Entrepreneurship Business Plan Assignment 2022

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Running head - ENTREPRENEURSHIP BUSINESS PLAN
Entrepreneurship business plan
Name of the student
Name of the university
Author’s note
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1ENTREPRENEURSHIP BUSINESS PLAN
Table of Contents
Introduction................................................................................................................................2
Company summary....................................................................................................................3
Products and services.................................................................................................................4
Market Analysis summary.........................................................................................................6
Marketing and sales strategy......................................................................................................7
Web plan summary....................................................................................................................7
Management summary...............................................................................................................7
Department-wise responsibilities...........................................................................................8
Owners in the restaurant.....................................................................................................8
General Manager at the restaurant.....................................................................................8
The Executive Chef............................................................................................................9
Front of the House..............................................................................................................9
Restaurant Shift Leaders....................................................................................................9
Financial Plan...........................................................................................................................10
References................................................................................................................................12
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2ENTREPRENEURSHIP BUSINESS PLAN
Introduction
Entrepreneurship is the act of setting up a new business, entering into a venture in a
specific and well defined market or industry, while taking up financial risks in the process to
be able to make profits (Matlay 2006). This business plan report is aimed at opening up a
hypothetical restaurant chain, called Anora’s Kitchen, which is an Italian restaurant. The aim
of this restaurant is to make sure that it succeeds in terms of revenue generation by ensuring
that customers are appealed by the deliverables of the restaurant. It is for this reason that a
proper business plan is set up for this restaurant in hopes of doing proper business in the
market and making sure that there is a proper framework of how the business should be
operated and looked after for the purpose of succeeding in the competitive market.
In simple words, a business plan is one in which objectives are set out for a business
that are to be achieved in the future, and strategies are laid out in compliance to them to be
able to make sure that the business succeeds in realizing those objectives (McKeevr 2016). In
the food and beverage market, there are surprisingly high range of products and
complimentary services to deliver to the customers, and the players in the market are also
very high. The food and beverage market is one of the largest and fastest growing markets in
the world, with an abundance of suppliers to support these businesses. There are small scale,
mid scale and large scale restaurants in the market, each of which have a varying range of
objectives, depending on the scale of operations (Davis et al. 2018). It has to be assumed that
as an entrepreneurship with limited finances and resources, Anora’s Kitchen has to be a mid
scale restaurants, and its apex parent objective is to make sure that this mid scale operations
is turned into a large scaled one, by achieving the sub objectives that come along with it.
It is for this reason that the strategies that have to be implemented in a planned
manner are well laid out to ensure that this objective is realized altogether. Therefore, the
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contents in the rest of the report would be including a company summary, products and
services assessment, market analysis summary, marketing and sales strategy , web plan
strategy and management summary. Each of these factors would be well analyzed to make
sure that the business plan is realistic as well as comprehensive.
Company summary
Anora’s kitchen is a joint partnership venture in the food and beverage industry with
the aim of catering to the public based in London, UK. This place has been chosen by the
owners of the chain because of the fact that it is one if the populated cities in the UK, with a
high market demand in food and beverages. The hospitality industry in the city has been
striving with a growth rate of over 8% (Liu, Sun and Wang 2016). It is for this reason that the
main thing that has to be noted in this regard is the fact that the demand for leisure in the city
is very high in the city.
As of now, the restaurant is only set to venture into the city of London and
accordingly expand into the other cities of UK, possibly Birmingham, Manchester and
Liverpool. Anora’s Kitchen specializes in Italian dishes, like Pizza, Penne, Spaghetti, and
more. In Pizza’s the company is set to introduce the widest range of pizzas in the, focusing on
providing a unique taste to the customers of the public. This is aimed at making sure that
Pizzas becomes the unique selling point of this restaurant in this future. The restaurant is also
set to introduce a special dish, which is Penne in black sauce, which is highly uncommon in
the food and beverage industry. Therefore, much of the restaurant’s focus is on food, relying
on this section to be able to make the most profits and appeal to the audiences.
The company has signed a deal with Nisbets Catering, to supply it with all sorts of
raw materials that would be required by the restaurant to operate. This not only includes raw
food materials, but also the best quality of utensils and cutlery that is available in the market.
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4ENTREPRENEURSHIP BUSINESS PLAN
For the purpose of interior decorations and design, the company has signed a one year deal
with GD Parvin, which happens to be one of the leading interior designers in London. For
other logistics, the company has signed another one year deal with Mango Logistics Group,
which again happens to be one of the leading logistics group in the city of London.
Being a joint venture between two entrepreneurs, the company is a privately owned
one, with no intention of making it publicly owned anytime in the near future. The main thing
that has to be noted about the organizational structure and functioning in this company is the
fact that all the business decision making powers are in the hands of the owners, with the
business executives and business manager overlooking the realization of the business
objectives and decisions. There are three distinct departments in the company. The first is the
food and beverage department, the second is the management and operations department, and
the third is the finance department. The food and beverage department consists of the waiters,
the chefs, the other kitchen staffs, led by the head chef. The management and operations
department consists of the business manager and the subordinate business executives, who
are responsible for overlooking the business and internal and external management aspects of
the restaurant, with the business manager working directly under the supervision owners of
the company. The finance department is the smallest of the lot and is responsible for keeping
track of the costs and revenues of the hotel, monitoring cash flows and determining periodic
profits. There is a direct link between the operations and the finance departments, as the
finance department is responsible for delivering financial reports to the operations department
on a regular basis.
Products and services
Anora’s Kitchen , has a taste of the South Italy, situated in London, with the
facilities of the bar and lounge. This restaurant has its aim in attraction of the customers of
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London with its fresh, health and the home-made products. The customers’ health have been
taken into consideration in accordance with the tastes. The food products have low
carbohydrate, low or no trans-fat and very limited calorie content. Also since the trend of the
new bold tastes, the restaurant also focusses on the high flavour, and spiny tones in their food
items.
Among the food products the restaurant offers, the most famous of them are “Penne in
Black Sauce which is a rare food item, having its speciality in China. Also the restaurant’s
speciality lies in their widest range of Pizzas from London, Mediterranean and Italian
sandwiches, like the famous Italian Chicken Parmesan Sandwich, the Roasted Chicken
Caporese Sandwich as well as Italian Ciabatta Sandwich. The sandwiches are made from the
hand-made breads which comes fresh from the kitchen. Apart from all these, the food
products with Salami, Italian style Ham and Fried Chicken Caesar Wrap will indeed help the
restaurant to achieve success with the customer satisfaction.
Apart from the food items, the restaurant provides services of drinks and beverages
such as the gourmet iced as well as hot teas and coffee. Lattes, cappuccinos and espressos are
also included in the menu list. The restaurant promises on the freshness of the food products
as well as on the finest quality products. The food delivered is prepared with sensitivity and
care. In accordance with the beverages for the children and the public, the restaurant also
provides the customers with a list of modest size wine as well as hard drinks. Best quality
wines from Italy, France, California and London are supposed to be offered to the customers.
Since the restaurant plans on the opening of a lounge service, the wines shall be available in
both glasses and in bottles. It also has the availability of Italian and Belgium beers and finest
Vodkas as well as homemade Italian apertifs. Customers also will get the opportunity to taste
the best quality malt scotches with softly-lit and comfortable bar features.
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The service which needs to be provided to the customers is smart as well as quick
with proper standard, friendliness and kindness. Customer value and the hospitality are the
prime concerns of the restaurant along with the customer satisfaction. If any problem arises
and the customers are not satisfied with the product, feedbacks from them are to be accepted.
In order to make the customer’s evening special, and so that they enjoy their time here at the
restaurant, special care is taken to improve the ambience, with the presence of melodic and
expressive tunes. The restaurant promises to be open the seven days in a week serving lunch
from 11 am in the morning till 4.30 in the evening and dinner from 6pm to 11 pm. The bar
and lounge facility is open till 2 am at night on the weekends and till 12am on the weekdays.
Market Analysis summary
According to Jogaratnam (2017), estimating the sales potential for a restaurant
becomes essential and more important than a traditional retail shop. Few thing should be kept
in consideration while creating a market analysis. The trade area, and it population, the
households and the customer preferences, the income and the sales of that area should be
studies (Scozzafava et al., 2017).
As discussed by Hsiao et al., (2016), there have been a growing trend among the
people of London to try out new cuisines and most importantly the restaurant Anora’s
Kitchen has been planned in the area where there are more number of residents from Italy,
many of whom tend to spend their long weekends here (Min and Min., 2013) . As opined by
Chen and Elston (2013), there is a balance between the primary and the secondary trade
areas, and it is derived from the influx of the temporary customers working in that particular
trade area. Han Nguyen and Lee (2015), discusses that almost 60 percent of the sales happen
from the primary area. Along with this, the population is also an important factor. The
number of households in the primary area is more than 5 lakhs and is always under an
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7ENTREPRENEURSHIP BUSINESS PLAN
increasing rate. A great number of smaller households with families and children also
determines the market. There is more amount of disposable income in this area which is a
positive factor because the disposable income is generally spent on eating out and on
restaurants.
Bisp (2014) discusses that there is also an effective buying income in the trade area since the
entire area is a metropolitan area. Income levels on per household basis helps to indicate the
economic level of the trade area. The Central London where the business firm has been
establishes, has a population of approximately 81 lakhs, which implies that the income
generation in this area is extremely high, which is a positive factor for the growth of the
restaurant market. According to Nielsen Harrap (2017), a Senior Manager in Customer and
Channel Analytics Casual Dining Lead, there is a recent surge in the investments of the
Private equity Firms which would eventually help the Anora’s Kitchen to expand their
business.
Marketing and sales strategy
The forecast of Sales and strategies required for marketing for Anora’s Kitchen are
discussed below:
Competitive Edge
Anora’s Kitchen with its confined customers and a reduction of tax on sales of three
percent, is going to provide a wholesome edge of competition required for meeting the final
projections. In addition, the experts of Master Chef will be utilized for marketing and
attracting more customers. Chef Fluno, has been seen on many programs on television along
with authoring various articles around the globe. He will be continuing to have guest
appearances in Anora’s and write articles that will be used as opportunities for marketing.
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Further, he will be promoting the restaurant by advertising and offering demonstrations with
lessons on cooking in a monthly basis (Haider et al. 2019)
Marketing Strategy
An amount of 2.00 dollars for per square foot on 191,000 square foot is being charged
for retail space from the developer of Real Estate. It will require every tenants for incurring
this cost (Cacciolatti and Lee 2016) All these dollars will equate into 382,000 dollars on the
basis of per month or 4,584,000 dollars on the basis of per year. Additional to dollars for
marketing invested for Anora’s, it will invest 3,375 dollars on the basis of per month or
40,500 dollars on the basis of per year on following areas listed below:
Advertising: Print
Brochures to be sent in local markets in nearby Anora’s Kitchen along with the
placement of reciprocal into the shops that are located in Italy (Hubbard 2016).
Placing the menus in collaboration with recognized and popular hotels.
Offering some coupons on the website.
Some costumed personnel will be wearing boards of Sandwich menu outside the
restaurant and some madrigal music will be played.
Paid advertisements on magazines and various suitable publications.
Newspaper advertisings on front page of the paper.
Radio and Television:
Paid advertisements of news of restaurant on Radio impersonating Renaissance music
as the background.
Television guest appearances in master chef and other shows by Chef Fluno.
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9ENTREPRENEURSHIP BUSINESS PLAN
Public Relations:
Cards for survey will be kept on each of the table in restaurant for collecting data by
the customers.
Questions of survey will be on the service and quality of food.
Efforts of the target market and information related to demographics will be asked.
Business cards will be created along with list of e-mails (Pearson 2017)
Website:
Newsletters will be produced that includes a calendar of filled with special events and
it the website will contain letters too that are by the customers along with their
pictures attending the event.
Coupons to be downloaded from the website.
Codes and reward points for customers who have already been there.
Marketing Sales Packages:
Packages of bus tour that will include dinning with a complimentary glass of
wine.
Catering services to corporate parks and local industry.
Catering packages of wedding with spa resorts and hotels.
Catering to tours of gate away with spa resorts and hotels (Angell and Kreamer
2017)
Sales Forecast
The assumptions for projections of sales are:
Lunch
On an average, 195 lunches based on per day.
Lunches on the basis of per year is typically 70,200.
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10ENTREPRENEURSHIP BUSINESS PLAN
10.50 dollars on an average per person.
Dinner
Per day 195 dinners (June, July and August)
Remaining of the year, per day dinner will be 130 dinners.
Dinner per year is 52,650.
On an average, it is 20.00 dollars per person.
Liquor Sales
60% of the customers coming for dinner will be going to consume alcohol.
It equals to number of drinks per in is 117. During summer it is 195 in dinners and
during winters it is 130 dinners.
Wine except the complimentary one glass, Beer and liquor will be split in A1/3
occurring in types of beverages sold.
Mixed Drinks
One third of 117 drinkers equals to mixed drinks of 39 per night.
1,170 mixed drinks for dinner in summer months.
780 mixed drinks for dinner in winter nights.
On an average, the sale of mixed drinks is 4.50 dollars.
Sale of Wine by bottle
One third of 117 drinkers will have 39 glasses of wine in summers per night.
Refilling rates are 59 glasses.
Wine by bottle average sales is 16.00 dollars.
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11ENTREPRENEURSHIP BUSINESS PLAN
Sales of Wine by glass
Per Sunday to Thursday evening it goes 10 glasses and 2 glasses per evening.
On Friday night it goes to 20 glasses
On Saturday it goes to 40 glasses.
It goes 70 glasses to per week that equals to 280 drink on the basis of per month.
Beer Sales
Per Sunday to Thursday evening it goes 20 beers per evening.
On Friday nights it goes 150 beers.
On Saturday nights it goes 150 beers.
On per week it goes 400 beers that equals to 1600 beers per month.
On an average, the sale of beer goes 3.00 dollars (Notani and Arumugam, 2019)
Web plan summary
Anora’s Kitchen will be having a creative website will an Italian theme there as well.
This website will be recognized as a virtual business card or the company that also works as a
portion designed well and classy. The company’s site will contain prices, menu, reviews and
every other happenings (Xiang et al. 2015) It will contain a newsletter too that is published
monthly with a content of what attracts new customers to the restaurant. Customer can send
mails there as well when they want reservations for special occasions or any other day at the
restaurant. The website will be easy and fast keeping in mind to be user friendly.
Website Marketing Strategy
The company’s web marketing will be primary focusing on the distribution of URL
by the means of paper first. It will pull and plug hits that are unique on the company’s
database of real time. The restaurant will not be reliable to achieving a hit status first that
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12ENTREPRENEURSHIP BUSINESS PLAN
draws customers but will build on quality of services more. Visiting the website will be more
of visiting the restaurant in a trial (Patrutiu-Baltes 2016).
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Management summary
Anora’s kitchen is an Italian start-up organization, which would be run by the joint
partnership of both the owners. Therefore, all the flow of system would corporate through the
decision of the owners (Boella 2017). After the position of the owner, the second place in the
hierarchy is occupied by the general manager. Henceforth, the position in the management
thereafter field by the executive chef, front house and the restaurant shift leaders (Wen et al.
2018).
Department-wise responsibilities
Owners in the restaurant
The owners of the restaurant are the persons’ who are the ultimatum controller of the
system which run at the restaurant. The owners are the one who are responsible to withstand
the certain success and failures of the restaurant (Bourne 2016). They are responsible for the
hiring process of all the departments running inside the working environment of the
restaurant. The management team which runs the restaurant is also hired by them only. They
are also entitled to hire and appoint the main or executive chief of the restaurant. The main
expectation from the owners is that the information of the policy of ownership would be
passed through the hierarchy structure and the chain of command, existing in the restaurant
(Gordon and Brezinski 2016).
General Manager at the restaurant
It is the responsibility of the general manager for monitoring the all the day to day
activities at the restaurant. They are also entitled to make the decisions related to all the
events occurring at the time of operation of the restaurant. The general manager is also
responsible for making the necessary scheduling of the work shift and also documenting the
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necessary paperwork related to payroll of all the employees under them (Giousmpasoglou
2016). They are also responsible for accounting the sales of the restaurant in a day. The
money counting department is also headed by them. It is the job of the restaurant’s general
manager to make most of the hiring and firing of the peers under them. The general managers
are responsible for being in contact with the owners daily for relying the necessary
information related with the operation of the restaurant.
The Executive Chef
As viewed form the point of the hierarchy system being followed in a restaurant, the
executive chef is considered to be the manager of the entire kitchen floor. They have the
responsibility of controlling and monitoring the products that are coming in the kitchen,
which are in fact supplied from the vendors and suppliers (Dupuis et al. 2016). The executive
chef of a restaurant reports directly to the general manager of the restaurant regarding the
inventory management and the ordering system of the restaurant. They also have the
responsibility of designing the menu of the restaurant, monitoring and providing finishing
touch to all the meals leaving the kitchen floor.
Front of the House
The manager at the front house of the restaurant have an important tier up with the
chain of com and operating at the restaurant. The term front house not only refers with the
operation at the dining area, but also with the various parts in the restaurant, excluding the
kitchen itself. The responsibility of a front house manager is to provide assistance to the
general manager along with the executive chef of the restaurant (Liyanage et al. 2018). They
help in creating relation between the chain of commands and the restaurant. They are also
responsible for managing the employees at the front house. The manager at the front house is
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15ENTREPRENEURSHIP BUSINESS PLAN
entitled for monitoring the performance of all the shift leaders. They are also responsible for
the appearance of the staff working at the restaurant.
Restaurant Shift Leaders
The shift leaders are considered to be the last level in the management of the
restaurant. These people are generally the people which operate at the front house of the
restaurant, and are also most experienced personals (Heo 2016). Basically, the shift leaders
are choses on the basis of host stations, bar and busing stations operating among the servers.
They are responsible for handling the small problems in the restaurant and also making
decisions related during the shift timings.
The key fundaments for delivering and fulfilling the requirements in the restaurant
would met accordingly to the principles of business, with the help of the executive chef and
the helpers of the host team ((Dupuis et al. 2016)). For ensuring success of the new start-up,
with the invaluable resources, it would be wise for using the key plans. The core values of the
profession al expertise hired for operating at the restaurant would be achieved with the
combine efforts of all personal operating at the restaurant.
Financial Plan
Particulars GBP GBP
Cash flows from
operating activities
Cash received from
customers 560250
less Interest paid 12000
Less: income tax paid 15000
Net cash flow from
operating expenses 533250
Cash flows from investing
activities
Dividend received 10000
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16ENTREPRENEURSHIP BUSINESS PLAN
Net cash flows investing
activities 10000
Net increase in cash and
cash equivalents 543250
Add: Opening balance 200000
Closing balance 743250
Cash-flow
GBP
Sources of funds 132500
Revenue from cab services 25000
Loan from bank 32500
Interest from investments 15460
Usage of revenue(Expenses) 25462
Purchase of property 85000
Accounting expenses 14560
Licensing costs 1200
Legal expenses 1100
Advertising costs 5000
Interests on bank 7400
Cost of service provision 15000
Electricty 980
Maintenance of buidling 1200
Salary 152600
Telephone 500
Repairs and maintenance 1200
Miscellaneous 5000
Budget surplus 107038
Start-cost
Products
Per unit costs(GBP)
(avarage) No of units
Sales targets
per month in
INR
Annual sales
target(INR)
Italian Meals 10 40 400 4800
Drinks 7.5 20 500 6000
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Low fat foods 10 15 300 3600
Chinese 5 10 200 2400
Total 1400 16800
Product – Pricing
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