THHGLE19B Develop and Implement Business Plan
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THHGLE19B
An economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis.
If you want to run a business in today’s world u have to have a business plan , otherwise you wouldn`t be able to succeed in your mission because a business plan is a key to be successful in the market .Each and every company or firm in today` s market is ready to spend a lot of money to get a first class business plan because without business plan running a business is like a putting yourself open in front of a beast.So,if I’m going to start a new business i will do each and every research to make sure i will get an outstanding business plan.
Business Plan of Restaurant
Business profile-
Business activity
Primary Sector –
Extraction of raw materials from the earth – mining, quarrying, fishing, agriculture, forestry
Secondary Sector –
Processing of raw materials into finished or semi-finished products – manufacturing Ownership structure -
Ownership offers inherent economic advantages that mean it is the ‘natural’ state of affairs for large business enterprises. Ownership structures are associated with efficiency seems to be linked integrally to the law matters. Ownership structure that are sufficient to throw into question whether it is ‘natural’ for large business enterprises to have equity that is widely held. The paper concludes with some observations on the circumstances under which the introduction of stronger legal protection for minority shareholders might prompt convergence.
Business name -
Desi tarka restaurant
21 king street, Melbourne
Vic 3000
Type of business
Its setting is luxurious, glamorous and funky. Foodies offer a selection of private function rooms, cocktail lounges. If you’re looking for a small function, foodies are definitely the place to be. Look out for international and special events and featuring Melbourne’s mid class restaurant.
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Contact Details -
Desi tadka restaurant
King Street, Melbourne
0433583321 [H] 95970056
Business location-
The operation will be located at shop premises at Clayton road Main Street, my town which is also the registered address of the restaurant A commercial lease will be negotiated for an initial term of ten years.
Entry strategy-
The business will be started up as a new operation. The reason for starting up as a new operation is because it is the cheapest way to establish the business the proposed date of commencement of business is 1 July, year1
Legal requirements-
The legal requirement to operate the business is:
Business name registration with the state fair trading authority
Development approval for using the premises from the local authority
Health clearance permits from the local council
GST registration
Employer registration
Business objectives
The key objectives of the business for the next three year are summarized as follows Marketing; year 1 year 2 year 3
Sales turnover $210000 $215000 $223000
Purchasing:
Average gross profit margin 50% 50% 50%
Personnel:
Labor productivity ratio 4.13:$1 $4.09; $1 $4.04:$1
Financial
New profit $15000 $17000 $21000
Net cash flow $9000 $7000 $6000
MISSION-
Being in hospitality your mission is have to be only one and that is service, because if you are going to provide a good customer service definitely you are going to be a good place where everybody wants to be and have a meal, and your place will be everybody`s word of mouth and that will surely, going to increase your number of customers.
PRODUCTS AND SERVICES-
As its going to be an Indian restaurant there will be food of every part of India which satisfies needs of Indian people living here and also give a real picture of true India to the natives of Australia and to the people of other nationalities. There will be good customer service because we going to hire experienced staff which is going to be bilingual also mean they will understand English as well as Hindi too, also that way they are going to deal with customers more easily and friendly.
As we are going to serve Indian authentic food in this busy hospitality market of Melbourne we have to have a good , affordable and tasty menu for our dishes like first we have to serve the main and well known Indian dishes like CURRY, NAAN BREADS,BIRIANI,SAAG,etc
Then, we have to serve food from north India like SAAG, MAKKI KI ROTI, RICE PILAF IN INDIAN STYLE, PAKODAS, MAAH KI DALL, SABJI, ETC.
And we have south Indian menu too like BIRIAANI, DOSA, FISH CURRY, UPMALS, CURRY FRITTERS, TRADITIONAL SOUTHERN CURRY, LAMB CURRY, GOAT CURRY and many more traditional recipes from all over India.
As we are going to add these authentic Indian dishes in our menu we have to make sure we fulfill all the needs of the customers not only in quality of food but in taste and price of food too, so that they can enjoy real Indian food at low cost and better customer service.
SWOT ANALYSIS-
For the effective implementation of market process, to prepare a market plan, to launch a new Restaurant or to set the 5 P’s the marketer has to analyze his weaknesses, Strengths, Opportunities and Threats to be Successful, Effective and Efficient this analyses is known as SWOT Analyses.
Were
S Strengths W Weaknesses
O Opportunities
T Threats
Steps to Conduct SWOT Analyses
Setting the objectives
We should be clear about the Short, Medium and long-term objectives of our Restaurant or why SWOT analyses is being conducted
Identify the Strengths of Organization
Sources
• Staff reports.
• Restaurant growth rate.
• Consumers.
• Marketing Research Reports.
Identify The Weaknesses of Restaurant Identify your own weaknesses in the market and in the sector of economy you are prevailing Sources
• Staff reports.
• Restaurant growth rate.
• Consumers.
Identify the Strengths of Competing Restaurant (Threats)
Strengths of your competing Restaurant
Sources
• Consumers.
• Competitors meal.
• Placing.
• Positioning.
• Advertising.
• Research.
Weaknesses of Competing Restaurant
Sources
• Consumers.
• Competitors meal.
• Placing. • Positioning.
• Advertising.
• Research.
COMPETITIVE ADVANTAGE-
As we are going to open in LYGON STREET we have to have a keen eye on our competitors like our main competitors in that street is CHAOS(MEXICAN CUISINE), HYDERABADI NAWABS (INDIAN CUISINE ) then TRUE ITALIA(ITALIAN CUISINE ) and most famous in whole street due to its high quality food and affordable prices now we have to make sure we serve more effectively than our rivals and get a space to settle down yourself in that battlefield where we have to face one of the best restaurants in whole Melbourne.
*We are going to provide good meal and good service at very desirable rates.
*Our staff going to be well presented, fully experienced and trained and most important point bilingual. So that they can deal with customers effectively and correctly.
*Good environment inside or outside the restaurant, with small orchestra and with good sound quality music players.
*We will give discounts to students and also run lucky draws inside the restaurant for the customers, who ever win will get a free meal worth $15 and a drink too.
*We also going to place different nights for people with different food of India from different parts of
MARKETING- It is a process of analyzing the marketing opportunities, Selecting the target market, Developing the, marketing mix and managing the marketing efforts.
SITUATION ANALYSIS- After doing a large research over this market at above mentioned place I came to know there are large number of competitors in this stream here but there is lack of Indian restaurants here which give purely Indian food and their true meaning of hospitality except that there is large number of things changing internally and externally.
Internally changing things are in these days are decrease in variation of costumers means most of the costumers are same age like only youngsters,secondally people are more clever now their habits are changing day by day they want good food which not only attract their eyes but also satisfies their needs with great costumer service. They also want to know why they buy our product so we have to advertise our product too and show them advantages of our product.
While on other hand externally changing things are like rules changing day by day before everyone can have a egret in restaurant but now according to new rules everyone have to find an open space for having a cegret,secondally recessions are going on due to which there is large number of decrease in economic conditions of any business and third but most important having a close look on our competitors what are they selling and how are they selling it their strategies and their strong as well as weak points.
STRATEGIC ASSESMENT –In this section we did research on our strong points and weak points so that we can overcome our weak points and strengthen our strong points as well.*First our strengths and weaknesses-taking customers in our account we found out that our strengths are good quality of food, good customer service whereas our weakness is less space for dinning and our position in the market.
* While talking about our opportunities we found out as people need change they come to us for having and trying new variety of food and see how we are running a new business at place like LYGON STRRET where there is large number of competitors whereas our threats are quite similar to opportunities these are having large number of competitors and prove our self in this battlefield of hospitality.
Target customer is the center of attraction or the pivot around which the marketing process is created and it always revolves around him as the success and failure is due to him the main objective is.
PRODUCT ANALYSIS-As we are located at LYGON STREET in MELBOURNE which is a food junction according to me so we have to work hard day by day and keep on proving our self to the consumers or costumers, and talking about our product we are selling Indian food prepared in purely Indian way so that customer can enjoy real Indian feast rather than just a fake Indian food as we are watching in these days.
COMPETITOR ANALYSIS- Being at a busy place gives you advantage but also gives you large number of competitors, so you have to keep in mind their strengths and weaknesses so that you can attack when there is right time to do that. As we did research on our very close competitors we came to know that they are selling their product in an expensive way like putting lots of money in advertising and giving undesirable discounts which they think is the best way to attract the customer but actually they are wasting their money and time according to me if you are serving great food with same standard of service customer will surely come back to you. MARKETING STRATEGIES-For succeeding in a particular market you have to develop a complete marketing strategy which includes product, price, and promotion because these are things which complete a marketing strategy and you have to make a detailed view on all these things.
Product-
For making a business successful u have to choose a good range of products which people like and which will stay in market for coming 2-3 decades and you have to keep these things in mind to be at front place-
*In our restaurant we sell Indian food with good customer service we know Indian food is quite famous around the globe and people like it very much if it comes with good customer service and i m sure we will give it to the people.
*our advantage is this we serve traditional Indian food whether it’s northern, southern, western and eastern Indian food and I’m sure we are the only one who are serving food from whole India.
*As I mentioned above we serve food from whole India if you are Indian or non-Indian but want to taste different foods from all around India come to ``PAROTHA JUNCTION``.
PRICE-For making a good reputation you have to choose correct pricing strategies before entering the market which not only satisfies customers need and budget but also suits the business runner-
*we will choose penetration pricing for our business because we are new in this business and we want to stabilize our self in this market. *yes we will give discounts to different people, like we will give discounts to the students and we also give discounts to the people who buy our product in bulk. We also give discount to the people for whom we are going to cater on their function as we also do catering for people to give an advantage to our business.
PROMOTION-For selling a product into the market the main weapon for any organization is promotion, there are different types of promotions and they cost different too.
*we will advertise our product in newspaper, brochures and also do advertising in front of our restaurant like we will hire some youngsters to promote our restaurant to the people passing by there.
*we will promote our restaurant using newspapers and broachers etc.
*As we are running a small business so we will sponsor small suburban teams in different games so that we can make hold in different suburbs all around Victoria.
MARKETING BUDGET-
Many budgets are based on history. They are the equivalent of `time-series' forecasting. It is assumed that next year's budgets should follow some trend that is discernible over recent history. Other alternatives are based on a simple `percentage of sales' or on `what the competitors are doing'.
Affordable - This may be the most common approach to budgeting... This approach assumes that promotion is a cost; and sometimes is seen as an avoidable cost.
Percentage of revenue - This is a variation of `affordable', but at least it forges a link with sales volume, in that the budget will be set at a certain percentage of revenue, and thus follows trends in sales.
For doing promotion in different types of field some people tent to do telemarketing, internet marketing, mobile marketing, public relation, business website and for doing all those things you have to spend lot of money because in today`s world money makes it all so if u want to advertise your business to world level you have to choose telemarketing or internet marketing and these are the most expensive terms in advertising .you have to spend somewhat 10% of your annual gross income to do these type of promotion.
SALES FORECAST-
In sales forecast you have to calculate your yearly forecast or detailed eye on the business in different times of the year, as we all know hospitality business comes to its peak in the end of every year because in these days people have holidays from their works and want to enjoy as much as they can with their families and that’s why they play a large role in making near about 40%more growth in the annual income of hospitality business whereas in all around the year the business only comes to its average position. Making money in these days is quite difficult rather than making money in holidays and some event periods.
OPERATIONAL PLAN-
PRODUCTION PLAN-
As we are hoping for a good and repeated restaurant with good quality of customer service and good quality of food also then we have to make an appropriate production plan, As we are going to open a new business first we have get a good quality location at LYGON STREET with good rent and good surroundings so that our customers will have their best time in our restaurant.
For that we have to make our restaurant a good place with good interior and good furniture so, for that sought of things we have to hire industry professionals which can make our dream come true that will cost a lot of money but when customer praise your efforts then that’s going to add four moons to our hard work and dedication. we have also got a loan from the COMMONWEALTH BANK under some private conditions and legislations and we going to implement that amount of money on our restaurants designing and manufacturing and for our assets because without proper assets you can`t run a good business.
PEOPLE PLAN-
Talking about people or customer they are going to be the main thing because according to a common saying in any business ``A CUSTOMER IS A KING``` so we have to make a keen eye on their habits , needs and their behavior about the food from a different country and different nationality. We have to convince them to come in by doing couple of promotional programs so that people in whole Melbourne that there is a new restaurant going to open and what are they serving and with what belongings .
As we know for running a successful business you have to have a good , experienced and reliable team so that they can prove themselves in busiest times as well and your bad times as well .For this first you have to have a good ,well experienced HEAD CHEF because he is going to be the only person who is going to responsible for your kitchen`s proper run and stability of your business in your space ,then after you have to have two COOKS their duties will be to assist the head chef and prepare meals which can make your customers happy we also have to think about KITCHEN HANDS because they are the persons who are going to arrange things for a proper dish and maintain proper level of hygiene for the kitchen including cleaning of each and every thing at specific time period, then we need a good floor staff i mean WAITING STAFF who have good communication skills and a pleasant personality too.
On the other hand we need people to join our team to for work we will make sure our staff will be fully trained and experienced and we will conduct some interviews as well to choose the best ones we also prefer people with bilingual quality so that they can deal with customer more easily specially people who knows how to speak HINDI, PUNJABI, CHINEESE, OR TELUGU with English will be preferred because according to me these are the most number of people living in Melbourne in today`s time.
CONTROLS PLAN-
Control of each and every thing in restaurant is compulsory whether we are talking about stock, assets or about money which we have to pay our customers and more importantly make sure we don’t use other things like electricity, gas or water more than desirable because these are the main things which effects our total revenue and our net profit as well.
So for things like stock and assets head chef and assisting chef will be responsible they will mark ail the recordings on a record sheet which we will be checking after every week to make sure everything is on the track, this will also help to wastage of stock or long life assets like dishwasher, Owen, cooking stoves, freezer and many more.
Whereas for the control of kitchen things and for crockery and things like that kitchen hands and waiting staff will be responsible because they are the only ones who are going to use that things more often, they have to make sure they will report after each disposal of crockery and things which are out of service and they have make a correct report on each thing under a data sheet provided in the kitchen.
Or for us the main responsibility is to make sure correct data sheets for cash flow because that’s the most desirable asset in every business in the world ,so me and other two owners or managers u can say have to make sure they will keep a keen eye on the cash flow and fill out that thing in the main databook.also we have to separate the profit from the salaries of the staff for that particular thing we will provide a record book for the staff so that they can sign in or out before or after each and every shift because on behalf of that records they are going to be paid.
FINANCIAL PLAN-
For good going of the restaurant and for its stability we have to make a good and appreciable financial plan, because financial plan is the most crucial point of business plan and if you do anything wrong within the financial plan all your statics going to be wrongly done and your business going to close sanely so you have to make a keen eye on the statics and all conclusions while making a financial plan and we have to do financial planning by concluding each and every aspect of financial status like REVENUE, COGS,EXPENCES,NET PROFIT,GROSS PROFIT MARGIN, PROFIT AND LOSS STATEMENT and after making all conclusions you have to make a balance sheet. Like below i have mentioned statics of our restaurants income for the month of march in these statics i have mentioned each and every thing which we requires for a financial plan or profit and loss statement , i have mentioned for one month whereas we have to do for each month throughout the year.
Borrowing requirements
Don't borrow more than you can easily afford to pay back. Many assume that they can take out a large loan because their restaurant will be a smashing success which will generate tons of cash to repay a loan. Don’t make this assumption. Don't rely on borrowing from your credit cards. This is a dangerous strategy which can put you into expensive, heavy personal debt and ruin your credit rating. Get money instead from commercial loans, outside investors and/or friends and family.
PROFIT AND LOSS STATEMENT-
Firstly, we have to calculate our revenue which is the most important point of profit and loss statement. look, as we know we have 31 days in the month of march and there was 60 customers which have visited our place and each and every one did expend near about $40 on their food and beverages ,so according to these conclusions my revenue will be,
Revenue for month of March = 31x60x40 = $74,400
Now, we have to calculate COGS (cost of goods sold)
As achieving that much revenue we did expend of 25%of food and 27% of beverages so, Food=25%of 74,400 =$18,600
Beverages=27% of 74,400=$20,088
COGS= $18,600 +$20,088=$38,688
Then after concluding revenue and COGS we have to conclude Gross Profit
Gross Profit=Revenue - COGS = $74,400 - $38,688 = $35,712
Now, we have to know what our expenses were during the month of March including all the accessories.
Expenses= phone + rent+ salaries + utilities + licenses + market cost
Expenses for phone = $120
Expense for rent = $4000
Expenses for utilities = $1000
License expenses =$ 1000
Salaries= salaries for head chef, cooks, kitchen hands, waiting staff
= $ 8000+$ 7000+$3200= $18,200
EXPENSES= $18200+1000+1000+4000+120 = $24,320
As we got all the expenditures and other requiring conclusions .now, is the time to calculate our main thing for profit and loss statement and that is one and only our net profit. Net Profit= Gross Profit - Expenses = $35,712 - $24,320
= $11,392
And it’s not compulsory that you will get profit all the times sometime you will have to face loss also that’s why this particular conclusion of all the goods is known as profit and loss statement and you have to calculate all the months during the month and during each and every year.
BALANCE SHEET
-Statement of financial position that shows the assets, liabilities and net worth of the businesses known as the balance sheet.
That means,
Current assets +Noncurrent assets= Total Assets (A)
Current liabilities +Noncurrent liabilities = Total Liabilities (L)
And, as we know
Owners’ Equity = Capital + Net Profit - Drawings
And when these two terms becomes equal that thing is known as balance sheet.
WHEN,
Owners’ Equity = A - L
That particular point is known as balance sheet. And, in our case we have to estimate all our assets and liabilities and then we have to calculate our owners’ equity also.
We worth total assets of $90, 00
But, our total liabilities is quite less as compared to the asset as we got a small loan from the bank which is near about $48,000
Whereas, our owners’ equity = C+NP -D
= $30,608 +$ 11,392 - 0
= $42,000
And, for balance sheet we have to have
Owners’ equity = A-L
And our A-L = $90,000 - $48,000 = $ 42,000
As from above calculations our current owners equity is equal to what we get from A-L that’s means our all the expenses is equal to our income that means our business is going well and one thing more according to the law whatever we earn after that point would be our own profit and we can use it as we want.