BUSINESS PLAN 14 14 BUSINESS PLAN Part I: Introduction

BUSINESS PLAN BUSINESS PLAN 14 14 BUSINESS PLAN Business Plan Author’s Note: Part One: Introduction 2 A: Executive Summary 2 B: Business Philosophy/Mission Statement 2 C: Product or Service Description 3 D: Self Analysis 4 Part Two: Marketing Research 5 E: Conduct Secondary Research in the following areas: 5 F: Primary Research: 5 G: Competition 6 H: Market Segment Analysis 6 I: Analysis of Potential Location 6 Part 3: Organisation and Personnel Plan 7 J: Ownership Choices 7 K

Running head: BUSINESS PLAN
Business Plan
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Part One: Introduction.....................................................................................................................2
A: Executive Summary................................................................................................................2
B: Business Philosophy/Mission Statement................................................................................2
C: Product or Service Description...............................................................................................3
D: Self Analysis...........................................................................................................................4
Part Two: Marketing Research........................................................................................................5
E: Conduct Secondary Research in the following areas:.............................................................5
F: Primary Research:...................................................................................................................5
G: Competition............................................................................................................................6
H: Market Segment Analysis.......................................................................................................6
I: Analysis of Potential Location.................................................................................................6
Part 3: Organisation and Personnel Plan.........................................................................................7
J: Ownership Choices..................................................................................................................7
K: Personal Needs........................................................................................................................7
L: Hiring Strategy........................................................................................................................8
M: Proposed Product or Service..................................................................................................8
N: Proposed Pricing Policy..........................................................................................................9
O: Proposed Promotional Plan.....................................................................................................9
P: Place......................................................................................................................................10

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Part 5: Financial Plan.....................................................................................................................10
Q: Income Statement.................................................................................................................10
References......................................................................................................................................12

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Part One: Introduction
A: Executive Summary
The assignment aims at creating a business plan for a start-up company that would be operating
in the food and beverage industry in the geographical region of Australia. The start-up plan for
the company would be named as Health Point Café serving various types of foods and beverage
amongst the consumer for meeting the growing demand of food industry. In terms of marketing,
the company would be aiming at marketing the activities undertaken by the company for
increasing the brand awareness about the products and services offered and the customer base for
the company. The key vision of the company would be to become a market leader in that
segment and grow the operations of the company on a sustainable basis. The products and
services offered by the company would be in the field of various foods and beverages that would
be sold by the company. In terms of financial planning for the company, the venture would be
aiming at creating a projected income statement for the company for a three-year trend period
that would be including various sources of revenue and expenses to be incurred. . In the initial
stage of operations, it is expected that the company would be requiring an initial investment of
around $500 million and the same would be fulfilled with both equity and debt financing. The
overall financial viability and sustainability of the organisation would be assessed with the help
of the profitability generated by the company in the trend period analysed. Thus, it is essential
that the management of the company plan various activities of the company with the help of
strategies that would be built for better management and utilisation of the resources of the
company.

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B: Business Philosophy/Mission Statement
It is essential that every business make certain mission and vision statement for the operations
of the company that are well defined. The business philosophy of the company defines the
purpose of various activities venture undertakes and the purpose of doing the same. The Health
Point Café would be planning to open a restaurant cum café business in Sydney, Australia so that
the company can grab the maximum amount of customer base and meet the demand of
customers. The mission of the new start-up would be to serve quality healthy foods along with
various types of cuisines and appetizers that is mostly favourable to the masses (Correll et al.,
2016). The business would be offering various types of foods and appetizers and even with a
choice to make your own dish so that customers can order beyond the traditional menu available
in the restaurants and cafes. A peaceful and a suitable environment covered with the beauty of
nature would be the key aim that the company would be focussing (Brinckmann & Kim, 2015).
C: Product or Service Description
Health Point Café would be offering various types of healthy foods, appetizers and
munchies like Tuna Sandwich, Russian Salad, Pasta Salad and Grilled Vegetables in the
Appetizer. On the other hand Shanghai Springs Rolls, Hakka Noodle, Schezwan Rice, Italian
Crispy Bread would be served in the Main Course Section. Finally, items like Assorted Waffles,
Chocolate Fondue and Nutella Burst Marsh Mallow (Wynne, 2016). Beverages like Coffee, Tea
and various other juices would be the key attraction of the café. In addition to the services, the
café would also be offering an option to prepare its own dish with the dish they would actually
like to have. The same would also be considered as a key selling point of the company. The
Health Point Café would be providing a various range of products and services, which not only
would attract customers but it, would also be aiming at increasing the customer base with elite

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class of hospitality services (Dale, 2019). The starters would be priced at around $10, on the
other hand, Main Course would be priced between $10-$15, on the other hand, deserts would be
ranged between $8-$10.
The pricing of the product would be kept in accordance with industry standard whereby
the company would be providing quality services at the competitive rates in order to garner
market share and increase the customer base of the company (Wynne, 2016).

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D: Self Analysis
The new business would be requiring various strategies and ideas that needs to build on
and the same can be done with the help of the various management plans and outlook for the
company. I have analysed the demand and the growth of the Australian Food and Beverage
Industry and the corresponding growth of the company (Brinckmann & Kim, 2015).
Part Two: Marketing Research
E: Conduct Secondary Research in the following areas:
1) Geographical Data: Based on the research and data collected by us we found out that the
population in the Sydney Region is expected to reach around 5.73 million by the year 2019 June.
The growing population and the growing demand for the food and the beverage industry has
been the key fact that would be supporting the operations and the growth of the company in the
Sydney Region (Sydney Population, 2019).
2) Demographic Data: Key statistics such as income and age of people would be the key
demographic data that would be required by us while including the same in the application of
business process. The average salary that is received by the Australian citizens amounts to
$68,145 (Sydney, New South Wales Salary, Average Salaries | PayScale Australia, 2019). On the
other hand, the median age of people in Sydney is around 30 years of age. From the above data
collected, it could be well found that the companies may be able to capture significant customer
base for the company, as the above factors may be favourable to the company (2016 Census
QuickStats: Sydney, 2019).

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F: Primary Research:
It is well important for the company to conduct various surveys, research for the purpose
of evaluating the areas where the operations of the company would be focusing on and the areas
beyond which the company can expand the operations. A marketing survey was conducted where
basic questions like age, gender, education level, household income and size were gathered.
G: Competition
In terms of competition, several areas needs to be analysed by the competition both
directly and on an indirect basis.
Direct Competitors: There are various restaurants and cafes that sell similar kind of products
and services as the Health Point Café would be doing. The top competitors for the start-up would
be Barbetta Café, Cuckoo Callay, Devon Café North Sydney, Double Tap and others that would
be giving a direct competition to the business (Schiavone, 2018).
Indirect Competitors: The business would also be facing an indirect competition from other
online competitors that sells similar kind of products with the help of online retail sales.
The company would be performing better than other competitors in the market with the
help of its own key hospitality services and various range of food items offered. However,

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hospitality and unique experience within the café would be the key strength separating it from
other competitors (Wynne, 2016).
H: Market Segment Analysis
Target Customer: The target customer for the business primarily would be the youngsters and
working professionals who usually step by in cafes and restaurants for spending their leisure
time. Customers would be given with a variety of options in the available range of food and
beverages menu that are available in the restaurants (Ward, 2016).
I: Analysis of Potential Location
The location of the business would be in Elizabeth Street, Paddington, Sydney, which is a
very popular area. The selected location is based on the population and demographic trend that
would be positively affecting the growth of organisations. The selected property is a two storey
building where we would be renting the first floor of the property and the second floor of the
property would be purchased by us on an ownership basis for the usage in the operations of the
business. The selected building is well furnished with proper ventilation, fire extinguishers and
fire exit involved (McKeever, 2016). The operational hours of the restaurant would be from 10
AM to 10:30 PM. There would be as such no parking facilities that would be provided by the
restaurant however, on the other hand side of the restaurant there is paid parking facility, which
can be well used by the customers. The area is completely safe as the place is involved in the
middle of the city with modes and access to various helps (Chambers & Humble, 2017).

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Part 3: Organisation and Personnel Plan
J: Ownership Choices
In terms of ownerships, the company would be registering and operating as a Sole
Proprietorship Business. In the initial stage of operations, it is expected that the company would
be requiring an initial investment of around $500 million and the same would be fulfilled with
the help of equity investment comprising around 80% of the required capital. The rest of the
financing would be done from the debt financing which will be financed with bank loan.
K: Personal Needs
The business will be managed by managers who would be appointed by the owner of the
company who would be taking care of the various operational work within the organisations. The
business manager would be directly reporting to the owner of the company who indeed would be
reviewing the various operational and financing operations of the company. The organisational
chart of the company would be presented as follows:

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Organisational Chart of Health Point Cafe
L: Hiring Strategy
The recruitment of staff members would be done based on the job task required to be
carried or operated down in the café. Hiring in Cafes would be solely done through an extensive
interview programme where the candidate skills and knowledge would be solely matched with
the skills required in the job field. The salary for the candidates would be as per the industry
standards and there would be no conditions attached to the job profile as such. Hiring staffs who
are having expertise knowledge and skills in the Hospitality Industry would be the key staffs that
would be selected.
M: Proposed Product or Service
Health Point Café would be offering various types of healthy foods, appetizers and
munchies like Tuna Sandwich, Russian Salad, Pasta Salad and Grilled Vegetables in the
Appetizer. On the other hand Shanghai Springs Rolls, Hakka Noodle, Schezwan Rice, Italian
Owner
Sales and
Marketing Operations Finance
Manager

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Crispy Bread would be served in the Main Course Section. Finally, items like Assorted Waffles,
Chocolate Fondue and Nutella Burst Marsh Mallow. Beverages like Coffee, Tea and various
other juices would be the key attraction of the café. In addition to the services, the café would
also be offering an option to prepare its own dish with the dish they would actually like to have.
N: Proposed Pricing Policy
The same would also be considered as a key selling point of the company. The Health
Point Café would be providing a various range of products and services, which not only would
attract customers but it, would also be aiming at increasing the customer base with elite class of
hospitality services. The starters would be priced at around $10, on the other hand, Main Course
would be priced between $10-$15, and on the other hand, deserts would be ranged between $8-
$10.
The proposed mark-up to cover costs of the company would be around 5%-10% on the
total sales price of the company. It is important that relationship with the customers of the
company are well maintained and the same would be done with the help of promotional and
better hospitality services provided by the company.
O: Proposed Promotional Plan
1) Personal Promotion: Promotion of the various activities and operations of the business
would be done with the help of sales and marketing team who would be coming up with various
promotional offers and discounted sales approach in order to increase the revenue and the
sustainable growth of the company.
2) Non-Personal Information: Advertisements in social media, newspaper and other pamphlets
would be the key source of promotional activities that would be undertaken by the company in
this course of period.

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P: Place
Location: The location of the business would be in Elizabeth Street, Paddington, Sydney, which
is a very popular area. The selected location is based on the population and demographic trend
that would be positively affecting the growth of organisations. The selected property is a two-
storey building where the company would be undertaking the various operational work.
Distribution Plan: The products and services of the company would be sold directly from the
restaurants. The products would be manufactured and sold directly from the outlet or the
restaurant itself with no indirect party involved in the marketing and selling part in the business.
Part 5: Financial Plan
The financial analysis of the company would be prepared with the help of projected sales,
sources of income and various other expenses that would be done by the company for the trend
period analysed for the company.
Q: Income Statement
The income statement for the company would be prepared for a sum of one-year whereby
the company would do the operations, revenues and the classification of various expenses in the
trend period analysed. The gross revenue that would be earned by the company would be around
40% of the total revenue or sales that would be done by the company. The revenue for the
company in the first year of operations would be around $300,000 and the associated gross profit
for the company would be around $180,000. On the other hand, the total expenses or overheads
would be around $147,000. Taxation would be charged at 27.5% for the company whereby the
company would be paying the corporate taxes at that rate in the financial year (Current
Australian IncomeTax Rates - Resident and Non-Resident | Exfin - The Australian Expatriate's

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Gateway, 2019). The financial projections would be helping the company in making out various
strategies and actions for the company in order to increase the operations and sales of company.
Return on Investment: The return on investment for the company in the financial year is
expected to be around 5.98% whereby the source of investment is primarily equity financing.
The net profitability of the company would be around $23,925 and the whole of amount would
be transferred to the reserves as this would be used by the management of the company in there
operational work. The before tax net margin for the company would be around 11% for the
company and the same states a healthy return to the shareholders of the company for the stated
period.
On an overall basis, it is expected that the market penetration for the goods and services
would be around 5% for the company and the operations and services would be growing at the
same rate. In the future course of time with the growth and revenue of business, it is expected
that the company would be diversifying the products and services into various fields.

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McKenzie, D. (2015). Identifying and spurring high-growth entrepreneurship: Experimental
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