Business Plan - Assignment Sample PDF

Running head: BUSINESS PLAN
Business plan
Name of the student
Name of the university
Author note

1BUISNESS PLAN
Executive summary
The purpose of making this business plan is to highlight the factors on which the
management wants to emphasize before initiating the operations. Therefore in this paper, a
proper proposal of a restaurant business is provided which is going to be established in the
market of Malaysia very soon. In this paper numerous strategies for the business along with a
market analysis and a budget for the proposal is incorporated. The importance of making a
business plan is to stay safe from the risks which are associated in the hospital industry by
taking proper actions on time.

2BUISNESS PLAN
Table of Contents
Executive summary....................................................................................................................1
Business Goals...........................................................................................................................5
Entrepreneurial opportunities and innovative elements:........................................................5
Management Plan.......................................................................................................................6
Market Research and Analysis:..................................................................................................6
Marketing Plan...........................................................................................................................9
Keys to success......................................................................................................................9
Innovation:...........................................................................................................................10
Product quality.....................................................................................................................10
Range of variety...................................................................................................................10
Employee selection and retention........................................................................................10
Cost control..........................................................................................................................11
Operational Plan.......................................................................................................................11
Market segmentation............................................................................................................11
Action plan...............................................................................................................................13
Market segment strategy......................................................................................................13
Analysis of the business...........................................................................................................14
Financial Plan...........................................................................................................................14
Competitive edges................................................................................................................16
Entrepreneurial theories most suited with restaurant business................................................16

3BUISNESS PLAN
Economic theories:...............................................................................................................17
Resource-based theories:......................................................................................................17
Psychological theories..........................................................................................................17
Sociological theories............................................................................................................18
Opportunity-based theory.....................................................................................................18
Feasibility of the business........................................................................................................18
References................................................................................................................................20

4BUISNESS PLAN

5BUISNESS PLAN
Business Goals
Entrepreneurial opportunities and innovative elements:
The business goal consists of the planning of a restaurant in Malaysia named, Captain
Cook’s Den. It will be located in the Tioman Island, in Kuala Lumpur. The restaurant would
provide the opportunities to the guests to have a memorable experience with an innovative
concept. The entire restaurant will be built on a ship and it is placed on the beach. The
restaurant can have an accommodation of 100 people. The restaurant would permit their
guests to enjoy their food in an innovative environment. The customers who would not wish
to sit on the ship can sit on the beach as the restaurant offers that facility. The restaurant will
have 30 staffs working for them. The decoration would be based on the theme of sea pirates.
The waiters will be dressed up like the cabin crew of the ship. The manager and the cook are
supposed to wear the same dress with an additional hat on their head. The environment of a
particular restaurant is an important factor that should be concentrated and constant
development is required. This is the reason the restaurant should make efforts to bring
innovative thoughts in designing the environment so that it might stand out and it might turn
out to be attractive than the other restaurants located in the same region (Dees, 2017). The
restaurant would arrange a cultural program for their guests and they would arrange the
program in the evening. The restaurant requires to appoint a professional troupe who can
entertain the guests with their performances. The restaurant near the sea beach is supposed to
be an informal place where the guests comes to spend their holiday and have recreation. This
is the reason the restaurant near the sea beach should be designed for informal gatherings like
party, cultural programs, birthday celebrations, anniversary celebrations and similar other
occasions. This might not include the business seminars, meetings and business gatherings
(Drucker, 2014).

6BUISNESS PLAN
Management Plan
The restaurant would have a systematic designations. It will have a head chef, it will
have a senior manager who will look after all the activities of the restaurant and he will look
after all the departments of the restaurant. The executive manager will look after the
customers and the booking related things. There will be 30 waiters that will include only the
males and there will be female attendants who will be there to collect the feedbacks from the
customers and answer to all their quarries. They will be 6 to 7 in number. The reason for
setting up the hotel near the sea beach is the availability of the fresh resources. The cuisine
will consist of the sea foods like the Thai food, Indian food, English cuisine, Mexican cuisine
and Spanish cuisine. It has a huge English and Indian market. Tourism is the most important
source of income in this region. This is the reason the food should be of the best quality and it
should be reasonable. The restaurant might get the raw materials from the local region itself
that will enable the produce the products within a low cost (Kohlbacher, Herstatt & Levsen,
2015).
Market Research and Analysis:
Strength The strength of the restaurant is the quality
of the food it offers. The restaurant would
have variety of cuisines that might attract
maximum amount of customers. The other
strength is the innovative ambience. The
restaurant will create a beach side ambience
with the cultural program in the evening.
This will attract more guests who have
come for a holiday. The reasonable rate of
the food can be added as the strength

7BUISNESS PLAN
(Davidsson, 2015).
Weakness The restaurant have facilities only for
informal gatherings. The restaurant does not
design the corporate meetings and the
business seminars. This can be a weakness
as there are many corporate companies who
likes to organize a business meetings in the
restaurants near the sea beach. The
restaurants might lose out clients who are
looking for these facilities (Stam, 2015).
Opportunity The ambience and the location of the
restaurant can serve as the biggest
opportunity for the restaurant. The
restaurant plans to make arrangement for
their guests on the deck as well as on the
beach. Apart from this the multiple cuisine
might attract guests of all origins (Lusch &
Nambisan, 2015).
Threat The biggest threat of the company is the
competitors. There are many such
restaurants in that area which can take away
the potential customers (Kuratko, Hornsby
& Covin, 2014).
Table 1: SWOT Analysis

8BUISNESS PLAN
Source: created by author
PESTEL analysis:
Political The government of Malaysia highly
supports the growth of restaurants. The
maximum source of economy of the region
is from tourism. This is the reason the
government makes all the efforts to support
the restaurants across the country.
Economic The maximum amount of customers looks
for good food with a proper ambience. This
gives a huge rise in the economy of the
country.
Social People with good lifestyle visits Malaysia
and they look for good and classy
environment. The restaurant can attract the
people with all types of lifestyles as they
plans to have reasonable food with
innovative ambience and with proper food
quality.
Technological The restaurant can allow their customers to
book their tables online and rate their food
on the social media. It makes the restaurant
technologically advanced.
Environmental The restaurant will install the solar panels
on the roof which will add to the CSR

9BUISNESS PLAN
activity. Apart from this the restaurant will
initiate the recycling of the materials used in
the business operations. These things can
highly be appreciated and can effectively
increase the reputation of the organization in
their operational market (Garud, Gehman &
Giuliani, 2014).
Legal The restaurant will have a proper trade
license, it will have a constant check of the
food inspectors so that the restaurant
provides good quality food to their
customers. The restaurant will look into the
matter that they perform the ethics towards
the customers and the environment (Boger
et al., 2017).
Table 2: PESTEL analysis
Source: created by author
Marketing Plan
Keys to success
The owner of Captain Cook’s Den in a press meet stated that as he named the restaurant on
one of the most decorated and celebrated English explorer who made sea ways his home,
therefore the menu card will reflect the same and the focus of the chefs of the organization
will be to offer exquisite seafood to the target customers of the business organization (Zhang,

10BUISNESS PLAN
2015). Apart from that, the owner Mr. Mahmud stated that they will follow certain principles
that can help them to get competitive edge in the market of Malaysia and generate adequate
productivity along with profitability.
Innovation:
The management of Captain Cook’s Den will deploy a team dedicated to control the quality
of the services and the quality of the food that will be offered to the customers. The theme of
the restaurant will be like a big 18th century ship and the restaurants and the front staffs will
be wearing uniforms like the crew members of the 19th century ships, the managers and the
chefs will be wearing captain hats. The management will make it sure that the customers of
the restaurant will get a feeling that they are sitting on the deck of an 18th century ship.
Product quality
The management will ensure that they will be using ingredients of the highest quality as they
will be running a fine dining themed restaurant.
Range of variety
The management of the organization will ensure that they are able to offer a range of varieties
in the food menu to their customers. The emphasize will be on sea food but the restaurant will
be offering English, Mexican, Spanish, Thai and Indian cuisine to their customers.
Employee selection and retention
The management of the business organization will focus on hiring the employees who have
adequate professional skills and cultural intelligence so that the productivity of the
organization stays on the higher end and the workforce has the ability to deal with the
customers who may come from different cultural backgrounds (Betancor et al., 2015). In the
selection process the focus will thus be on the professional skills and cultural along with
emotional intelligence as the organization will be operating in the hospitality industry. The

11BUISNESS PLAN
management of the business organization will also focus on how they can retain the
employees as to achieve success, it will be important to have a skilled workforce in the
disposal.
Cost control
The management of the business organization will emphasize on the factor that they need to
ensure that they are not wasting capital. As in today’s world when the market competition is
always in the higher end, cost control became an important determining factor of the
company’s profitability (Zhang, 2015). Therefore, the management of the business
organization should focus on controlling excess expenditure. It can be said that 60% of the
success rate depends on restraining the excess expenditure.
Operational Plan
 The management of the business organization is aiming to keep the employee costs
between 30% of the total sales.
 The décor and ambience of the restaurant should fetch the much needed competitive
edge
 The restaurant should be able to attract foreigner tourists
 The management will be trying to expand their business in the market of South East
Asia within 10 years from now.
 The management wants to attract a customer base of the age group between 20 to 40
years old.
Market segmentation
The management of Captain Cook’s Den wants to cater a huge customer base in the market
of Malaysia in order to get and sustain the competitive advantage in the domestic market of
operation. The target customers of the management will thus be the downtown couples, high

12BUISNESS PLAN
end singles, foreigner tourists, domestic travelers. The management does not want people to
use their restaurant for business meetings as that can be harmful to their friendly and
celebrating ambience (Wardono, Hibino & Koyama, 2017). Therefore any formal gathering
in the restaurant will be highly disregarded. As the management will be offering great
acoustics in their organization with the provision to sit in the beach and light a bonfire, the
target customers will have to be youths.
Blue: international tourists
Red: Couples
Green: Musician
Turquoise: domestic tourists
Mustard Yellow: high end singles
Source: (Zhang, 2015)

13BUISNESS PLAN
Action plan
Market segment strategy
Couples: the management of the restaurant will be offering an intimate and romantic
ambience that the couples can enjoy. The management of the organization will also be
offering great acoustics that can effectively improve the ambience. It is a matter of fact that
the management of the organization wants to increase the reputation of the business
organization as a heaven for the couples.
Foreigner tourists: the management of Captain Cook’s Den wants to attract as much
foreigner tourists as they can as their aim is to expand their business in the international
market. as the management will be offering great services, naturally they can expect that via a
good word of mouth publicity the management of the organization will be able to attract
more international customers and can eventually gain a reputation in the international market
before venturing in a foreign market (Betancor et al., 2015).
High end singles: the management of the business organization will be expecting to attract
the high end singles with their attractive décor and ambience as they want to feel te high end
singles to be in the right place (Fischer, 2015). These particular customers generally takes
pride in socializing and dining in posh places and the management wants to utilize this crown
to maximize the profitability o the business.
Musicians: the management of Captain Cook’s Den will be offering great acoustics in their
restaurants and in the open mic sessions many aspirant musicians can join and play their
music. This can effectively attract a huge crowd of musicians in the organization. the
management actually wants to have a musical ambience and that is why they are focusing to
have a crowd that understands and appreciates good music.

14BUISNESS PLAN
Domestic tourists: the management of the restaurant also wants to attract a huge crowd of
the domestic tourists in their organization as they surely want to maximize the profitability of
the organization (Ihsanullah & Rashid, 2017). In this regard, it is worthwhile to mention that
Tionan Island is a popular destination for the domestic tourists and the management of the
organization just wants to take that opportunity to generate profitability. The management
will be hosting numerous social events and that can effectively attract a huge domestic
tourists’ crowd.
Analysis of the business
It can be said that currently the restaurant business is becoming very competitive and the
owner of the organization should take every steps while setting up the business in a market
full of competition. In the restaurant business in order to sustain profitability ethically, the
key is to lower the internal costs and providing good quality food so that the mark up prices
can be raised after a few years to gain the maximum profitability (Hamilton et al., 2015). At
the same time the quality of the ingredients should be maintained effectively; otherwise the
plan will backfire. Therefore to sustain the profitability, the management should have a clear
understanding of the market with the associated risks, the strengths and most importantly the
finance. The management will have to make a budget regarding their expenditure and the
anticipated salability in order to have an idea of the profitability they can generate for at least
three coming years.
Financial Plan
Year 1 Year 2 Year 3
Operating activities
Net income $0 $0 $0
Depreciation $28,500 $29,070 $29,640
Accounts receivable $0 $0 $0
Inventories $0 $0 $0
Accounts payable $0 $0 $0
Amortization 10,000 10,000 $10,000
Other liabilities 5,000 5,000 $5,000

15BUISNESS PLAN
Other operating cash flow items 0 0 $0
Total operating activities $43,500 $44,070 $44,640
Investing activities
Capital expenditures $0 $0 $0
Acquisition of business 0 0 0
Sale of fixed assets $0 $0 $0
Other investing cash flow items 0 0 0
Total investing activities $0 $0 $0
Financing activities
Long-term debt/financing ($95,000) $0 $0
Preferred stock 0 0 0
Total cash dividends paid 5,000 5,000 5,000
Common stock 0 0 0
Other financing cash flow items 0 0 0
Total financing activities ($90,000) $5,000 $5,000
Cumulative cash flow ($46,500) $49,070 $49,640
Beginning cash balance $0 ($46,500) $2,570
Ending cash balance ($46,500) $2,570 $52,210
Summary Statement
Sources of Capital
Owners' and Other Investments
$
6,027,500
Bank Loans
5,00
0
Other Loans
90,00
0
Total Source of Funds
$
6,122,500
Startup Expenses
Bldgs / Real Estate
$
60,000
Leasehold Improvements
22,00
0
Capital Equipment
60,50
0
Location / Admin Expenses
27,50
0
Opening Inventory -
Advertising / Promo Expenses
6,00
0
Other Expenses
50,00
0
Total Startup Expenses
$
12,471,000

16BUISNESS PLAN
Source: created by author
Competitive edges
It is a matter of fact that the management of the business organization can effectively gain
some competitive advantages in their domestic market of operations as the management has
already invested a fortune in the advertising and after the successful press meet the reputation
of the organization and the hype among the target customers of the organization got increased
significantly (Betancor et al., 2015). The organization will be offering excellent décor and
ambience for the customers and apart from that they will be hosting numerous social events
that can effectively attract the target customer base of the organization. It can surely be said
that the management of the business organization needs to be aware of the fact that they
should effectively stress on maintaining the quality of the products and the services that they
are going to offer to the customers; as these are the determining factors of a restaurant’s
success (Ahmad & Mason, 2014). It is a matter of fact that the managers of the company
needs to understand the fact that to ensure profitability along with maintaining a good
reputation in the market of operation, the management will have to make sure that the
services and the products they are offering, should be of the highest quality and the
advertising of the organization in the preliminary stages should be appropriate so that
maximum people can get the information regarding their venture in the market of Malaysia.
Entrepreneurial theories most suited with restaurant business
While setting up a new business an entrepreneur accepts the risks that are associated
with the profit of the organization. There are number of theories that form a basic part of

17BUISNESS PLAN
entrepreneurship. These theories. This section include the entrepreneurship theories related to
restaurants. The theories are:
Economic theories:
This theory belongs to the first half of the 1700s and this can be related to the work of
Richard Cantillon. He was the one to explore the idea of entrepreneurs as risk takers. The
restaurants requires huge investment and is associated with a huge economic risk. It tends to
receive the significant criticism for failing to recognize the dynamic, it is characterized by the
open nature of the systems of the market. It ignores the unique nature of entrepreneurial
activity and downplaying the diverse contexts in which the entrepreneurship occurs
(Williams, 2016).
Resource-based theories:
This theory is based on the fact that the individuals make use of different types of
resources in order to get the entrepreneurial efforts done. This include the access to the type
of resources that acts an effective chance of getting a new venture. The restaurants requires
resources like fresh raw materials for food, the resources to design the equipment’s that are
necessary to build the restaurant. They require manpower that forms an essential part of the
restaurant. The other types of resources that are required in the restaurant business is the
social networks, as well as the human resources. It also requires the intangible elements of
managerial skills and the leadership skills (Espíritu-Olmos & Sastre-Castillo, 2015).
Psychological theories
This theory focus on the psychological theories of entrepreneurship. This include the
mental or emotional elements that are present in the entrepreneurial individuals (Gast,
Vershinina & Woldesenbet, 2016). In order to set up a restaurant the entrepreneur have to

18BUISNESS PLAN
think of an innovative plan that will attract maximum amount of consumers. It leads to the
optimism drive that suggests entrepreneurial behaviour (Bullough & de Luque, 2015).
Sociological theories
The theory is explained in the social context. This serves as a wide opportunity to the
entrepreneurs. The role of entrepreneur is questioned within the context of culture. In case of
a restaurant business the entrepreneurs must be able to think from an innovative cultural view
point. In this case the owners of the restaurant considered the casual culture of Malaysia and
proposed to create the same culture in the restaurant. This shapes the behaviour and the
perception of the entrepreneurs (Forsgren, 2017).
Opportunity-based theory
This theory opines the fact that the entrepreneurs must take advantage of the situation
they get. The possibilities they get are created by the social, technological and the cultural
changes that occur. The restaurants must cater to the sudden influx of the younger people to a
neighbourhood as a potential customers. The entrepreneur might see it as a chance to open a
new choice for them (Garud & Gehman, 2016).
Feasibility of the business
The business can be predicted to be a successful one as it can be studied from the
plan. The reason of the same lies in the name itself. As stated earlier, the owner of the
restaurant in one of his interview stated that he named the restaurant on one of the most
celebrated character, who made the sea voyages. The reason for this is that the sea is located
near the sea beach and it is built on a ship. The concept of having cultural programs in the
ship, having an ambience of sea pirates, all are parts of strategic innovation. It is feasible of
the restaurant to have a theme of 18th century ship. Starting from the uniforms of the staffs to
the management all are organized under one theme (Ghazali et al., 2016). Apart from this the

19BUISNESS PLAN
restaurant can get fresh product from the place where it is located which will make the quality
of the food innovative. This will enable them to cut the cost and make profit. The restaurant
will lay the focus on the sea food. The restaurant will be able to capture the market as they
have planned the business according to the culture and the needs of the tourists and the local
people of that region. The company makes efforts to apply effective procedures in the
selection of the employees and the retention of the same. They will hire those employees who
will have adequate knowledge and skill. The productivity of the employees shall be kept in
mind. The organization pays attention towards the cost control. They would ensure of not
wasting capital. This will enable them to establish themselves in the competition that exists in
the market (Ahmad et al., 2016). The company has the potential to attract the foreign tourists
as they have the culture that the foreigners looks forward to. They also will design strategies
to attract the domestic tourists. By analysing the budget required for the plan it can be
mentioned that the expense is moderately standard for the business. It is not high and this will
make it easier for the entrepreneurs to establish their business by making profit in the first six
months itself. These factors makes it feasible for the restaurant to establish itself in the
competitive market (Raab, Baloglu & Chen, 2018).

20BUISNESS PLAN
References
Ahmad, N. H., Halim, H. A., Rahman, S. A., & Ramayah, T. (2016). Green entrepreneurship
proclivity among Generation Y nascent entrepreneurs of Malaysia. ECONOMICS,
SOCIAL SCIENCES.
Ahmad, Z., & Mason, C. (2014). Customer perceptions and behaviors of fast food
restaurants: a case study of Radix Fried Chicken Sdn Bhd. Age, 1, 0-224.
Betancor, M. B., Sprague, M., Usher, S., Sayanova, O., Campbell, P. J., Napier, J. A., &
Tocher, D. R. (2015). A nutritionally-enhanced oil from transgenic Camelina sativa
effectively replaces fish oil as a source of eicosapentaenoic acid for fish. Scientific
reports, 5, 8104.
Bogers, M., Zobel, A. K., Afuah, A., Almirall, E., Brunswicker, S., Dahlander, L., ... &
Hagedoorn, J. (2017). The open innovation research landscape: Established
perspectives and emerging themes across different levels of analysis. Industry and
Innovation, 24(1), 8-40.
Bullough, A., & de Luque, M. S. (2015). Women’s participation in entrepreneurial and
political leadership: The importance of culturally endorsed implicit leadership
theories. Leadership, 11(1), 36-56.
Clemes, M. D., Mohi, Z., Li, X., & Hu, B. (2018). Synthesizing moderate upscale restaurant
patrons’ dining experiences. Asia Pacific Journal of Marketing and Logistics, (just-
accepted), 00-00.
Davidsson, P. (2015). Entrepreneurial opportunities and the entrepreneurship nexus: A re-
conceptualization. Journal of Business Venturing, 30(5), 674-695.

21BUISNESS PLAN
Dees, J. G. (2017). 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability (pp. 34-42). Routledge.
Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
Espíritu-Olmos, R., & Sastre-Castillo, M. A. (2015). Personality traits versus work values:
Comparing psychological theories on entrepreneurial intention. Journal of Business
Research, 68(7), 1595-1598.
Fischer, J. (2015). Malaysian diaspora strategies in a globalized Muslim
market. Geoforum, 59, 169-177.
Fischer, J. (2016). Manufacturing halal in Malaysia. Contemporary Islam, 10(1), 35-52.
Forsgren, M. (2017). Theories of the multinational firm: A multidimensional creature in the
global economy. Edward Elgar Publishing.
Garud, R., & Gehman, J. (2016). Theory evaluation, entrepreneurial processes, and
performativity. Academy of Management Review, 41(3), 544-549.
Garud, R., Gehman, J., & Giuliani, A. P. (2014). Contextualizing entrepreneurial innovation:
A narrative perspective. Research Policy, 43(7), 1177-1188.
Gast, A., Vershinina, N., & Woldesenbet, K. (2016). Beyond the entrepreneurial ecosystem
and mixed embeddedness approaches: A review and research agenda’. ISBE.
Ghazali, N., Mustapha, R. R., Ibrahim, M. Z. F., Salim, A., & Saber, J. M. (2016).
Proactiveness approach towards independent restaurant performance. Innovation and
Best Practices in Hospitality and Tourism Research, 19.

22BUISNESS PLAN
Hamilton, H. A., Peverill, M. S., Müller, D. B., & Brattebø, H. (2015). Assessment of food
waste prevention and recycling strategies using a multilayer systems
approach. Environmental science & technology, 49(24), 13937-13945.
Ihsanullah, I., & Rashid, A. (2017). Current activities in food irradiation as a sanitary and
phytosanitary treatment in the Asia and the Pacific Region and a comparison with
advanced countries. Food Control, 72, 345-359.
Jacques, P. J. (2015). Are world fisheries a global panarchy?. Marine Policy, 53, 165-170.
Kanyan, A., Ngana, L., & Voon, B. H. (2016). Improving the Service Operations of Fast-food
Restaurants. Procedia-Social and Behavioral Sciences, 224, 190-198.
Kohlbacher, F., Herstatt, C., & Levsen, N. (2015). Golden opportunities for silver innovation:
how demographic changes give rise to entrepreneurial opportunities to meet the needs
of older people. Technovation, 39, 73-82.
Kuratko, D. F., Hornsby, J. S., & Covin, J. G. (2014). Diagnosing a firm's internal
environment for corporate entrepreneurship. Business Horizons, 57(1), 37-47.
Lee, R. L. (2017). Malaysian identities and mélange food cultures. Journal of Intercultural
Studies, 38(2), 139-154.
Lusch, R. F., & Nambisan, S. (2015). Service innovation: A service-dominant logic
perspective. MIS quarterly, 39(1).
Nair, S. (2017). Dinner conversations: Sbs's' The Chefs' Line'and cultural authenticity in food
programming. Metro Magazine: Media & Education Magazine, (194), 50.
Raab, C., Baloglu, S., & Chen, Y. S. (2018). Restaurant Managers’ Adoption of Sustainable
Practices: An Application of Institutional Theory and Theory of Planned Behavior.
Journal of Foodservice Business Research, 21(2), 154-171.