Business Model and Plan for a New Entrepreneurial Venture

Executive Summary

The business model and plan stated in this report aim to create a new for-profit Australian firm. The venture suggests an innovative online platform that links regional farmers with urban consumers, permitting the latter to buy fresh, locally sourced products. This not only fulfils the needs and wants of health-conscious customers who put importance on quality and environmental sustainability, but it additionally enhances farmers’ access to markets, thus improving their possible profit margins. The company utilizes technology as a bridge to ensure an uninterrupted flow of transactions, transforming traditional supply chains for food.

The report delves further into important variables adding to the potential prosperity of the venture. It explains how the venture’s creative use of technology and devotion to environmentally friendly methods offers it a competitive edge in the Australian agricultural sector. Furthermore, an in-depth sector and rivalry evaluation is carried out, considering the market’s obstacles and possibilities. Additionally, the report offers an in-depth examination of the venture’s viability, taking into consideration product, market, and economic viability. This assures that the enterprise is not only feasible but also has an opportunity for expansion and profitability over the long term. The report terminates with a review of the Business Model Canvas components, giving a strategic plan of the business model’s multiple elements.

1. Introduction to the Proposed For-Profit Entrepreneurial Venture

The suggested venture seeks to capitalize on the influence of technology and the increasing need for environmentally friendly, premium food items in order to establish a win-win scenario for both rural and urban Australian consumers. The foundation of this venture is an innovative system that enables an immediate link between producers and customers, letting the latter buy fresh, locally-grown produce with just a few keystrokes. This directly to consumers model supports producers by improving their market accessibility while offering them greater margins of profit, thus eliminating conventional intermediaries (Allyse et al., 2018). In the interim, the platform interests health-conscious urban residents, an increasing demographic in Australia, and emphasizes safe eating habits and products of superior quality. By bridging the separation between producers and consumers, the company aims to contribute to a more environmentally friendly and equitable agricultural supply chain, in addition to fulfilling fulfil the growing demand from consumers for sustainably grown produce.

2. Innovation and Differentiation

The proposed venture stands out in employing technology for building a user-friendly online platform and smartphone application. This technological innovation facilitates customers to browse and order quality produce from nearby farmers with ease. By eliminating intermediaries, the company guarantees that customers receive the best produce, as the produce arrives directly from the farm to the customer’s door. The user-friendly design of the platform improves customer encounters by making it simple to find information and place orders, thus enabling an effortless relationship between producers and customers.

Figure 1: online trading platform

Source: WallStreetMoja

Furthermore, to its technological component, the business places an important priority on supporting environmentally friendly farming methods. By highlighting organic and sustainable farming methods, the company meets the increasing need for environmentally beneficial food options. This dedication to sustainability attracts discerning customers who respect not only the freshness and quality of the product but additionally the moral and environmental impacts of what they consume. The project corresponds to the values and preferences of this increasing consumer segment by offering an online platform that exclusively partners with producers who stick to environmentally friendly farming methods (Pardillo et al., 2020).

The proposed venture defines a unique selling point through the combination of cutting-edge technology and an emphasis on sustainability. It offers customers the convenience of direct access to fresh produce while supporting local farmers and promoting environmentally conscious consumption. This differentiation sets the venture apart from traditional food delivery services and positions it as a leader in the market for health-conscious consumers who seek both quality and sustainability in their food choices.

3. Industry and Competitive Analysis

3.1 Industry Growth Rate

The agricultural industry in Australia has long been a cornerstone of the economy, with traditional supply chains and distribution networks facilitating its operation. The entrance of online food delivery platforms has added a new dynamic, shifting growth rates significantly. Prior to 2020, the online food service market experienced up to 72% annual growth (Bates, Reeve & Trevena 2020), eclipsing other food service departments.

As the market evolves, competition has heightened. Dominant players like Uber Eats, Just Eat, and Deliveroo has made entry difficult for new ventures due to a combination of established customer trust and regulatory barriers. For instance, new regulations in New South Wales demand better protection for delivery personnel, raising the barrier for new entries.

3.2 Market Size

The restaurant sector, contributing significantly to the tourism industry’s labour, has injected over $20 billion into the Australian economy (Lee, Hallak & Sardeshmukh 2016, p. 215). Over 30% of Australians are regular users of online food services, each contributing approximately $1500 in 2017 (Bates, Reeve & Trevena 2020). This uptake has expanded the Australian takeaway food market, a trend expected to stabilize over the coming decade.

3.3 Market Trends

The market trends reflect an increasingly digitalized society. With widespread internet access and the ubiquity of mobile devices, the rise of online food services seems inevitable. In addition, platforms like Yelp that leverage user-generated content have found great success, indicating a growing trend for crowdsourced food reviews (Pyroh et al., 2021). Therefore, ventures focusing on fresh, locally sourced produce can capitalize on this trend and differentiate themselves in a competitive landscape.

4. Product Feasibility, Market Feasibility, and Economic Feasibility

4.1 Product Feasibility Analysis

The product feasibility analysis examines the technical and operational viability of the proposed venture’s product/service. This involves deciding if the technological framework can be successfully built and maintained in order to provide the envisioned capabilities (Berry et al., 2020). It includes graphical user interface design, data management, security, and scalability. Furthermore, operational variables, including hiring and confirming local vendors, giving logistics and shipment, and guaranteeing support for client systems, are assessed. The proposed venture showcases the viability of the product by utilizing existing technological infrastructure and competence, as well as taking into consideration the business considerations necessary for a frictionless and efficient interaction with customers.

4.2 Market Feasibility Analysis

Market feasibility analysis evaluates the demand, target market, and growth potential of the proposed venture. This entails evaluating market size, consumer tastes, and trends in the market, as well as determining the target customer segment and their propensity to pay for the item or service (Leppimak et al., 2019). Furthermore, the evaluation explores the market position of prospective competitors. Considering the needs of health-conscious urban dwellers in Australia who appreciate fresh, locally-grown produce shows the suggested venture’s market viability. With a rising movement toward sustainable and exceptional food products, as well as an increasing preference among consumers for directly to consumers models, the venture is coordinated with consumer preferences and has a chance to capture an important part of the market being targeted.

4.3 Economic Feasibility Analysis

The economic feasibility analysis examines the earnings potential and financial viability of the planned venture. Evaluating the cost framework, sources of revenue, and potential profits (Aljohani & Thompson, 2021). The evaluation takes into consideration fixed expenses (such as technology infrastructure, wages for staff, and promotion costs) and variable expenses (such as farmer settlements, shipping expenses, and support for customers costs). Employing a commission-based revenue arrangement in which an amount of each transaction’s worth is kept as revenue, the venture being considered shows positive financial viability. The venture expects a constant source of income as its clientele and number of transactions expand. By maximizing the efficiency of operations and scaling the company’s operations, the company seeks to achieve an ongoing sustainable cost framework and profits (Hali et al., 2016).

5. Business Model Canvas

The Business Model Canvas (BMC) gives an extensive structure for evaluating and creating the upcoming venture’s business plan (Carvalho et al., 2020). The ultimate BMC for the project is given below, followed by an in-depth examination of each aspect:

Figure 2: The Business Model Canvas

5.1 Customer Segments

The venture is targeted at health-conscious urban dwellers who appreciate purchasing quality produce. These customers have concerns about the environmental effects of what they consume and are ready to pay a premium for food of outstanding quality. The project interests a specific customer base by offering a platform which links them with regional farmers (Rosol & Barbosa, 2021).

5.2 Value Proposition

The distinctive proposition of the enterprise involves offering customers the opportunity to purchase quality produce directly from farmers in the area, encouraging sustainability and enhancing local agriculture. The platform gives an open and easily accessible supply chain, guaranteeing that customers are apprised of the origin of their goods and can make informed choices. By removing brokers, the business also offers fair prices to farmers, permitting them to make a higher profit margin.

5.3 Customer Relationships

The proposed enterprise targets creating trusting, clear, and convenient interactions with clients. Consumers can communicate directly with vendors through the platform, nourishing their feelings of connectedness and engagement. Ongoing updates on farming techniques, harvest schedules, and availability of goods create an individualized and engaging atmosphere. Furthermore, feedback and assessments provided by consumers are welcomed in order to constantly improve products and strengthen partnerships.

5.4 Channels

As its primary communication channel, the company employs an online platform and an app for mobile devices. Consumers can log into the platform from smartphones, tablets, or computers, enabling them to explore, order, and track what they buy with ease. In furtherance of acting as a means of communication, the platform enables interpersonal relationships between producers and customers. In addition, collaborations with local delivery services allow for prompt and effective delivery of goods.

5.5 Key Activities

The main operations of the company revolve around the development and ongoing upkeep of the technology system, which serves as the enterprise’s operational basis. This includes continuing improvements, revisions, and changes to guarantee the best potential experience for users. In addition, the campaign focuses on soliciting and reviewing regional farmers and establishing dependable partnerships in order to guarantee an extensive supply of fresh produce. In addition to enabling seamless transactions and safe payments, it efficiently handles delivery and logistics to guarantee the reliable delivery of orders. The business seeks to raise exposure and attract customers through innovative advertising and advertising techniques. Furthermore, the company places an intense focus on offering superior service to clients and assuring customer satisfaction by swiftly responding to inquiries and settling any possible problems.

5.6 Key Resources

The planned venture depends on an array of vital assets for its operations and success. These assets include an effective technology infrastructure for the system, competent programmers and IT specialists to guarantee the performance of the platform, connections and collaborations with regional farmers for a consistent supply of newly harvested produce, transportation and logistical assistance for efficient fulfilment of orders, advertising and branding assets for successfully advertising the platform, and financial resources for the initial investments and ongoing operational expenses. By utilizing these key assets, the business intends to create an efficient and viable platform to connect mindful of their healthy urban consumers with local makers, offering new and sustainable food while nourishing relationships that are mutually beneficial.

5.7 Key Partners

The business sets cooperation agreements with an array of stakeholders to support its activities while improving its value proposition. These relationships include cooperation with local farmers and growers in order to ensure an ongoing supply of quality produce. In addition, agreements with delivery services and logistics providers allow the effective and rapid distribution of orders to customers. In addition, the company establishes alliances with payment processors and financial institutions in order to enable safe and effortless transactions. To advertise the platform and successfully reach the target customer segment, advertising and marketing firms are used. Partnerships with government departments and regulatory organizations assure obedience to pertinent regulations and laws. Lastly, collaborations with environmentally friendly farming groups and accreditation organizations show the venture’s devotion to advancing sustainable and ethical farming methods, thus improving its value offering.

5.8 Cost Structure

The cost structure of the venture includes both fixed and variable costs. Fixed costs consist of technology infrastructure, employee salaries, marketing expenses, and administrative overheads. Variable costs include farmer payouts, delivery fees, customer support costs, and transaction fees. By optimizing operational efficiencies and scaling the business, the venture aims to achieve a sustainable cost structure over time.

5.9 Revenue Structure

The revenue model of the venture revolves around commission-based fees. A percentage of each transaction value between customers and farmers is retained as revenue. Additionally, premium services, such as personalized recommendations or exclusive products, can be offered for an additional fee. As the customer base grows and transaction volumes increase, the venture expects a steady revenue stream.

6. Conclusion

In wrapping up, the proposed venture seeks to fulfil the demands of health-oriented city dwellers in Australia while simultaneously benefiting local agricultural producers and advocating for sustainable practices. It uniquely stands out in the competitive landscape through its innovative use of technology, a model that directly connects consumers to farmers, and its commitment to providing fresh, locally sourced produce. Through an exhaustive analysis of the Business Model Canvas components, which encompasses key partners, activities, resources, value propositions, customer relationships, channels, customer segments, cost structures, and revenue streams, the venture makes a compelling case for its viability and potential for a successful launch and operation.

7. References

Aljohani, K., & Thompson, R. G. (2021). Profitability of freight consolidation facilities: A detailed cost analysis based on theoretical modelling. Research in Transportation Economics, 90, 101122.

Allyse, M. A., Robinson, D. H., Ferber, M. J., & Sharp, R. R. (2018, January). Direct-to-consumer testing 2.0: emerging models of direct-to-consumer genetic testing. In Mayo Clinic proceedings (Vol. 93, No. 1, pp. 113-120). Elsevier.

Bates, S., Reeve, B., & Trevena, H. (2020). A narrative review of online food delivery in Australia: Challenges and opportunities for public health nutrition policy. Public health nutrition, 1-11.

Berry, G., & Shabana, K. M. (2020). Adding a strategic lens to feasibility analysis. New England Journal of Entrepreneurship, 23(2), 67-78.

Carvalho, L., Galina, S., & Sánchez‐Hernández, M. I. (2020). An international perspective of the business incubators’ perception of business model canvas for startups. Thunderbird International Business Review, 62(5), 503-513.

Halil, F. M., Nasir, N. M., Hassan, A. A., & Shukur, A. S. (2016). Feasibility study and economic assessment in green building projects. Procedia-Social and Behavioral Sciences, 222, 56-64.

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Lee, C., Hallak, R., & Sardeshmukh, S. R. (2019). Creativity and innovation in the restaurant sector: Supply-side processes and barriers to implementation. Tourism Management Perspectives, 31, 54-62.

Leppimäki, S., Savela, N., Valdna, V., Racenis, D., Tilibs, J., & Keinänen-Toivola, M. M. (2019). Heading for Southern African markets: Feasibility study on the strengths, weaknesses, opportunities and threats (SWOT) and on the resources required in the Southern African markets.

Pardillo Baez, Y., Sequeira, M., & Hilletofth, P. (2020). Local and organic food distribution systems: towards a future agenda. Operations and Supply Chain Management: An International Journal, 13(4), 336-348.

Pyroh, O., Kalachenkova, K., Kuybida, V., Chmil, H., Kiptenko, V., & Razumova, O. (2021). The influence of factors on the level of digitalization of world economies.

Rosol, M., & Barbosa Jr, R. (2021). Moving beyond direct marketing with new mediated models: evolution of or departure from alternative food networks? Agriculture and Human Values, 38(4), 1021-1039.