Guide to Writing a Business Plan

This guide provides step-by-step instructions on how to write a business plan. It covers everything from the company overview to marketing strategies and financial projections. Perfect for entrepreneurs and small business owners.

Guide to Writing a Business Plan
Reg 15 page doc
Instructions:
1. Complete as many sections in this document as possible, or as required.
2. Save the document regularly whilst completing.
3. On completing your business plan, refresh the Index on page 3. For Microsoft Word users,
right-click anywhere in the Index menu, select ‘Update Field’ and then ‘Update Entire Table’.
For those using other Word Processing applications please update manually or refer to your
help manual.

Business Plan
Daffodils Steak house & Bar
2

Prepared By: INSERT NAME
Date Prepared: INSERT DATE
3

Index
BUSINESS SUMMARY..............................................................................................................5
About the Company........................................................................................................................... 5
Your Products and Services..............................................................................................................5
The Market........................................................................................................................................ 5
The Business Potential...................................................................................................................... 5
Mission, Goals and Objectives...........................................................................................................5
Strategies.......................................................................................................................................... 6
Business Structure............................................................................................................................. 6
Finance.............................................................................................................................................. 6
THE MARKET.............................................................................................................................7
Industry Profile................................................................................................................................... 7
Competition....................................................................................................................................... 7
Market Segmentation......................................................................................................................... 7
MARKETING PLAN...................................................................................................................9
Your Customers................................................................................................................................. 9
Strengths, Weaknesses, Opportunities, Threats..............................................................................10
Sales and Marketing Objectives......................................................................................................10
Value Proposition............................................................................................................................. 11
Your Product or Service................................................................................................................... 11
Pricing.............................................................................................................................................. 12
Promotion........................................................................................................................................ 12
Sales and Distribution...................................................................................................................... 12
OPERATIONAL PLAN.............................................................................................................13
Production....................................................................................................................................... 13
Premises, Plant and Equipment.......................................................................................................13
FINANCE PLAN.......................................................................................................................14
Capital Requirements and Funding Proposal...................................................................................14
Current Financial Position................................................................................................................ 14
Financial Assumptions..................................................................................................................... 14
Cash-flow Projection........................................................................................................................ 16
4

Projected Profit and Loss................................................................................................................. 16
RISKS.......................................................................................................................................16
Risk Identification and Mitigation......................................................................................................16
STRUCTURE AND MANAGEMENT........................................................................................17
Organisational Structure.................................................................................................................. 17
Key Personnel................................................................................................................................. 17
PROJECT PLAN......................................................................................................................19
Action Plan...................................................................................................................................... 19
5

BUSINESS SUMMARY
About the Company
Describe the origins, ownership structure, history, management and activity of your
business, describe the business concept.
The Daffodils steak house & Bar is being introduced by a renowned owner,
who have two different restaurant businesses in Australia. The entrepreneur is
going to offer delicious steak and drinks at affordable cost to people of
Melbourne, Australia.
Your Products and Services
Summarise the product or service that your business will sell
Product of The Daffodils steak house & Bar will include roasted cheese steak,
bulgogi, Bolitto misto, chicken fried steak and other delicious dishes along
with different kinds of cocktails and hard drinks. Staffs of this restaurant will
serve best quality service for satisfying needs of customers.
The Market
Describe the market in which you will operate. Include the size and growth potential of
the market.
Management of The Daffodils steak house & Bar will enter into the large
marketplace of Melbourne, Australia. This place is very crowded and it is
easier to attract maximum people towards this restaurant from this place.
Describe the segments you will be targeting, your anticipated market share of those
segments and your positioning within them
This startup business will target new generation customers with attractive
offers and it will try to achieve a large market share. This business will offer
top quality products at lower cost at the beginning in order to position their
business in existing large marketplace.
6

The Business Potential
Outline your business’ competitive advantages
Competitive advantages of this business will help them to achieve success.
Capital, quality of product, experience of owner, innovation, innovative
technology and risk management capability are main competitive advantages
of this new business.
Describe your business’ directions for growth
In order to start The Daffodils steak house & Bar, effective planning will be
done and talented people will be hired in order to ensure growth of business.
Prioritization of aspects will help to gain success. Clear concept about business
goals will lead to success of this new business.
Mission, Goals and Objectives
If you have a mission statement, write it here
Mission statement: To offer best quality food to customers for providing best
experience of eating steak at affordable price
Your business
objectives might cover
targets for growth,
customer numbers,
revenue, profit and any
other relevant
measures.
Clearly state your business objectives, including performance measures and a
deadline for achieving each one (often these will be annual targets).
Business objectives
 To reach breakeven period within 6 months from the beginning
of journey
 To have 5000 customers in 2 years from starting date
 To become most popular steakhouse of Melbourne in next 2
years
 To earn more than $2.3 million sell in first year
7

Strategies
Summarise your product, pricing, marketing, sales, distribution and strategies
Strategies for this the Daffodils steak house & Bar are mentioned below,
1. Strategy for product: Development of good relation with suppliers for
gaining best quality raw material in affordable price. Conducting
market research to understand behavior of customers towards existing
steakhouses at Melbourne, Australia
2. Strategy for price: Offering lower price of products than existing
steakhouses to attract customers
3. Strategy for sales and marketing: Consideration of social media
marketing and distribution of leaflets to attract potential buyers
4. Strategy for distribution: One-to one selling by trained staffs those will
be able to communicate with customers with ease
8

Business Structure
Outline briefly the organisational structure of your business and key management
personnel
Figure 1: Organizational structure
(Source: Created by Author)
There will be four managers in Daffodils steak house & Bar and they will be
working under proprietor. HR manager will handle staffs. 4 delivery staff, 6
kitchen staffs, 3 cleaning staff and 5 waiters will be hired at the beginning. 1
accountant will work under finance manager and 2 marketing experts will
handle promotions. 4 technical staffs will be hired for emergency
inconveniences.
Finance
State your key financial indicators here
9

These will come from
your financial analysis
and will usually include
turnover (sales), gross
profit, and net profit.
Optional: please
complete a profit and
loss budget
DO NOT COMPLETE
Outline what finance is sought, how it will be used and how long you envisage it will
take to repay
.
10

THE MARKET
Industry Profile Describe briefly what industry you are in and the major characteristics of the market
It will be challenging for Daffodils steak house & Bar to enter into restaurant
industry of Melbourne. Melbourne, Australia is a small place with a huge
number of people staying at this place. Restaurants, café and similar business
contribute near about $5 billion to the economy of this place. Large
marketplace of this place consists of numerous organizations those are
offering food and beverages to people.
Provide substantiation for
your growth predictions –
some good sources are
www.IBISWorld.com.au,
market research reports,
newspaper articles, trade
associations, etc. You
may even commission
your own research
through a private
company or through a
Polytechnic or University.
Outline the size of the market, its prospects for growth and any trends likely to
impact it in the future (such as political, demographic, fashion, consumer behaviour
trends etc)
This is a large marketplace and number of young customers is higher in this
region. Young customer group get influenced easily and they seek to have
delicious food at lower price. This aspect may help Daffodils steak house &
Bar to ensure growth.
.
11

Competition Describe each of the major competitors. Include relevant information on their size,
market share, distribution channels, pricing strategy, target market, product lines,
brands etc.
Major competitors of Daffodils steak house & Bar,
Competitor 1: A Hereford Beefstouw
Size: Having 12 restaurants
Market share: Large
Distribution channels: Gains raw material and makes food. Serve directly to
customers
Pricing strategy: High price
Target market: Young generation people
Product lines: Offers starters, Main course, desserts and coffee. Have set
special menu for children
Brands: Sole brand
Competitor 2: Rare Steakhouse
Size: operates business through all over Australia
Market share: Large
Distribution channels: Gains raw material from best suppliers and makes
food. Serve directly to customers
Pricing strategy: Moderate price
Target market: People from all generations
Product lines: Offers wide range of products including steak recipes and
beverages
Brands: Sole brand
Describe any barriers to entry into the industry. How will you overcome them? How
will your competitors react to your entry into the market and what will be your
response?
Popularity of existing brands of rivals can be considered as a barrier to enter
into new marketplace for Daffodils steak house & Bar. This barrier can be
mitigated by providing best quality product and services for establishing
brand image of this startup business.
12

Market Segmentation
See www.IBISWORLD.
com.au, Australian
Bureau of Statistics,
government associations
and trade associations
may be useful sources of
information
Describe how the customers in this market can be segmented into groups (this can
be based on age, income, location, psychographic profile, company size etc).
Summarise the size and characteristics of each segment. It may be useful to
display this information in a table.
Management of Daffodils steak house & Bar needs to understand market
segmentation at the beginning of their journey. Customers of food and
restaurant industry are categorized based on their e, income level, location
and their behavior towards simi9lar products. Most of the steakhouses target
high income customers to obtain more revenue. On another hand, they belief
that young group of customers get influenced easily by promotions of
products. Positive behavior of customers towards similar products indicates
that chance of business growth in future.
13

MARKETING PLAN
Your Customers
When
consid
ering
which
segme
nts to
target,
consid
er the
size of
the
segme
nt, the
sales
margi
n
achiev
able
and
the ‘fit’
of
your
produ
ct or
servic
e
From your analysis of the various segments in the previous section, discuss which segments of the
market you will focus on. What are your reasons for doing so?
Owner of Daffodils steak house & Bar will target young generation as they are technology
savvy and get attracted easily. It is easy to attract them towards this steakhouse by offering
discounts on purchasing.
What do you know about the customers in your target segments?
14

This
may
includ
e
inform
ation
on
age,
incom
e,
occup
ation,
lifestyl
e etc.
It may
be
useful
to
create
a
‘typica
l
custo
mer’
profile.
Young group of people highly active in social media and it is possible to attract them
through social media marketing. This aspect will be considered by management of Daffodils
steak house & Bar.
What are they looking for from a product or service such as yours?
Target customers of Daffodils steak house & Bar prefer delicious food at lower price, so that
they can afford it with their pocket money. Discounts and complimentary products attract
them easily.
How do they value the relative importance of the various characteristics of your product/service
offering (such as location, price competitiveness, quality of goods, after-sales service etc
15

Young group of customers often visit restaurants that is easily reachable. They compare
price of similar products and chose the cheapest one. On another hand, they prefer best
quality products and good after sale service from restaurant staffs. For example, easy
payment method attracts maximum young customers. For this reason, Daffodils steak house
& Bar will target this customer group.
You
should
consid
er
Describe their buying behaviour – when, where and how do they buy?
This target customer group comes to restaurants to celebrate special events and often visit
restaurant to get experience of good food. They are all time visitors and can help to earn
maximum revenue.
16

things
such
as
wheth
er
they
like to
buy in
a shop
vs.
online,
wheth
er
buying
is an
impuls
e or
consid
ered
decisi
on,
wheth
er
they
buy
for
busine
ss or
leisure
etc
What media do they read, watch and listen to?
Target customers of Daffodils steak house & Bar are addicted to Television and social media
platforms.
17

Outline any specific customers, contracts or orders that you have in place
Owner of Daffodils steak house & Bar has some loyal customers at other place and they
have promised to visit this new steak house when they will be in Melbourne.
Strengths, Weaknesses, Opportunities, Threats (optional)
Compl
ete a
SWOT
analys
is
Outline the strengths of your business
Strength of this business are mentioned below,
 Experience of owner
 Market demand of products
 Effective business strategies
Owner of this new business has previous experience in this same field and it will help him to
get success. This restaurant will offer products that have high market demand and this fact
can be considered as a potential strength. Implementation of effective business strategy will
help to attract maximum customers from business.
Outline the weaknesses of your business
Weaknesses of this company is mentioned below,
 Lack of trained employees
Owner does not have trained employees those can serve from the behalf of this restaurant. It
will take expense to hire new employees in this business.
Outline the opportunities of your business
Opportunities are mentioned below,
 Availability of labor
 Opportunity of business expansion
This company will be able to hire talented labors. Melbourne is a crowded place and it will
be easier for this company to expand business in future.
Outline the threats of your business
 Competitors and their well-established brand images
Different restaurants with similar business process are there and this fact can be considered
as threat of this new business.
Sales and Marketing Objectives (optional)
State the sales targets you expect to achieve over three months, one year, five years (choose
periods of time relevant to your business). State these in terms of unit sales and $sales
18

Annual sales
forecast
1st
year
($)
2nd
year
($)
3rd
yea
r
($)
4th
yea
r
($)
5th
yea
r
($)
Sales
Restaurant sales 62400
0
642
720
661
440
680
160
698
880
Tiffin service 33600 346
08
356
16
366
24
376
32
Controllable costs
Cost of Goods
Sold (COGS)
27619
2
284
477
293
011
301
801
310
591
Payroll 24900
0
249
000
249
000
249
000
249
000
Total Cost 29694
2
305
227
313
761
322
551
331
341
Controllable Profit 11680
8
137
510
155
045
165
983
176
921
19

Typica
l
objecti
ves
focus
on
custo
mer
acquis
ition,
custo
mer
retenti
on,
brand
aware
ness
etc
State your marketing objectives, ensuring they are SMART (specific, measurable, achievable,
realistic and time-bound)
 To increase customer awareness about brand by 5% in next 1 year
Specific Measurable Achievable Relevant Time bound
It may help to
earn maximum
customer and
increase
revenue
generation
Measurement
of KPI can help
to measure
effectiveness of
this
recommendatio
n
It can be
achieved with
the help of
effective
promotional
strategy
It is relevant as
it helps to
ensure business
growth
1 year
 To gain 60% loyal customers in next 1 year
Specific Measurable Achievable Relevant Time bound
It may help to
increase
revenue
generation
Measurement
financial
performance
and rate of
customer
satisfaction
can help to
measure
effectiveness of
this
recommendatio
n
It can be
achieved with
the help of
dedicated and
skilled staffs
It is relevant as
it helps to
ensure business
growth
1 year
Value Proposition
What are the compelling reasons for a customer to purchase your product or service?
20

Good quality food and comparatively lower price can influence customers to buy products of
Daffodils steakhouse & bar.
Describe the ideal ‘customer experience’ when dealing with your company or when using your
product or service.
Customers will experience delicious food of their choice at affordable price. On another
hand, positive behavior of staffs will help them to eat in healthy environment. Management
of Daffodils steak house & Bar will ensure provision of these experiences to customers.
What are your brand values – what feelings and emotions will customers associate with your
business, your products and your services?
Customers will be able to relate themselves emotionally with Daffodils steak house & Bar
after seeing effort given by each every member associated with this business. Healthy food
items will help them to stay fit.
This
statem
From the above statements, summarise how your business will deliver value to the target customers
you identified in Section 1 (above). This is your customer value proposition.
21

ent
should
also
take
into
accou
nt the
factors
that
your
target
custo
mers
find
import
ant
(identif
ied in
Sectio
n 1
above
)
Daffodils steak house & Bar will help young group of people to have top quality steak and
beverages with minimum pay. This restaurant will understand their emotion and will serve
accordingly.
Your Product or Service
Describe the products or services that your business will sell
Roasted cheese steak, bulgogi, Bolitto misto, chicken fried steak and various kinds of
cocktail will be available at Daffodils steak house & Bar.
What are its unique features? What is the different and better?
Daffodils steak house & Bar will maintain uniqueness and will provide value to customers.
Fresh flesh will be prepared in front of customers and cocktails will be forms as per
preferences. Special dishes will be introduced at special occasions.
How will customers use it – will it change the way they currently do things? What customer problem
will it solve?
22

Customers will be able to order food before coming at this place and it can save their
valuable time. On another hand, they are welcome to observe preparation of their order in
the kitchen of Daffodils steak house & Bar.
How will your range of products or services change over time?
This business will change range of products based on demand of customers on various time
of year.
If it is a new product or service to the market, describe any other markets in which it is currently sold.
Business owner have similar restaurants in other places of Australia and Roasted cheese
steak is a popular dish at those places. Owner will prefer to introduce4 this item at
Melbourne as well.
What stage of development has your product or service reached? What is required to get it ready to
market?
Pricing
Outline the price structure for your product or service
Food Items Cost ($)
Roasted cheese steak 28
bulgogi 32
Bolitto misto, 29
chicken fried steak 25
Avocado rib 27
Garlic prawn 29
Beverages Cost ($)
Pisco sour 6
Melon bowl 8
Mad dog 9
Dirty goose 7
How have you determined this price (market-based, cost-plus, value-based etc)?
Price of product has been determined by considering value-based pricing strategy.
How does your pricing strategy compare to the market, to your competitors?
This pricing strategy has been considered before analyzing prices of similar products of
competitors. Customers can notice that prices are relatively lower than market price and this
fact may influence them to purchase product from this new business.
23

Promotion
Some
of the
major
activiti
es you
may
consid
er are
adverti
sing,
public
relatio
ns,
direct
marke
ting,
websit
e
marke
ting,
events
and
spons
orship
s
 Social media platform
 Promotion through social media platforms
 Development of public relation
This company will promote products and services through social media platforms. On
another hand, customers will get detail information of product and services from official
website. Staffs will be trained to develop good public relation in order to attract
maximum potential buyers.
Sales and Distribution
Chann
els
Describe the channels through which your customers will buy your product or service. Include
estimates of the sales expected through each channel.
24

includ
e retail
stores,
mail
order,
whole
sale
wareh
ouse,
door-
to-
door
etc
Customers will visit restaurant and will order as per their choice. They can book order by
making phone calls. In addition, this restaurant will receive online order and will deliver
food to place of customers.
Channels Estimates of sales (in $)
Online 7000
Mobile 5500
Direct sales 6000
Assess the costs and benefits of each channel.
25

Channels Cost items Cost (in $) Benefits
Online channel Hardware
installation cost
2000 Low cost channel
Website
maintenance
60 Reach of hotels
can be increased
Designing and
customisation
185
Domain 100
Mobile channel Designing mobile
application
150 Cost effective
Installation of
hardware
1000 Can be used to
attract different
segments of
consumers
Direct sales Construction of
sales counter
2500 Direct contact
with customers
can be
established
Hiring employees 2000
Buying furniture 5000
26

OPERATIONAL PLAN
Production If you will be selling a product, describe how you will produce it. Describe the
production processes involved (especially if they are unique to your business)
This new start up business has aimed to offer food to customers and
management will hire expert chef, who will be able to prepare delicious recipes
as per demand of customers.
Outline any policies regarding ‘make-or-buy’ decisions (which components of the
product will be purchased and which operations will be performed by your work force).
Owner of this new restaurant will collect raw materials will be collected from
potential suppliers and food will be cooked by chefs. Waiters will serve it to
customers. Delivery boys will help to deliver orders as per requirement of
customers.
Outline any strategic partnerships or supplier agreements that you have in place
This new startup company will enter into strategic partnership with Beverage
Company for buying beverages for their customers.
Premises, Plant and Equipment
You may like to
include any relevant
Describe the premises necessary to operate your business. Include details of relevant
lease details, property valuations, rental assessments etc.
27

documentation as an
Appendix
Lease of land will be taken in order to start this new business. 40*30 sq. ft land
will be occupied and main building will be developed by hiring contractor.
Figure 3: Floor plan
Describe the plant and equipment required to run your business. Do you plan to lease
or buy? What maintenance is required? What is the expected ‘life’ of the plant and
equipment?
DO NOT COMPLETE
Discuss the reasons for the location of your business. Consider such things as foot
traffic, proximity to suppliers and customers, access to workforce etc
Melbourne has been chosen as this place has effective transportation system
and dense population. It is easier to get required resource4s at this place. Owner
of this restaurant will be able to attract more potential customers as huge
number of rich people stay at this place. At this place, skilled workers are
available and due to these reason, this place has been chosen for this new
business.
28

SUSTAINABILITY PLAN
Sustainability Discuss how you can mimise waste and maximise efficient resource usage. What plan
do you have in place to achive these goals?
Effective management of inventory will help to minimize waste and proper
utilization of resources. Inventory will be there in this restaurant and it will be
monitored and maintained on regular basis.
How will you train staff about sustainability in your workplace?
Training program will be arranged in order to train staffs. They will be asked to
about the process of inventory management and proper utilization of resources.
29

FINANCE PLAN
Capital Requirements and Funding Proposal Indicate what
finance is
required to
operate the
business and
where it will
come from. If
you are
seeking
external
lending or
investment,
outline what
you require,
what it will be
used for and
how you intend
to repay it
DO NOT
COMPLETE
Current Financial Position (N/A - optional) DO NOT
COMPLETE
Financial Assumptions Describe all
assumptions
used in
preparing your
financial
forecasts
DO NOT
COMPLETE
30

Cash-flow Projection (optional) Provide a
monthly
forecast of
your cash-
flows for 12
months
DO NOT
COMPLETE
Projected Income Statement Provide a
projected
Income
Statement for
your Business.
This will often
be for the end
of a 6-month
period
31

Year 1st
month
2nd
month
3rd
month
4th
month
5th
month
Revenue
and Gains
Sales
revenue
6576 6773 6976 7179 7395
Gain on
sale of
assets
3282 3382 3480 3581 3695
Total
revenue
and gains
9858 10155 10456 10760 11090
Expense
and loses
Cost of
goods sold
276 284 293 301 312
Office
supplies
986 889 1046 1076 1109
Advertising
expenses
1000 1693 1744 1794 1848
Electricity
and gas bill
4932 5079 5232 5384 5546
Total
expenses
and loses
7194 7945 8315 8555 8815
Net
income
2664 2210 2141 2205 2275
32

RISKS
Risk Identification and Mitigation
Consider things such
as market risks,
technology risks,
susceptibility to
changing fashion,
illness of key
personnel etc
Outline the major risks to your business. What strategies will you employ to mitigate
these risks?
DO NOT COMPLETE
33

STRUCTURE AND MANAGEMENT
Organizational Structure
Describe the structure of the business, including the number of employees, the
management team and founders. Draw an organisational chart to show this.
Figure 4: Organizational structure
(Source: Created by Author)
There will be four managers. HR manager will handle staffs. 4 delivery staff, 6
kitchen staffs, 3 cleaning staff and 5 waiters will be hired at the beginning. 1
accountant will work under finance manager and 2 marketing experts will
handle promotions. 4 technical staffs will be hired for emergency
inconveniences.
34

Describe the key functions required by the business (eg marketing, sales, office
administration etc) and who will be responsible for each. Include any outside
contractors you plan to use.
Key functions Description Responsible person
Marketing Promotion of products
and brand
Marketing manager and
experts
Sales Sales of product Operational staffs
Office administration Monitoring and
management of
operations
Operational manager
Inventory management Monitoring and
management of
inventory
Operational manager
and staffs
Customer care Handling feedback and
orders of customers
Expert staffs
35

Strategic planning
 Information will be gathered
 Evaluation of SWOT analysis result
 Effective strategies will be developed
 Implementation of strategies will take place
 Business growth will be ensured
Sales, marketing and
business development–
Sales Marketing Business development
Sales will be measured
in every month
Marketing experts will
promote product and
brand
Business development
will take place
gradually
Finance management DO NOT COMPLETE
Product development –
Stages of product development includes
 Generation of idea
 Screening of concept
 Testing idea
 Business analysis
 Development of product
 Marketing
 Commercialization
 Reviewing progress
Production, logistics, operations –
Product Logistics Operation
Products will be
developed and offered
Raw materials will be
gathered
Operation manager will
monitor all operations
HR, accounts, administration DO NOT COMPLETE
36

Outline how you expect the number of employees and organisational structure to
change as your business grows.
DO NOT COMPLETE
Key Personnel
Your Management
team may include
your accountant,
lawyer or other
professional
advisers
For each member of the management team, give a summary of their background, skills
and experience
Managers Background Experience Skill
HR manager MBA 5 Years Communicator,
listener, patience,
decision maker
Finance manager M.com. 2 years Good knowledge
in finance
background
Marketing
manager
MBA 6 years Good knowledge
regarding custom
behaviour
Operational
manager
MBA 7 years Experienced,
patience,
decision maker
Key personnel include:
 There will be four managers. (HR, finance, marketing, Operational)
 4 delivery staff
 6 kitchen staffs
 3 cleaning staff
 5 waiters will be hired
 1 accountant
 2 marketing experts
 4 technical staffs will
37

Identify any skill gaps or weaknesses in your management team and how they will be
overcome
Management team may face difficulties to train newly hired employees.
Regular training programs will be arranged and on-the-job training will be
provided to overcome this gap.
38

PROJECT PLAN
Action Plan (optional)
Consider what
impact particular
tasks will have on
other tasks. It may
be useful to present
the action plan as a
table or timeline
Identify the key milestones required to action the Business Plan and when each will
need to be completed by.
DO NOT COMPLETE
Action Due for completion
DO NOT COMPLETE
39