Our offerings are not only delicious but also educate and inspire our customers to adopt a healthy lifestyle, aligning with our mission to promote sustainable and healthy living.

• Condense these statements into one.

"Our mission is to empower people to live healthier and happier lives by providing high-quality, convenient, and affordable healthy food options. We are committed to sourcing only the freshest and finest ingredients from local and organic farmers and preparing meals that are both nutritious and delicious. Our core values include promoting sustainability, reducing waste, and educating our customers about the benefits of a healthy lifestyle. Through our meal subscription service, healthy snack boxes, smoothie bowls and juice bar, plant-based supplements, herbal teas, and wellness workshops, we strive to make healthy living accessible and achievable for everyone."

• Make sure it’s clear, concise, and free of fuzz.

The above mission statement clearly outlines the purpose of Nourish Eat’s offerings and demonstrates the common goals we are working to achieve, which are to provide access to convenient and nutritious food options and promote sustainable and healthy living.

Task 2. Which sector does the business operate in the UK economy

The sector in which the healthy food business operates in the UK economy can be classified as the food and beverage industry, as well as the health and wellness sector (Lambert, 2015). This is because the business offers a range of healthy food options, as well as plant-based supplements, herbal teas, and health and wellness workshops, which fall under both of these categories.

The healthy food business operates in two main sectors within the UK economy: the food and beverage industry, and the health and wellness sector.

1. Food and Beverage Industry: The business falls under this sector because it offers a range of healthy food options, including meal subscription services, healthy snack boxes, smoothie bowls, and juice bars, which are all part of the food and beverage industry. This industry is characterized by the production, distribution, and sale of food and beverages. It includes a wide range of products such as fresh and processed foods, alcoholic and non-alcoholic drinks, and more.
2. Health and Wellness Sector: The business also operates in the health and wellness sector because it offers plant-based supplements, herbal teas, and health and wellness workshops. This sector is focused on promoting and improving overall health and wellness, and it encompasses a range of products and services, including fitness equipment, vitamins, supplements, health foods, and more.

Both of these sectors are crucial parts of the UK economy, as they cater to the growing demand for healthy food options and wellness products (Ayers, 2017). The healthy food business operates within these sectors by providing customers with access to convenient, nutritious, and affordable healthy food options, as well as educating and inspiring them to adopt a healthy lifestyle.

The choice of operating the healthy food business in the food and beverage industry, as well as the health and wellness sector, is based on several key factors, which are supported by academic research.

1. Growing Demand for Healthy Food Options: The demand for healthy food options has been increasing globally, driven by rising awareness of the importance of maintaining a healthy diet (Murcott, 1997). According to a study by Mintel, a market research company, sales of plant-based food and drinks in the UK increased by 30% from 2015 to 2020 (Mintel, 2020). This trend is also reflected in the growing popularity of healthy food delivery services and health-conscious cafes and juice bars. The healthy food business operates in this sector to meet this growing demand for healthy food options and to provide customers with convenient and affordable access to nutritious food.
2. Increasing Focus on Health and Wellness: The health and wellness sector is growing as people are becoming more conscious of the importance of maintaining good health and adopting healthy lifestyles (Achterberg, et.al. 2015). The business operates in this sector to provide customers with access to a range of health and wellness products, including plant-based supplements, herbal teas, and health and wellness workshops. These products and services help to support customers in their pursuit of a healthy lifestyle, which is in line with the growing focus on health and wellness.

Task 3. The Legal Status of the Business

Five (5) key factors a business should consider when choosing a legal structure or framework

1. Liability protection: One of the key factors to consider when choosing a legal structure is the level of liability protection it offers to owners and stakeholders. The legal structure chosen should offer sufficient protection against personal and financial loss.
2. Taxation: Businesses should consider the tax implications of their chosen legal structure, as different structures have different tax obligations and benefits. A business should choose a legal structure that offers the most favorable tax arrangement and reduces the overall tax burden (Breznik and Law, 2019).
3. Regulatory compliance: Different legal structures have different compliance and regulatory requirements, and businesses should choose a structure that is best suited to their specific requirements. For example, public limited companies (PLCs) are subject to more stringent reporting and governance requirements compared to limited companies (Ltd).
4. Attracting investment: Businesses should also consider the ease of attracting investment when choosing a legal structure. Some structures, such as PLCs, offer the potential for investment from a wide range of sources, while others, such as registered charities, may have difficulty attracting investment (Kurpayanidi, 2018).
5. Flexibility: The chosen legal structure should also offer the necessary level of flexibility to accommodate the business's future growth and development. For example, a business may require the ability to raise capital through the sale of shares, or the ability to expand into new markets. The chosen structure should provide the necessary flexibility to support these growth objectives

Task 4: Finance and Funding of Nourish Eats

Briefing Notes for Potential Stakeholders:

Starting a business requires a significant amount of financial investment to get it off the ground. Sourcing for finance is a crucial part of starting a new venture and there are several options available to entrepreneurs (Ngoc et.al. 2021). Following are some options of sources of finance for this business plan:

Option 1: Bank Loans

Advantages:

• Bank loans are a well-established source of finance and are readily available to most businesses.
• They offer a fixed rate of interest and a set repayment period, providing the borrower with a clear understanding of the cost of borrowing.
• Bank loans can be secured against the assets of the business, reducing the risk to the lender.

Disadvantages:

• Bank loans can be difficult to obtain, especially for start-up businesses with no track record or collateral.
• The application process can be time-consuming and bureaucratic, requiring detailed business plans and financial projections.
• The strict repayment terms can be a burden for businesses in their early stages, putting pressure on their cash flow.

Option 2: Venture Capital

Advantages:

• Venture capital offers a significant amount of investment for start-up businesses with high growth potential (Hashim et.al. 2015).
• Venture capital investors provide not only finance but also valuable business expertise and mentorship, helping the business to grow and succeed.
• They are often more willing to invest in start-up businesses with high growth potential, where the risk is greater.

Disadvantages:

• Venture capital investment is typically equity-based, meaning the investor becomes a shareholder in the business.
• The terms of venture capital investment can be demanding, with investors often requiring a seat on the board and having significant influence over the company's direction.
• The process of securing venture capital can be competitive and time-consuming, and the business may need to give up a large share of equity to secure investment.

Option 3: Crowdfunding

Advantages:

• Crowdfunding is a fast and flexible source of finance for start-up businesses.
• It enables businesses to secure investment from a large number of individuals, providing a broader pool of capital (Raimo et.al. 2020).
• Crowdfunding can be an effective way to generate interest and support for a business, building a community of supporters around the venture.

Disadvantages:

• Crowdfunding can be a competitive process, with many businesses competing for investment from the same pool of investors.
• The amounts raised through crowdfunding are often limited, and the business may need to secure additional funding from other sources.
• Crowdfunding may also require the business to give up a significant amount of equity to secure investment.

The most appropriate source of finance will depend on the specific needs and objectives of the business. Entrepreneurs should carefully consider the advantages and disadvantages of each option and select the best fit for their needs. By doing so, they can ensure the success of their start-up venture.

Task 5. Key HR policies for a healthy food business:

Human Resource policies are essential for any business as they set the framework for how employees are managed, treated, and compensated. The following are some key HR policies that a healthy food business should consider (Nirino et.al. 2020):

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• Recruitment and Selection: This policy outlines the process for attracting and selecting employees, including advertising vacancies, screening applications, and conducting interviews.
• Performance Management: This policy defines how performance is evaluated and how employees are given feedback and coaching. It also covers the process of setting performance goals and conducting performance evaluations.
• Compensation and Benefits: This policy outlines the compensation and benefits offered to employees, including salaries, bonuses, insurance, and paid time off.
• Employee Relations: This policy defines how employees are expected to interact with each other and with management. It also covers the process for handling complaints, disputes, and grievances.
• Training and Development: This policy outlines the opportunities available for employees to develop their skills and knowledge. It covers the process of providing on-the-job training, attending workshops and conferences, and pursuing higher education (Higgins, 2016).
• Health and Safety: This policy outlines the measures the company will take to ensure the health and safety of its employees, including providing a safe work environment, offering training on safe work practices, and having procedures in place for responding to emergencies.

Conclusion

The report concludes that starting a healthy food business requires careful planning, research, and a solid understanding of the key elements involved.. There are various things which an entrepreneur needs to take care of, including selecting the right business sector, choosing the right legal structure, sourcing finance, and implementing key HR policies. Starting a business involves many important considerations and decisions. One of the crucial steps is selecting the right business sector that aligns with the company's goals and values. It is essential to evaluate the market demand, competition, and potential for growth before choosing a sector. Once the sector is decided, the next step is to choose a legal structure that fits the company's needs and goals. The options include PLC, LTD, and Registered Charity, each with its own advantages and disadvantages. Sourcing finance is another critical aspect of starting a business. Entrepreneurs need to evaluate different finance options such as debt financing, equity financing, and government grants, and choose the one that best fits their business needs. Finally, implementing key HR policies is crucial for the success and growth of a business. These policies ensure fair treatment of employees and help in attracting and retaining top talent. The report summarized the key elements involved in launching a successful business.

References

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Ayers, D.F., 2017. Three functions of the community college mission statement. New Directions for Community Colleges, 2017(180), pp.9-17.

Breznik, K. and Law, K.M., 2019. What do mission statements reveal about the values of top universities in the world?. International Journal of Organizational Analysis.

Geissdoerfer, M., Vladimirova, D. and Evans, S., 2018. Sustainable business model innovation: A review. Journal of cleaner production, 198, pp.401-416.

Hashim, P., Ridzwan, M.M., Bakar, J. and Hashim, M.D., 2015. Collagen in food and beverage industries. International Food Research Journal, 22(1), p.1.

Higgins, J.P., 2016. Smartphone applications for patients' health and fitness. The American journal of medicine, 129(1), pp.11-19.

Ibarra, D., Ganzarain, J. and Igartua, J.I., 2018. Business model innovation through Industry 4.0: A review. Procedia manufacturing, 22, pp.4-10.

Kosmützky, A. and Krücken, G., 2015. Sameness and difference: Analyzing institutional and organizational specificities of universities through mission statements. International Studies of Management & Organization, 45(2), pp.137-149.

Kurpayanidi, K.I., 2018. Questions of classification of institutional conditions, determining the structure of business management in Uzbekistan. ISJ Theoretical & Applied Science, 9(65), p.1.

Lambert, S., 2015. The importance of classification to business model research. Journal of Business Models, 3(1).

Massa, L., Tucci, C.L. and Afuah, A., 2017. A critical assessment of business model research. Academy of Management annals, 11(1), pp.73-104.

Mintel (2020). UK Sales of Plant-Based Food and Drink Grow 30% in Five Years. [online] Available at: https://www.mintel.com/press-centre/food-and-drink/uk-sales-of-plant-based-food-and-drink-grow-30-in-five-years [Accessed 8 Feb 2023].

Ngoc, N.M., Tien, N.H., Chau, P.B. and Le Khuyen, T., 2021. THE IMPACT OF CAPITAL STRUCTURE ON BUSINESS PERFORMANCE OF REAL ESTATE ENTERPRISES LISTED AT HO CHI MINH CITY STOCK EXCHANGE. PalArch's Journal of Archaeology of Egypt/Egyptology, 18(08), pp.92-119.

Nirino, N., Miglietta, N. and Salvi, A., 2020. The impact of corporate social responsibility on firms’ financial performance, evidence from the food and beverage industry. British Food Journal, 122(1), pp.1-13.

Raimo, N., de Nuccio, E., Giakoumelou, A., Petruzzella, F. and Vitolla, F., 2020. Non-financial information and cost of equity capital: An empirical analysis in the food and beverage industry. British Food Journal, 123(1), pp.49-65.