Term Paper of Business Plan Essay Example

Term Paper of Business Plan Essay Example Term Paper of Business Plan Essay Term Paper of Business Plan Essay This restaurant business plan is for Bachelor’s Restaurant, a new medium-sized restaurant located in a trendy neighborhood of Bangladesh. Bachelor’s Restaunt emphasis will be on organic and creative ethnic food. An emphasis on organic ingredients is based on Bachelor’s Restaurant dedication to sustainable development. Additionally, the restaurant procures local foods when possible, reducing their dependence on fossil fuels used for transportation. Introduction: Health is wealth. The knowledge persons of all the years times said this valuable comment forever.Really its true. A healthy body can build a healthy human; a healthy human can develop a civil society. A good civil society can build a strong nation. So it is never ever can underestimate the necessity of human health. What is inside the sound human body? If we postmortem the causes then we will get that, a healthy balanced diet is the one of the main reason of maintaining the good health. Now a day the world has become more more professional. In most of the families who duels in the city area the husband also wife are engaged with service.They get a very little or negligible time to cook food in home. And the demand of first food is increasing highly. In accordance with the similarity we have decided to set up a restaurant named Bachelor’s Restaurant. It’s the institution where we are providing guarantee of healthy balanced diet, nutrition food as well as in cheap rate. Step One: Making the Commitment Bachelor restaurant fast-casual restaurant, serving fast, fresh, healthy grilled meats and vegetables. The first store will be located in Dhaka.. The restaurant will be located at 16/2 Baily road in Dhaka.The founder and president of bachelor’s restaurant is Mr. asif hasnat Mission Bachelor’s Restaurant is a great place to eat, combining an intriguing atmosphere with excellent, interesting food that is also very good for the people who eat there. We want fair profit for the owners, and a rewarding place to work for the employees. Objectives 1. Sales of $350K the first year, more than half a million the second. 2. Personnel costs less than $300K the first year, less than $400K the second year. 3. Profitable in year two, better than 7. 5% profits on sales by year three.Step Two: Analyzing oneself Bachelor’s Restaurant is a single-unit, medium-sized restaurant. We focus on organic and creative food. The restaurant will be located in a Baily Road. Most important to us is our financial success, but we believe this will be achieved by offering high-quality service and extremely clean, non-greasy food with interesting twists. 2. 1 Company Ownership The restaurant will start out as a simple sole proprietorship, owned by its founders. 2. 2 Start-up Summary The founders of the company are Mr. Asif hasnat. And his companion Mr. Motiour Rahman.Focuses on the financial issues and Motiour Rahman on the personnel issues. Motiour Rahman earned her business major undergraduate degree from the University of IBAIS. We have found the location and secured the lease for $2,000 per month. We will be able to set up shop in time to begin turning back a profit by the end of month eleven and be profitable in the second year. The place is already equipped as a restaurant so we plan to come up with a total of $40,000 in capital, plus a $100,000 SBL-guaranteed loan, to start up the company. Start Up Requirement: Start Up Funding: | |Start-up Expenses to Fund |$3,000 | |Start-up Assets to Fund |$138,000 | |Total Funding Required |$141,000 | | | | |Assets | | |Non-cash Assets from Start-up |$50,000 | |Cash Requirements from Start-up |$88,000 | |Additional Cash Raised |$0 | |Cash Balance on Starting Date |$88,000 | |Total Assets |$138,000 | | | | |Liabilities and Capital | | |Liabilities | | |Current Borrowing |$0 | |Long-term Liabilities |$100,000 | |Accounts Payable (Outstanding Bills) |$1,000 | |Other Current Liabilities (interest-free) |$0 | |Total Liabilities |$101,000 | | | |Capital | | |Planned Investment | | |Investor 1 |$25,000 | |Investor 2 |$15,000 | |Additional Investment Requirement |$0 | |Total Planned Investment |$40,000 | |Loss at Start-up (Start-up Expenses) |($3,000) | |Total Capital |$37,000 | |Total Capital and Liabilities |$138,000 | |Total Funding |$141,000 | |Particulars |Amount ($) | |Start-up Expenses | | |Legal |$1,000 | |Stationery etc. $1,000 | |Other |$1,000 | |Total Start-up Expenses |$3,000 | | | | |Start-up Assets | | |Cash Required |$88,000 | |Other CurrentAssets |$50,000 | |Long-term Assets |$0 | |Total Assets |$138,000 | |Total Requirements |$141,000 | Step Three: Choosing a product or Services 3. 1 Services Bachelor’s Restaurant offers a trendy, fun place to have great food in a social environment. Chef Rafiq Badsha has a large reputation of ethnic ingredients and recipes. Bachelor’s Restaurant forecasts that the majority of purchases will be from the chefs recommendations. Ethnic recipes will be used to provide the customers with a diverse, unusual menu. Chef Rafiq Badsha will also be emphasizing healthy dishes, recognizing the trend within the restaurant industry for the demand for healthy cuisine. 3. 2 The Menu The menu is going to be extremely simple but changing every day.We will keep a small group of constants on the menu and then feature a chefs recommendation that we plan to have 85% of meals ordering. This will help us to reduce waste and plan ingredients and purchasing. 3. 3 Organic Ingredients The organic ingredient element will allow us to price to the extremely wealthy Internet entrepreneurs who are looking to spend an exorbitant amount of money to have peace of mind that their money is still coming back to themselves. We will be extremely ecologically conscious as well, and spread this across our literature. Eating at Bachelor’s Restaurant will feel like having contributed to the Anjuman Mufudul and drinking fresh squeezed orange juice. 3. 4 Ethnic Ingredients and RecipesOur chef will have great latitude in designing and producing menu offerings from many different world cultures. We will endeavor to procure all the traditional, authentic ingredients necessary to hold true to these varied and in teresting cultural recipes. 3. 5 Interior Accoutrements People need to keep life interesting, and our artwork will reflect the world influences that are core to the attitude of the Bachelor’s Restaurant chef. 3. 6 Product [pic] [pic] [pic] [pic] Step Four: Market Research Analysis Because of the founders connections within the very trendy area of Bangladesh, we have an excellent feel for the area and its core group of customers.They will all share something alike, which is a feeling of being in the in crowd and having gotten it in life. Although the crew will be different and not connect with each other in each segment, each segment is complementary to the others. We do plan to raise menu rates as the restaurant gets more and more crowded, and to make sure we are charging a premium for the feeling of being in the in crowd. 4. 1 Market Segmentation 4. 1. 1 The Lonely Rich Most of the lonely rich are tech workers these days, and most of those tech workers are Internet workers. Their life has become their website servers and code they write, and the people who help them to make the decisions in that world.They hang out with each other, but desperately want to get away from it and use the money they are racking up. Because this wealth has come fairly easily for them, it is particularly easy to separate them from their money again they spend the most on drinks, appetizers and tips. 4. 1. 2 Young Happy Couples The restaurant will have an atmosphere that encourages people to bring dates and to have couples arrive. It wont be awkward for others, and Bachelor’s Restaurant does want to be a social place where people meet each other and develop a network. These young couples are generally very successful but balanced and wont be spending as much on drinks. 4. 1. 3The Rich HippiesThe rich hippies in Bangladesh are a massive group with tremendous influence over the citys government and private enterprise. They wear tie-die but drive BMWs and crave the feeli ng of being in a social circle that is changing the world even if in different ways than in their glory days. We will cater to their ecological ideology and contribute to charities to help them part with more of their money. 4. 1. 4 Dieting Women The organic food menu will always have a line of extremely delicious very low-fat meals. Bachelor’s Restaurant will have tables of women meeting like they do in shows like Sex and the City, to discuss all types of matters while feeling good about the food they eat. [pic] |4. Market Analysis: | | | | |Year 1 |Year 2 |Year 3 | |Unit Sales | | | | |Meals |22,822 |35,000 |45,000 | |Drinks |11,415 |17,500 |22,500 | |Other |240 |500 |1,000 | |Total Unit Sales 34,477 |53,000 |68,500 | | | | | | |Unit Prices |Year 1 |Year 2 |Year 3 | |Meals |$15. 00 |$15. 00 |$15. 00 | |Drinks |$2. 00 |$2. 00 |$2. 00 | |Other |$10. 00 |$10. 00 |$10. 0 | | | | | | |Sales | | | | |Meals |$342,330 |$525,000 |$675,000 | |Drinks |$22,830 |$35,000 |$45,000 | |Oth er |$2,400 |$5,000 |$10,000 | |Total Sales |$367,560 |$565,000 |$730,000 | | | | | | |Direct Unit Costs |Year 1 |Year 2 |Year 3 | |Meals |$2. 00 |$2. 00 |$2. 00 | |Drinks |$0. 50 |$0. 50 |$0. 50 | |Other |$1. 00 |$1. 00 |$1. 0 | | | | | | |Direct Cost of Sales | | | | |Meals |$45,644 |$70,000 |$90,000 | |Drinks |$5,708 |$8,750 |$11,250 | |Other |$240 |$500 |$1,000 | |Subtotal Direct Cost of Sales |$51,592 |$79,250 |$102,250 | Step Six: Managemnt Summary Bachelor’s Restaurant has assembled a strong management team. Ahmed Khairul will be the general manager.Ahmed Khairul has extensive management experience of organizations ranging from six to 45 people. Ahmed Al Faisal will be responsible for all of the finance and accounting functions. Ahmed Al Faisal has seven years experience as an Arthur Andersen CPA. Ahmed Al Faisal financial control skills will be invaluable in keeping Bachelor’s Restaurant on track and profitable. Lastly, Bachelor’s Restaurant has Chef Rafi q Badsha who will be responsible for the back-end production of the venture. Rafiq Badsha has over 12 years of experience and is a published, visible fixture in the Portland community. Ahmed Khairul has great experience managing personnel and we are quite confident of his ability to find the best staff possible.Our chef, Rafiq Badsha, is already on board and has a published cookbook that will add prestige to the restaurant immediately. We will be looking to find a young, ultra-hip staff to make sure we add the edge that makes Bachelor’s Restaurant so trendy. Most important to Bachelor’s Restaurant is the financial success which will be achieved through strict financial controls. Additionally, success will be ensured by offering a high-quality service and extremely clean, non-greasy food with interesting twists. Bachelor’s Restaurant does plan to raise menu rates as the restaurant gets more and more crowded, and to make sure that they are charging a premium for t he feeling of being in the in crowd. The market and financial analyses indicate that with a start-up expenditure of $141,000, Studio67 can generate over $365,000 in sales by year one, $565,000 in sales by the end of year two and produce net profits of over 7. 5% on sales by the end of year three. Profitability will be reached by year two. Sales of $350K the first year, more than half a million the second. 1. Personnel costs less than $300K the first year, less than $400K the second year. 2. Profitable in year two, better than 7. 5% profits on sales by year three. [pic] 6. 1 Personnel Plan As the personnel plan shows, we expect to invest in a good team, fairly compensated. We think the planned staff is in good proportion to the size of the restaurant and projected revenues. Personnel Plan | | |Year 1 |Year 2 |Year 3 | |Manager |$60,000 |$65,000 |$70,000 | |Hostess |$42,000 |$45,000 |$50,000 | |Chef |$54,000 |$60,000 |$65,000 | |Cleaning |$30,000 |$35,000 |$40,000 | |Waiters |$72,000 |$100,000 |$130,000 | |Other |$24,000 |$52,000 |$55,000 | |Total People |8 |10 |12 | | | | | | |Total Payroll |$282,000 |$357,000 |$410,000 | Step Seven: Developing A Financial Plan We expect to raise $40,000 of our own capital, and to borrow $100,000 guaranteed by the SBA as a 10-year loan. This provides the bulk of the start-up financing required. 7. 1 Break-even Analysis Our break-even analysis is based on the average of the first-year numbers for total sales by meal served, total cost of sales, and all operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. We realize that this is not really the same as fixed cost, but these conservative assumptions make for a better estimate of real risk. [pic] Break-even Analysis | | | | | | | |Monthly Units Break-even |3,205 | |Monthly Revenue Break-even |$34,171 | | | | |Assumptions: | | |Average Per-Unit Revenue |$10. 66 | |Average Per-Unit Variable Cost |$1. 0 | |Estimated Monthly Fixed Cost |$29,375 | 7. 2 Projected Profit and Loss As the profit and loss table shows, we expect to become barely profitable in the second year of business, and to make an acceptable profit in the third year. [pic] |7. 3 Pro Forma Profit and Loss | | |Year 1 |Year 2 |Year 3 | |Sales |$367,560 |$565,000 |$730,000 |Direct Cost of Sales |$51,592 |$79,250 |$102,250 | |Other |$0 |$0 |$0 | |Total Cost of Sales |$51,592 |$79,250 |$102,250 | | | | | | |Gross Margin |$315,969 |$485,750 |$627,750 | |Gross Margin % |85. 96% |85. 97% |85. 9% | | | | | | |Expenses | | | | |Payroll |$282,000 |$357,000 |$410,000 | |Sales and Marketing and Other Expenses |$27,000 |$35,830 |$72,122 | |Depreciation |$0 |$0 |$0 | |Utilities |$1,200 |$1,260 |$1,323 | |Payroll Taxes |$42,300 |$53,550 |$61,500 | |Other |$0 |$0 |$0 | | | | | | |Total Operating Expenses |$352,500 |$447,640 |$544,945 | | | | | | |Profit Before Interest and Taxes |($36,532) |$38,110 |$82,806 | |EBITDA |($36,532) |$38,110 |$82,806 | |Interest Expense |$9,673 |$8 ,887 |$7,637 | |Taxes Incurred |$0 $7,306 |$19,105 | | | | | | |Net Profit |($46,204) |$21,917 |$56,063 | |Net Profit/Sales |-12. 57% |3. 88% |7. 68% | 7. 4 Projected Cash Flow The cash flow projection shows that starting cost and provisions for ongoing expenses are adequate to meet our needs until the business itself generates its own cash flow sufficient to support operations. [pic] Step Eight: Developing a Legal Plan: Legal policy is the most important issue to set up an organization. We have the copyright to our products brand name. we have the government registration number RG-004732/2011. e have also resistered from the BSTI (Bangladesh Standards Testing Institutions) and all our food products are been made tested by the BSTI. So we can strongly assure that, our products are 100 percent halal, safe, hygienic, healthy best suitable for all ages of people. We have not the interest to franchise or dealership in any parts of the country. We have the wish to spread our own branc hes by the own management in the seven division of Bangladesh. Not by set up by the others. Step Nine: Developing a Insurance Plan We have the insurance plan under the most renowned insurance company in the world Met life ALICO. Our insurance policy number is BO- 0851298. We have insured under the fire insurance in the main office. We have the policy of 100 Crore Taka.That is if the institution burns by fire by short circuit other causes, then according to the loss we will get the compensation. But the most extreme value is 100 crore. Conclusion: Bachelor restaurant will operate within the large restaurant industry. While the industry has its upswings and downturns, the variance is less than the economy itself. People need to eat, they can eat in and save money, but the convenience of dining out creates a significant incentive. This is not to suggest that restaurants are recession proof, they are less affected by the general state of the economy. Bibliography: 1. Google 2. Some Inf ormation from renowned restaurant. 3. www. tomyrecipe. com