Business planning Essay
I am going to produce a business plan for an enterprise that I am setting up. The enterprise is going to be a restaurant, which is privately owned by me, which is known as Sole trader. My enterprise is going to be in secondary and tertiary sector because I will be making and serving foods to my customers. The plan is going to involve analysing and developing an understanding of the market in which my business will operate the resource requirements of producing and marketing my product and a financial plan for my product or service.
The plan will include details on my business’s objectives, proposed operations, resource requirements and the financial forecasts. My business planning will involve researching and collecting information, evaluating and analysing information and then presenting the relevant findings in a format, which can be used to improve my decision-making. My business legal status can be organised by its name, which is Keemto restaurant. The long-term goal of Keemto restaurant is to become the best choice of Nigerian restaurant in London.
I plan to be more than a great restaurant, create an environment of pampered luxury that surpasses the standard fare for other Nigerian restaurant. Expanding my exposure by
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In addition to providing a quality product and an extensive menu of delicious items, to ensure customer awareness and loyalty, as well as good publicity coverage and media support, I will be donating up to 5% of revenue to local charities based upon customer choices. Keemto’s financial picture is quite promising. Since Keemto is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labour intensive and Keemto recognises that a high level of talent is required.
The financial investment in its employees will be one of the greatest differentiators between it and competition. The capital expenditures of facilities and equipment are financed. There will be minimum inventory on hand so as to keep the product fresh and to take advantage of price drops when and if they should occur. Keemto anticipates the initial combination of investments and long term financing of i?? 215,000 to carry it without the need for any additional equity or debt investment, beyond the purchase of equipment or facilities.
This will mean growing a bit more slowly than might be otherwise possible, but it will be a solid, financially sound growth based on customer request and product demand. My product I have selected a restaurant because there is high demand in the UK as well that there is a reasonable amount of profit, which can be made if the business is planned out correctly. One of the reasons why demand is so high is that more women than ever before are going to work and therefore have less time to cook ending up in a suitable restaurant. I’ll be selling fresh Nigerian foods, beers, fruit drinks and wines.
I decided to start with these products because they aim at mass market and every age group of Nigerians in the market will purchase one product or the other, by doing this I’ll make money from one product or the other. Business aim My aim for the business is to get the right number of customers in the first month and be able to get trust and loyalty from my customers and the community. I’ve decided to start paying back the bank loan two years after starting my business so that I’ll be able to afford the business. I aim to make 60% profits from my sales.
I also aim to provide quality product, extensive menu of delicious foods, ensure customer awareness and loyalty and also have good publicity. I use my market analysis to draw up a marketing plan. The aim is to show the sales the business intends to achieve and how they will be achieved. The menu prices for keemto will be some how higher than some comparable dishes of other Nigeria restaurant. It will not be a fast food restaurant although quick service will be offered either at a counter or at sit down tables. Take away service will also be available.
A restaurant such as keemto will be a welcome change and relief to students and professionals. Keemto will be open for business seven days a week. Initially it will provide lunch and dinner service to its patrons remaining open until the early hours of the evening. Both cold and hot dish selections together with unique desserts will be available. In the view of the proposed location of keemto, the anticipated restaurant business should be excellent. Market research I have carried out observation of the type of people that buy food at Nigerian restaurant and their suppliers.
Doing this gave me some idea of the type of people that purchase food from the restaurant, their age group, what they do for a living and why they buy from the restaurant. I have checked other Nigerian restaurant’s menu in order to help me decide on setting a reasonable price. In order for me to set a reasonable price, I will ask my competitors’ customers how much they are ready to pay putting into consideration the cost of production. Below is the questionnaire and results I handed out to people outside a Nigerian restaurant.
I have also carried out a competitor analysis by identifying possible competitors by using local trade and telephone directories. I also pretend to be a mystery shopper, this way I was able to see the complete product range, compare prices including special offers and means of payment and examine thee layout of the restaurant. I was very impressed with the viewing at Jerry’s which allowed customers to see the food they were been served. I also phoned Jerry’s and Ronky to check the quality of service and stood opposite the restaurant to get some idea of the demand and to find out their busy periods.
Following this analysis I decided to benchmark Jerry’s as my main competitor. Secondary research I consult the local business link via the Internet on www. caci. co. uk/acorn and looked for details of local employment and population trends and also visit the local library to look at the local trade directories to find out about competition. My restaurant will be located in Homerton High Street. I chose this location because it’s where wealthy families and young qualified people live. Acorn website showed me their family income, interest and demographic segmentation.
I then used this information to decide to sell my products to customers’ aged 16-65. I also discover that Jerry’s tend to be a restaurants with bar and Ronky sell just foods. I hope to gain demand to supply both restaurant and bar. Sales are expected to peak in summer. I carried out a SWOT analysis to discover the implications for me of operating in the market. SWOT Analysis Strengths: is that am a new local business and understand the needs of my customers. I’ll have personal approach to personalised products.
Emphasis is on quality of food and services and also concentration on a niche market, which allows a potentially high mark up. A relatively small capital investment is required and I have no creditors. I have excellent premises, new equipment, low running costs and hard working staffs. The flexibility allowed by subcontracting production will allow me to respond to market demand in the short term and to keep down fixed costs. The fact that I have drawn up a business plan for my business will allow me to form a base for all the different aspects that I may come across when planning my business.
Another thing is that the market research that I have conducted will help me greatly due to the fact that I will have a better understanding of the market and the hazards that lie in it as well as the opportunities. My market is in the growth section in the product life cycle therefore I may come across more opportunities and chances of success than I would if my market was matured. Weaknesses: With any new business there are areas which will affect the rate of success. For instance entering a new market is always difficult and can sometimes result in business not establishing themselves properly and possibly going into bankrupt.
It will take time for me to gain a reasonable amount of customers because some aspects of the promotional campaign may not be as successful. The competitors whom I am competing against will hold a strong share in the market since it will be complex to compete against them directly in the early stages of the business. My weakness will be having undifferentiated products or services with Jerry’s and Ronky. Another weakness will be having lack of marketing expertise and not knowing the right techniques to apply when it comes to choosing the right promotion methods or identifying the needs of external and internal customers.
My main objective would be to establish the business and breakeven. Opportunities: As mentioned before, my market share has not yet matured and so it will be easier to find or attract customers than it would be in a matured or declining market. More people going to work will also allow me to explore the market and possibly gain more customers. According to the household expenditure survey meals away from home are expected to increase. Demand therefore is expected to rise. My premises will allow for expansion and eventually I hope to make enough sales. Increased output will become possible as demand rises.
Threats: the business is presently dependent upon one large contract. Competitors may enter the market. Possibilities of competition from e-commerce. Competition from the Internet enters the market quickly. This will require continuous environmental scanning. I also fear that Jerry’s have already established a good reputation with the locals and it will be hard to compete and gain the market share. There is possibility of price conflict between my business and my competitors. Jerry’s and Ronky may have new innovative product and service and may have superior access to channels of distribution.
In conclusion to the SWOT analysis above, I can conclude on the fact that there will be a considerable amount of threats and weaknesses, which I must also make sure that the strengths and opportunities are maximized to make the business stronger. After conducting my market research I have come to a conclusion that there is reasonable demand for the type of business am planning to open, this is because I manage to establish the fact that people are willing to spend there money on fast food from my questionnaire.
The market itself is still in the growth stage and has not yet matured. This is useful towards my business because it shows that there is a larger chance for the business to be successful than it would be when entering a matured market. I also found out in my market research that salaries in London is higher than anywhere else in the country, this mean that more people can afford to pay the rates am going to charge.
My market research also showed that small and medium sized businesses could also be targeted because some employees may have to limit their hours of work so that they can cook their food. However they may extend their hours of work if they can get a suitable food from a restaurant. My major competitors in the market are Jerry’s and Ronky, which I found when conducting my market research. I will try to look at how they do things and which methods they use and then use the best ones for my restaurant.