Description of the Business Idea

Entrepreneurship is the process of having the willingness and capacity to develop and manage any business venture along with the risks so that they can make the profits and revenues. Moreover, innovation is a primary component of this process. An entrepreneur needs to be very innovative and creative so that he/she can differentiate his/her business from existing competitors. Considering the fact, this report is focused on introducing a new business of Naturopathic and Healthy Supplements in Australia. The business will be named as Nature’s Basket Inc. The report discusses about different theoretical aspects of entrepreneurship, innovation and startups. Moreover, it includes the discussion about the overall business idea of this new organization. Feasibility analysis is conducted to identify the opportunities in the market for this start-up. A business model template is developed to consider all the important components of business. At the end, a business plan is formulated in the report that will assist the entrepreneur to manage and organize this new business.

Both the entrepreneurship and innovation are important practices for any new business. These are interlinked with each other. For any business, innovation is a wide concept which includes entrepreneurship also. It can be stated that for the survival of entrepreneurs, it is essential to adopt very creative and innovative practices. Today, there are various examples of popular entrepreneurs with the innovative skills such as Steve Jobs (Apple) and Bill Gates (Microsoft). D These two leaders have showcased that luck and money is not enough to attain success in business but this also needs some specific skills such as risk taking, initiative taking, creativity and planning (Drucker, 2014).

Theoretically, it can be stated that entrepreneurship is the process of creating, introducing and operating a new business that is started as a small business generally. The person who launches this business is known as entrepreneur. Entrepreneurship states that how the new businesses are developed and it includes the actual process of introducing a new business. The business idea, introduced by an entrepreneur is known as start-up. Moreover, innovation is a specific tool or quality of entrepreneurs by which these people exploit the changes as an opportunity for their business. Innovation is the manner of doing something in different and better way. This component makes the business startups agile, innovative and adaptive (Bessant & Tidd, 2015).

When an entrepreneur plans to bring any business in the marketplace, he/she needs to find out the opportunities and make the decision about the kind of business. There are some points which need to be considered by entrepreneurs while launching a new startup, like:

• Entrepreneurial Interests
• Experiences and backgrounds
• Available financial resources  
• Customer and market needs
• Problems which can be resolved

Theoretical Aspects of Entrepreneurship and Innovation

Innovation plays a significant role in the growth and success of any new startup of entrepreneur. Any new startup should not restrict itself to a single innovation. Success and growth can be created on the mixture of innovations (Bieraugel, 2015). It indicates that all three practices are interconnected and essential for a successful business.

Nature’s Basket is a new business startup that is planning to introduce the naturopathic and nutritional supplements. Majorly, this business idea will be focused on the web-based sales of these supplements. Under this idea, the mission statement is to provide the supplements with herbal and natural ingredients (Global Industry Analysis Inc, 2015). These supplements will be made of ginkoba, ginseng and several anti-oxidants. The products introduced by Nature’s Basket will work together which will assist the customers to attain their health goals. The startup considers that nutrition is of greatest significance for the body to become healthy and it provides the ability to deal with any disease (Combs & McClung, 2016). By focusing on this business, Nature’s Basket is planning to minimize genetic health issues. To deliver the products, the organization will establish an extensive distribution system and easily accessible website. It will be creating an e-commerce website for offering nutritious and naturopathic health supplements.

Feasibility analysis is the study that is used to analyze the weaknesses and strengths of any proposed business and project. It presents the opportunities and activities direction that will enhance the entrepreneur’s business and attain desired outcomes. There are two types of feasibility analyses which can support the above chosen business to evaluate the opportunities in Australian market. These analyses are given below:

When any new startup is introduced in the marketplace, it is very important to analyze the market and related components. Under this analysis, Nature’s Basket will be focusing on the analyzing the needs of customers, market trends and segmentation characteristics of Australian population. Nutrition is very important for the human body to be healthier and possess the ability to fight with any disease or any medical condition, including the avoidance of some health issues. Nowadays, people are seeking for more nutritious and natural supplements to revitalize themselves and minimize the chances of diseases (Complementary Medicines Australia, 2014). It provides a significant opportunity to Nature’s Basket to launch this business. In Australia, naturopathic and healthy supplements are known as complementary medicines.

According to a survey, 17% of the firms in complementary medicines sector produce 15$ million revenues annually. This revenue is increasing every year. It indicates that increasing consumer preference to take their own responsibility for their health and significance of enhanced commitment to prevention of diseases and wellness (Australian Government Department of Health, 2013). This growing consumer preference towards natural and herbal supplements can provide various business opportunities to Nature’s Basket. Additionally, there are very few players which are offering similar products to customers. Its online business can assist it to approach a large number of Australian patients. Looking at the demographics of Australia, it can be stated that 5.5$ million people are from the baby boomer segment so they may need this type of health supplements. Conducting a marketing research will help this startup to analyze its market feasibility.

Market Opportunities

After analyzing the market opportunities, Nature’s Basket needs to analyze its own abilities and skills. It is related to determining whether its business has the resources and skills to meet the needs of market and customers. Under this, Nature’s Basket will make emphasis on both financial and non-financial resources. Considering the needs of Australian population, this organization will install all the required technologies for the manufacturing of naturopathic supplements. It will establish strategic partnerships with the suppliers of herbal and natural ingredients like ginkoba, ginseng. The e-commerce site of Nature’s Basket will assist it to attract more customers as they can get the supplements easily. In addition to this, it will hire the skilled employees and provide effective training to improve their skills in manufacturing of nutritional supplements (Clarke, Black, Stussman, Barnes & Nahin, 2015). To set-up this business startup, the entrepreneur has sufficient startup fund. The start-up requirements for this new business are given below:

Start-up Requirements	Amount
Start-up Expenses	in $
Legal Expenses	3000
Machines and Equipment	10000
Accountant salary	2500
Rent	7000
Advertisement	2500
Launching of Business	5000
Other Expenses (Including trainers salary)	8000
Research and development	5500
	43500

Thus, Nature’s Basket has various opportunities in Australian market and it has sufficient abilities and resources to fulfill the needs of market and grab the opportunities.

Business Model Canvas is visual presentation that illustrates all the components which are very important for the establishment and operations of a new business (Galindo & Méndez, 2014). The below-given template shows the nine building blocks of business model in context of Nature’s Basket:

Key Partners · Local pharmaceutical firms · Online partners · Natural and herbal ingredients suppliers · R&D partners	Key Activities · Offering naturopathic and nutritious health supplements. · Conducting market research · Promotional and marketing activities · Connecting with pharmaceutical companies.	Value Proposition · Supplements with herbal and natural ingredients. · Prevents from any allergic reaction. · Online delivery of supplements · Making investment in market research to identify and fulfil the needs of target segment. · Effective pricing and strategies.	Customer Relationships · Direct contact with the needy people. · Through e- commerce site · Providing description of supplements’ benefits. · On-time delivery of products	Customer Segments · Baby Boomer population in Australia · Young generation · People with genetic diseases · People from all income levels (Wardle & Sarris, 2014)
Key Resources · Human resources: researchers, manufactures, staff, customer support executives, scientists. · Intellectual resources: licenses, patents, · Financial resources · Building and laboratories.	Channels · Extensive distribution network · Pharmaceutical stores · E-commerce website · Advertisement and promotion
Cost Structure · Development and maintenance of website · R&D costs · Promotional Costs · Salaries of staff · Purchasing of raw materials · Taxes · Manufacturing costs	Revenue Streams · Sales in physical stores · Web-based sales · Cash Payment · Debit/credit cards

In order to organize and manage the new start-up of naturopathic and nutritious supplements, the management will formulate a business plan (Lopez, Mosquera & Taype-Rondán, 2017). It will include all the important components of business. This business plan of Nature’s Basket is given below:

For next three years, Nature’s Basket will establish some business objectives such as:

• To make Nature’s Basket an iconic brand in Australian complementary medicines industry.
• To generate significant revenues and profits in first 2 years of business establishment.
• To develop an easy to use website and generate web-based sales.
• To attract a large number of customers through effective marketing and promotion.

In order to promote its Naturopathic and nutritious supplements, Nature’s Basket will promote its products by focusing on a specific a target market and using marketing strategies. Under market segmentation, this organization will focus on the Australian people who are concerned about their health. In the country, the people are making efforts to evade strong allopathic medicines. These people are maintaining the health and fitness. By launching this business, Nature’s Basket will approach the baby boomers and middle aged people. In addition to this, it will target the people who prefer to purchase the products online (Dickinson & MacKay, 2014).

Under marketing strategies, the company will be focusing on different components of marketing mix i.e. product, place, price and promotion. The organization will manufacture these supplements by using herbal and natural ingredients. It will use online advertising to market the products among Australian population. It will give ads on offline and online modes of advertising so that they can reach to a larger population (Lin, McCabe, Bensoussan, Myers, Cohen, Hill & Howse, 2009).

Start-up Requirements

In addition to above marketing plan, Nature’s Basket will prepare an operational plan that will include all the operations strategies to manage its business. Production and manufacturing are two important processes in establishing this idea in Australia. It will use advanced equipment and systematic processes to produce naturopathic and healthy supplements. This will combine natural elements in product which will not have any side effect to the people. In order to ensure efficient manufacturing, the business will appoint skilled and talented people. Technical experts will be helping in managing the website and its sales.

Additionally, Nature’s Basket will develop an effective supply chain and logistic system. It will partner with different delivery agencies and raw material suppliers (Eftekhari & Bogers, 2015). It believes that internet customers always expect the quick product delivery. So, it will establish its distribution centers in different cities. In this way, it will manage its operations and processes involved in this new business startup.

Financial projections for Nature’s Basket are given below:

Nature’s Basket
Profit & Loss Statement
	Amount ($)
	1st Year	2nd Year	3rd Year
Sales	$345,000	$425,000	$515,000
Miscellaneous income	$0	$42,500	$51,500
A. Total	$345,000	$467,500	$566,500
B. Cost of Sales	$138,000	$233,750	$283,250
C. Gross Profit (A-B)	$207,000	$233,750	$283,250
D. Operating Expenses
Salary	$10,000	$10,500	$11,025
Rent	$12,000	$12,600	$13,230
Utilities	$1,000	$1,050	$1,103
Insurance	$500	$525	$551
Depreciation	$70,000	$73,500	$77,175
Marketing	$10,000	$10,500	$11,025
Maintenance & Repairs	$5,000	$5,250	$5,513
Other	$2,500	$2,625	$2,756
Total	$111,000	$116,550	$122,378
Operating profit	$96,000	$117,200	$160,873
Less: Interest	$250	$225	$200
Profit before tax	$95,750	$116,975	$160,673
Less: Tax @ 30%	$28,725	$35,093	$48,202
Net Profit AT	$67,025	$81,883	$112,471

Nature’s Basket
Balance Sheet
	Amount ($)
Assets	1 st Year	2nd Year	3rd Year
Current	$155,000	$201,500	$241,800
Fixed	$10,000	$10,000	$10,000
Other assets	$10,000	$10,000	$10,000
Total Assets	$175,000	$221,500	$261,800
Liabilities
Current	$25,000	$30,000	$36,000
Non-Current (Borrowings)	$5,000	$4,500	$4,000
Total Liabilities	$30,000	$34,500	$40,000
Equity	$145,000	$187,000	$221,800
Total Liabilities & Equity	$175,000	$221,500	$261,800

The organization will implement this business plan by using an implementation plan. It will make a plan for next three years and attain its overall objectives.

Conclusion 

Thus, it is hereby concluded that an entrepreneur needs to ensure that the business idea introduced by him/her is innovative and different from existing brands in the industry. The above report includes the business idea of naturopathic supplements that will be profitable in Australia. Feasibility analysis shows that the company will be able to grab beneficial opportunities in Australian market. Business model canvas showcases different components which are important for running any business. Business plan includes all the significant components which are needed to manage this business.

References 

Australian Government Department of Health. (2013). An overview of the regulation of complementary medicines in Australia. Retrieved from https://www.tga.gov.au/overview-regulation-complementary-medicines-australia

Bessant, J. & Tidd, J. (2015). Innovation and Entrepreneurship. US:John Wiley & Sons.

Bieraugel, M. (2015). Managing library innovation using the lean startup method. Library Management, 36(4/5), 351-361.

Clarke, T.C., Black, L.I., Stussman, B.J., Barnes, P.M. & Nahin, R.L., (2015). Trends in the use of complementary health approaches among adults: United States, 2002–2012. National health statistics reports, (79), p.1.

Combs Jr, G.F. & McClung, J.P. (2016). The vitamins: fundamental aspects in nutrition and health. US: Academic press.

Complementary Medicines Australia. (2014). Natural Health and Wellness. Retrieved from https://www.cmaustralia.org.au/resources/Documents/Reports/CMA%20Industry%20Audit%202014.pdf

Dickinson, A. & MacKay, D. (2014). Health habits and other characteristics of dietary supplement users: a review. Nutrition journal, 13(1), p.14.

Drucker, P. (2014). Innovation and entrepreneurship. UK: Routledge.

Eftekhari, N., & Bogers, M. (2015). Open for entrepreneurship: how open innovation can foster new venture creation. Creativity and Innovation Management, 24(4), 574-584.

Galindo, M. Á., & Méndez, M. T. (2014). Entrepreneurship, economic growth, and innovation: Are feedback effects at work?. Journal of Business Research, 67(5), 825-829.

Global Industry Analysis, Inc. (2015). The Global Vitamins Market: Trends, Drivers and Projections, Retrieved from https://www.strategyr.com/MarketResearch/Vitamins_Market_Trends.asp

Lin, V., McCabe, P., Bensoussan, A., Myers, S., Cohen, M., Hill, S., & Howse, G. (2009). The practice and regulatory requirements of naturopathy and western herbal medicine in Australia. Risk management and healthcare policy, 2, 21.

Lopez, C. E., Mosquera, S., & Taype-Rondán, Á. (2017). Direct to consumer advertising on websites of Peruvian naturopathic pharmacies. Eur J Hosp Pharm, 24(3), 194-194.

Wardle, J., & Sarris, J. (2014). Clinical naturopathy: an evidence-based guide to practice. Elsevier Health Sciences