Business Plan

This business plan discusses the details of opening a restaurant in West Town region of Chicago, focusing on healthy food products. It covers business premises, organizational chart, product and services, innovation, risk management, legal requirements, market research, target markets, environmental analysis, advertisement and sales, financial plan, and more.

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

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BUSINESS PLAN
Table of Contents
The Business....................................................................................................................................2
Business Details...........................................................................................................................2
Business Premises........................................................................................................................2
Organizational Chart....................................................................................................................3
Product and Services....................................................................................................................3
Innovation....................................................................................................................................6
Risk Management........................................................................................................................6
Legal Requirements.....................................................................................................................6
The Market.......................................................................................................................................6
Market Research..........................................................................................................................7
Target Markets.............................................................................................................................7
Environmental Analysis...............................................................................................................8
Advertisement and Sales..............................................................................................................8
Financial Plan..................................................................................................................................9
Start Up Expenses........................................................................................................................9
Profit and Loss Statement..........................................................................................................10
Reference.......................................................................................................................................12

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BUSINESS PLAN
The Business
Business Details
The business which is being considered would be a restaurant business which would be
providing the best quality of food products and the foods products would also be healthy. The
name of the business as decided would be Eat Healthy Restaurant. The plan is to open a
restaurant in West Town region of Chicago so that the business is able to attract more customers
to the operations of the business. The growing demand for the food industry and the increasing
trend of the demand for healthy lifestyle.
Business Premises
The business would be opening a restaurant in West town region of Chicago and the
premises which is selected for the business needs to be spacious so that the employees can be
attracted to the business1. The food industry is expanding and therefore, this is the most favorable
time for the business to open a restaurant business in the region.
1 Scarborough, Norman M. Essentials of entrepreneurship and small business management. Pearson, 2016.

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BUSINESS PLAN
Organizational Chart
The business would be managed the owner personally and all-important decisions would
be taken by the owner. The operations of the business would be handled by different managers
who would looking after different activities of the business2. The organizational chart shows that
the major decisions which are taken.
Product and Services
The product and services which will be offered by the business would be focused on
maintaining quality and health aspects of a business3. The food products which would be covered
in the menu of the business is listed below:
2 Burns, Paul, and Jim Dewhurst, eds. Small business and entrepreneurship. Macmillan International Higher
Education, 2016.
3 "Chicago Tribune - We Are Currently Unavailable In Your Region". 2019. Chicagotribune.Com. Accessed June 28
2019. https://www.chicagotribune.com/dining/ct-food-2018-trends-whole-foods-20171114-story.html.

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BUSINESS PLAN
 Cold Salad-meals that will ensure that taste and healthiness of the product is offered to
consumer in the form of nutrition level.
 Cold Sandwich-based meals providing a balanced between taste and nutrition.
 Rice Bowls with Shredded Chicken
 Grilled Pork with Vegetables
 Almond Protein Shakes
 Banana and Protein Shakes

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BUSINESS PLAN
The products which would be offered is of highest quality so that customers can be
attracted to the restaurant. The business would be a unique restaurant which would be
considering the health of the customers a priority and accordingly offers its products to the
customers.

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BUSINESS PLAN
Innovation
The business would be following an innovative approach in the operational process and
also in the different dishes which will be offered by the restaurant. The business of Eat Healthy
Restaurant would be introducing more salad-based dishes and also items which can provide a
balanced portioned nutrient. Technological innovations and continuous effort would be spent on
the research and development of the operations of the company so that the business can improve
the operational process.
Risk Management
The business would be facing risks from the restaurants which are already established in
the region. This can affect the revenue which is generated by the business. Another major risks
which the business faces are related to access to adequate funds for commencing the operations
of the business4. The risks which are faced by the business can be managed appropriate if proper
risk management practices are implemented.
Legal Requirements
The management of the company needs to adhere to licensing requirements for the
business. The business also needs to adhere to hygiene requirements in the restaurant so that the
customers get best quality of food products.
The Market
Market Research
As per the market trends, the demand has risen for healthy food products in the region
due to sensitivities of the youths to maintain body fitness. This provides an opportunity to the
4 Hiduke, Gail, and Joseph Daniel Ryan. Small business: an entrepreneur's business plan. Cengage Learning, 2013.

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business to enter the market and thereby also target customers for enhancing the revenues of the
business. The market trend further shows that the overall food industry is on a growth phase as
most of the tourist prefer takeaway food and also some of the locals.
Target Markets
The target market of the business would be youths who are more concerned with body
fitness, gym going youths. The business would also target people between the age group of 30
years to 50 years as these people would always opt for healthy food products instead of fast food
products.
Environmental Analysis
The analysis of the environment in which the business of Eat Health would be operating
is also a matter of consideration for taking major decisions for the business5. PESTLE analysis is
5 Gupta, Abhishek. "Environment & PEST analysis: an approach to the external business
environment." International Journal of Modern Social Sciences 2, no. 1 (2013): 34-43.

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BUSINESS PLAN
a tool which is used by the business for analyzing the macro environment of the business in
which the company is planning to operate. The factors which have an impact on the operations of
the business are discussed below:
 Political Factors: The political factors include regulations which needs to be followed
for the purpose of meeting the expectation of customers and Government bodies6.
 Economic Factors: The economic Factors involves changes in interest rate, inflationary
pressure which affects the prices of the products.
 Social Factors: These factors include taste and preference of the customers, quality of
food and hygiene of the restaurant.
 Technological Factors: The business would be applying the best and latest cooking
machineries and also latest tools for cutting, grinding, chopping of raw materials.
Advertisement and Sales
The management of the restaurant wants to expend extensively on advertisement and
promotion so that the name of the restaurant can be spread far and wide in the region. The
management plans to use all three forms of media for advertisement so that the business is able
to reach to maximum customers and thereby ensure maximum revenue is generated by the
business from operations.
Financial Plan
Start Up Expenses
Year Year 1
(a) Total Initail Investment 700,000
Initial Equity Investment (Equity) 490,000
6 Rakesh, C. "Pest analysis for micro small medium enterprises sustainability." J. Manag. Commer 1 (2014): 18-22.

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BUSINESS PLAN
Debt (Bank Loan) 196,000
Revenue Forecast 550,000
Market Penetration 5.0%
(c) COGS 247,500
(d) Operational and Direct Expenses
Rent of Premises 20,000
Salary and Wages 50,000
Accountancy Fees 10,000
Payroll Tax 5,000
Supplier contracts 2,500
Sales and Marketing 15,000
Postage & Telephone 1,000
Brouchers 2,000
Logo Designs 1,000
Interest on loan 10% 19,600
Market survey 2,500
Preliminary expenses 2,000
Lease payments 7,000
(e) FIXED ASSETS
Equipments 145,000
Buildings and Property 350,000
Vehicles 100,000
Total Fixed Assets 595,000
The above table shows the startup expenses which the management of the company
anticipates for setting up the operations of the business. A majority of the initial capital is
contributed by equity capital and a potion is also taken in the form of debt capital so that a
perfect capital structure can be established by the business. The startup expenses also covers the
assets which the business needs to purchase for carrying out the operations of the business.

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BUSINESS PLAN
Profit and Loss Statement
Profit and Loss Statement
Year 1
Revenue 550,000
Cost of sales 247,500
Gross profit 302,500
Expenses/overheads
Premises (rent, rates) 20,000
Wages and salaries 50,000
General expenses 1,000
Accountant Fees 10,000
Payroll Tax 5,000
Utilities 2,500
Sales and Marketing 15,000
Postage & Telephone 1,000
Repairs and Maintainance 2,000
Preliminary expenses 2,000
Depreciation 119,000
Lease Payments 7,000
Total expenses/overheads 234,500
Profit before tax 68,000
Tax @ 20% 13,600
Before tax net margin 12%
Profit after tax 54,400
Transfer to reserves 54,400
Particulars Year 1
Return on Investment 11.10%
The profit and loss statement which is prepared by the business is on the basis of
estimation regarding the expenses and revenue which is related to the business7. The expenses
amounts are taken considering the market trends of similar businesses.
7 Blackburn, Robert A., Mark Hart, and Thomas Wainwright. "Small business performance: business, strategy and
owner-manager characteristics." Journal of small business and enterprise development 20, no. 1 (2013): 8-27.

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Reference
"Chicago Tribune - We Are Currently Unavailable In Your Region". 2019. Chicagotribune.Com.
Accessed June 28 2019. https://www.chicagotribune.com/dining/ct-food-2018-trends-whole-
foods-20171114-story.html.
Blackburn, Robert A., Mark Hart, and Thomas Wainwright. "Small business performance:
business, strategy and owner-manager characteristics." Journal of small business and enterprise
development 20, no. 1 (2013): 8-27.

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BUSINESS PLAN
Burns, Paul, and Jim Dewhurst, eds. Small business and entrepreneurship. Macmillan
International Higher Education, 2016.
Gupta, Abhishek. "Environment & PEST analysis: an approach to the external business
environment." International Journal of Modern Social Sciences 2, no. 1 (2013): 34-43.
Hiduke, Gail, and Joseph Daniel Ryan. Small business: an entrepreneur's business plan.
Cengage Learning, 2013.
Rakesh, C. "Pest analysis for micro small medium enterprises sustainability." J. Manag.
Commer 1 (2014): 18-22.
Scarborough, Norman M. Essentials of entrepreneurship and small business management.
Pearson, 2016.