Analysis Of Investments & Management Of Portfolios: Business Plan For Cooking Burger Shop

Business description

Discuss about the Analysis Of Investments & Management Of Portfolios.

The name of the business would be “Cooking Burger Shop”. It would be a cafe in the Sydney, Australia. The main products of the cafe would be French fries, burger, pizza, fried chicken, fish, onion rings, sandwiches, chips, pitas, hamburgers, ice cream, tacos, hot dogs etc. the main services of the company includes home delivery and take away. The sitting area of the cafe would also be designed in a better way so that the customers could be attracted to enjoy the dine-in services of the cafe. The theme of the cafe would be on Hollywood (Kaplan and Atkinson, 2015).

The Cafe would be a partnership business. In which 3 people would come into an agreement and register the firm as a partnership firm. The partnership would be unlimited. All the profits and losses would be divided in equal proportion and the contribution of all the three partners would also be same.

The business strategy of the cafe would be delivered the best services and the products to the customers of cafe so that the customers could be loyal and new branches could be opened by the company (Hogarth and Makridakis, 2011).

The owner of the company would be Maggie, Chris, poppy and Arvin. Maggie is good in managing the customers and the Chris handles the interior designs of the cafe. Poppy is better in handling the marketing structure and operation of the company and lastly, Arvin is better in cooking. He is a good chef.

As discussed in the business description area, the main products of the cafe would be French fries, burger, pizza, fried chicken, fish, onion rings, sandwiches, chips, pitas, hamburgers, ice cream, tacos, hot dogs etc. the main services of the company includes home delivery and take away.

Target market of the cafe would be office people and the students as the location of the cafe is near to the university so more students would be attracted towards the business of the company. The products of the company are also according to the students and youth (Besley and Brigham, 2008).

The Australian industry of restaurants has been evaluated and it has been found that the growth rate of the industry is quite better. Though, various existing players are there in the market which has already grabbed the market such as McDonalds, Pizza hut, subway etc. the Cooking Burger Shop should focus on the quality and the pricing of the product s should also be reasonable (Titman and Martin, 2014). It would only help the cafe to manage the performance.

Ownership and legal structure

The hunger plant must use the print media and the radio advertisement to promote the cafe. Cooking Burger Shop could also distribute some coupons to the student of the university to promote the business. The marketing strategy of the company should also include the pricing strategy. The pricing of the cafe should be penetration strategy.

The organization structure defines about a structure which is drawn to analyze that how the information would be flow in the organization to achieve the goal of the company. In case of Cooking Burger Shop, organizational structure of the company would be hybrid organizational structure in which the business could run its activities in more diversifying way (Armstrong et al, 2015). It is crucial and beneficial for the small businesses where the fewer employees are there to manage the operations of the company

The cafe should register for the food business license firstly. Only after this certificate, company should start the business. Further, food safety certificates should also be acquired by the company to prove the quality of the products of the company.

The cafe is required to take professional advice from their lawyer and the accountant about the process and the activities of the business. This advice would make it easier for the managers to make better decision about the business.

The business would be located in Sydney near the university. So that the students and the youth could easily be grabbed and there are no other cafes so the competition level of the cafe would also be lower (Fine, 2017).

Various machineries and equipments would be required for the business. The below table explains about the equipments and their prices:

(Westwood, 2016)

The service retail process of the company includes about the suppliers, trading hours, credit policy and payment types of the company. Suppliers of the company would be retail market and the cafe would run from 10 am to 10 pm. The payment could be done through credit, debit cards and cash. There is no credit policy of the company.

The key sustainability consideration of the company is to reach on the breakeven point in on year of the operations of the company (Paley, 2017). The business should also focus on making the customers more loyal so that the new branches of the cafe could be open soon.

The operating process of the business explains about the better position and the performance of the company.

Business strategy

The business requires various funds to start the business and run the operations and the activities of the business. Funding is the amount which is raised by a business from various sources to run the activities of the business. The funding should be generated by the business before the ending of June so that the other activities of the company could be managed accordingly. The funding of the business is mostly generated from the contribution of the business owners. The contribution of the partners to the business is as follows:

Company should also have to raise the funds from the bank to carry the business. $ 40,000 would be lent by the business from the ANZ bank. The bank has charged the 3.85% interest rate on the business (Lidstone and MacLennan, 2017). And the loan has been sanctioned for 5 years. After that, the tax amount would be paid by the business in EMIs. Thus the total capital of the business would be $ 1,60,000.

The financial forecast of the company has been done further to analyze that what would be the performance of the company in next 1 year. The monthly sales, purchase, expenses, cash receipts and cash payment of the company has been evaluated for the forecast purpose.

Firstly start up cost of the company has been evaluated and it has been found that the company has to spend $ 1,29,205 at initial stage against the machineries and equipment of the company (Appendix). Further, the monthly sales of the company have been evaluated and it has been recognized that the total sales of the company would be vary in next 12 months of the company (Madhura, 2011). In march, the sales of the company would be $ 18,800 which would further be decreased to $ 13,932 per month. The sales of the company have been affected due to various changes in the industry of the company.

The sales budget of the comapny explains that the market position and the turnover position of the company would be better and it would lead to the business to the better profitability level (Gibson, 2011). The purchase budget of the company has been discussed further and it has been evaluated that the purchase units of the company would be 1812 in first month and it would lead to production of 1138.2 units in the last month of the year.  It explains that the position of the company would be stronger in near future and the company would be able to generate higher profit (Higgins, 2012).

Marketing

The breakeven level of the company has also been discussed and it has been found that the company should sales at least 17,783 units to reach over a point where the sales and the cost of the company would be same and no extra profit would be gained by the company (Brown, 2012). Further, the study has been done on various other budgets of the company such as selling and administrative budget, cost of revenue budget, accounts receivable budget, cash collection budget, cash payment budget, cash budget etc of the company and it has been found that the company would be stronger in near future and the company would be able to generate higher profit.

The calculations of each budget have been given in the appendix to make it easier for the organization to make the profits and manage the performance in the market.  The cash budget of the company explains that the cash flow of the company would be positive in initial months and it would lead to negative cash flows. so the company is required to maintain the cash position of the company which could be better and the company could invest into the projects and the activities of the company (Brooks, 2015).

The income statement of the company also briefs about the better performance of the company. the income statement of the company explains that in the first year, the net profit of the company would be $ 1804 which could be managed by the company in the next year as the performance of the company has been enhanced as well it has also impacted on the total revenue of the company.

The business plan should be implemented by the partners in August, 2018. The company should focus on each of the element first and the strategy should be planned before starting the business as well as the inventory and equipment should also be managed and bought by the business before. The business is also required to hire 2 chefs and the 5 labour staff for the business which should also be done before the August. So that the opening of the business could be grant and no sudden risk is faced by the company in near days (Paley, 2017).

The entire activities of the business should be completed before the August, 2018.

Conclusion:

To conclude, the business plan explains that if the business plan would be implemented perfectly by the business owners than the business would offer huge profits to the cafe. The market share of the company would be better in few months and it would lead to the business to huge profits. Further, it explains that the profitability level of the business would be better in next 12 months. The costing and the operational activities are required to be focus by the business as it would also enhance rapidly with the increment in the turnover of the business. Though, the business plan is a better opportunity for the business owners to invest their money and enjoy the profits from the market.

References:

Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.

Besley, S. and Brigham, E.F., 2008. Essentials of managerial finance. Thomson South-Western.

Brooks, R., 2015. Financial management: core concepts. Pearson.

Brown, R., 2012. Analysis of investments & management of portfolios. Pearson Higher Ed.

da Silva, E.C. and Las Casas, A.L., 2017. Sports Marketing Plan: An Alternative Framework for Sports Club. International Journal of Marketing Studies, 9(4), p.15.

Fine, S.H., 2017. Introduction to social marketing. In Marketing the Public Sector (pp. 1-12). Routledge.

Fridson, M.S. and Alvarez, F., 2011. Financial statement analysis: a practitioner’s guide (Vol. 597). John Wiley & Sons.

Gibson, C.H., 2011. Financial reporting and analysis. South-Western Cengage Learning.

Higgins, R.C., 2012. Analysis for financial management. McGraw-Hill/Irwin.

Hogarth, R.M. and Makridakis, S., 2011. Forecasting and planning: An evaluation. Management science, 27(2), pp.115-138.

Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.

Lidstone, J. and MacLennan, J., 2017. Marketing planning for the pharmaceutical industry. Routledge.

Madura, J., 2011. International financial management. Cengage Learning.

Paley, N., 2017. How to Develop a Strategic Marketing Plan: A step-by-step guide. Routledge.

Titman, S. and Martin, J.D., 2014. Valuation. Pearson Higher Ed.

Westwood, J., 2016. How to write a marketing plan. Kogan Page Publishers.

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