Student Details

Student Name:  Mariyam Shahudha

Student ID: AC8054

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Program Details

Course Title : BHRM

Module Title:   Entrepreneurship

Lecturer Name: Mohamed Faisal

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Executive Summary
Over the last decade, customers have become increasingly aware of the need to pursue a
healthy lifestyle. More and more governmental and non-governmental organizations are
promoting a healthy lifestyle as an individual decision for health, yet doctors continue to warn
us that we have to protect ourselves from diseases. A healthy lifestyle, including balanced
nutrition, can help prevent diseases such as cardiovascular disease, obesity, cancer, and
diabetes. Because of these facts and consumers’ expected behaviors, we believe that health
food business has a great potential for growth.

Idea for the New Business

As the prevalence of obesity has increased over the past two decades, public health experts
have begun to focus on the environments that shape overeating, unhealthy food choices, and
food insecurity (K.M., M.D., C.L., & L.R., 2010). Food insecurity, defined as a lack of access to
adequate or healthful food because of limited money or other resources.

Being healthy has become a lifestyle for most of us. This global trend has come to our country
as well. We see lot of fitness establishments such as gyms and fitness classes. Moreover,
personal trainer trend has also increased in Maldives, specifically in greater Male’ region. We
also see the growing trend of fitness education development over the past few years.

Maldives is becoming well known for athletes and has been competing various regional and
international sports competitions. there are many athletes who have won prices in such events.
For instance, we have runners, TT players, basket ball players, volley ball players, football
players and many other athletes who compete in sports.

Although there has been continued growth and expansion throughout the industry, we still lack
providers of health foods, which are suited for people who except fitness as a lifestyle (Ghafoor,
2022). Thus, the new idea is to established a business to cater to this market within Male’
region and expend throughout Maldives.

In Maldives athletes are usually not specialized to their particular sport but rather they are
employed in various fields in private and public offices. Balancing their athletic career while
being employed in a different field brings more challenges to them in keeping fit. Thus, such a
business would be able to cater such athletes and plan and arrange health foods to stay fit and
healthy.

There are people who want maintain their physical fitness and also some people like to lose
weight and become fit. For such people a good calculated diet is important to lose weight, to
gain weight or to maintain weight and physical fitness. This business idea would enable to cater
to this market with high quality and specialized services which can be customized according to
the requirements of the customer.

Analysis of Potential Risks Involved

Managing Cash Flow

Cash flow management is an especially acute risk when starting a new business. Failure to
properly manage cash flow is caused by two main factors, that is failing to raise cash when
businesses need it or failing to cut excess expenditure (Sherman, 2019). Solid cash flow
management is critical because small business owners need the flexibility of directing capital at
short notice, mostly to meet the unexpected investment needs of their business. Without cash
to underpin advertising campaigns or inventory turnover, businesses quickly struggle to
function.

Operational Challenges

Like cash flow management, operational challenges in business are an ongoing issue that
entrepreneurs need to contend with. Operational management concerns how the business is
run and whether the business is efficient (Gerdeman, 2022).

Competition

Another risk to small businesses is fierce competition, especially when the business is up
against larger organizations with more resources. Small businesses need to convey why they
are more valuable than their competition. Moreover, we need to ensure that the market is
favorable and having more or less competition may not convey the full image. If there are no
competitors at all, this could indicate that there is no demand for a product. If there are a few
larger competitors, the market might be saturated, or, the company might struggle to compete.

Market Risk

Many factors can affect the market for a product. The ups and downs of the economy and new
market trends pose a risk to new businesses, and a certain product might be popular one year
but not the next. For example, if the economy slumps, people are less inclined to buy luxury
products or nonessentials. If a competitor launches a similar product at a lower price, the
competitor might steal market share.

Operational Plan
Planning business operations involves converting strategic goals into tactics and processes for
carrying out the business strategy. Specifically, the operations plan contains the physical
activities that one must undertake or arrange for others to undertake, in carrying out your
business value proposition. It establishes a timeline for the implementation of the business
strategy over a stated period of time, generally 1 to 5 years.

Marketing Strategies
We think that our products will be well received by customers, who will buy them because they
like fast food, but want to eat more healthy foods. Indeed, research shows that most people
realize that healthy food impacts quality of life. We believe that we can satisfy customers by
providing a greater diversity of products and modern packaging that promotes the impression
of product freshness. Customers will always believe that product is fresh.

Initially, we will invest much of our resources in marketing to create our brand. We also think
that companies will be interested in purchasing our product because they realize that
motivated and healthy workers are good workers. All these will contribute to the success of our
company. Employees will have much more time because they will not need to think about what
and where to eat. Every day, they will be able to order food as a group or individually.

Sharing the details of how the product is made is the first step in marketing the product.
Consumers are becoming savvier and savvier. To meet the consumer demand for more
information and to put our product ahead of the crowd we need to show something that makes
our product unique. Even if there is nothing unique in the process, incorporating how it is made
into the story can help.

Customer Development Strategies

Customer Development is a process popularized by Scott Blank, a Silicon Valley entrepreneur
and lecturer at Stanford and UC Berkeley (Inspire99, n.d.). It is a complimentary process to
product development that requires entrepreneurs to validate their business and customer
assumptions by engaging their customers before and during the product development phase.

1. Customer Discovery - Test your hypothesis of your customer's problems and evaluate
how your business will help customers solve the problem.
2. Customer Validation - Customers validate the concept of your product by validating that
your product will solve their problems. The customer problem and the customer
solution are now known.
3. Customer Creation - Your product launch strategy and positioning in the market based
on customer feedback during your customer discovery and validation phases.
4. Company Building - Scale your business.

Financial Plan
A financial plan is designed to help us make the best use of the money and achieve long-term
financial goals. The financial requirements of the business needs to be analyzed in order to
make a proper financial plan, which requires in-depth analysis of the various business processes
and the expenses that it would incur.

The first stage of the financial planning process constitutes assessment of the business
requirements. After a thorough understanding of your financial needs has been taken and all
the appropriate financial goals have been cemented down, next thing is the investment
alternatives or specific recommendations from your financial planner. The proposed
recommendations are then further assessed. This is your chance to discuss the alternatives
face-to-face and take necessary actions bearing in mind your current situation, financial
standings and personal interests.

Human Resource Plan

Human resource planning is the continuous process of systematic planning ahead to achieve
optimum use of an organization's most valuable asset, which is quality employees. Human
resources planning ensures the best fit between employees and jobs while avoiding manpower
shortages or surpluses.

The first step of human resource planning is to identify the company's current human resources
supply. The second step requires the company to outline the future of its workforce. The third
step in the process is forecasting the employment demand by creating a gap analysis.

The healthy food business will require employees with diverse skills to manage different tasks.
It will need chefs who are skilled in preparing different cuisines. The chefs will be not only
skilled in preparing foods but also able to select the most nutritious varieties.

Conclusion
To succeed in the healthy food industry, the business will hire a team to conduct marketing
research and give recommendations on the strategies that the restaurant should use. In
addition, the business will maintain a strong relationship with his customers. The business will
monitor the restaurant to ensure that it meets customer needs and make changes when
necessary. Besides, the business will conduct thorough marketing analysis to determine the
internal and external factors that influence the healthy food industry. The business will require
recruiting experienced workers so as to withstand competition.
References
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https://blog.nasm.org/fitness-trends

Gerdeman, D. (2022, September 1). Types of Business Risks and Ideas for Managing Them.
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Ghafoor, H. A. (2022, September 24). Fitness as a lifestyle. (A. Shaheem, Interviewer)

Inspire99. (n.d.). Customer Development:4 Key Strategies Before Spending. Retrieved from
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K.M., F., M.D., C., C.L., O., & L.R., C. (2010). Prevalence and trends in obesity among US adults. J
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Male' Fitness Club. (2014, September). Nutrition for the Gym Goer. Retrieved from Male' Fitness
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