Importance of Marketing Plan and Financial Planning

This assignment emphasizes the significance of a marketing plan and financial planning in achieving business success. It highlights the use of the 4 Ps of marketing, competitor analysis, and social media as promotional tools. The importance of creating effective business plans is stressed, including proper financial planning and human resource management to ensure smooth operation and achieve competitive advantages.

BUSINESS PLANNING

Table of Contents
INTRODUCTION................................................................................................................................3
TASK....................................................................................................................................................3
1.1 Prepare and justify a marketing plan from the results of market research................................3
2.1 Draw up and justify a financial plan for the initial period of a business operation...................6
3.1 Construct and justify a human resource plan for the initial stages of a business operation......8
4.2 Evaluate the coherence of the business plan..............................................................................9
CONCLUSIONS..................................................................................................................................9
REFERENCES...................................................................................................................................10

INTRODUCTION
Business planning refers to the strategies which are made by entrepreneur, which can help
them in starting new ventures. This include planning for finance which is required for by them,
resources which are mandatory for business, and for other most required elements for business. In
present report, a financial plan will get discussed along with business plan which is required for a
new venture in food and service industry (Argenti, 2018). In this report, a new venture is going to
be launch with name “Foodie Restaurant”, where people of different culture can get food of their
culture. Along with this, a marketing plan along with human resource plan will also get designed
beneath for them.
TASK
1.1 Prepare and justify a marketing plan from the results of market research
Before starting a new venture it is very much important for a person (who is going to start it)
to gain proper knowledge about the industry and also have to make proper research over the market
in which they are deciding for starting their business. For this, they can use the method of
questionnaire, which will help them in getting authenticated information.
Questionnaire
Q1. Which type of food is do you prefer the most while going in restaurant?
a) Traditional
b) Continental
c) Fast food
Q2. Which is the age group who use to visit the restaurant the most?
a) Children
b) Youth
c) Old Age
Q3. What do you think, will restaurant near Thames river will get successful or not?
a) Yes
b) No
Along with this, it is also needed by entrepreneur of Foodie Restaurant to make analysis of
their competitors along with industry in which they are going to perform their activities. It was
decided that the restaurant will get located near Thames river in London, it is also a big hub, where

lots of restaurants are performing their activities since many years ( Brinckmann and Kim, 2015).
Therefore, it cannot be easy for them to perform their activities, as their competition will be very
tough. Also UK is a country which is very royal and have very good economic condition, which
lead them to help new business in getting success. People there love to go on outings and for having
food at outside the door, which lead the restaurant industry as one of the most successful industry of
UK. Therefore, it can be said that the chosen industry by entrepreneur has very good conditions in
UK and also can give them chance to get successful ( Dibrell, Craig and Neubaum, 2014). Along
with this, it is also required for them to make 4 P's of industry so that they can understand this
industry in proper manner.
1. Place : The place where new venture is going get placed, use to play one of the most
important role in success and failure of that. In present content entrepreneur is going to
launch a new restaurant near Thames river in London city, which is very good and famous
place for restaurant industry.
2. Product : The products offered by a restaurant is also very important for them, as in this
Foodie restaurant is going to offer different traditional food products for different culture of
society. This will help them in attracting customers from different culture.
3. Promotion : Promotional activities are much important in modern era of business, as this
help entrepreneur to make people aware about the products and services offered by them.
4. Price : The pricing of products are very important factor for an organisation, as keeping
high rates of product can lead them to decrease in rate of success ( Scholes, 2015).
Therefore, it is required for them to adopt low pricing strategy while starting their venture.
Different strategies which they can follow for promoting their products are as beneath :-
1. Social media : This is one of the most common method which entrepreneur of Foodie
restaurant can use for promoting their products and service. As people in current world are
very much families with social media and this also help them in keeping themselves updated
with new trends of world (Social media as promotional tools, 2017). Therefore, this will
help them in interacting with ample number of people, which lead them in getting successful
in very less time.
Analysis and conclusion of the result :-
Theme 1: Most preferred food by people in UK.
Q1. Which type of food is do you prefer the most while going in restaurant? Frequency
a) Traditional 15

b) Continental 10
c) Fast food 5
Interpretation : From the above data, it has been interpreted that, 15 out of 30 prefer
traditional food, where as 10 recommend for continental food and 5 love to have fast food when
they go for out door meal.
Theme 2 : The age group who use to visit the restaurant the most
Q2. Which is the age group who use to visit the restaurant the most? Frequency
a) Children 5
b) Youth 20
c) Old Age 5
Interpretation : From the above data it is clear that, the age group which love to go and
enjoy meal in different restaurant are generally from young age group. Out of 30 respondents 20
a) Traditional b) Continental c) Fast food
0
2
4
6
8
10
12
14
16
Column B
a) Children b) Youth c) Old Age
0
2
4
6
8
10
12
14
16
18
20
Column B

says that young people love to hang out in different restaurant, where as 5 think that crowd of
children are the most who visit restaurant, while only 5 says that old age people love to visit
restaurants.
Theme 3 : Restaurant near Thames river will get successful or not
Q3. What do you think, will restaurant near Thames river will get successful or
not?
Frequency
a) Yes 25
b) No 5
Interpretation : From the above given data, it is clear that the restaurant near Thames river
in London city can have opportunities to meet success and also can grow their business at vast level.
In above graph, 25 respondents from 30 says that it is good location for them, where as only 5 says
that this location will not lead the organisation to meet success.
2.1 Draw up and justify a financial plan for the initial period of a business operation
Financial plan for Foodie restaurant is as follow :-
1. Cash flow statement :
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 5000
Credit sales 1000 2500 3600 4000 1200 3200
Total inflows 6000 2500 3600 4000 1200 3200
Cash outflows
Fixed : Equipments 3000 2000 2000 1500 1000 2000
Variable : Direct material 200 200 300 500 100 100
a) Yes b) No
0
5
10
15
20
25
Column B

Total outflows 3200 2200 2300 2000 1100 2100
Net cash flow 2800 300 1300 2000 100 1100
Opening balance 0 2800 3100 4400 6400 6500
closing balance 2800 3100 4400 6400 6500 7600
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 1500 5500 5600 2000 8200 1200
Total inflows 9500 5500 5600 2000 8200 1200
Cash outflows
Fixed : Equipments 5000 2200 3200 1000 6000 1040
Variable : Direct material 2200 1000 500 800 150 120
Total outflows 7200 3200 3700 1800 6150 1160
Net cash flow 2300 2300 1900 200 2050 40
Opening balance 0 2300 4600 6500 6700 8750
closing balance 2300 4600 6500 6700 8750 8790
2. Statement of Profit and loss :
Statement of Profit and Loss for the year ended 30 Sep.20XX
Particulars Amount Particulars
To Store Rent 1000 By Sales
To Telephone and
Internet 2220 Food 20000
To Laundry Fee 200 Beverages 13000
To Insurance' 1200
To Wages and
Salaries 1740
To Rent, water &
refreshment 950
To Net Profit 25690
Total 33000 Total 33000
3.1 Construct and justify a human resource plan for the initial stages of a business operation
Along with marketing and financial plans, it is very much required for an organisation to
make proper human resource plan, which can help them in maintaining the number of employees
and their skills along with the salary offered to them. This leads the organisation to make an
effective working team in their organisation, so that they can perform their activities in effective
manner ( Hawkey, 2017). Foodie restaurant is a new idea and it is very important for them to make

a proper human management plan, so that they can manage a good and healthy work force in their
organisation. Following is the plan for managing their human resources :-
1. Number of employees : It is very important for them to have proper number of employees in
their organisation for different department, so that functionality of any department do not get
hampered in any condition. For Foodie restaurant it is required for them to have a complete
staff of 12 members from different department, so that they can perform all of their tasks in
proper manner.
2. Position and skills of staff : It is very much important for Foodie restaurant to make proper
skill and position for that employees that, how mane and what skilled employees are
required by organisation on which position. According to Foodie restaurant, it is important
for them to have 1 manager, 3 chefs, 5 waiters, 3 housekeeper with respective skills, so that
they can perform their work in effective manner.
3. Projected hours and salaries : For a restaurant it is very important to have proper working
hours, in which they have to serve their customers ( Henderson, Simeon-Dubach and Albert,
2015). Foodie restaurant have policy to make fresh food and ingredients for their customers.
Therefore, it is required for them to fix their working hours, and this can be from 8:00 AM
to 10:00 PM for employees and for customers it can be 10:00 AM to 10:00 PM. Along with
this, it is required for them to make proper salary policy of 12 months for their employees,
in this they can provide £10,000 per annum to their manager, £8,000 to their chefs, £6,000 to
their waiters and housekeepers.
Also, it is required for them to hire their staff which have knowledge about the work in their
field and also they can provide some training session to them so that they can increase their skill
level and knowledge associated with traditional foods. They can hire their employees just 15 days
before the venture is going to start. For example, if they are starting their venture from 1st March
2019, then they have to hire their employees by 15th February 2019.
4.2 Evaluate the coherence of the business plan
A new venture is going be launch in food and service industry, which have name “Foodie
restaurant”, the unique idea in this is that they use to provide traditional food of different culture, so
that needs of several people get fulfilled. From the above mentioned marketing plan of restaurant, it
can be said that, the products provided by them are very good and it have capability to attract
customers of different culture ( Sahebjamnia, Torabi and Mansouri, 2015). Along with this, for
completing the marketing research, entrepreneur use a questionnaire which help them in giving the
assessing the market, also they use 4 P's of marketing so that they can understand the industry in

better manner. Which results that the industry of food is very good and successful in UK, along with
this the competition of organisation at that location is very high. Also, social media is one of the
most common and popular method which they can sue for promoting their products. Also, it has
been evaluated that they can use low pricing strategies for their products, which will help them in
attracting ample number of customers towards their products and services. Also it will help them in
getting additional competitive advantages in market.
CONCLUSIONS
From the above mentioned, it has been concluded that before launching a new venture or
product, it is very important an entrepreneur to study and make different plans like, marketing plan
which help them in gaining knowledge about the strategies they have to adopt along with
competition they have to face in market. Also it is very important for them to make proper financial
plan for their business and also effective human management plan, so that their different functions
can get performed effectively.
REFERENCES
Books and Journals
Argenti, J., 2018. Practical corporate planning. Routledge.
Brinckmann, J. and Kim, S. M., 2015. Why we plan: The impact of nascent entrepreneurs' cognitive
characteristics and human capital on business planning. Strategic Entrepreneurship
Journal. 9(2). pp.153-166.
Dibrell, C., Craig, J. B. and Neubaum, D. O., 2014. Linking the formal strategic planning process,
planning flexibility, and innovativeness to firm performance. Journal of Business
Research. 67(9). pp.2000-2007.
Hawkey, J., 2017. Exit Strategy Planning: Grooming your business for sale or succession.
Routledge.
Henderson, M., Simeon-Dubach, D. and Albert, M., 2015. Finding the path to biobank
sustainability through sound business planning.
Sahebjamnia, N., Torabi, S. A. and Mansouri, S. A., 2015. Integrated business continuity and
disaster recovery planning: Towards organizational resilience. European Journal of
Operational Research. 242(1). pp.261-273.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
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