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It is a business development proposal, designed for establishing a new venture as an entrepreneur. A new venture needs to have a detailed business proposal plan. This business proposal plan is a prescribed expression of the entrepreneurial vision along with description regarding the operations and strategy of the proposed endeavor. The main advantages of writing a detailed business plan is the offsetting the costs. Business plan enables the top management and executives in the firm to ponder about the business comprehensively, to converse the business objectives to personnel, to include a decision making base and to smooth the progress of the planning (George and Bock, 2012).
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- 1. SampleDocumentbyhttp://www.globalassignmenthelp.com/ Business Plan Business Plan for Start-up: Restaurant in Ulaanbaatar, Mongolia Type of Documents : Business Plan No of Words : 12850 Disclaimer: This is a sample document prepared by globalassignmenthelp.com and has been submitted on turnitin. To order the similar paper please contact at: Email : [email protected] Phone: (UK) +44 203 3555 345 Website: http://www.globalassignmenthelp.com/
- 2. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 Website: http://www.globalassignmenthelp.com/ Submitted on: 26 th Oct 2012 Words: 12000 Business Plan for Start-up: Restaurant in Ulaanbaatar, Mongolia
- 3. This is a sample document owned by http://www.globalassignmenthelp.com/ ACKNOWLEDGEMENT I am extremely indebted for the support presented to me during completion of this business plan by my mentor, family and friends. In sequence, I would like to thank my mentor, for providing me the opportunity to venture this project and guiding me at each step of the work. Furthermore, I also fancy thanking my team members for helping me in the data collection and analysis for primary research in order to have relevant results for the dissertation. This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 4. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 EXECUTIVE SUMMARY This business development plan is intended for establishing a new venture as an entrepreneur. Every new venture requires a detailed business proposal plan. The main advantages of writing a detailed business plan is the offsetting the costs. This business proposal plan is a prescribed expression of the entrepreneurial vision along with description regarding the operations and strategy of the proposed endeavor. Business plan enables the top management and executives in the firm to think about the business comprehensively, to converse the business objectives to personnel, to include a decision making base and to smooth the progress of the planning. This plan supplies detailed information about the proposed business plus the place of business and covers the essential strategic business plan required for preliminary establishment and operation of Aмттай: Food for choosers, a multi cuisine restaurant and bar at Ulaanbaatar. It is a project requiring start-up capital of $350,500. This restaurant will target the tourists coming to the city Ulaanbaatar. This target customer base has been chosen as a result of increasing tourism in the country. Here, customer will experience a completely new theme for enjoying their preferred food choices at a single place in a Mongolian cultural ambience. This restaurant also includes a bar in it. This bar will offer liquor from different origins with best quality service. Actually the restaurant is going to provide Mongolian style hospitality for food of customer’s choice from any cuisine. This plan outlines the business growth, methods, operations, and infrastructure management. This business will be developed by a dynamic and hard-working team of proven managers and chef. This entire work flows in five consecutive chapters. First chapter is of introductory, which offers rationale for the Business idea, chosen place of business, aims and objectives of the work etc. By this, the reader will get acquaintance about the background of the study. The main aims of the study are to provide a detailed business plan to establish the proposed business backed by rigorous feasibility tests. Beginning of the chapter sketches the pertaining business process, client base, situation, working etc at the proposed restaurant. In the second section, the Business Concept has been defined. Here a detailed portrait of the business idea, Mission, Vision, Concerned Product, Positioning, Scale and growth anticipation etc. have been given. It provides details related to the company, company’s management, business process, industry etc. Feasibility Analysis is the third section of the work, which aims to analyze the business proposal’s feasibility from different perspectives,
- 5. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 such as Product/service, Industry/market, Organizational and financial angles. Further a resource requirement evaluation has been carried out for the Business. In the fourth section, strategic analysis of the business proposal and a business model has been developed. This incorporates Strategic analysis of the Business Idea through literature review, Value chain and SWOT analysis of the proposal, identification of competitive advantages and sustainability, strategy selection for business success etc. The last section offer an overall assessment of Business Development Proposal, schedule of Business Plan and discussion of critical success/ failure factors for the business. On the basis of the entire work, it can be said firmly that opening a restaurant with the proposed theme, seems to be challenging but is a profitable and has a potential of long term sustainability. This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 6. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 Table of Contents CHAPTER 1: INTRODUCTION .............................................................................................. 1 1.1 Rationale for the Business idea ................................................................................... 1 1.2 Scenario Chosen .......................................................................................................... 2 1.3 Aims and objectives of the work ................................................................................. 3 1.4 Structure of the work ................................................................................................... 4 CHAPTER 2: THE BUSINESS CONCEPT ............................................................................. 5 2.1 Description of the business idea .................................................................................. 5 2.2 Mission ........................................................................................................................ 5 2.3 Vision .......................................................................................................................... 6 2.4 Menu............................................................................................................................ 6 2.5 The Ambience ............................................................................................................. 7 2.6 Positioning ................................................................................................................... 9 2.7 Scale and growth anticipation ..................................................................................... 9 2.8 Start-up summary ...................................................................................................... 10 CHAPTER 3: FEASIBILITY ANALYSIS ............................................................................. 16 3.1 Primary Market research ........................................................................................... 16 3.2 Secondary Market Research ...................................................................................... 18 3.3 Feasibility .................................................................................................................. 18 3.1.1 Product/service ................................................................................................... 18 3.1.2 Economy, Industry and Place ............................................................................ 20 3.1.3 Organizational Feasibility .................................................................................. 22 3.1.4 Financial Feasibility ........................................................................................... 24 3.4 Resource requirement Evaluation ............................................................................. 32 CHAPTER 4: STRATEGIC ANALYSIS AND BUSINESS MODEL ................................... 33 4.1 Strategic analysis of Business Idea ........................................................................... 33 4.2 Value chain and SWOT............................................................................................. 34
- 7. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected]lassignmenthelp.com, Phone: (UK) +44 203 3555 345 4.3 Sources of competitive advantages and sustainability .............................................. 35 4.4 Business model .......................................................................................................... 35 CHAPTER 5: BUSINESS PLAN ............................................................................................ 37 5.1 Overall assessment of Business Development Proposal ........................................... 37 5.2 Business Plan Schedule ............................................................................................. 37 5.3 Discussion of critical Success/failure factors ............................................................ 39 APPENDICES ......................................................................................................................... 40 REFERENCES ........................................................................................................................ 42 BIBLIOGRAPHY .................................................................................................................... 46 This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 8. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 List of Figures Figure 1 Table arrangements in the Aмттай ---------------------------------------------------------- 7 Figure 2 Interior of the restaurant gers. ---------------------------------------------------------------- 8 Figure 3 Mongolian Hospitality style and clothing --------------------------------------------------- 9 Figure 4 Mongolian traditional art ---------------------------------------------------------------------13 Figure 5 Rating of key competitors for different attributes ----------------------------------------20 Figure 6 Growth representation for Mongolian GDP (Hallberg, R., 2012) ----------------------21 Figure 7 Break Even Analysis -------------------------------------------------------------------------31 Figure 8 value chain at Aмттай ------------------------------------------------------------------------34 List of Tables Table 1 Estimation of customer foot fall at Aмттай ................................................................ 10 Table 2 Start-up human resourse requirement ......................................................................... 10 Table 3 Start-up requirements .................................................................................................. 13 Table 4 Comparative study of competitors .............................................................................. 19 Table 6 Personnel planning ...................................................................................................... 23 Table 21 Gantt Chart ................................................................................................................ 38 This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 9. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 CHAPTER 1: INTRODUCTION It is a business development proposal, designed for establishing a new venture as an entrepreneur. A new venture needs to have a detailed business proposal plan. This business proposal plan is a prescribed expression of the entrepreneurial vision along with description regarding the operations and strategy of the proposed endeavor. The main advantages of writing a detailed business plan is the offsetting the costs. Business plan enables the top management and executives in the firm to ponder about the business comprehensively, to converse the business objectives to personnel, to include a decision making base and to smooth the progress of the planning (George and Bock, 2012). Also, an entrepreneur needs to accept the business proposal making task enthusiastically. A business plan needs to be tapped by professionals, such as consultants, accountants, and lawyers for their advice and proficiency. Drafting of the plan facilitates the entrepreneurs for considering all key aspects of the proposed business and assures the familiarity with all the details. This aids in decision making regarding the new venture. A sound business proposal also allures good investment (Hamel, 2000). Backed by the advocacy of the entire benefits, this business proposal plan has been drafted. This plan encompasses the proposal for opening a multi-cuisine restaurant in Mongolia. 1.1 Rationale for the Business idea A multi-cuisine restaurant is proposed to be started in Mongolia, an Asian country. Venturing a multi-cuisine restaurant in an underdeveloped country with FDI playing a key role in economy and having a potential tourism destination, is a prolific idea for young and dynamic entrepreneurs. Restaurant business offers a range of services to a culturally diversified customer base. Being a multi-cuisine restaurant, the restaurant will be able to cater the diversified client base with the different cultural food. This restaurant will also incorporate a bar in it (Sharon and Fullen, 2004). It is a new restaurant, which will be based on a totally unique concept for Mongolia. The idea of opening a tourist targeted restaurant has crept in by seeing the aesthetic beauty of Mongolia. Mongolia has emerged as a new tourist destination in last few years because of its geography and historical importance. This location has proven to be an excellent place for a restaurant. This restaurant will serve dual purposes by providing dining for family as well as an area for expensive intimate dining. The menu includes Indonesian, Mexican, Mongolian, Italian and Indian food alternatives both vegetarian and non-vegetarian. A multi-cuisine menu will fascinate tourists along with a unique Mongolian theme based interior. The decor of the
- 10. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 Restaurant will be touched by Mongolian handicraft and culture. This unique combination of Mongolian ambiance and multi cultural food is the point of difference for this restaurant (Brown, 2007). 1.2 Scenario Chosen Geographically, Mongolia is locked between Russia and China. The area covered by this country is 1,565,000 sq km., in which 60% populace lives in Ulaanbaatar, the capital. The estimated population of Ulaanbaatar is 950.000. Besides this, there are two other urban centers, Darkhan and Erdenet, where 95,000 and 74,000 inhabitants live. That is why the place for opening this restaurant has been chosen to be Ulaanbaatar. The diverse landscapes ranging from the vast steppes, forested mountains and Gobi desert in Mongolia attracts the tourism (Developmental Biology, 2010). The Mongols had their roots in the 13th century with Chinggis Khaan’s name in the world history. After the death of Chinggis Khaan, the empire was partitioned into number of powerful states. The Mongols, in the late 17th century, came under the rule of Chinese empire. Mongolia got independence in 1921 and then in 1924, a Communist regime was installed. Backed by a peaceful democratic revolution in the country, in 1990 and subsequently in 1992, the ex-Communist Mongolian People's Revolutionary Party or MPRP won the elections, but in the 1996 elections, the Democratic Union Coalition or DUC defeated MPRP. Now, there exists a coalition government formed by MPRP and DUC. This government has been in power till January 2014. Mongolian economic has been based on agriculture and herding. Besides these, Mongolia's widespread mineral deposits have attracted investment from abroad. Copper, gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten are extracted from the land of Mongolia, which justify the major part of FDI (foreign direct investment) and government revenues. Looking into the performance of Mongolia’s economy, it is evident that it stands as a nation with rapid development amongst the transition economies. The annual GDP growth rate in 2004 has been recorded to 10.7%, in 2005 to 6.2% and in 2006 to 8.4%. Mongolia has recorded the 2nd highest per capita GNI i.e. 1051 USD in 2006 and at the same time the lowest inflation rate. The most important contributors in GDP of Mongolia have been the Wholesale and retail trade dragging agriculture to the 2nd place and mining and manufacturing at 3rd . The growth average, within 2004-08 period, has been nearly 9% per year largely as a result of high copper prices and new gold production. But the existence or soaring inflation in 2008 and the This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 11. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 effects of the global financial crisis, resulted in a trade off for commodity prices and inflation. This has also reduced the government revenues (Mongolia - The Economy, n.d). In 2009, the country has started moving out of the crisis. In October 2009, the long- awaited legislation has been passed on an investment agreement for developing Mongolia's Oyu Tolgoi mine, one of the world's biggest unexploited copper mine. This has resulted in an estimated growth of 7% in 2010. Transfer of funds from Mongolians working abroad are considerably large, but have dropped as a result of the economic crisis. Money laundering is a serious concern in Mongolia. Mongolia is a member of the World Trade Organization since 1997 and looks for expanding participation in the provincial economic and trade regimes (Mongolia: economy statistics and industry reports, 2011). Tourism industry of Mongolia has enjoyed speedy development in the last 15 years. The tourism base in Mongolia is its pristine nature, diverse fauna and flora, unpolluted water, fresh air, unique culture and itinerant life style. Mongolia is a new and unique travel as well as business destination offering a great diversity of untouched options (Ministry of Road, Transport and Tourism, n.d). Ulaanbaatar is the capital of the country. All of the regulations in the country are done from here only. Besides, it is also at the proximity to the international airport, which makes it the first and last tourist destination in the country. Opening up a theme based restaurant in Ulaanbaatar is a potential business proposal (Street map of Ulaanbaatar, capital city of Mongolia, 2003). 1.3 Aims and objectives of the work Aim of the current work is to provide a foundation for a business plan incorporating a multi-cuisine restaurant in Mongolia. This work has been carried out considering an entrepreneurial approach for the business. All the aspects of the business development and operations will be analyzed deeply. This is to provide a detailed business plan by defining all the functional areas (Linder and Cantrell, 2000). After accomplishing this report following aims could be met: 1. A detailed portrait of the Mongolian economy and business environment can be assessed. 2. Assessment of restaurant business in Mongolia. 3. Demonstration of the method of developing a business plan. 4. Preparation of a business plan for opening up a restaurant in Mongolia.
- 12. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 1.4 Structure of the work This work has been segregated into 5 chapters. These are named as Introduction, The Business Concept, Feasibility, Strategic Analysis and Business Model and finally the Business Plan (McKeever, 2012). Chapter one is of introductory chapter. Rationale for the Business idea, Scenario Chosen, Aims and objectives of the work and Structure of the work will be defined here. This chapter acquaints the reader with the background of the study. Here the aims and objectives of the study and a detailed synopsis of the entire report’s structure will be disclosed. Beginning of the chapter sketches the pertaining business process, client base, situation, working etc at the proposed restaurant. In the last section, backed by the entire above study, a detailed and finalized business plan will be written. This plan will offer an overall assessment of Business Development Proposal, schedule of Business Plan and discussion of critical success/ failure factors for the business. This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 13. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 CHAPTER 2: THE BUSINESS CONCEPT Business Concept of any business proposal outlines what the business exactly will do and how it will provide value to all its constituents. It supplies base for all the follow on activities. It is one of the essential artifacts of a business plan. It articulates the vision mission, business model, product/service etc. The target audiences, the product features and the unique business value, all will be defined here in this section. Business Concept also covers definitions of strategies for implementing the business proposal, including pricing, revenue, and distribution models. 2.1 Description of the business idea This business proposal is about a multi-cuisine restaurant, which will be started in Mongolia. Name of the restaurant will be Aмттай: Food for choosers. Амттай is a Mongolian word, which means yummy or delicious in English. This prolific business will offer a range of services to the culturally diversified targeted customer base. Basically, by being a multi-cuisine restaurant, it will be catering cultural specific requirements of the diversified tourist with the different cultural food at a single place. A bar will also be established there in it. This new restaurant, based on a totally unique concept for Mongolia, will offer all these services to its customers in a Mongolian ambiance. It will be serving both family and expensive intimate dining requirements of its clients. The menu will include Indonesian, Mexican, Mongolian, Italian and Indian food alternatives both for vegetarian and non- vegetarian consumers. The decor of the Restaurant will be touched by Mongolian handicraft and culture. This unique combination of Mongolian ambiance and multi cultural food is the point of difference for this restaurant. This restaurant will be opened at Ulaanbaatar, the capital city of the country, so as it could drag attention of its targeted customers. 2.2 Mission Mission of Aмттай is to offer delicious and remarkable food and drinks to the coming tourists from different parts of the globe. The food and drink should meet the highest standards of superiority, freshness and seasonality combining both creative and customary styles of cooking. Providing the customers an impeccable service through warmth, civility, effectiveness, acquaintance and professionalism is one of the aims, Aмттай strives for. Friendly, cooperative and rewarding environment should be offered to the employees so as to encourage long-term, pleasing, growth oriented work environment. Aмттай aims to be a
- 14. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 benevolent member of the Mongolian community and improve the quality of life in the region. 2.3 Vision The vision statement of Aмттай is as follows: “Aмттай intends to become the first choice for multi-cuisine test seekers in Mongolia among the different origin tourists.” 2.4 Menu This huge menu will demand chefs from different regions and ingredients specific to the cuisine. The food products used will be fresh and of the premium quality, prepared with compassion and care. Along with the tasteful food options, customers will also be able to enjoy wine and other drinks of their preferences. The drink list will be modest in size and chiefly focused on the wines from Italy. A moderate international beer selection will also be featured in the restaurant. The calm softly lit bar features a complete assortment of the finest Vodkas, This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 15. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 homemade Italian aperitifs and digestives (like Lemon cello) and single malt Scotches as well as all of the other favorites. In summers, customers will also be offered a choice to sit outside on the terrace or garden sitting arrangements and enjoy special summer menus, exotic drinks and other non- alcoholic offerings. At the terrace or the garden, some cultural activities of Mongolia will be organized for making the food much special for the customers. Restaurant will be open 7 days a week. 2.5 The Ambience Interior of the Aмттай will be totally based on the Mongolian theme. Basically Mongolian culture is a nomadic based culture and similar to any other nomadic culture, it is popular for its hospitality. So as on arrival of any guest, guest will be treated with traditional offerings such as dairy products in the summer session and meat in the winters. They live in ger. The ger is made up of wood and leather thongs, which are covered with cloths, is the home of the Mongolian itinerant. In the same way, Aмттай will be arranged in gers for sitting arrangements and the interior décor will be done with Mongolian traditional portraits. A soft light would be placed inside each ger. Entire Aмттай will be organized as a bigger ger and many small gers will be there for offering sitting arrangements to the customers. Figure 1 Table arrangements in the Aмттай
- 16. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 When a customer walks into Aмттай, he will feel the, musical Khoomi singing (throat singing) and the playing of the Morin Huur or Horse Head fiddle (traditional musical styles of Mongolia). Contrasting to many other restaurants, Aмттай will go with excellent decorating, ambience. Consistency of quality and service will be provided so as to develop a sense of assurance in the customers. The management and servers will handle every detail to make the customer's special evening even more special. All this and our great atmosphere will make customers want to come back again and again. This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 17. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 Figure 3 Mongolian Hospitality style and clothing 2.6 Positioning Through positioning, marketers attempt to give an image or more specifically an identity to the product or services, which resides in the minds of their target customer population. Positioning matters a lot for a new brand as it will decide how the customers will perceive it. According to Kottler, Marketing is nothing but war of positioning. Thus, Aмттай will need a strong positioning to stand on its feet in the highly competition prone restaurant industry of Mongolia. Aмттай will position itself as the place for enjoying Mongolian culture without sacrificing the taste preferences. 2.7 Scale and growth anticipation Aмттай is targeting the tourists coming to the country for its services so the scale of the business and its growth anticipations will be highly dependent on the tourism scenario in the country. According to the available statistics of the tourism industry, in 2005, 338 000 arrivals from divers regions have been recorded. This has generated an aggregate income of 201 million USD in 2005. There has been an average increase of 15 to 20% per year in the number of tourists coming to Mongolia. If this rate of growth continues, the anticipated growth rate of the proposed restaurant will also be the same. Taking a conservative perspective, we take a growth rate of 15% per year. Aмттай’s estimated scale of service is 20% of the total coming tourist in Mongolia once in a while during their stay in the country (Ministry of Road, Transport and Tourism. n.d). Thus the expected scale of the restaurant can be derived as shown in the below table:
- 18. This is a sample document owned by http://www.globalassignmenthelp.com/ Table 1 Estimation of customer foot fall at Aмттай Year Growth factor (15% per year) Expected tourists in Mongolia Estimated customers for Aмттай Average per day visiting customers 2013 3.059 1033942 206788 567 2014 3.518 1189084 237817 652 2015 4.046 1367548 273510 749 2016 4.652 1572376 314475 862 The key founder of the company is Mr. X. He will work as the manager managing the entire restaurant from kitchen to personnel, accounts, algorithms, and computerized functions. He will take care of the service standards and food quality plus financial issues of the restaurant. Mr. A will be the Restaurant’s head chef, and will manage the entire cooking section and assure the food quality. Mr. B will be assigned the overall responsibility of the Bar section. For catering the estimated customer visits, a proper floor will be required. As the sitting arrangements are to be done in the form of traditional Mongolian gers, the floor of the restaurant must be an open place. A terrace or a garden will suit the requirement. Total forty tables, twenty in ger and rest twenty is the open floor will be placed. On each table, minimum four persons could sit and eat comfortably (Mongolia's housing market recovering, 2011). The This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 19. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 space required for each table is 4 sqm. Thus the total floor area required for the restaurant can be derived as follows: Floor required for the restaurant = floor required for each table * number of tables + floor required for kitchen area + floor required for administration and other facility area + Area for bar Here, Floor required for each table = 4 sqm Number of tables = 40 Floor required for kitchen area = 30 sqm Floor required for administration and other facility area = 10 sqm Area for bar = 20 sqm Floor required for the restaurant = 4*40+30+10+20 = 220 sqm Restaurant floor construction will start on November 1, 2012 and open it in January, 2013. An investor for financing the start up of the restaurant is required now. The start-up cost for the venture will be mostly expensed for equipments, furniture, paintings, rent, reconstruction, start-up personnel, liquor license, legal and consulting costs and six months operating cash etc. These are the requirements for starting up of Aмттай to the best of our knowledge and experience of the industry. Cost notes for a number of items have been specified in the below notes: Stationery, Menus and Guest Checks The exact cost can be calculated for these items from day-to-day experience and a market research. Stationery includes invoices, letterhead, envelopes, catering and event contracts etc. Stationery will be in a very simple format with the Aмттай’s logo on it. Many of the above items can be designed and produced in-house, which will be done by the restaurant admin in-charge. This will save thousands of bucks. The menu will also be designed, developed and revised internally to further save funds. Final printing will be outsourced. Rent, or lease payments The floor for opening up a restaurant in any centralized location must be rented or leased. We need a place for 250 sqm. The rent rate in Ulaanbaatar is about $17<$18/sqm per month, whereas the land purchase prices are extremely attractive lying in the range
- 20. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 of $900/sqm to $1300/sqm. Initially the floor will be hired on rent but later on this can be purchased (Temple View Residence Ulaanbaatar Mongolia. n.d). Office Supplies and General Set-up All kind of general usage items such as staplers, pens, paper cutter, paper, pads and pencils, shredder and file cabinets for the waiter and host station, kitchen and office are included in this list. Restaurant Building and ambience With the assistance of a Mongolian ger master, 20 small sized gers with 3 walls will be designed for the restaurant. The average cost for which will be $875 each (Dealing with Construction Permits in Mongolia, 2012). Besides these, 20 sets of Mongolian style furniture will be purchased from any traditional furniture supplier (Cost of Living in Ulaanbaatar, Mongolia. 2012). This furniture and other fixture work will be done by service contract with any furniture maker in Ulaanbaatar. This estimated cost of the work is $4000. This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 21. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 Figure 4 Mongolian traditional art Start-up employee Cost for initial four Months Service staff will be assigned above the average monthly salary in Mongolia i.e. $500 per month. Salaries for the cooking staff will be $1000 per month and the head chef and chef’s salary will range in between $2000 to $3000 per year. Liquor licensing As per the law and regulations lay down by the Office of Liquor Control and the Los Santos Government application fee for liquor license in Mongolia is $20,000 and once the liquor license has been granted, a $10,000 monthly renewal fee has to be deposited on monthly basis (Taifun, 2012). Computers, Printers and Fax Setup Microsoft XP Professional will be the guiding force behind all of the hardware related choices. Table: Start-up Table 3 Start-up requirements Start-up Requirements Estimated cost Start-up Expenses Stationery, Menus, Guest Checks $4,000
- 22. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 Printing of Menus $200 Property $18,000 Office Supplies & General Set-up $2,000 Serving Staff Theme Uniforms $3,000 Kitchen Staff Uniforms $3,000 Restaurant Building and ambience $21,500 Liquor License (coming 4 months) $60,000 Computer and computer Software $4,000 Chamber of Commerce/Other Memberships $2,000 Initial Job Hiring Related Advertising $1,000 Initial, Kick-start, Teaser Advertising $5,000 Phone, Electric, Cable and Gas Deposits $5,000 Food and Liquor Setup $8,000 Kitchen Supplies $4,000 Opening Celebration $5,000 Exterior and Interior Signage $1,500 Start-up employee Cost for initial four Months $96,000 Expense Account for Food, Fuel, Bills $2,300 Pre-funding Costs to Fluno Gorgonzola $3,400 printer cum copy Machine (Canon) $800 Fire and Burglar Alarm Installation $5,000 Milestones/Contingency/Other $20,000 Commercial Pre-Inspection of Building $800 Total Start-up Expenses $275,500 Start-up Assets Cash Required $50,000 Start-up Inventory $25,000 Other Current Assets $0 Long-term Assets $0 Total Assets $75,000 Total Requirements $350,500 This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 23. This is a sample document owned by http://www.globalassignmenthelp.com/ Email: [email protected], Phone: (UK) +44 203 3555 345 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 Amount $ Total Start-up Expenses Total Assets
- 24. Page 16 CHAPTER 3: FEASIBILITY ANALYSIS Setting up a business is headed by the verdict to desire an entrepreneurial career and recognition of a promising business idea backed by a careful examination of the existence of entrepreneurial opportunities. Idea generation is not enough but the business idea should also be feasible from techno-economic, legal and financial perspectives. So after the initial screening of the prima facie promising idea, an in-depth examination for feasibility must be carried out prior to set the one where time, money and energies will be exerted. Feasibility study backs by a detailed primary and secondary market research (Rogoff, 2007). 3.1 Primary Market research Primary research is based on the principles of scientific methods. This theory of investigation has been developed by John Stuart Mill in the mid nineteenth century and discussed this in the book “Philosophy of the Scientific Methods”. There are three methods to conduct a primary research, such as observations, interviews and surveys. Here, for convenience and ease, interview method has been adopted. This is an online interview method conducted through a blog designed for the visitors of Mongolia. This is a well structured interview, where a previously set bunch of questions are asked to the visitors of to the blog and asked for their opinions. In this blog, description of different natural and This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 25. Page 17 heritage sights of Mongolia are discussed with different viewpoints. Visitors the blog are asked to provide their opinions about the concept of Aмттай. Also they can share their experiences during their visits to Mongolia and their food experiences along with suggestions to improve the services. In this interview both past visitors and the potential visitors are addressed. This research has been carried out in a time frame of three months. Almost, 1000 interviews have been collect from the tourists from different region of the world. Interview questionnaire is attached in the appendix section. Observations for the interviews are briefed as below: 1. Majority of the visitors are so allured by the aesthetic nature and awful culture of Mongolia that they wish to be there again and refer this place to their friends and families. According to them the place is full of energy as pollution is not much, besides this, it is an affordable place for the low budget tour plans. Terroristic activities are also not there, which adds to its beauty. 2. The most fascinating thing at Mongolia was its natural heritage and monuments. Colorful and beautiful culture also attracts the individual tourists. Many of the respondents said that the place is a single destination with lots of natural facets in it. 3. Talking about their food experiences, 80% of individuals said that the food was the key issue there. Everything was good but the taste and cuisine preferred was not available with the Mongolian ambience. They have missed the taste of their preferred cuisines in Mongolia. Also, while having food, the main issue was of language. In majority of the places, menus were even in Mongolian script, which made the things much difficult. The hospitality was very warm and comfortable but a weeklong trip made them feel home seek especially in terms of the home like place to enjoy the food of choice. 4. The most preferred cuisines among the respondents are three. These are Italian, Mongolian and Indian. Further, some of the respondents have also shown interest in the Indonesian and Mexican food. 5. According to the collected response, 72% respondents said that the average spent per head for food in Mongolia was £25~£30. 18% said that their average spent on food in Mongolia was over £30 and rest responses advocates the other options. 6. Making payment was a tedious task for the 70% tourists as majority of the food places were not accepting the debit cards. Just for that, they had to take help of the currency converters. 7. Idea of opening a new restaurant in Ulaanbaatar with features of multi-cuisine in the Mongolian cultural ambience plus availability of liquor from different region in the bar
- 26. Page 18 section with facility of payments through debit cards has attracted the interest of 90% respondents. They have appreciated this idea. 3.2 Secondary Market Research Secondary market research employs information assembled by outside sources such, as government agencies, trade and industry associations, media sources, labor unions, chambers of commerce, and many others. Secondary sources of information include the following: Commercial sources Public sources Educational institutions 3.1.1 Product/service First and the foremost thing in the feasibility analysis are to analyze the viability of the business idea or the product or service, the business is aspiring to offer to its clients. In the service feasibility test following questions should be answered for refining the business idea: Is the proposed business address to any specified need in the marketplace? Does the proposed business sound profitable? Does the business proposal have the capacity to face the competition in the market? This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 27. Page 19 All the above stated questions can be answered through the observations of the primary research. Primary research provides the buyer’s opinion regarding the proposed business and their willingness to accept such service in the market. According to the primary research conducted by the structured interview, the potential customer reference group or the past visitors of Mongolia have appreciated the idea of the restaurant. Their positive response to the idea of restaurant advocates the market viability. Thus from the customer point, restaurant Aмттай is a good and attractive proposal, which assures that the business will be profitable as a considerable demand of such a restaurant exists in the Mongolian restaurant industry (City Guide - Ulaanbaatar – Restaurants. 2012). Looking into the competition structure in the Mongolian restaurant industry gives the proposal’s viability from the market competition perspective. Ulaanbaatar is crammed with good restaurants, which over and over again surprises the first time visitors to Mongolia. Every as well as any sort of food from any cuisine is available here, including Indian to Korean, Japanese and American food varieties. Every week, new venues open while others close (The Abilities Fund. 2012). It is really a dynamic city for food business. Ulaanbaatar is always re- inventing itself as a regional cooking capital. The most famous and preferred food destinations in the city for outsiders are Namaste, Hazara, Luna Blanca, Millie's Café, The Bull and Sakura Restaurant etc. All the above described restaurants are the highest ranked restaurants by the tourists at the website http://www.tripadvisor.com/Restaurants-g293956-Ulaanbaatar.html. On the basis of the reviews from the website, the competitor structure has been designed. For testing the viability of the proposed restaurant plan, tabulation method will be of much use (MAD Investment Solution, 2012). Table indicating the different competitors and their market performance is as under: Table 4 Comparative study of competitors Name of restauran t Cuisine Interior Theme Servic e Foo d Venu e Ambienc e Prices range Namaste Indian Indian Ambienc e 4 4 4 3 $6 - $10 Reasonabl e Hazara Indian Romanti c ambiance 4.5 4.5 3.5 4 $10 - $15 Luna Blanca Asian, Western and 4.5 4.5 5 4.5 $3 - $15
- 28. Page 20 Mongolian cuisine Millie's Café American, European, Mexican, Internationa l 4.5 4.5 4 4 The Bull Asian 4 4 4 4 Sakura Restaurant Japanese 5 5 5 5 3.1.2 Economy, Industry and Place Attractiveness of economy Mongolian economy is not merely a country with hope, but a country with a very remarkable economical trail record of recent. Average GDP growth in the country is over 7% since 2002 (IMF report, 2007), and according to the latest official data about 2006 GDP the growth has been recorded 7.5%. It is a good sign for any underdeveloped economy. Inflation in Mongolia is very low and steady at -0.1% as per the records of 2007 beginning (IMF report, 2007) and is This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 29. Page 21 expected to be at 4.2% for the coming year (Bank of Mongolia, 2007). The economy is overwhelmed with high levels of FDI investment, an open and progressive government, lofty education standards and availability of various schemes and incentives for entrepreneurialism. The unemployment issues are pleasingly low i.e. just 3.3% in 2005 (World fact-book, 2006). Figure 6 Growth representation for Mongolian GDP (Hallberg, R., 2012) Mongolia has been a member of the World Trade Organisation since 1997 and open for cross country trade with 78 countries around the world since then. It has as well been a full member of MIGA (Multilateral Investment Guarantee Agency) of the World Bank Group since 1999. Besides, it also has a Mutual Protection of Investment agreement with thirty one countries plus an Exemption on Double Taxation agreements with 19 countries (Japan Mongolia Business Workshops, 2012). The key industry sectors in Mongolia are as follows: Mining Industry – Mongolia has extensive deposits of minerals. Major part of the mining production is made up of Cooper, coal, molybdenum, tin, tungsten and gold. The high growth of GDP is mainly as a result of higher copper prices and new gold production in the country. 23% of GDP is formed by this sector. Service Industry– 50.4% of the GDP is the result of this industry and it is growing continuously. Science & Technology – Technology industry of Mongolia has been increasingly developing since the democratic revolution in the country taken place in the early 1990s. Since
- 30. Page 22 then many new technology firms have founded their operations in the country (Doing Business Guide in Mongolia, 2012). Attractiveness of industry and market Service industry comprises of financial services, hospitality and tourism industry and other services. Economist in the country is estimating high growth in this sector in the coming years. This positive growth of the country’s overall economy and the hospitality and tourism industry are the positive factors for the proposed business line (Mongolia looks to tourism to diversify its economy, 2012). Restaurant is expected to be open in Ulaanbaatar, so the importance of the city in the overall economy both from economic as well as from tourism 3.1.3 Organizational Feasibility Organizational Feasibility analysis’s main purpose is to determine if there exist sufficient skills and resources to bring service to market successfully. This involves analysis of non-financial factors important for the business. Here, 2 primary issues to be considered are the management competence and sufficiency of resources. For assessing the former issue, the ability of the management team must be evaluated on the basis of the passion and expertise for the launch of the new venture. Further to assess the availability of resources needed to launch the proposed venture, focus must be on the nonfinancial resources such as the availability of This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 31. Page 23 affordable floor, possibility of government support, workforce pooling quality, acquaintance of the key suppliers, customers, and competitors etc. To test the resource sufficiency, critical nonfinancial resources must be listed to move idea ahead and if the resources are not sufficiently available, idea should be re-worked. If this estimated customer arrival continues, then for providing the aspired service quality to the visitors, a well versed staff will be required. Staff description is as follows: Table 5 Personnel planning Staff name Number of persons required Head Chef 1 (expert of the proposed menu cuisines) Chef 5 (experts of each cuisine) Assistant cooks 5 Waiters 10 Reception and counter staff 1 Manager 1 Founder of the company i.e. Mr. X, and two other i.e. Mr. A and Mr. B are the faces of the Aмттай. The initial management team will highly depend on their expertise and industry receptiveness. Main management responsibilities will be divided between the top three. While all 3 need to focus mainly on the quality of proficiency, but one must take eventual responsibility of administration, finance and marketing, while the other one of personnel and property and the remaining one for food service and bar services. With the growth of the firm, an additional consulting assistance can also be obtained for graphic, editorial, sales, and marketing issues. If the decisions made for the firm are guided by the company mission and vision statement, the management will not face problems and the success of the firm is certain. Rest of the staff will be recruited from Ulaanbaatar through a public notice for recruitment in the local dailies. Tasks must be assigned to the staff on the basis of their creativity, knowledge, and social abilities. Each member of the Aмттай team is highly valued for it, opinions from each are respected equally as this team will make the business excel. People committed to high standards of excellence will be employed, who blossom on a team atmosphere and have exceptional customer service skills. This idealism is represented by the current staff, and will continue to be the guideline by which new team members are hired.
- 32. Page 24 3.1.4 Financial Feasibility Financial feasibility analysis gives a conceptual expression of the business proposal’s ability to seek fund. The financial feasibility is the last element of feasibility analysis. This gives financial merits of the proposed business. This financial plan is based on raising roughly $300,000 through short term loans and $50,500 will come from the owner’s pocket. Profitability depends on the nature of growth. Start-up Funding The start-up capital will come from owner’s fund and short-term loans. The cost of financing is to be financed from owner’s investment. The total fund requirements for start- up are listed in the below table. Table 6 Start-up Funding Capital Planned Investment Owner Equity $50,500 Short term loan $300,000 Additional Investment Requirement $0 Total Planned Investment $350,500 Loss at Start-up (Start-up Expenses) ($275,500) Total Capital $75,000 Total Capital and Liabilities $75,000 This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 33. Page 25 Total Funding $350,500 Key Assumptions Entire financial plan is dependent on some important assumptions, majority of which are revealed in the below table. The underlying key assumptions are: A high-growth economy, exclusive of major recession impact has been assumed in Mongolia. It is assumed that the opening ceremony of Aмттай will be held in the first week of January 2013 and the average per day traffic will be 567 individual. There does not exist unforeseen changes in the anticipation about the popularity of Aмттай. Accesses to both investments and financing requirements for the proposed business plan are available with certainty. General financial and investment availability assumptions for the plan are as shown in the tables. Meal for 2, in any Mid-range Restaurant with Three courses cost to the customers in the range of $20 to $30. The average cost per head is assumed to be $15 per meal. Alcohol cost per head is assumed to be $15. It is assumed that the gross profit margin of restaurant industry of Mongolia is 30%. Liquor section works for 40% profit margin (Happy Mongolia, 2012). Table 7 General Assumptions General Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Plan Month 1 2 3 4 5 Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% Annual inflation rate 4% 4% 4% 4% 4% Sales forecast for the restaurant is dependent on the popularity of the restaurant concept between the tourists and tour agencies. The expected tourists visit is briefed in the below table: Table 8 Customer visit for caste Year Estimated customers for Aмттай Estimated customers in the liquor section 2013 206788 41357 2014 237817 47563 2015 273510 54702 2016 314475 62895
- 34. Page 26 It is assumed that the customers in the bar section are just 20% of the total arrivals in the restaurant. Estimation of sales revenue from both restaurant and bar sections for Aмттай is shown in the below table: Table 9 Projected revenue Year 2013 2014 2015 2016 Food section revenue Estimated customers for Aмттай per year 206788 237817 273510 314475 Revenue per head 15 16.5 18 20 Total revenue 3101820 3923981 4923180 6289500 Liquor section revenue Year order Aмттай year food) 2013 9 41357 372213 2543487 2014 9.5 47563 451849 3048810 2015 10 54702 547020 3654094 2016 10.5 62895 660398 4374347 Sales forecast: Sales forecast for the coming four years is as given in the below table: Table 12 Sales forecast for coming four years (a) SALES FORECAST Year 0 1 2 3 4 Units 248,146 285,380 328,212 377,370 Sales Value @£1000/unit 3,722,190 4,708,770 5,957,048 7,534,192 This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 35. Page 27 Sales policy Cash flow on Sales 3,722,190 4,708,770 5,957,048 7,534,192 (b) Cost of goods 0 2,543,487 3,048,810 3,654,094 4,374,347 Supplier payment policy Cash flow on cost of goods 0 2,543,487 3,048,810 3,654,094 4,374,347 Cash Flow for the project: Table 13 Cash flow for project (2) CASHFLOW FORECAST Preop Year 0 1 2 3 4 CASH INFLOWS Cash from Sales 3,722,190 4,708,770 5,957,048 7,534,192 Directors loans 300,000 Share capital 50,500 0 Other external finance/loans Other cash inflows TOTAL CASH INFLOW 350,500 3,722,190 4,708,770 5,957,048 7,534,192 CASH OUTFLOWS Payments for materials 0 2,543,487 3,048,810 3,654,094 4,374,347 operating expenses Premises (rent, rates) 9,000 54,000 59,400 65,340 71,874 Wages and salaries 0 288,000 331,200 380,880 438,012 General expenses 0 91,350 117,480 110,214 121,434 Interest and bank charges payable 0 30,000 30,000 20,000 10,000 Lease payments 0 0 0 0 0 Corporation Tax 420,733 431,092 Market survey costs 10,000 Other preliminary expenses 140,000 capital expenditure Plant and other capital expenditure 21,500 financing repayments Loan repayments 0 100,000 100,000 100,000 Dividends 0 0 0 0 TOTAL CASH OUTFLOWS 180,500 3,006,837 3,686,890 4,751,261 5,546,759 Cash flow summary NET CASHFLOW FOR PERIOD 170,000 715,353 1,021,880 1,205,787 1,987,433 OPENING CASH BALANCE 0 170,000 885,353 1,907,233 3,113,020
- 36. Page 28 CLOSING CASH BALANCE 170,000 885,353 1,907,233 3,113,020 5,100,452 Projected Profit and Loss It is a financial statement, which summarizes the sales revenues, costs of goods and expenses incurred in the business during the specific time period usually a quarter or year. It gives information about the ability of the business to generate profit by improvising revenue and curtailing costs. It is also known as a statement of profit and loss, an income statement or an income and expense statement (Levine and Michele, 2008). Profit and Loss statement has been prepared following a conservative point-of-view General expenses 91,350 117,480 110,214 121,434 Interest and bank charges payable 30,000 30,000 20,000 10,000 Lease payments 0 0 0 0 Depreciation 2150 2150 2150 2150 Other expenses 150,000 Total expenses/overheads 9,000 615,500 540,230 578,584 643,470 Profit before tax - 9,000 563,203 1,119,73 0 1,724,37 0 2,516,37 5 Tax @25% 420,733 431,092 629,094 Profit after tax 563,203 698,997 1,293,27 7 1,887,28 1 Dividends 0 0 0 0 Transfer to reserves 563,203 698,997 1,293,27 7 1,887,28 1 This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 37. Page 29 Projected Balance Sheet Table 15 Projected Balance sheet (5) BALANCE SHEET Year 0 1 2 3 4 ASSETS Fixed Assets Building 0 0 0 0 0 Furniture 21,500 19,350 17,200 15,050 12,900 Vehicles 0 0 0 0 0 Plant & machinery 0 0 0 0 0 Net Fixed assets 21,500 19,350 17,200 15,050 12,900 Current Assets Stock 211,95 7 254,068 304,508 364,529 0 Debtors 0 310,183 392,398 496,421 627,849 Cash 170,00 0 885,353 1,907,23 3 3,113,02 0 5,100,45 2 other - Rent 9,000 54,000 59,400 65,340 71,874 Market survey costs 10,000 other preliminary expenses 140,00 0 subtotal 540,95 7 1,503,60 3 2,663,53 8 4,039,30 9 5,800,17 5 Current Liabilities Taxation 420,733 431,092 629,094 subtotal 0 0 420,733 431,092 629,094 Total assets less current liabilities 562,45 7 1,522,95 3 2,260,00 5 3,623,26 7 5,183,98 2 LIABILITIES Share cap 50,500 50,500 50,500 50,500 50,500 Reserves 563,203 1,262,20 0 2,555,47 7 4,442,75 8 Total equity 50,500 613,703 1,312,70 0 2,605,97 7 4,493,25 8 Loans 300,00 0 300,000 200,000 100,000 0 Total 350,50 0 913,703 1,512,70 0 2,705,97 7 4,493,25 8 Break-even Analysis It is a calculation of the sales volume necessary for covering costs. A lower sales volume than the calculated break-even point would be unprofitable whereas a higher one would
- 38. Page 30 guarantee the profitability of the business. This analysis primarily focuses on the existing relationship between, the fixed cost, variable cost and selling price. Sales volume, at which the company breaks even, profits are $0 (Fast4cast, 2012). This point is called the break-even point. Break-even awareness facilitates any restaurant operators to know the possibility for the restaurant to be profitable by just knowing the weekly or monthly sales volumes. This can be calculated by the following formula: Break Even Point = Fixed Costs / (selling price − variable costs) Here the fixed cost will comprise of following elements: This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 39. Page 31 Figure 7 Break Even Analysis BEP i.e. break-even point for the proposed business is below the estimated sales volume level, which males the venture attractive for investment. Pay Back Period Pay back period is a financial evaluation technique. By payback period, the meaning is that the time period required for any project to pay the initial investment back. It is non discounted technique (Dayananda et al, 2002). Here in our proposed plan, $350,500 is required as the start-up fund. This fund will be recovered through the business’ net profit. Calculation for the pay-back period for the restaurant project in shown in the below table: Table 17 Payback period analysis Year Net profit Cumulative net profit 2013 $25,438 $25,438 2014 $143,258 $168,696 2015 $460,848 $629,544 2016 $879,710 $1,509,254 From the above table it is clear that the initial investment will be repaid by the business in the third year of commencement. If a linear distribution of profit is assumed, then the exact pay-back period will be calculated as follows: Pay-back period = 2+ (350500-168696)/460848 = 2.4 years or 2 years and 5 months
- 40. Page 32 Pay back period of the employed capital investment is relatively low, which implies the attractiveness of the venture among the investors. 3.4 Resource requirement Evaluation Any physical or virtual entity with limited availability, such as supply of money, materials, staff and other assets required for venturing any business are termed as resources. For Aмттай, six broad types of resources are required. All of which are defined in the below section: This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 41. Page 33 CHAPTER 4: STRATEGIC ANALYSIS AND BUSINESS MODEL Strategic analysis aims to look at the external environment of the organization concerning about the present and the future consequences. Through the strategic analysis two questions must be answered, like: How the external incidences happening might affect the business? What should be the best response of the business to the likely changes? While, the business model is the manager’s logic, which allows a venture to capture the market opportunity by mitigating risks. This also aids in identifying the required resource set; and create value for investors and founders. Here, a thorough analysis of the business idea from the strategic view will be carried out and based on this a proper business model will be developed. 4.1 Strategic analysis of Business Idea Restaurant opening seems to be a glamorous business and by being successful restaurateurs, one can attain fame and fortune both, but success in restaurant business is not easy to attain and failures are not rare. Prior to opening a restaurant, one must gain the basic understanding of the industry and competition structure. According to the Entrepreneur website (2009), there has been a tremendous growth of about 155,000 to 900,000 in number of food-service from 1970 to 2009. This trend is expected to persist as now people choose to eat out rather than taking time to prepare meals at home. This advocates the idea of opening the right sort of restaurant at the right location. Restaurant is basically a people business, so a socialist must flourish in such type of business. But, the success highly depends on the staff’s especially the servers ability to entertain the customer requirements and strong people skills. Retains of right people is a serious challenge for the restaurant business. Having young staff leads to higher employee turnover issues (What is strategic analysis?, n.d.). Aмттай is a restaurant starting from scratch and for that things must be designed and managed in the owner’s way. This may result in difficulties for establishing the brand and positioning it in the market. Aмттай is a new concept and generally a new concept involves high degree of risk. Besides, restaurants are not easy to operate. One requires having knowledge regarding the proper equipment to purchase and grow to be versed in food-handling measures and local health codes. An extensive market research must be conducted before taking the plunge in order to assess the acceptability of the business concept by the targeted customers.
- 42. Page 34 According to a report of Entrepreneur.com (2010), many restaurants fail all through the first year of commencement, largely due to a poor planning. Taking the time to prepare a carefully researched business plan will give you a better chance of success and is essential if you wish to obtain bank financing to get started. Bank finance for starting up funds can be better acquired on the basis of a good and rigorous business plan. 4.2 Value chain and SWOT This value chain and operational competence of the firm result in specific strengths and weaknesses along with external opportunities and threats from the outer circumstances. SWOT analysis of Aмттай is given in the below chart: Table 18 SWOT Analysis Strengths Innovative business idea Weaknesses This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 43. Page 35 Backed by proper research and planning Financially viable Lucrative market growth of the past Highly dependent of the acceptability of the restaurant among the tourists Highly dependent on the growth of tourism in the country Sensitive to the government laws and regulations Success is dependent on the staff performance Threats No entry barriers exists, which makes a threat of increasing competition Business’ Point of difference is its innovative theme and cuisines, which can easily be copied Government’s dependency on the FDI investment may cause serious damage to tourism Counties proximity to the terrorist sensitive countries may spoil the business Opportunities High growth economy Increasing tourism 4.3 Sources of competitive advantages and sustainability For survival and prosperity of any business in an industry, companies must meet two decisive factors. First, they must deliver customers what they want to buy, and second that they must endure in competition. Overall competitive advantage can be attained through creating difference between offered customer value and cost of creating such customer value as compared to its market peers. Competitive advantage takes 2 forms namely differentiation advantage and cost advantages. Differentiating advantages can be attained by creating the superiority of the service in the customer minds, while cost advantages can be attained through economies of scale. Here, Aмттай is a completely new venture so it is not possible for it to attain cost advantages. Competitive advantaged through differentiation can easily be attained by it as it involves a completely new idea and theme. Aмттай can fare the uniqueness of cuisines offered at a single place with innovative theme and service for differentiation of services in the market place. This may give a higher sustainability to the restaurant. 4.4 Business model Business model for Aмттай will describe the underlying principle of the organization to create, capture and deliver value in terms of economic, social, cultural, or any other forms.
- 44. Page 36 Business model construction process is a part of the business strategy (Peterovic and Kittl et al, 2001). It aids in describing and classifying business, plus exploring the possibilities of future development. For a creative management, business model operates like a recipe (Chesbrough and Rosenbloom, 2002). Business model for Aмттай is given in the below section: Table 19 Business Model This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 45. Page 37 CHAPTER 5: BUSINESS PLAN 5.1 Overall assessment of Business Development Proposal Business set-up is headed by the decision for having an entrepreneurial career and recognition of a promising business idea backed by a careful examination of the existence of entrepreneurial opportunities in the selected market. Aмттай is a multi-cuisine restaurant in Ulaanbaatar, the capital of Mongolia. For this restaurant, both primary and secondary research has been conducted. Primary research has given a positive response towards the proposal along with the secondary one. According to the customer response to the proposed idea of business, Aмттай has a positive probability of success in the market among the targeted market. Now looking towards the feasibility of the proposed business plan, every constituent of analysis has given a positive response for it. According to the service viability analysis, it will have good response among the tourists coming to Ulaanbaatar as presently, there is no restaurant, which offers the same cuisines that are the part of our menu. Also, the theme of the restaurant and bar is a unique one, which will certainly attract customers. This result is also proven through the primary research conducted. Now, when the discussion comes to the industry and market attractiveness, both are found to be profitable and growth oriented. Mongolian economy is currently at its growth stage and market for restaurants in Ulaanbaatar is very attractive from the point of investment. Inflation rate is quite low (4%) in the country, which is a good symbol for an entrepreneurial start up. Currently Mongolia has emerged as a new tourist destination and average growth of tourism industry in the country is recorded to be 15 to 20%, which is a good indicator for a tourist targeted business venture. Financial feasibility analysis shows the ability of the venture to repay the initial investments in a very short time period i.e. 2 years and 5 months. Also the growth in profit margin is considerable. Besides all, the initial investment for opening up a restaurant in Ulaanbaatar is comparatively low. The entire analysis has given positive responses making the proposal worthy to get investments. This will prove beneficial for getting the loan from the corporate or the banks for the initial start-up funds. 5.2 Business Plan Schedule Execution of the proposed plan can be segregated into following activities: 1. Arrangement of fund 1 week 2. Obtaining licenses both for restaurant and liquor business 1week
- 46. Page 38 3. Finalization of the floor 1 week 4. Building ger 4 weeks 5. Interior 2 weeks 6. Other fixture procurement and installations 1 week 7. Menu designing 2 weeks 8. Printing work 1 week 9. Designing advertisement and promotional activities 4 weeks Menu designing Printing work Designing advertisement and promotional activities Organizing a complementary event for This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 47. Page 39 launch of the restaurant Inauguration of the restaurant 5.3 Discussion of critical Success/failure factors Critical success and failure factors for entrepreneurial success in the restaurant business are very important to be considered as restaurant functions in a complex business environment. This business line is very sensitive and has the highest failure rate among other business start- ups. For flourishing in the restaurant industry, the critical success and failure factors must be taken into consideration by any entrepreneur (Joseph, n.d.). Critical success and failure factors for the proposed business plan are given as below (The Center for Hospitality Research of Cornell University, 2008): Strategic choices Strategic choices like location of the restaurant, business plan, positioning and business concept, target market, competitive strategies (differentiation) and value of firm are critical for the success of the business. This is because; all these decisions or choices define the business nature and characteristics. Decisions regarding these must be backed by a rigorous analysis so as to avoid serious consequences. Competitive factors Competitive factors such as restaurant density or competitive intensity in the market, comprehension of the competitive forces and product relevance plays an important role in any business’ success story. Marketing Basically marketing aims at recognition of demand and satisfying the demand profitably. For this, restaurant must have marketing abilities, good customer relationship and community involvement. Pricing plays a critical role for success so firm must stick to the value delivery concept. Resources and capabilities Firm size, financial capital, profitability, internal controls, organizational culture, efficiency, product quality and consistency, service levels, competence of employees, employee relationships, employee turnover rate etc are the critical factors from the resource and capability perspective. All of the above described critical factors should be taken care of for the success of the proposed restaurant plan.
- 48. Page 40 APPENDICES Opinions of you Mongolia tourists! For making your tour more pleasant with a new food house, Aмттай is following you where you go in Mongol. For offering the best menu to satisfy our customers, we need your comments on the questions below. Your help in answering these questions will be highly appreciated! Demographics: Name Country E-mail Tel: This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 49. Page 41 Q. 5. Style of cuisine you prefer (Tick a maximum of three as appropriate) Modern Italian Mongolian Indonesian Mediterranean Japanese British European Thai French Indian German Other (please specify).................................................................................. Q. 6. What has been your normal spending for food at Mongolia? A. £15~£20 per head B. £20~£25 per head C. £25~£30 per head D. Over £30 per head Q. 6. How did you made payment for your food during your trip? Q. 7. A new restaurant is going to be opened in Ulaanbaatar. In this restaurant, customer will be able to enjoy its favorite cuisine in the Mongolian cultural ambience. Besides, one can enjoy liquor of different region in the bar section of the restaurant. Payments can be made through your countries debit cards. What is your opinion regarding this? Q. 8. Do you have any other comments? If so, please state here: Thanks for consideration!
- 50. Page 42 REFERENCES Books and Journals Bangs, H. D., 2002. Business Planning Guide. 9th ed. USA: Dearbourn Financial Publications. Chesbrough, H. and Rosenbloom, R. S., 2002 The Role of the Business Model in capturing value from Innovation: Evidence from XEROX Corporation’s Technology Spinoff Companies. Boston, Massachusetts: Harvard Business School. Dayananda, D. et al, 2002. Capital Budgeting: Financial appraisal of investment projects. Cambridge University Press. pp. 150. th Online City Guide - Ulaanbaatar – Restaurants. 2012. [Online] Available at: <http://www.mad- mongolia.com/category/ulaanbaatar-city-guide/restaurants-nightlife/restaurants/> [Accessed 21st October 2012]. Conducting a Feasibility Analysis and Crafting a Winning Business Plan. n.d. [Online] Available at: <http://www.prenhall.com/behindthebook/0132294389/pdf/Zimmerer_CH04.pdf>. [Accessed 22nd October 2012]. This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 51. Page 43 Cost of Living in Ulaanbaatar, Mongolia. 2012. [Online] Available at:<http://www.numbeo.com/cost-of- living/city_result.jsp?country=Mongolia&city=Ulaanbaatar> [Accessed 22nd October 2012]. Dealing with Construction Permits in Mongolia. 2012. The World Bank, [Online] Available at: <http://www.doingbusiness.org/data/exploreeconomies/mongolia/dealing-with- construction-permits/>. [Accessed 20th October 2012]. Developmental Biology. 2010. Ulaanbaatar foundation, [pdf] 28 th March. Available at: <http://ulanbatorfoundation.org/UBF/CaMMP%20Program%20News_files/Hospital_ Proposal.pdf>. [Accessed 22nd October 2012]. Doing Business Guide in Mongolia. 2012. [pdf] Available at: <http://www.pwc.com/en_MN/mn/publication/assets/doing-business-in- mongolia.pdf>. [Accessed 25th October 2012]. Fast4cast, 2012. Break Even analysis. [Online] Available at:<http://www.3s4.org.uk/looking- out/what-is-strategic-analysis> [Accessed 22nd October 2012]. Gantt chart: planning and scheduling. n.d. [Online]. Available at: < http://www.ganttchart.in/>. [Accessed on 20th July 2012]. GanttPoject. 2011. [Online] Available at: <http://www.ganttproject.biz/>. [Accessed on 10th October 2012]. Griffin, C., and Hammis, D., n.d. Assistance not Assessment: Getting at the Heart of Small Business Feasibility. [pdf] Available at: <http://www.griffinhammis.com/publications/Assistance_not_Assessment.pdf>. [Accessed 20th October 2012]. Hallberg, R., 2012. Invest in Mongolia – The New Wild West Of Investing. [Online] Available at:< http://www.contrarian-investor.com/invest-in-mongolia.html> [Assessed on 29th Oct, 2012]. Happy Mongolia, 2012. Yurt for Sale. [Online] Available at:<http://www.happymongolia.net/ger-export.html> [Accessed 22nd October 2012]. Japan Mongolia Business Workshops. 2012. The Business Council, [Online] Available at: <http://www.bcmongolia.org/bcm-news>. [Accessed 24th October 2012]. Joseph, C. n.d. Pros & Cons of Opening a Restaurant. [Online] Available at:<http://smallbusiness.chron.com/pros-cons-opening-restaurant-4742.html> [Accessed 22nd October 2012]. MAD Investment Solution, 2012. Ulaanbaatar Real Estate Areas. [Online] Available at:< http://www.mad-mongolia.com/resources/ulaanbaatar-overview/ulaanbaatar-areas/> [Accessed 22nd October 2012]. Ministry of Road, Transport and Tourism. n.d. [pdf] Available at: <http://www.investmongolia.com/forum/projects/tusul81.pdf>. [Accessed 25th October 2012].
- 52. Page 44 Mongolia - The Economy. n.d. [Online] Available at: <http://www.mongabay.com/reference/country_studies/mongolia/ECONOMY.html>. [Accessed 24th October 2012]. Mongolia looks to tourism to diversify its economy. 2012. World Tourism Organization UNWTO, [Online] Available at: <http://media.unwto.org/en/news/2012-08- 07/mongolia-looks-tourism-diversify-its-economy>. [Accessed 21st October 2012]. Mongolia Monthly Economic Update World Bank. 2012. [pdf] Available at: <http://www.mongolbank.mn/documents/moneypolicy/Mongolia_Quarterly12010_fu ll.pdf>. [Accessed 23rd October 2012]. The Abilities Fund. 2012. [Online] Available at: <http://www.abilitiesfund.org/resources/feasibility_101.php>. [Accessed 22 nd October 2012]. The Center for Hospitality Research of Cornell University, 2008. Success and Failure in Northern California: Critical Success Factors for Independent Restaurants. [Online] Available at:<http://www.uk.sagepub.com/chaston/Chaston%20Web%20readings%20chapters This is Sample Assignment, for complete Assignment kindly contact at [email protected]
- 53. Page 45 %201-12/Chapter%204%20-%2013%20Camillo%20et%20al.pdf> [Accessed 22nd October 2012]. Ulaanbaatar Restaurants. n.d. [Online] Available at: <http://www.tripadvisor.in/Restaurants- g293956-Ulaanbaatar.html>. [Accessed 22nd October 2012]. What is strategic analysis?, n.d. [Online] Available at:< http://www.3s4.org.uk/looking- out/what-is-strategic-analysis> [Accessed 22nd October 2012].
- 54. Page 46 BIBLIOGRAPHY http://www.numbeo.com/cost-of-living/city_result.jsp?country=Mongolia&city=Ulaanbaatar http://forum.ls-rp.com/viewtopic.php?f=614&t=225776 http://www.mongolian-ways.com/culture.htm http://www.bplans.com/fast_food_restaurant_business_plan/financial_plan_fc.php#.UIUTw W_Miot http://canadabusiness.ca/eng/page/2747 This is Sample Assignment, for complete Assignment kindly contact at [email protected]
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GEB 6895: Integrated Business Applications
- Getting Started
Introduction
First, find your naics code, second, use the company directories to find more information, third, use a market research database to find information about the industry, fourth, look up articles in local news sources, fifth, look up articles in trade magazines and journals.
- Business Plan: Company Research
- Business Plan: Industry Research
- Business Plan: Market Research
- Business Plan: Economic & Demographic Data
- Assignment: Business Plan - Textbook and Examples
- Citing Business Resources
- Additional Resources
Finding information about companies -- especially small, local companies -- can be difficult. There is no, one source that can answer every question. Instead, it will require the use of both Internet sources and library databases. The steps on this page can help you get started with your research by suggesting some basic databases you can use to located information about your company/business and its business environment. You can then use the resources on the following pages to continue your research.
If you have any questions, contact your librarian. My information is in the left-hand column. Also, I've included a link to an online book that provides suggestions for doing local business research.
Let's get started.
The NAICS (North American Industrial Classification System) Code is used by the U.S. Government to gather and disseminate information about industries. There are a couple different ways to find a NAICS code.
If you already know a company you are researching, look them up in one of the library's company directories. The NAICS code will be provided in a company details section or an industry details section.
Try these directories to get started:
- Mergent Intellect Information on public and private companies together with consumer data and business directory information.
Use one of the public available search sites to search by industry, such as 'pet stores'.
- North American Industry Classification System (NAICS) Searchable database of standards used to identify, collect, analyze, and publish statistical data related to the U.S. business economy. more... less... Official, from the U.S. Census
- NAICS Association Publicly available NAICS Search
Both Mergent Intellect and Nexis Uni can provide more information about the company and the industry. Try looking through the tabs across the top (Mergent) or on the side (Nexis) to see what other information may be available.
You can use one of the library's marketing databases (and the NAICS code) to find comprehensive information about an industry. Here are some suggestions:
- IBISWorld Industry research and analysis including risk ratings and procurement reports.
- Business Insights: Essentials Company and industry profiles, SWOT reports, and market share and financial reports covering consumer goods, energy, financial services, healthcare, technology, telecoms, e-commerce, and human resources.
Use these tools to find information about your company and the local business environment in local news sources.
- Nexis Uni more... less... Includes Tampa Bay Times and Tampa Bay Business Journal
- Access World News Full text news from national and international sources including specific information about local companies, politics, sports, industries and culture.
Use the library's databases to look up articles and industry news in trade publications. Whether it's Ratchet+Wrench for auto repair or Supermarket News for grocery stores, these publications can help you collect current information about the state of the business. Use the NAICS code you found in Step 1 to limit by industry.
- ABI/INFORM Global In-depth coverage of business and management trends, practices, theory and tactics. Mostly full text publications with coverage from 1855 forward.
- Business Source Premier Full text articles from journals and magazines covering business subjects including accounting, finance, economics, marketing, MIS, and operations management, spanning from 1886 to the present.
- Next: Business Plan: Company Research >>
- Last Updated: Dec 22, 2022 4:50 PM
- URL: https://guides.lib.usf.edu/geb6895
Business Plan Assignment
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Howtos > How to complete a Business Plan Assignment?
Why do people need a business plan, importance and benefits of writing a business plan, components of a business plan, 1. executive summary, 2. company description, 3. sales strategy.
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Business Plan Assignment
Business plan assignment .
Assignment 01
Executive Summary
Your perfect event starts here. Happiness Event Company is the perfect choice when having to provide a solution to all your event planning requirements. We take pride in ourselves for getting success in delivering our customers a perfectly personalized event management and coordination services.
To put it simply, we create strategic integrated shareable brand experience for our customers and to help them plan their own events with our products. Our Fully customizable party kits (full package for organizing a party) help the customers to make their events a unique creative challenge deserving of a one-of-a-kind approach.
This complete business plan includes describing our whole industry and the reason of us choosing this business. We have broadly determined the services and facilities provided by us as well in the plan. The unique and fresh ideas provided by our professionals make our company a customer favorite and the cost-effective margin charge makes us reliable to the customers.
We have also included our marketing plan, development plan and operation plan in this document. We have tried to determine our break-even analysis and we are proud to state that we can recover our initial investment within the second year of the operation.
The last and final part of this report includes our assuming final projection and according to that, we can joyfully say that the projection shows the generation of on an average over 10% profit margin within the end of this year.
Industry Analysis
Industry analysis is the important because help to understand the market position of related business. We want to startup a business as an event management. Before starting a business, we have to analysis the opportunities, market, customers demand, participant and prospect of this business in Bangladesh.
Company Description
In the company description we provide our organization's overall assessment in brief to inform our reader what our organization is and what is its mission and legal formation and so on.
Company History
Name of the Venture
The name of our event management firm will be known as
Happiness Event Management As we start this is all field together that’s how we choose this following idea
We also choose a tagline and that is
Events🡪 Together🡪 Being Happy🡪Memories
Legal Registration
For the purpose of registration, the entrepreneur must acquire the following licenses.
Trade License – From Dhaka City Corporation
Article of Incorporation – From Registrar of Joint Stock Company
Tax Certificate – From National Board of Happiness Event
Why Choose Event Management Business
As we observe our country is enriched with culture, functions, event. This idea has come over our mind as in our country we don’t have enough event management organization and if we want to show the world our cultures than we have to present our cultural functions. As we see lots of international and national events on TV as well as on our personal appearance in different events which encourage us to choose this as our business. Moreover, this industry is small enough currently where we have to face less competitors. So, assuming all these things we think this is the business we can choose as our own business and thus the idea of Happiness Event Management turns into our business goal.
Mission Statement
Mission of Happiness Event Management will be to provide outstanding service in the areas that we served.
We Plan & Design Events
That Creates Memories
Management has a clear vision to ensure clients satisfaction and loyalty. As every event has to be perfect social, technical and creative fit, we have a collaborative approach to all the projects.
Market analysis
A market analysis provides information about industries, customers, competitors, and other market variables. we also determine the relationship between supply and demand about our Event Management service. In this part we segment our market and select our target market.
Market Segmentation
In our country the prospect of Event management is very good.
This market can be distributed into three major segments.
1. The corporate clients
2. The non-corporate clients
3. The Bangladesh Government
The corporate clients
This section includes multinational companies, public and private limited companies, financial and non-financial institutions, joint ventures, franchises, small businesses, NGOs, research institutions, private and public educational institutions, social marketing companies, theater groups, cultural forums etc.
The non-corporate clients
This section includes marriages, get together, birthday party for the children, concert, family function and as well as social functions.
The Bangladesh Government
Another major segment in this market is the Bangladesh Government. Each year the Bangladesh Government hosts a variety of programs.
In addition, a study revealed that the customers are very much interested in event management services.
66% of the consumers said that they are willing to appoint an event management company to organize their events if the price is affordable.
59% of the customers claimed that they do not possess the necessary expertise to conduct a big personal event successfully without outside help.
68% of the customers claimed that they would appoint an event management company to save time.
22% will do it because it will make their life hassle free.
After all analysis, Happiness Event managements target market will be
MNC and other big and small local companies which want professionalism and one stop service in managing their events.
People who are well aware of the huge amount of time and hassle it takes to arrange an event personally and also well aware of the usefulness of the professional help in arranging their personal event.
The Bangladesh Government who sponsors a number of events every year.
Estimate of Annual Sales
Sale Forecast
Service or product line
Happiness event management is service based business, we offer reasonable product or service to support our customer.
The following products and service we provide we uses the best tools.
Party Pack
This pack can complete any party. It includes decoration, lighting effects guide, cameras, cutlery, plates, napkins, cups, tablecloths, theme, music, invitations and step by step guideline
Happiness event management provide in wide range of applications. We try to make sure our services satisfied customer. The sample of the types of events we will plan
in a year:
1.Meetings, Trainings and Retreat
2.Birthday, Anniversaries, Graduation
3. Wedding, Receptions and Shower
4.Goverment Events
5.Conference
We try to put above events in 4 categorized
1.Customized Corporate event
2.Creative Corporate event
3.Customized Personal event
4.Government event
Marketing and Sales
Marketing is the process by which company create value for customer and in exchange successful relation with customer. Event management marketing strategy is different from other business. It mainly sales various service and in exchange take money from customer. Event management is a service business. It mainly provides service. It might be a tool for strategic marketing and communication, used by companies of every size. In this business marketing, communication is very important. So, we follow this idea so much. First, I ensure every people who engaged with our company, their communication skill should be strong. So that they communicate easily with each other and customer by which satisfied customer and good relation with customer. We can also invite our audience to our events and reach them at the actual event. So that we create many strategic and idea which help us to do a perfect marketing plan. These ideas are
#A website for our business
#Build a high-converting landing page.
#Promote events on social media.
#Take advantages of FOMO.
#Encourage user-generated content.
#Engage attendance with email automation.
Promotion on social media
Follow these strategic we lead our marketing process which help us to build up a successful company. The company actually create service and sells it. Nowadays, people should not want to work. So, when they celebrate any occasion, they want helped from any event management by which they can free and enjoy the occasion. Our company provide and sells this service. We give right service from customer desire by which satisfied customer. Our main goal is customer satisfaction and stand the company with success. So that, we create right marketing planning and sells best service for customer satisfaction. Follow this strategic, we can stand the business with success.
Funding
A great idea is not enough for stabiles a business. Foe growing a business funding is important because some survey says the capital is one of the major problems for failing a business. Getting money for further business development is not “a piece of cake” For getting fund there are some steps. Steps are
🡪 Growing a startup idea on a solid base 🡪 Capturing as much of the market in as little time as possible
🡪Getting additional value from your investors.
🡪Attracting the attention of the market and the future investors by having business funding
We take funds from
1.Local bank
2.An online company
3. Partners
4. Friends and Family
5. Venture capitalists
Financial Projection
The final section of our business plan presents financial projections. The Financial projection takes the plans we have developed and expresses them in financial terms. It includes source of funds and balance sheet.
Source of funds
Our main source of fund is the contribution of the owners and borrowing.
The portion of funding given as follows:
Balance Sheet
A hypothetical balance sheet for upcoming year has been shown below:
Balance Sheet
Assignment 02
Business Plan Assignment is pretty common and very easy. Teachers Loves this assignment and often give it as a task. There are some Basics points for planning or Writing A business Plan , here are they
use this points on your assignment or task . Here is a basic and simple example of Business Plan Assignment
To become self-contained individuals and introduce a new type of digital shop to the people of Gopalganj, we ''The Starks'' six close friends are willing to start a fully digitalized grocery business. Our plan is to sell all types of daily necessary things under one roof. For opening the business our estimated cost will be 20 million takas.
We visited some plots at Gopalganj Sadar lakeside area and chose 4300 sq. Meter plot. It is on and research among us, we figure out that 25 employees will be enough for us in the beginning period of our business. If we can survive for a while I hope, we can expand our business and go farther.
Making a modern shop which will sell every daily necessary goods via online or physically is our business plan. There are so many online sites here doing business in our country. And they are really doing good. But the problem is that almost all of the sites or companies are doing business on a large scale all over the country. So they target a general type of people who can make an effort. None of their businesses are in any particular area.
So we are going to make something that will be effective, reasonable and affordable for Gopalganj's Residence. This is also our motto and our shop's name will be "ERA". We want to sell things with a marginable prize. Our plan is less profit per product but selling to a huge number of customers. We have a pretty basic business structure. Puja is responsible for the decoration. Mamun with support of some employees will look after the chain of supply. Bibhutos is good at accounting. So he is going to take the responsibility of every financial matter.
Yasir is the most veteran person among us. So he is up to the sales unit. Shahriar will also help him to control the online part of the business. And I will be looking after the marketing department and also I will coordinate everything. Gopalganj Sadar and around it's Residence area is our target for business and so our shop is located at the heart of the city, in front of the Stadium. From buying the plot to starting an online service, our estimated cost is 20 million takas. Here is a chart which will show the sectors of expense.
Market Analysis
Gopalganj city is full with public servants, university and medical students. These types of customers are our target basically. These types of customers are always looking for good products but they want them at a reasonable price. But there are so many people who live here who have the ability to buy anything they want. If we provide good service, they will notice us too.
Providing things at a good prize is a genre that always helps a new business. So, we are going to use it. In short, we want to grab the middle class and above.
Because they can understand the quality and price and they also want to have online order service which is also a part of our business.
Currently our online competitors are Daraz, Ali express etc. But they don't sell root level products that we are going to sell like toothpicks, cotton bars etc. And they don't sell groceries. But the best thing is there is no one root shop in Gopalganj. So it will be a good benefit for us.
Organization and Management
"EAR" is going to be a partnership business. Each of us, that means six partners will hold equal revenue and profit. The reason why we started as partners is because alone we can't build. Such a type of business. When you have partners that means you have someone to hold your back in bad times.
We six agreed on some things and signed a deed. That says if it is needed we will change our business entity. We will run our business by discussion and talking to each other. A famous person with a good reputation will fill our business to run.
Service Or Products
We will sell groceries, dry food, drinking water, fruits, tools, daily needed products, fresh meats, fish and shrimps etc. People can buy these from our shop or order them on our website. Our delivery personnel will deliver orders within 1 hour.
We have varieties of products. So their life cycle not same, dry food, fish, meat has a life cycle of
1-3 days. Groceries have 15 days to 6 months and other things could have a life cycle of years.
There are no one roof shops here in Gopalganj. So in the beginning we will not face any big of Marketing Challenges which others face having competitions. But our online market will face problems because there is competition. Who is doing business right now. But we can deliver products within 1 hour. Same quality, same price, sometimes less other companies will need 2 or 3 days. While we can deliver in 1 hour. Thus our products and service will solve the long time duration delivery problem. Our business doesn't have any issue with copyright or patents. So we do not have any plan on this matter.
Marketing And Sales
Well our business is pretty local. So our market plan has to reach the locals. Every winter the DC of Gopalganj arranges a fair at the river side of the main town. Covering the fair will spread our name. We will also through commercials on some Gopalganj based YouTube and local cable channels.
People can buy products directly from our shop or they can order their necessary goods via online. We’ve already built an app from which propel can order. They can view and verify their needed things. They can scanch them and compare them as well. Produced and expired dates will also be provided and the payment method is also simple. Buyers can pay via Bkash, Rocket, Nagad even with a visa card. Our profit margin is not that big, otherwise we want to make our sales range enormous.
Funding Request
Funding is the toughest part off a business. According to our estimate and research we will need 20 million takas to start our business. Our plan is to take a loan from a local bank to finance our business. All of our partners have same assets back to their families. Total of our assets will be enough for our "Bank Sarity" we have a 4 years plan to payback the Bank. Our business will be a running business. So we can get back a huge portion of our money very soon. Two of our partners fathers are going to retire within two years. They will help us to pay back debt. It will be a huge support for us because by this we can avoid an enormous growth of bank interest. So we will pack to the parents not to the bank and we will not pursue debt financing
Financial Projection
Financial Projections Well we figure out that if we can stick to our plan and hold our account and finances fight we get a good profit. If everything goes right and we can achieve at least 5% market share, we can get back 35-43% of our investment. But if things go the opposite way and become dirty then we also have some back up plans. But if we can't get back 20% of our investment back and increase our revenue that means we have to quit our business. If we really need to quit then we will sell all the assets we have, return money back to the bank and exit the business.
[ Based on Bangladeshi Business Environment ]
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These resources will assist you as you complete your assignment of creating a business plan. Not all business plans are created equal
Your team will need to come up with a business plan for a product or service. I have uploaded a document which will be helpful in completing
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Addis Ababa Medical and business College Department of Accounting Business. Global Internet Café Business Plan Assignment One. Done by Edom Tilahun.
H: Personnel Needs: State who will do what and who will report to whom. Create a simple organizational charge that will show working relationships. J: Hiring
Describe who you are, including your business name and your very own name. Investors are not just interested in the business but the person that started it; the
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Business Plan Assignment · 66% of the consumers said that they are willing to appoint an event management company to organize their events if the