Entrepreneurship and Innovation assignment Essay

Entrepreneurship and Innovation assignment - Essay Example Taking the customers to the sky is not easy. Security of the customers is the primary concern of the business. Dinner in the Sky will use a crane to elevate the furniture, crew, food and 22 to 350 diners as high as 180 ft up. The structure of the eatery will be portable and will need a space of almost 1500 sq.ft, hence can be held anywhere (sea side, public place, historical sites and fields etc), (Dinnerinthesky.com, 2010). The company's suspended table measures 26 ft x 19 ft (8m x 6m) and weighs approximately 17,600 (7983.25 kg) lbs fully loaded (11,000 lbs (4989.6kg)unloaded). Eight cables, connected at points on all four sides, bind the table to a crane. The company has planned to work with safety agencies before introducing the concept to the public. During inspection, seats will be overloaded with weights of more than 330 lbs (150 kg) each. Diners will be locked into their chairs by six-point seat belts that operate from the back side of the seat so they cannot disconnect thems elves. The company will certify its system for safety by European-based testing agency (Mills et al, 2003). The restaurant industry of the UK is known to be growing at a steady rate despite the economic crisis. Studies and research show that because of the credit crunch, the restaurant industry has remained strong. ... h their families and partners and prefer to visit those places which offer good food at reasonable prices and a comfortable seating arrangement so as not to cause any inconvenience (Franck, 2005; Duffill, 1993). Dinner in the Sky offers a unique experience to the market and brings about an innovative idea to take the customers to the sky and give them the ultimate dining experience. The size of the Target Market which the company will be specifically catering to would be the 10% of the population of the city who belong to the Social Economic Class A and B. The lower middle class and the middle class would also be welcomed through trade promotions and discounts to leverage the revenues of its business later in the business cycle of Dinner in The Sky. Part B 1. Financial Requirements The company is seeking loan guaranty for $142,000 with a 7% interest rate, which will approximately come up to ?10,000 per annum. The company is investing ?441,000 of its own capital. Its start-up costs co me to ?583,000 which is mostly expensed equipment, furniture, painting, reconstruction, rent, start-up labor, liquor license, six months operating cash, and legal and consulting costs associated with opening its restaurant. According to the financial projection the company will require ?583,000 as start-up expenditure. The company shall generate ?780,000 in sales by the end of the first year and produce net profits over and above its break-even of 312 customers. As it is shown in the Annexure, the business will initially face cash flow problems as it will take a while for it to generate a strong customer base. However, the business will generate enough cash inflows so as to give the owner the payback of the invested amount. 2. Market Segmentation Dinner in the Sky Restaurant will intend to