Jastinder Singh Gill

Business plan (THHGEL19b)

JASTINDER SINGH GILL

STUDENT ID 61401 Introduction:

A business plan is a document that summarizes the operational and financial objectives of a business and contains the detailed plans and budgets showing how the objectives are to be realized.

Because the business plan contains detailed financial projections, forecasts about your business's performance, and a marketing plan, it's an incredibly useful tool for business planning. My business plan is regarding hospitality industry. In this business plan I am going to share my business with my wife we will be two partners me and my wife we both have hospitality experience and its better we will reduce the cost of employee. It better than alone. We can share our idea easily and we can focus on our goal.

This plan is organized by me .and in this business we are two partners and I already mentioned in above .the total cost of the business will be $ 640000and we have approx. $400000.iam going to apply for the loan for the rest money that is less than fifty precent of the cost of business .

We have variety of Chinese foods and Thai foods we will open for 7 days a week for breakfast lunch and dinner. We will open early morning for the breakfast and close late night for dinner .we will sell the healthy and nutritional food on low price .

The business plan is the blueprint for our business. You wouldn't walk over to an empty lot and just start nailing boards together if you wanted to build a house. Starting a business without a business plan is just as foolish.

Yet unlike a house, a business isn't static. We often make the mistake of thinking of a business plan as a single, static document that you just put together when you're first starting out and then set aside.

In actuality, the business plan for any business will change over time as the business develops, and any particular business may have multiple business plans as its objectives change.

Executive summary

The business plan’s executive summary is the first thing the readers of our business plan see it should be the last part of the business plan executive summery the description of the company including the product and services and our mission statement and about the management.

Commencement Date

Projected date for commencement of my business is 30-03-2011

Commencement capital

Capital required to start business is $240000

Business structure

I am starting this business as a sharing trader. As a sharing trader I am going to be owner of the business I am going to start this business with $ 60,000. it’s very easy and fast. There is very less paper work. It’s very simple and easy to understand. There is no much fees for this . I can control properly my all business with share trader structure and can get more profit by using this.

Competitive advantages:

1 in my restaurant we will sell gluten free food and in this area no body selling gluten free food.

2 Chemical free and hormone free

3 I have large hall to organize the party but my competitor has small hall

4 we will offer meal deal to customer

5 Open lawn for parties, this service has only in my restaurant on this place

Owner or owner’s Profile I am going to establish combination of Chinese and Thai food restaurant and I have a lot of experience in Chinese restaurant and Thai restaurants kitchen. I have good experience in kitchen. I did the job in grand Hayat as a Chinese chef for a long while.

I am expert in Chinese traditional meals .1`

I did diploma in Australian online inst. In hospitality

I am the president of the Chinese chef union..

I have certificate in serving alcohol.

After having knowledge in how to handle food is very easy for me to run my business.

Technological

In these days we use heaps of new technology; we also used new technology in our restaurant .whole equipment will electronic and related to advance technology. We also used online server to make a takeaway order so that time customers has no need to wait to make a order in store .so we can serve the customer as soon as possible. New technology always helps in getting the thing right but usage of some equipment is really expensive but it helps in improving customer service

These four attributes will also help to about my business plan

 Business profile

 The marketing section

 The operational plan

 The financial plan

1. Business profile

In business profile firstly come restaurant name MOON PARK .and it will located in the centre of the china town in city .there is all Chinese restaurant. We are two owner of this restaurant one me and another is my wife. We have 6 employees 3 waiter 2 chef and 1 kitchen hand and we both also there to manage the kitchen and restaurant.in our restaurant, 20 chairs and tables. Our aim to satisfy the expectations of the customers, provide the all services to them according to their choices, and get success I mean get profit in business. We will try to use the new, special and different styles for use what are the needs of people who live in this area because if we know about their needs, we can provide the perfect services. Otherwise we can’t fulfil their demands and attract them toward our business. Except of this if we our competitor around our area then we can improve our business skills and try to provide the better and cheap services to attract our customers from others.

Marketing plan:

For the marketing of the business we will choose radio station ,local paper ,magazine catalogue and we also provide the coupon system like buy one meal and get another meal free or may be free. A market plan is very necessary to start a business so I already get the knowledge against the area what’s people requirement what people they want to eat. So I can compete the business with my competitors

In this paragraph I am going to describe my opinion according to me assignment. In every five years govt change and new govt come sometime they make some changes in rules some time they are bad for business may be good but in both way the new rules effect the rules .in Australia everyone has to follow the rules to open a business firstly we have to make a licence for the business and after that we have to pay the tax because this the law second thing we have to look after our customer so we are going to open the restaurant in the city so in city to many kind of the visitor come to visit the Australia they are mostly belongs to other culture and Australia is also multi-cultural country. We also take care that things and third things we will give the best offer to customer like free food to kids. Or maybe 20percent discount on the breakfast and for lunch also. These kinds of the offer customers can’t refuse.

Strategic assessment

In this assessment task I will include the main sources of business for the business and the key factors that influence the market as well as a SWOT analysis. According to SWOT analysis I will explain these points:

External and internal issues

In every business we have some strong point and some week point Similar to this our market also has some good point and bad point like strengthens, weakness.

Internal issues:

Strengths and weakness are the internal issues of the organization. Its means is that organization has what strong points because of those it’s famous among his customers. On the other hand, it has what drawbacks that it can’t attract more people compare to its competitors. So I will explain strengths of our restaurant

Strong points *Good customer service

*Well, co-operative and experienced staff

*We provide all type of food according to customer’s demands

*Good communication skills

Weak points

*We don’t more and proper knowledge that how we can make our restaurant more famous and successful.

*We are new in this field

*Here is not any person who can guide us in better way

*We don’tknow more about this that we should deal with our customers and help them in solving problems

External issues:

. The external issues are different to the internal issues. As we know that internal points give us knowledge about strengthens and weakness of any organization. However, external issues are related with other thing like opportunities and threats.

Opportunities

*Our restaurant is very close to the station that’s way there peopling come in largest number.

*We give discount about some items

*We provide the food of two cultures Punjabi and Guajarati

*We provide the good quality of food at cheap rates

Threats:

*It’s a new thing for us

*There are we have numerous of competitors

*We have invested a lot of money in this business andwe don’t know that we will get our goal or not *We have to face a lot ofproblems because it’s very difficult to run any new thing properly in short time

Productive analysis:

Productive analysis is about the standard and the products which we provide to our customers. Our restaurant is so high or not so low standard. It’s of medium standard according to the economic condition of the local area. We always provide the food of good quality and according to the cultural needs of our customers. Moreover, we sell our products at low rates and provide the good quality.

Competitor analysis

Its means is that we should do meetings and interviews with our competitors after one or two weeks.During these interviews we should try to understand the drawbacks and the good points of their industry. As a result of this we can improve our business skills in easy and better way. It will make our business successful.

Marketing strategies:

There are three things include in marketing strategies. These are

Product

First we will know about the needs of local people that what they from us. After that we will provide the services according to their choices and satisfy them. We will use different and new styles of providing services than our competitors because if we do something special to others obviously customers will attract about our market. We will fix the price not too high or too low these will be appreciate according to the products and people’s economic condition. Except of this, we will give some discounts about some products at some time like in weekends. We will do advertisement of our products through the newspapers, pamphlets, TV and so on. It will help inattract the more customers to our restaurant and get success in our goal.

Marketing budget:

Marketing budget is about the finance that we should invest how much money in our business and we should use what methods (advertise) to make our business popular among people. There are other two things which come in marketing budget profit and loss. I mean we spend how much money in our business on different things like food, beverage, providing services, tax, salaries and other expenses and we sell our products at what rates. At last we get results positive or negative according to these expenses and money which comes from the customers. This will call profit or loss statements.

Salesforecasts:

Estimated sales forecast are the main key to determining the financial viability of the proposed business. I think that everyone have to take loan from bank or any other person to establish any business or industry. Moreover, he has to pay tax to government to for their business licence. If any case, the owner of any industry can’t pay the money or tax in fixed time, it can create problems for him. As a result of this, his business can be bankrupt. Moreover, we have to competition with our competitors, otherwise we have to face loss in our business or close down. That’s by the owner of any restaurant or industry should try to do something better or special than his competitors.

Operational plan:

Operational plan is about these things that what type of products we provide our customers and at what prices. What we know about people’s needs, interests and cultures. Owing of this we can fulfil their needs and expectations properly. Other thing is that how we should control our expenses, stock and handle the problems.

Production plan:

In our restaurant we produce the two types of food about Punjabi culture and Gujarati culture because this restaurant has two owner one Punjabi and one Guajarati. Owing of this we provide both products to our customers according to their cultural needs. We provide the good quality of food and sell it at appropriate rates. Moreover, we give some discount to our customers on sometimes like in weekends.

People plan:

We should know that people who live around our industry, they belong to which culture, they have what hobbies, needs, expectations according to their cultures. If we know properly about our customers, we can fulfil their needs and get their loyalty

Controls plan:

Controls plan is very necessary in hospitality because without control plan no one can’trun throughhis businessproperly. So we must use control plan to run our restaurant successfully. So we should control our expenses, stock, salaries and so on to escape from the loss. Except of this we should look at our staff members that how they perform their duties. If they not do their work properly and with honesty, we should refuse them to job.

The financial plan:

Financial plan is related with property I mean assets, liabilities, cogs, net profit, gross profit and so on.Its means that how much money we invest in business, its ourselves or we borrow from any person or bank.What we start with this money and services provide our customers. We sell our products at what prices, and we get how much money through these sales. If get good money (profit) and can save it, it will be profit. On the other hand, if have invest more money from ourselves again to fulfil the loss, it will be loss statement.I will explain all these things below

Profit & loss statement

As I explained in financial plain that if we get extra money through our business after the all expenses which we spend in our business. It will be our gross profit. On the other hand, if we can’t get good money through our business compare to which we invest in this, it will be net profit I mean loss in business. There are a lot of things comes in loss & profit like cogs( opening stock +purchasing stock –closing stock+ purchasing return), sales, gross profit, net profit. I will show all these figures in my loss & profit statement.

Asset write down in value au $

Cool room 10000 freezer 6000 refrigeration 5000 Work benches 14000 Bar fridge 12000 Coffee machine 4000 Electrical fitting 8000 Total 59000 Suppliers

Product Supplier Contact details Terms of trade chicken Halal butcher 94845566 weekly meat Gillard butcher 94845567 weekly seafood Jammy seafood 94845568 5 days dairy Erin dairy 94845569 4 days Dry goods Pillsbury mills 94845570 monthly Vegetables and Collins fruit mkt 94845571 2 time a week fruit Super mkt coles 94845572 fortnight

I am always care about what things are coming from supplier and how much we have stock.

Human resource department

Position award Status rate On cost $ Total cost$ of pays $ Head chef Full time 22 1.98 23.98 chef Full time 20 1.8 21.8 cook Full time 18 1.62 19.62 dishwasher Part time 13 1.17 14.17 Kitchen hand Part time 15 1.35 16.35 manager Part time 22 1.98 3.98 supervisor Full time 20 1.8 21.8 waiter Part time 18 1.62 18.62 Coffe maker Part time 15 1.35 16.35

BALANCE SHEET asset 2008(aud $) 2009(aud$) 2010aud($)

Stock inventory 230000 226000 236000

Beverage 28000 39000 40000 inventory Trade debtors 26000 29000 32000 Cash in hand 40000 50000 60000 Cash at bank 21000 26000 62000 Plant equipment 38000 36000 47100 Depreciation 18000 22000 26000 Furniture and 47400 36000 48000 fitting Total assets 485400 513000 574000

Liabilities (current)

Trade creditors 280000 271200 224000 Non current loan 137000 146000 198600 Owner equity 68400 95800 151400 total 485400 513000 574000

: Profit and loss account for 2009

2009 profit and loss Ist quarter$ 2nd quarter$ 3rd quarter$ sales $3500700 $3601200 3900600 Direct sales of cost 843100 858948 876128 of sale Other cost of goods 0 0 0 Total cost of sale 84310085 858948 876128

Gross Margin % 75.92% 76.14% 77.54%

Expenses

Pay roll 971450 528780 544643 Sales and 0 0 0 marketing deprication 18000 22000 26000 Credit card 43380 43860 44344 discount Royality 208280 210576 212892 telephone 6000 6066 6432 Outside service 6000 6066 6132 Cleaning and 23520 23796 24058 dishwashing Menus and guest 2400 2426 2454 check Linen laundry 3000 3034 3066 Entertainment 3000 3034 3066 Professional fees 9000 9100 9200 Taxes and lic 3960 4004 4048 Bank charge 1860 1892 1914 Pest control 3000 3034 3066 Patrol taxes 47140 52878 54464 Office expense 3900 3943 3986 Other expenses 4200 2123 4392 Total operating $2494880 $2433280 $2486180 expenses

Total Operating Expenses $1,247,440 $1,216,460 $1,243,090

Profit Before Interest and Taxes $162720, $309332, $538392

EBITDA $162720 $336334 $538392

Interest Expense $40100 $106400 $301334

Taxes Incurred $13,067 $10,399 $18,831

Net Profit $96486 $154200 $199,396

Net Profit/Sales 2.76% 4.28% 5.11%