Business Plan For A Healthy Restaurant

Business Overview

The report is a business plan. In this business plan, the products, services, business structure and the financial projections of the business has been done in order to identify the performance of the business and whether the business would be able to meet the common objectives in near future. The estimated P&L, balance sheet and the cash flow statement of the business has been prepared for next 3 years in the business.

The business plan is related to a restaurant which would be opened at central business district in the Australian market.  The restaurant is enough convenient to reach because of its location. The main aim of the business is to provide healthier choices to the target audience. The target audience of the business is office and professional people who are working in the nearby offices and the university student who are living around the restaurant. The quality and the interior would be chosen in the business in such a way that the customers could be attracted towards the business and become the loyal customers (Brinckmann and Kim, 2015).

Along with the various verities of the healthier food products and beverages, the restaurant would also offer additional services to its customers such as free Wi-Fi, pool area sitting, library etc. which would improve the footfall in the business. The ambience of the cafe would be prepared in such a way that the target customers of the business could be attracted and the total turnover of the business could be improved (Finch, 2016). Each of the customers would be asked to fill a feedback form at initial level and the continuous surveys and questionnaire would also be filled by the business to identify the demand of the customers and food trends so that the revenant changes could be done in the business.  

The main mission and vision of the business is to open a restaurant which could offer the healthier choices to its target customers so that the demand of the food products could be improved and the total revenue of the business could be improved. The quality and the services are the top priority of the business (Gibson, 2011). The genuine, caring and reliable services would be offered to each of the customers of the business so that the occupancy rate in the restaurant could be improved.

Business structure of the business has been decided further. The restaurant would be a partnership business which would be run by the 3 partners. The name of the partners is John, Cally and Karl. Each of the partners are enough experienced and qualified to run the business smoothly. The partnership share and the introduced capital of each of the partners are as follows:

Partnership business is owned and operated by several individuals together in order to meet the common objectives of the business. It is limited to the capital and partnership share of each of the partner. Partnerships business is better choice for the business structure as the liability level is reduced and the business could be run at easier level. In the restaurant, all the partners would run the business effectively (Brigham and Daves, 2012). As John has experience of marketing, Cally is a chef and the Karl has experience of financial management. It would make a better bond and the business operations would also be easier.

On the basis of the business planning and market study, the following estimations about the expenses, revenue, initial cost, resources, cash etc has been done:

• The initial cost of the business has been studied firstly and it has been recognized that the total initial cost of the business would be around $ 9450 because of the additional expenses and the equipment of the business. The list of the start up expenses has been given as follows:

(Brown, 2012)

• Further, the estimated profit and loss statement of the business has been prepared to examine the total revenue and expenses of the business for next 3 years. On the basis of the computation, it has been found that the total sales of the business would be $ 6050 at initial year which would be improved to 4 8112.5 and $ 11168.44 in next 2 years. Along with that, the expenses of the business would also alter.
• The calculations express that the gross margin level of the business would be reduced from 61/5 to 58% but along with that, positive changes have been seen in the net margin % of the company. It would be improved to 29% to 34% in next 3 years (Brooks, 2015).
• the break up analysis of the business explains that minimum sales of the business must be $ 3079.56 in order to cover up all the cost of the business and on the basis of estimations, it has been realized that the business would be able to meet the breakeven point at initial year itself and the margin of safety of the business is as so higher.
• Further, the balance sheet of the business has been studied and it has been recognized that the resources requirement would be changed in the business on the basis of the demand and the requirement of the business. The given computation in the appendix describe about the total resources which would be required by the business in next 3 years (Higgins, 2012).
• The overall performance of the business describe that the resources level of the business is better as well as the financial leverage risk and the liquidity risk of the business would also be lower.
• Lastly, the study has been performed on the cash flow statement of the business and it has been recognized that the total cash of the company at the initial yea would be 4360. The details about the different cash flow from different activities have been given in the appendix area.
• the estimations and the financial projections of the restaurant explains that along with the time, various changes would take place in the business and the current study on the market, food preferences and the demand of customers explains that the business would run efficiently in the market and it would be able to make enough profits from the market.

Conclusion:

To conclude, the business is offering the product and services both t the customers along with a great ambience which would help the business to maintain the goodwill and loyalty at better level. the business structure, mission and visions etc has been set after researching on the market as well as the partners of the business are also qualified enough, In addition, the financial projections of the business also express that the business would be able to make enough profits from the market. The BEP level would also be achieved by the business at the first year of the commencement which leads to the conclusion that the business plan is a great idea to apply and meet the goals of the business.

References:

Brigham, E. and Daves, P., 2012. Intermediate financial management. Nelson Education.

Brinckmann, J. and Kim, S.M., 2015. Why we plan: the impact of nascent entrepreneurs’ cognitive characteristics and human capital on business planning. Strategic entrepreneurship journal, 9(2), pp.153-166.

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

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

Finch, B., 2016. How to write a business plan. Kogan Page Publishers.

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

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

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