Business Plan Essay Research Paper WHAT IS

Business Plan Essay, Research Paper

WHAT IS A BUSINESS Plan: The three chief maps of a concern program are: Supply a communications tool which conveys your thoughts, research, andplans to others. A footing on which to pull off your concern. A yardstick by which to mensurate advancement and evaluate alterations. WHAT THE BUSINESS PLAN SHOULD CONTAIN: The seven basic elements of a concern program are: A. Business construct. A sum-up of basic concern idea.B. Product or service you will offer.C. The market. Who will purchase the merchandise or serviceD. Selling scheme. How the product/service will be made.E. Forces. Employees or contractors needed.F. Production programs. Where products/services will be made.G. Fiscal programs. Cash required for stuffs, production. WHY WRITE A BUSINESS Plan: There are many grounds why a concern program should be prepared. Eachis sufficient by itself for why 1 must travel through the exercising ofpreparing the existent concern program. Regardless of the specificreason, the implicit in end of fixing a concern program is to insurethe success of the concern. Here are the chief grounds why abusiness program should be prepared: 1. Provides you with the ROAD MAP that you need in order to run yourbusiness. It allows you to do roundabout waies, alteration waies, andalter the gait that you set in get downing or running the concern. 2. To help in funding. Whether one is get downing up a smallbusiness or is an enterpriser, Bankss and fiscal establishments wantto see that you know where you are, where you are traveling, and how youare traveling to acquire at that place. 3. The program will state you how much money you need, when you willneed it, and how you are traveling to acquire it. In other words, how youwill make your funding? 4. Helps you to clearly believe through whattype of concern you are get downing, and allows you to see everyaspect of that concern. 5. Raises the inquiries that you need to hold answered in order tosucceed in your concern. 6. Establish a system of cheques and balances for your concern sothat you avoid errors. 7. Put up bench Markss to maintain your concern under control. 8. Helps you develop the COMPETITIVE SPIRIT to do you keenlyprepared and ready to run. 9. Brands you think through the full concern procedure so that youdo non open the concern blindly or miss critical information in openingand keeping your concern. 10. Forces you to analyse competition. 11. Will give you a & # 8220 ; GO & # 8221 ; or & # 8220 ; NO GO & # 8221 ; ANSWER about get downing thebusiness. EXAMPLE OF A COMPLETED BUSINESS Plan: THE WAY-OFF-BROADWAY DELICATESSEN Date TABLE OF CONTENTS PLAN SUMMARY I. BUSINESS DESCRIPTION A. Overall Purpose: The WAY-OFF-BROADWAY DELICATESSEN will be adelicatessen type eating house patterned after New York delicatessenswhich serve Judaic cultural manner nutrients. The delicatessen will offercounter, table and take out service. B. SPECIFIC PURPOSE: The delicatessen will be located at the St.Pauls U.S. Interstate I-95 issue and will be unfastened seven yearss a weekserving tiffins and dinner. A breakfast bill of fare will be added threemonths after the gap. Monetary values will be moderate compared to NewYork deli & # 8217 ; s but slightly higher so other St. Paul eating houses. C. MARKETING STRATEGY: The great bulk of clients will comefrom Interstate I-95. Accordingly, heavy usage of billboardadvertising will be made to pull clients. D. FOOD PREPARATION STRATEGY: Since many of the ingredients used inmenu can non be supplied locally, agreements will be made with outof the country nutrient providers and jobbers. Even though managementis assured of nightlong bringings, a one hebdomad stock list of all fooditems will be maintained in either a walk-in ice chest or deep-freeze. E. MANAGEMENT TEAM: Mary and John Ashford will have 100 Per Cent ofthe capital stock of the corporation. Each will have 50 per cent ofthe outstanding stock. John Ashford is President. Mary Ashford isVice President and Secretary. F. OBJECTIVES OF THE TEAM: It is the aim of the squad tooperate the concern with a minimal first twelvemonth loss and have anoperating net income by the first one-fourth of the 2nd twelvemonth ofoperations. The principals will pay themselves a minimal salary soas non to endanger the hard currency flow of the concern. G. FINANCIAL CONSIDERATION: Anticipated net incomes for the first yearsof operations are forecast as follows: Year 1 $ 6,892Year 2 $ 41,773Year 3 $ 57,715 Sources of the necessary financess for financing the concern are asfollows: Building Mortgage $ 25,000St. Pauls State BankWorking Capital $ 29,167St. Pauls State Bank $ 15,000Ashford Savings $ 14,167 PRODUCTS THE WAY-OFF BROADWAY DELICATESSEN MENU Appetizers and Soups Orange JuiceTomato JuicePotato SkinsChopped LiverDaily SoupLox and Cream CheeseChicken Noodle ( Served daily ) TomatoVegetableSplit PeaChicken VegetableClam Chowder Main Dishes, Sandwiches and Side Orders BolognaCorn BeefTurkey SalamiRuebenChopped LiverChicken SaladTuna SaladPotato PancakesKosher Hot DogsPotato SaladCole SlawFrench FriesBagels with Cream CheeseDaily Hot MealChickenHamburgerSteakRoast BeefFish Minute Steak Desserts CheesecakesHot Fudge CakeChocolate CakeWalnut CakeIce CreamFresh Fruit in Season Beverages CoffeeTeasMilkCoca ColaRoot BeerOrange SodaDr. Brown & # 8217 ; s SodasMilk ShakesIce Cream Sodas UNIQUE FEATURES OF THE MENU The full bill of fare has been patterned after typical New York- styledelicatessens. Most of the points are unavailable at all other St.Pauls & # 8217 ; eating houses with the exclusion of the day-to-day hot repasts andfuture breakfast bill of fare. The bill of fare will be really alone to St. Pauls and the surroundingcommunity, since about all of the nutrient points will non be availableat any topographic point other so the WAY-OFF-BROADWAY DELICATESSEN. Because of the bill of fare and the selling scheme, direction forecaststhat about 80 to 85 per cent of it & # 8217 ; s concern will come fromthe Interstate I-95. Approximately 10 to 15 per cent of it & # 8217 ; sbusiness will come from North Carolina State Highway 20 and U.S.Highway 301. Merely 5 per cent of the food shop & # 8217 ; s concern is expected to come from thelocal community. Future Breakfast Menu The concluding bill of fare has non yet been determined but will include suchitems as: EggsPancakesHash Brown Potatoes GritsBaconHamSausageToastDanish PastryBagelsEnglish MuffinFruit JuicesFresh Fruit in Season It is expected to get down functioning breakfasts about three monthsafter the initial gap of the food shop. II.MARKET DEFINITION A. Customer: The primary market for the WAY-OFF-BROADWAY-DELICATESSEN is that ofthe I-95 Interstate Highway travelers traveling in both north and southdirections. These travelers are chiefly vacationists and thosedriving long distances. Their primary vehicle is the car. It is expected that the mean figure of riders per vehicle willbe two. There will be some seasonality to the concern in position ofthe much heavier traffic that is expected on the interstate duringthe winter months. B. CUSTOMER Size: It is anticipated that about 100 clients will be serveddaily. Weekend traffic should be 25 to 30 per cent higher thanactivity from Monday to Friday noon. Traffic count surveies made bythe Robeson County Highway Department indicates the undermentioned averagemotor vehicle traffic flow: North to South 23,000 vehicles South toNorth 24,200 vehicles During the period of November 15 through April1, mean day-to-day traffic additions by about 4,000 vehicles.In add-on to this really high traffic flow, U.S. Highway 301 hassome 5,000 vehicles and North Carolina State Highway 20 has some3,000 vehicles in mean day-to-day traffic flow. Finally, within thetown of St. Pauls, local vehicle traffic approximates some 5,000vehicles a twenty-four hours. All of these traffic flow figures make for a really big potentialmarket. Management strongly believes that 85 Per Cent of theircustomer base will come from the Interstate. An extra 10 Percentage will come from U.S. 301 and North Carolina State Highway 20.Only 5 Per Cent of the entire volume of concern and clients areexpected to come from the local population. Initially nevertheless, concern from the local community will be slightly higher simplybecause of wonder. III. MARKET GROWTH: First month gross revenues are forecast at $ 18,000. Business is expected togrow by about $ 500 per month. Translated into Numberss ofcustomers served, the anticipated monthly addition will beapproximately 166 clients. Initially, the Delicatessen will servesome 100 clients daily, or a monthly sum of 3,000. Therefore, within six months, the monthly figure of clients will beapproximately 4,000, or on a day-to-day mean footing, will figure 110. IV. Competition: The town of St. Pauls has four feeding constitutions and onefacility for lodging. With the exclusion of Joe Don Danny & # 8217 ; s, all ofthe other eating constitutions are located within St. Pauls andaway from the Interstate Highway 95 issue. They are non seeable fromthe main road. A brief description of each is as follows: Cliff & # 8217 ; s Barbecue: A barbeque house that serves both tiffins anddinners with moderate pricing. Ferguson & # 8217 ; s: Specializes in sandwiches, including beefburgers and hot dogs. Serves breakfast and is the oldest uninterrupted operatingrestaurant in St. Pauls. Hardee & # 8217 ; s: Very successful nutrient operation, and is the lone fast foodrestaurant in St. Pauls. It & # 8217 ; s really popular with both the highwaytourist traffic and the local people. It & # 8217 ; s open for breakfast andinto the late hours of the eventide. Joe Don Danny & # 8217 ; s: Busiest eating house. Attracts clients from U.S.Interstate I-95 since it is the lone truck halt in the country. It isquite popular and is seeable from the Interstate. Hardee & # 8217 ; s and Joe Don Danny & # 8217 ; s are mentioned in national automobilepublications. They besides have billboard advertisement, and Hardee & # 8217 ; s isable to take advantage of national advertisement in position of itsnational association. Joe Don Danny & # 8217 ; s, a truck halt, is good knownwithin hauling circles. The fact that Joe Don Danny & # 8217 ; s and Hardee & # 8217 ; s have such visibleness isconsidered an advantage to THE WAY-OFF-BROADWAY DELICATESSEN, conveying traffic off the issue of I-95. V. COMPETITION STRENGTHS AND WEAKNESSES A. Competitive Strengths: 1. HARDEE & # 8217 ; S is a national franchise with a extremely favorablereputation for both nutrient quality and velocity of service. In add-on, it has both a really strong advertisement run and a high namerecognition. It is particularly popular with the kids of manytourists, the primary pulling population by the food shop. 2. JOE DON DANNY & # 8217 ; S has an first-class repute. Its location putsthe eating house into a really competitory place with the deli sinceit is located off of the I-95 issue. 3. Both of the above rivals are unfastened for breakfast. 4. Both of the above eating houses, every bit good as the two others in St.Pauls, are popular with the local population. B. Competitive Failings: 1. None of the rivals will offer the singularity in their menuwhich is offered by THE WAY-OFF-BROADWAY DELICATESSEN. The bill of fare willbe an attractive force for many of the I-95 Interstate drivers. 2. Merely JOE DON DANNY & # 8217 ; S is located next to the issue, which meansthe food shop will vie with merely one eating house for its patronage. 3. The mere name of the food shop: THE WAY-OFF-BROADWAY DELICATESSENwill offer considerable wonder entreaty to some vehicle residents, therefore conveying in a certain sum of traffic.

VI. Selling Plan A. OVERVIEW: THE WAY-OFF-BROADWAY DELICATESSEN will offer highquality nutrient at moderate monetary values compared to the pricing of New Yorkdelicatessens, which it will be modeled after. However, the menuprices for the WAY-OFF-BROADWAY DELICATESSEN will be slightly higherthan comparable dishes at other St. Pauls & # 8217 ; nutrient constitutions. It will non be a fast nutrient eating house, although speedy service will beoffered either at a counter or at sit down tabular arraies. Take-out servicewill besides be available. The proprietors recognize that Interstate I-95 isthe chief main road travelled by tourers coming from as far north asBangor, Maine, including occupants of the to a great extent populated metropoliss ofBoston, New York, Philadelphia, Baltimore, and Washington, D.C. , whoare traveling to Florida holiday musca volitanss. New York-style delicatessens

that serve Jewish ethnic foods areimmensely popular with these northern tourists. Thus, a restaurantsuch as the WAY-OFF-BROADWAY DELICATESSEN will be a welcome changeand relief to these tourists from the conventional fast foodestablishments that they normally find along an interstate highway. THE WAY-OFF-BROADWAY DELICATESSEN will be open for business sevendays a week. Initially it will provide luncheon and dinner serviceto its patrons, remaining open until the early hours of the evening.Both cold and hot dish selections, together with unique desserts,will be available. Mary and John Ashford believe that a very viable business opportunityexists for the opening of a New York-style delicatessen at the exitof U.S. Interstate I-95 in St. Pauls. In view of the proposedlocation of the delicatessen, the anticipated restaurant businessshould be excellent. B. MARKETING OBJECTIVES: 1. The primary objective of the WAY-OFF-BROADWAY DELICATESSEN willbe to attract customers from the very heavily travelled U.S.Interstate I-95 Highway. These customers are mostly touriststravelling between the Florida vacation areas and the heavilypopulated eastern seaboard urban and suburban centers. Additionalcustomers will come from U.S. Highway 301 and North Carolina StateHighway 20. Some local customers are expected to patronize the deli. 2. A second marketing objective will be to gain repeat customersfrom those who patronize the deli for the first time as well as togain customers through word of mouth advertising from first timeusers. This will be done by serving a high quality food product inpleasant surroundings and a clean comfortable atmosphere. C. MARKETING STRATEGY-ADVERTISING AND PROMOTION: 1. An important consideration in the total marketing effort of theDeli is found in the name itself: THE WAY-OFF-BROADWAY DELICATESSEN.This name will not only arouse interest and curiosity from travellersand tourists, but it will also lend itself well to the major theme ofthe establishment. The theme will be carried out in every aspect ofthe deli, including advertising, promotion and public relations. 2. Since it is anticipated that the great majority of customers whowill patronize the WAY-OFF-BROADWAY DELICATESSEN will be touristsusing U.S. Interstate I-95, the company will make wide use ofbillboard advertising. An important feature of the building purchaseand land lease includes the use of four large billboards, two on eachside of I-95 approximately one and one half miles from the St.Pauls’ exit going in both north and south directions, and two similarsigns located approximately 5 miles from the St. Pauls’ exit in thesame manner. The use of these billboards is for the remaining threeyears of the current land lease, and subject to renegotiation at thattime. Additional billboard locations will be placed on both U.S.301 and North Carolina State 20 highways. It is expected that thebillboards will carry the same message and theme of the name. 3. Since the name THE WAY-OFF-BROADWAY DELICATESSEN connotes the NewYork Broadway name, the use of theatres, theatre lights, a Broadwaystage, and Times Square will be used. The format and decor of thedeli include spot lights as used on stage. For example, with regardsto the exterior of the building, the deli’s name will be highlightedby two large spotlights in the evening hours, thus giving it ashowtime look. At the take-out counter, the menu items will beencased in circulating theatre lights similar to those found on atheater marquis. The menus will not only have the theater theme doneartistically on their covers, but each item will contain names havinga Broadway theme also. For example, “The Big Apple Rueben”, “TheTimes Square Hot Dog”, “Lindy’s Cherry Cheesecake”, and so on. Alikewise similar art and copy approach will be given to thepoint-of-purchase displays used throughout the delicatessen. Itemswith a Broadway theme will be used to give the interior a properfinishing touch. These will include Broadway Show posters, picturesof actors and actresses, VARIETY magazine pages and reviews of famousshows. 4. Delicatessen items will be attractively displayed in refrigerateddelicatessen cases. Also, each of the dessert specialties will besimilarly displayed in a refrigerated bakery display case. Suchdisplays will give a high point-of-purchase advertising appeal topatrons. 5. Finally, all of the staff, including waitresses and waiters, willwear T-Shirts specially silk-screened with the WAY-OFF-BROADWAYDELICATESSEN logo. VII. SALES: All sales will be for cash or major credit card. Credit cards fromVISA, MASTER CARD, AMERICAN EXPRESS, and DISCOVER-AMERICA will beaccepted. Only checks from local residents of St. Pauls will beaccepted. VIII. THE PRODUCTION PLAN: A. FACILITY REQUIREMENTS: 1. The deli will be located in a building immediately adjacent tothe I-95 exit. This facility was a former restaurant. It hascurrent seating of 60 and can be expanded to accommodate 90 personsat a very moderate cost. 2. Since it is a former restaurant, it contains very importantrestaurant equipment and fixtures which would be available forpurchase together with the restaurant building. The asking price onthe building is $30,000. B. EQUIPMENT REQUIREMENTS: 1. Equipment furnished with the building at a cost of $5,000includes: 1 Small desk 1 60 gal. water heater1 2 Compartment sink1 6X10 walk-in cooler2 6 X 8 walk-in freezer1 Small bake table2 three ton heating and air conditioning units1 6ft. stainless steel table with hot dog warmer 1 Small bake oven12 42 inch tables44 black upholstery chair1 48 inch grill1 stainless steel up-draft unit with exhaust fan2 19 quart deep fryers1 pan steam unit2 19 Hobart dishwasher1 2 burner electric cooker2 Sandwich Refrigerators 48 feet metal shelving 2. Additional tableware, kitchen tools, and accessories will have tobe purchased as well as the following: 2 Microwave ovens 1 Large refrigerator1 Cash register 1 Scale1 Meat slicer 1 Bread slicer1 Refrigerated deli display case1 Bakery display case1 Large freezer IX. LABOR REQUIREMENTS: A. The two principal positions needed to operate the deli are thatof the Manager and the Cook. Both Mary and John Ashford willco-share these responsibilities. Arrangements have been made to takea special one week delicatessen cooking and food preparation coursein New York City. B. The following employees and their projected monthly salaries areas follows: Manager-CookJohn Ashford$1,500Co-Manager-Cook Mary Ashford $1,200Half time cook 600Waiters/Waitresses 2,400Dishwasher/Custodial 900Miscellaneous 400Total Labor Costs $7,000 X. FOOD PREPARATION PROCESS: A. As a Jewish-style delicatessen, many of the ingredients and finalmenu items will have to be supplied by out-of-the-area food andrestaurant wholesalers. B. There is no concern for the freshness of these items sincearrangements are being made to keep a one week minimum inventory onhand at all times. This will be done with the use of the freezer andwalk-in cooler. Arrangements have been made with the following foodsuppliers and wholesalers to provide for their specialty foodrequirements. C. Each of these wholesalers have assured the Ashfords that they candeliver orders within 48 hours and, if necessary, deliver within 24hours subject to an added delivery charge. 1. Lincoln Delicatessen Bakery, Washington, D.C.BagelsRye Breads 2. Fancy Foods, Norfolk, VirginiaCheesecakesChocolate CakeWalnut Cake 3. Zion-Kosher Company, New York, New YorkNova Scotia Lox 4. Hebrew National Products Company, New York, New YorkBolognaCorn BeefKosher Hot DogsSalami D. A back-up supplier and wholesaler for all of the above productsis: Rueben Foods, Washington, D.C. E. Some purchases will be made on a periodic basis from Rueben Foodsto assure the company of a second source of supply. All other foodproducts and ingredients can be purchased from local wholesalers whomake daily runs to St. Pauls from neighboring North Carolina cities.These include dairy products, fruits, vegetables, seasonings, bakingneeds, breads, canned goods, etc. F. Management expects to make wide use of Microwave ovens.Delicatessen meats will be stored in the freezer and then in therefrigerated delicatessen case. All meats will be freshly slicedupon demand. Salads and soups will be prepared daily. Most dessertswill be kept in the freezer until the day of use. XI. COMPANY STRUCTURE: A. Mary and John Ashford have incorporated their restaurant underthe name of the WAY-OFF-BROADWAY DELICATESSEN. John is the presidentwhile Mary is vice president and secretary. Each have fifty percentof the capital stock of the corporation. B. With regards to the day-to-day operations, they have assumed thefollowing titles: Manager John Ashford Co-Manager Mary Ashford C. John expects to work 60 hours a week until the operation canafford additional staffing. Mary expects to work a 40 hour week. XII. BUSINESS ADVISORS: A. The following business advisors have been or will be used asneeded: Accountant Michael Stefanson with Stefanson and Byron, CertifiedPublic Accountants Lawyer Susan Fallek with Fallek, Hamline, and Zimmerman Banker Jerome Pinkerton, President of St. Pauls State Bank Insurance Bobby Maisel with Bear, Rose and Mythroat General Agents XIII. THE FINANCIAL PLAN SUMMARY: A. Taking into consideration that the WAY-OFF-BROADWAY DELICATESSENwill be a new eating establishment catering to the highway traffic onU.S. Interstate I-95, conservative accounting procedures andprojections have been made. The following Profit and Lossprojections are as follows for the first three years of operationsfor the deli: YEAR 1- $ 6,892YEAR 2- $41,773YEAR 3- $57,715 B. Cash flow projections indicate that the deli will have a positivecash flow beginning with the fifth month of operations. At that timeit is forecast that monthly cash receipts will amount to $20,000 withexpenses of $19,633. Until that time, the commercial loan from theSt. Pauls State Bank should be sufficient to provide the deli withit’s necessary cash needs. C. The three year balance sheet projects indicate that the net worthof the WAY-OFF-BROADWAY DELICATESSEN will be as follows: YEAR 1- $6,769 YEAR 2- $ 48,542 YEAR 3- $106,257 D. The three year projections for PROFIT AND LOSS, CASH FLOW andBALANCE SHEETS are shown on the following pages. (Financial Formswould be inserted at this point). XIV. SOURCES OF FUNDS: Building Mortgage 11 years at 11% $25,000St. Pauls State Bank Commercial Loan, St. Pauls State Bank 15,000 Cash from the Ashfords Savings and common Stock sale 14,167 Total Start Up Funds $54,167 A. The St. Pauls State Bank has also agreed to provide theWAY-OFF-BROADWAY DELICATESSEN with an added/open line of creditamounting to $10,000 should it be necessary. XV. BIOGRAPHIES OF THE PRINCIPALS: A. John and Mary have been married for 18 years and have twochildren, David, age 16 and Susan, age 14. B. Mary Ashford has a degree from the University of North Carolinawhere she majored in elementary education. She taught upongraduation. C. John Ashford received his degree in Textile Engineering and afterspending three years as a Commissioned Reserve Naval Officer took aposition with the Yorkville Atlantic Yarn Company in St. Johns. Hehas been with the company 18 years. His last position was AssistantChief Engineer. John has had considerable retail store experience since he worked athis father’s hardware store while in high school and during hissummer vacations while attending the University of North Carolina.During his term of service in the Navy, he was stationed at theBrooklyn Naval Shipyard and became very acquainted with Jewish styledelicatessens. D. John is 42 years old and Mary is 40. They have lived in St.Pauls for the past 16 years and participate in a number of community,school and church activities. E. John has resigned his position at Yorkville Atlantic YarnCompany. Mary has given notice that she most likely will not beavailable to do substitute teaching since both will devote full timeto operating and running the WAY-OFF-BROADWAY DELICATESSEN.