Budget Analysis and Profit Margins

The assignment presents a comprehensive budget with monthly expenses categorized as Credit Card Fees, Utilities, Telephone, Lease/Loan Payments, Rent & Rates, Motor Vehicle Expenses, Repairs & Maintenance, Stationery & Printing, Insurance, Superannuation, Income Tax, Wages, and More. It then calculates the total monthly expenses and demonstrates profit margins at various percentages (15%, 20%, 25%, and 30%). The objective is to understand how different expense levels impact overall profitability.

Running head: BUISNESS IDEA 0
BUSINESS IDEA

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Table of Contents
Introduction:...............................................................................................................................................2
Business model canvas:...............................................................................................................................2
Feasibility analysis:......................................................................................................................................6
Conclusion:..................................................................................................................................................8
References:..................................................................................................................................................9
Appendix 1:...............................................................................................................................................11

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Introduction:
Business is the term that defines the activities that are conducted in order to earn profits. It has
been analysed that the business activities require so many things and one of them is a good and
unique business idea. After having the idea, the business plan needs to be generated that helps in
provide the direction to the business person to conduct the initiate the business activities. This is
the report that discusses about the new business plan that deals with development of the
restaurant. It is the industry that is very competitive and is also providing various opportunities
for the entrepreneurs (Gartner, Carter and Hills, 2016). The restaurant that has been disused
below is the restaurant that serves the people with healthy products. It is the restaurant that
serves the market with healthy products such as salads, multigrain products with vegetables etc.
It has been analysed that this is the business that operates with targeting the market of the sports
people and the young people who are every much diet conscious. Taste is not the thing that the
company is serving because only the diet food is served at this place. It has been analysed that
this business is innovative in nature as there is no such brand in Australia that uses this type of
business idea to serve the people only with the diet and healthy food. It is the business that can
only target the premium customers because the prices of the products are very high as compared
to normal products at other restaurants.
Business model canvas:
Business canvas model is the tool that helps in providing the different elements of the business in
the model so that the investment decision and the strengths and the weakness of the business can
be analysed. Below is the brief description of the elements involved in the model along with the
diagrammatic view:
Customer Segments:
The customers have been segmented on the basis of their preference of their food. As discuses
that the business is about serving the diet food and healthy food products to the customers, so the
customers are segmented on the basis of age as well as their food preference. It has been

BUISNESS IDEA 3
analysed that the restaurant target the customers who wants to have healthy food. The company
can also target the customers who are in sports (Boyd, et al. 2017).
Value Proposition:
The value proposition is the element that adds value to the products or what value the products
adds for the customers. As far as this restaurant is conferred it provides the customers with
healthy food and thus it is promoting the healthy diet and food among the customers (Mackey
and Sisodia, 2014). Serving the diet food in a sophisticated manner results in attracting the food
lovers to have food as well as health together. It has been analysed that the segment of people
who are health conscious and are switching to diet food is increasing; thus, it will be a great idea
to serve the people with the diet food in restaurants. People at Australia are health conscious and
thus the business does not need to make so many efforts in convincing people to be health
conscious.
Customer Relationships:
The company would be dealing with online as well as offline mediums. It has dry food as well
that the company sold and deliver. This business of the company runs through online mediums
and the same store in the corner of the restaurant. The company provides additional health to the
customers when they visits the place as per their requirements as they have hired a nutrition
specialist to deal with the customers and that is for free. This is the strategy that helps the
company to make the customers loyal.
Channels:
The channels that the company served with are the physical restaurant and the online delivery
option. Most of the tie the company prefers to prove food at the store only as healthy food get
rotten easily when packed thus it is required by the customers to have dine in rather than take
away (Ward, 2016). Another thing is that the company also serves the customers with online site
but only deliver the dry food products such as healthy cookies, juices etc. no fresh products are
delivered. In order to make the products, various products can be used by the company. One of
the most important channels is social media that helps the company to market its services and the

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products as well as the brand name (Morecroft, 2015). Social media is the most popular tools
these days because most of the customers are using these social networking sites to surf for the
places to visit. Promotion on these sites allows the brand to reach to the masses (Drucker, 2017).
Key Activities:
Some of the key activities of the company are:
 Serving healthy and diet food to the customers
 Nutrition advice for free
 Delivering the healthy food products at home
 The store at the restaurant provides the customers with various healthy products to buy.
Key Resources:
Physical resource: As far as the key resources of the company are considered, the physical
resources that are involved in the business are the restaurant ambience. The ambience of the
restaurant is also very sporty that attract the food lovers. All the chairs and the tables have food
chart that provides the information about the healthy food to the comers sitting. The walls of the
restaurant have the pictures of the big sportsmen and the healthy properly having threat physique
(Mullins, 2013). This motivates the customers to a have healthy diet. The menus of the restaurant
also provide detailed information about the dishes that are served to the customers (Wirtz,
Pistoia, Ullrich and Göttel, 2016).
Human resources: They are the major and the very important resource of the restaurants. Human
resources are in the form of sales person at the store, waiters, management, IT department for
handling the online websites of the company etc. it is very important for the company to have
skilled human resources in all the departments so as to serve the customers efficiently. The
employees who are at the front desk and deals directly with the customers should have the skills
to deal with the customers. They should have the presentable appearance that attracts the
customers in the restaurant (Zott and Amit, 2013). They should also have some of the knowledge
about the diet food and the healthy serving offers at the restaurant.

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Financial resources: It has been analysed that in order to penetrate in the market and to attract the
customers, it is required by the company to be financially string and maintain that image of the
company that is being claimed in front of the customers. This required the company to be string
in their finances. The company is financially strong and this restaurant provides a great
experience dining to the customers with high quality products (Tukker and Tischner, 2017).
Key Partners:
The key partners can be defined as the partners that are being involved in the business or are
associated with the business to support the business activities. It has been analysed that in the
restaurant business, there are many supportive entities such as suppliers, logistics, delivery etc.
there of the main partners of the business are: suppliers: As the company is operated in the
restaurant industry thus it is dependent on many suppliers (Brown and Duguid, 2017). The
primary suppliers of the company are the suppliers that provide them the processed food
products such as bread, egg, chicken etc. and the secondary suppliers are the suppliers which
provide them with the unprocessed food such as farmers that provides the company with the
vegetables and fruits as well as grains. The other suppliers that are involved in the business are
the logistics people who deliver these food products to the company or at the restaurant where
the dishes are served to the people (Boone and Kurtz, 2009).
Revenue Structure:
The revenue of the structure of the company is very simple; it provides various methods to the
customers to pay such as electronic medium and cash as well. The company also earns it revenue
by the online sales it made as well as by the home delivery services. The in house store of the
restaurant also provides revenue of the company. There are some packages as well for the regular
customers and the company can earn large benefits of customer’s loyalty through these
strategies. The revenue has been generated by the store that is in the restaurant that serves the
people with the dry healthy food which can be kept at home and need not to be taken fresh.
Cost Structure:

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The cost structure of the restaurant is framed by analysing the cost incurred in the activities that
re being conducted in order to have a proper business functioning (Cascetta,et al. 2015). It has
been analysed that cost structure of this restaurant business is:
Cost of the startup
Expenses Amount
Restaurant infrastructure cost
Servicing cost
Legal charges and expenses
Portal expense and IT cost
Marketing and hiring cost
Total Start-up Expenses
$20000
$20000
$2000
$13000
$10000
$65000
Start-up Assets
Cash in hand
Long-term and short terms assets
Current assets
$40000
$50,000
$15000
Total Start-up Requirements $105000
The cost structure of the restaurant suggests that there are various important activities that
require cost to be spent by the management or the owners of the business.it has been analysed
that sales at 105000 AUD is required by the order to start up this new business. It is also required
to manage this cost accordingly and efficiency so that can be better used optimally and gives
better results.
Minimum Viable Product (MVP) (if applicable)
The minimum viable products cannot be exactly imposed on this business this is the service as
well as the products based company but service plays a most important role. It has been analysed

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that the major value that is provided to the customers is the diet food and healthy living
(Christensen, 2013).
Feasibility analysis:
Feasibility analysis of the business determines that how much the business is feasible to enter the
market or the industry in terms of various factors such as marketing, financial, human resource
etc. it is the analysis that provides the strengths and the weakness of the company or the new
venture in the industry (Emma, 2010). Below are some of the types of feasibility that has been
discussed:
Market feasibility: It is the part of the feasibility that suggests that how the business can enter the
market and how is the market of the business. It has been analysed that the restaurant industry in
Australia is growing at the pace of 5.6% from 2012 to 2017. As far as the revenue of the industry
is considered, it is around 20bn AUD. All this information suggests that the market is very
competitive and competitive market required the companies to enter with an innovation that the
new business have. This is because the new business is serving the people with diet and healthy
food unlike other restaurants which are serving only tasty and fatty food. It has been concluded
from the above information the market is very feasible to enter because the industry is showing
no barrier in terms of marketing (Johnson, 2010). Government has its interference in the industry
as it is regarding the food products that are healthy are the most important element to be
conscious about. The quality if the food matters a lot.
Technical feasibility:
The technical feasibility in this section or the business depends on the customers support
program for the online sales. Other technical feasibility or the program depends on the online
payment system. Suppliers are the major element of this business as all the raw materials that are
required for serving the dishes to the people in the restaurant (Kyle, 2008). Food safety standards
have been given by the government of Australia for all the restaurants to maintain the quality of
the food as per the standards. Food safety compliance has been released by the government as
well that needs to be followed by every restaurant business at Australia.

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Financial feasibility:
As per the market research, it has been analysed that the expected sales volume for the company
is would be 200000 AUD. This selling price of the products is different but the range of the
selling rice per unit of the dishes is 16 AUD to 60 AUD.
The starts up cost of the company are explained in the appendix 1 as per the activities that are
required to be conducted and the process of the business (Lager, 2010).
Appendix 2 describes the profit and loss of the business.
As far as the source of finance is concerned, it has been analysed that source of financing
includes the partners as many of the suppliers have also invested in the restaurants business. The
other source of money is business loans that are available for the entrepreneurs. It is required for
the company to generate the expected revenue and give away the loan as soon as possible.
Human resource feasibility:
Human resource is the most important function of the element that is required by the comaony.in
the restaurant business, it is required to provide different skills to the different people of different
departments. The major roles that are required in the restaurant business are the manners at the
higher level, the IT team for handling the online business function and the sales or the front desk
executives and waiters that deals directly with the customers (Lober, 2015).
Conclusion:
It has been concluded from the report that this business is related to the restaurant industry. It is
the business that requires a seed capital of around AUD 105000. It has been analysed that all the
element of feasibility are in favour for the business so that business can easily enter the
Australian industry. The restaurant industry is Australia is very competitive in nature and thus it
is required for this new business to convey its business idea properly to the customers. The
business that has been disused in the report is of healthy and diet food restaurant that delivers the
services to the people who are very much heath conscious. The competitive environment of the

BUISNESS IDEA 9
industry provides many opportunities to this innovative idea as Australia is becoming very health
conscious and thus it is required by the company to make efforts in the processes and the market
promotion. The quality is also the major concern for this business as it is required to provide the
high quality products to the customers as per the Australian food quality standards.
References:
Boone, L.E., & Kurtz, D.L. 2009. Contemporary Business 2010 Update. John Wiley & Sons.
Boyd, B., Henning, N., Reyna, E., Wang, D., Welch, M. and Hoffman, A.J., 2017. Hybrid
organizations: New business models for environmental leadership. Routledge.
Brown, J.S. and Duguid, P., 2017. The Social Life of Information: Updated, with a New Preface.
Harvard Business Review Press.
Cascetta, E., Carteni, A., Pagliara, F., and Montanino, M. 2015. A new look at planning and
designing transportation systems: A decision-making model based on cognitive rationality,
stakeholder engagement and quantitative methods. Transport policy, 38, 27-39.

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Christensen, C.M., 2013. The innovator's dilemma: when new technologies cause great firms to
fail. Harvard Business Review Press.
Drucker, P.F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Emma, O. 2010. Knowledge Management for Process, Organizational and Marketing
Innovation: Tools and Methods: Tools and Methods. Idea Group Inc (IGI).
Gartner, W.B., Carter, N.M. and Hills, G.E., 2016. The language of
opportunity1. Entrepreneurship as Organizing: Selected Papers of William B. Gartner, p.218.
Johnson, S. 2010. Where Good Ideas Come From The Natural History of Innovation. Penguin
UK.
Kyle, T. 2008. Small Business Ideas - 400 Latest and Greatest Small Business Ideas: From
Around the World - the World's Largest Source of the Latest and Greatest Successful Small
Business Ideas from Around the World; New Small Business Ideas, Small Business Management,
Small Business Start-Ups and New Ventures. Terry Kyle.
Lager, T. 2010. Managing Process Innovation: From Idea Generation to Implementation. World
Scientific.
Lober, H. 2015. Different Phases of the Innovation Process: An Overview of Challenges and
Customer Integration. Anchor Academic Publishing.
Mackey, J. and Sisodia, R., 2014. Conscious capitalism, with a new preface by the authors:
Liberating the heroic spirit of business. Harvard Business Review Press.
Morecroft, J.D., 2015. Strategic modelling and business dynamics: a feedback systems approach.
John Wiley & Sons
Mullins, J., 2013. The New Business Road Test: What entrepreneurs and executives should do
before launching a lean start-up. Pearson UK.

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Tukker, A. and Tischner, U. eds., 2017. New business for old Europe: product-service
development, competitiveness and sustainability. Routledge.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Wirtz, B.W., Pistoia, A., Ullrich, S. and Göttel, V., 2016. Business models: Origin, development
and future research perspectives. Long Range Planning, 49(1), pp.36-54.
Zott, C. and Amit, R., 2013. The business model: A theoretically anchored robust construct for
strategic analysis. Strategic Organization, 11(4), pp.403-411.
Appendix 1:
START-UP COSTS Cost ($) EQUIPMENT/CAPITAL
COSTS Cost ($)
Registrations Business purchase price 45000
Business name 2000 Franchise fees 12000
Licences 200 Start-up capital 100500
Permits 200 Plant & equipment
Domain names 466 Vehicles 200
Trade marks/designs/patents 500 Computer equipment 50000
Vehicle registration 1000 Computer software 1500
Membership fees 1000 Phones 2000
Accountant fees 1000 Fax machine 2500
Solicitor fees 1500 Security system 4500

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Rental lease cost (Rent
advance/deposit) 15000 Office equipment
Utility connections & bonds
(Electricity, gas, water) 1500 Furniture 4500
Phone connection 2000 Shop fitout 7822
Internet connection 2000
Computer software 5000
Training 12500
Wages 20000
Stock/raw materials 10000
Insurance
Building & contents 800000
Vehicle 2000
Public liability 5000
Professional indemnity 50000
Product liability 5000
Workers compensation 4622
Business assets 1870
Business revenue 5428
Printing 4100
Stationery & office supplies 4100
Marketing & advertising 10000
Total start-up costs 200500 Total equipment/capital
costs 230500
Appendix 2:
PROFIT & LOSS Month 1$ Month n$ Year 1$ Year 2$ Year 3$
Sales 24000 38000 105000 200000 450000

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less cost of goods sold 12000 24000 80000 140000 180000
More…
Gross profit/net sales 12000 14000 20500 80000 270000
Expenses
Accountant fees 800 800 9600 9600 9600
Advertising & marketing 2400 2400 28800 28800 28800
Bank fees & charges 2500 2500 30000 30000 30000
Bank interest 2500 2500 30000 30000 30000
Credit card fees 2500 2500 28800 28800 28800
Utilities (electricity, gas, water) 1500 1500 18000 18000 18000
Telephone [phone] 18000 18000
Lease/loan payments 1500 1500 18000 18000 18000
Rent & rates 1400 1400 16800 16800 16800
Motor vehicle expenses 1200 1200 24000 24000 24000
Repairs & maintenance 1500 1500 18000 18000 18000
Stationery & printing 1400 1400 16800 16800 16800
Insurance 1500 1500 18000 18000 18000
Superannuation 142 142 20164 20164 20164
Income tax 1500 1500 18000 18000 18000
Wages (including PAYG) 1500 1500 18000 18000 18000
More… 1800 1800 21600 21600 21600
Total expenses 27142 27142 325704 325704 325704
NET PROFIT (Net Income) 15% 15% 20% 25% 30%