Developing a Business Plan for a Quick Food Outlets Venture

The content highlights the importance of a business plan for entrepreneurs, especially those with a quick service food outlet concept that aims to expand globally. The plan requires adoption of skilled and talented workforce, effective operations, and management skills such as communication, customer focus, and interpersonal skills. Financial projections are also crucial in assessing when profits can be expected. Successful launching of new businesses requires varied management skills.

MANAGERIAL SKILLS AND
ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1: NEW VENTURE CONCEPT..........................................................................................1
TASK 2: REQUIREMENTS FOR NEW BUSINESS START UP................................................3
TASK 3: PROPOSED BUSINESS MODEL THAT HOW NEW VENTURE WILL WORK TO
ACHIEVE POSITIVE FINANCIAL RESULTS AND BY WHEN...............................................6
TASK 4: PROPOSING TO MANAGE BUSINESS RISKS.........................................................11
TASK 5: CONDITIONS WHICH MUST PREVAIL TO AVOID FAILURE.............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
New venture concept involves different activities in creating a business that needs to be
competitive in the UK market. Thus, through such way, many individuals come up with the
unique business idea and develop it by generating a product or service. However, there are varied
risks assessed while starting a new venture such as financial requirement, skilled human
resources and updated technology etc. In the present business plan, the new venture concept that
has been focused is starting Fast Food Restaurant business plan (Hiduke and Ryan, 2013). A new
venture named Zara is a fast food restaurant in UK which helps in attracting both young and
business class people to enjoy their meals. . The venture will provide them quick made food at
affordable prices which they can enjoy with their friends and family. Further, it involves
different conditions that need to be overcome so that failure of business can be avoided.
It can be assessed that starting a business is a multi-step process therefore; entrepreneur
needs to focus upon the business idea and he is required to undertake varied licenses and
permission in order to carry out the business in a particular country. Also, they need to assess
varied management skills which are required to start a new venture (Barringer, 2012). Moreover,
certain experience is required to be obtained by the entrepreneur so that they can assess the
actual requirement of firm in order to attain profitability condition in the future. Also, they
should be able to forecast the financial requirement and related risk in the near future and to
execute the operations effectively.
TASK 1: NEW VENTURE CONCEPT
The new venture concept is Zara Fast Food Restaurant business which will locally own
the fast food outlet in UK market which focuses on attracting young and business people who are
busy in their daily lives. Therefore, restaurant will provide them quick made food at cheap prices
which they can enjoy with their friends and relatives. Further, in the coming future, business will
also plan to position it as an international franchise through our creative approach in order to
develop company's image (Butler, 2015). Zara will provide a unique combination of excellent
food at value pricing with fun packaging and lively atmosphere. The entrepreneur is planning to
launch the new business idea because of increasing demand for quick made food which is easily
consumed while carrying out window shopping or while walking around inside a shopping mall.
Another aim of business is to start the outlet in crowded area like mall where they can
easily catch the attention of clients and attract them to visit the restaurant. Later, while planning
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for expansion, Zara can launch its several retail outlets through franchise in different countries
and attain profitability. However, through preparing this business plan, it helps in deciding the
location for initial startup of venture. Thus, for this, the marketing team of restaurant is required
to carry out proper market research and to analyze the place where potential target customers
reside. Then, they can decide to launch the outlet at such place. In addition to this, entrepreneur
needs to determine different sources from where they will obtain funds such as individual
investor or financial institution (Jones and Penaluna, 2013). It assists them to start up a new
venture concept and launches it in market to grab the attention of target customers. Further,
additional financing planning will also be required in order to secure the funds for further
expansion in different countries and to open the subsequent outlets. However, the initial capital
investment will allow Zara to provide its clients with a value driven, the best entertaining
experience and luxury feeling.
Business possesses varied opportunities in future in order to expand its operations in
different countries to attain results. However, it is essential for the entrepreneur to attain
competitive edge of quick made food at value pricing so that they can attain the advantages in
such a competitive era. There are various other restaurant outlets which provide similar food
therefore, in order to gain attention, they need to build effective competitive advantage and to
attract potential clients (McKeever, 2012). Also, there is high demand among young customers
of such a quick made food. Therefore, it attracts them to visit the place and spend time with their
family and friends. However, the business plan helps to start up first restaurant outlet and to
build the concrete goals.
The new venture concept of Zara Fast Food Restaurant needs to collect adequate amount
of finance from different sources such as investors and financial institutions which helps them to
start the business. Financial projections will be estimated through preparing detailed financial
accounts and by obtaining the break even analysis to attain maximum profits. Thus, financial
requirements will be fulfilled from financial lenders and private investors (Schiraldi and Silva,
2012). The mission of Zara restaurant outlet is to provide the best environment to clients and also
deliver the highest standards of excellence to the food production, preparation and service to the
clients. The objectives of new venture concept are as follows-
 To set up a successful fast food outlet and to attract the clients.
 To expand the business into a number of outlets in different countries.
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The vision of Zara is to become one of the successful fast food outlets which sell quick
made food and satisfy the client’s demand. The focus of business is on serving high quality food
at great value.
Pricing and cost control
The business is new in market and also has varied competitors that are available with
selling similar products or services. Therefore, business is required to set unique prices at initial
startup and also adopt cost control method in order to save money and resources by adopting
competitive pricing model. Daily average spending and earnings need to be calculated in order to
analyze the potential aspects of earning maximum returns (Behery, Jabeen and Parakandi, 2014).
To start a fast food restaurant in crowded area will help in attracting both young and
business class people in order to obtain quick made food at value price. Therefore, there is a
wide range of opportunity in market of starting such a restaurant outlet which delivers a wide
range of menu and provide excellent experience to clients. Through, comparing any other
business in market as per the customer demand, it has high opportunity in enhancing the sales
and profitability. Thus, launching restaurant business assesses high opportunity gap in market in
order to attract the potential clients and for satisfying their demand as well (Lewis, 2014). Here,
Zara’s marketing team needs to identify the target market where business will be focusing to
attract potential clients and to achieve the final results. Zara targets both young and business
class people as they have less time of consuming food. Therefore, restaurant provides quick
made food which is easily consumed and business plans to start its venture in a crowded area like
shopping mall.
In spite of being mature, there are wide opportunities that are available in fast food
business which can be started to attract the young potential clients. Because there is high demand
of such quick made food among them as it saves their time and provides value pricing. Also,
such a new start up business is found to be feasible because entrepreneur can introduce varied
variations in food range and taste so that it assists in gaining attention of clients (Connolly,
Wolfgram and Santos, 2012). Zara Fast Food restaurant can launch particular outlet which offers
the products and services as per the needs of clients. Thus, through assessing such factors, it
helps in gaining confidence that this new business is feasible and will earn profits in the future.
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TASK 2: REQUIREMENTS FOR NEW BUSINESS START UP
There are varied requirements for the new business startup in order to attain the desired
results. These are as follows-
1. Structural Engineering and design consultant- It can be assessed that new start up
business requires an efficient consultant who designs the interior and exterior structure
of restaurant outlet so that customers can be attracted easily. However, it needs to be
designed effectively so that business would give tough competition to other rivals (De
Oliveira, Shayani and De Oliveira, 2013). Financial- It is the foremost requirement of newly launch business that they need to
arrange the financial sources in order to obtain funds. Therefore, entrepreneur needs to
attract different private investors to invest in business and also to take loan from
financial institutions in order to gain investment. Manpower- It is another requirement of startup business as it requires skilled and
talented human resources in different fields such as marketing, customer service, waiter,
chef etc. Therefore, it is significant for restaurant to select the best skilled employees
which helps them to provide the best quality service to guests and to satisfy their needs
as well (Feenstra, 2014). Systems and Equipment- It is also essential for business to obtain updated systems and
equipment so that fast service as well as production and preparation of food can be
developed. With the help of such advanced technology equipment, it assists in attaining
the desired objectives for new venture. New start up restaurant outlet requires computer
systems for billing and maintaining the record of clients and employees. Also, there are
different equipment which are required in business such as dishwasher, glass washer as
well as cutlery and kitchen equipment etc. (Jones and et.al., 2013). Market Information- New start up restaurant business needs to undertake effective
marketing team so that they can assess the market information about the tastes and
preferences of clients. Through carrying out proper market research and development, it
helps in gaining useful information about launching up of new business and for attaining
the outcomes. Location- Also, it is significant for a new business to select appropriate location such as
crowded place i.e. shopping mall where they can attract maximum young clients who
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visit for window shopping and can consume quick made food while moving around
(Venkatesan, 2011). Legal requirement- Further, it is essential for the entrepreneur to obtain different legal
requirements such as patent, copyright and trademark so that they can carry out their
unique business idea in the market.
 Capital- It is one of the crucial requirements of business as it is essential for new start up
business is required to attain initial investment for setting up the venture. Entrepreneur
needs to obtain funds to start the business idea and thus, to attain revenue in terms of
profits (Liebersohn, 2010).
Furthermore, there are different management skills which are required to be there in
entrepreneur in order to make the new start up business successful. These are as follows- Leadership skills- An entrepreneur is required to possess effectual leadership skills in
order to launch the business successfully in market. Thus, through having such ability, it
assists the individuals to initiate and lead in order to develop accurate decisions that
results in the growth of firm. Risk taking- It can be evaluated that there is no guarantee that new launch business
would result in achieving success. It is because; it involves greater risk as it requires
varied resources and investment. Therefore, it is necessary for the businessperson to have
certain experience and to obtain risk attitude that would help in attaining success in the
business (Vega and Bahnan, 2014). Problem solving- The individual is required to obtain problem solving skills in order to
resolve the conflicts among workers and to attain success in business. Therefore, it is
crucial for businessman to gain confidence in decision making ability and to develop the
relationship with employees to achieve success in new start up business. Communication- It is another important management skill which is required among
individuals which helps them to develop effective communication within employees. By
developing the best communication, it helps workers to understand the requirement of
employer and to provide them suitable results to attain the success of new start up
(Sahlman, 2008). Financial and market awareness- It is a crucial management skill which is required
among entrepreneur in making evaluation of the prospects for getting an edge in the
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market. Through this, efficient system of working can be developed by the entrepreneur
and success in market can be attained (Thomas and et.al., 2014). Interpersonal skills- As the new start up business have varied growth opportunities and
provides unique services and products to clients which satisfies their needs, therefore, it
is significant for him to possess suitable interpersonal skills as it would help them in
developing the business activities and in making the startup business successful (Ward,
2011). Creativity- It is another skill which needs to be obtained by the entrepreneur while
launching the new business venture. Thus, through creative ideas, it assists the
individuals to develop varied unique business ideas and to attain maximum results. It also
helps them to attain competitive advantage from other firms as the concept of
organization is unique which is not used by any other competitor in market.
 Customer focus- Entrepreneur needs to obtain such skill also as customers are the main
part of any business. Therefore, it is essential for him to focus on the needs and
requirements of clients and to satisfy their wants. Having good customer focus will state
that every individual's need is fulfilled that would ultimately help in attaining success of
new start up business (Monks and et.al., 2014).
TASK 3: PROPOSED BUSINESS MODEL THAT HOW NEW VENTURE
WILL WORK TO ACHIEVE POSITIVE FINANCIAL RESULTS AND
BY WHEN
It can be evaluated that the proposed business model for new fast food venture will
require appropriate financial projection in order to attain positive financial results and to gain the
profitability. Through developing financial statements, it assists in analyzing the time when the
business will start earning profits on the investment made. Through break even analysis, the year
in which profits will be earned can be assessed. However, in the initial start-up, business is
required to control the cost so that the best outcomes can be attained.
Financial Projections
Profit and Loss (Income statement)
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The projected five year profits and loss statement is prepared for the new start up venture,
that is, Zara Fast Food Restaurant. It is presented below-
Year 0 1 2 3 4 5
Revenue 0 40000 42500 45000 48750 52500
Cost of sales 0 18000 1,6250 17500 19375 21250
Gross profit 0 22000 26250 27500 29375 31250
Expenses/overheads
Premises (rent, rates) 7000 7000 2000 2000 2000
Wages and salaries 5000 5000 5500 5800 6000
General expenses 7000 7460 6200 6150 6212
Interest and bank
charges payable
600 700 700 700 700
Lease payments 1800 1800 1800 1800 1800
Depreciation 0 0 0 0 0
Other expenses 2000 6000
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Total
expenses/overheads
0 23400 27960 14400 16450 16712
Profit before tax 0 -1400 -1710 13100 12925 4538
Tax @25% 3275 3231.25 1134.5
Profit after tax -1400 -1710 9825 9693.75 3403.5
Dividends 500 1000 1000
Transfer to reserves -500 -810 9325 8693.75 2403.5
Cash flow statement
Year 0 1 2 3 4 5
CASH INFLOWS
Cash from Sales 300000 325000 350000 387500 405000
Directors loans 0
Share capital 70,000
Other cash inflows
TOTAL CASH
INFLOW
60,000 300000 325000 350000 387500 405000
CASH OUTFLOWS
Payments for
materials
1,30,000 130000 154750 167875 185513
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operating expenses 0
Premises (rent,
rates)
20,000 20,000 21000 20,000 20,000
Wages and salaries 0 40,000 50,000 54000 57000 60,000
General expenses 0 60,000 77600 61000 60500 62122
Interest and bank
charges payable
0 4,000 8000 8000 8000 8000
Lease payments 15000 15,000 15,000 15,000 15,000
Corporation Tax 3,275 7,345 10,489
Market survey costs 4,000
Other preliminary
expenses
13,000
Plant and other
capital expenditure
0
Loan repayments 0 0 0 0 0
Dividends 5000 10,000 10,000
TOTAL CASH
OUTFLOWS
52000 269000 310600 321025 345720 336124
Cash flow summary
NET CASHFLOW 18,000 31,000 14,400 28975 41780 68876
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FOR PERIOD
OPENING CASH
BALANCE
0 18000 13000 1440 27535 14245
CLOSING CASH
BALANCE
18000 13000 1440 27535 14245 54631
With the assistance of preparing such financial statements, it assists in analyzing that new
launched venture will be starting earning income in the form of profits after its second year of
launching. Thus, it assists he entrepreneur to spend money on the financial activities of firm as it
will give profit after second year of launching.
Key assumptions
There are varied assumptions that need to be made while determining the finance of new
venture. These are as follows-
 It has been assumed that fast food market is already at growth rate therefore, business
faces various difficulties to attract potential customers and thus, enhances the sales of
firm.
 Further, it has been assessed that it requires varied expenses for the organization to start a
new venture. With the increase in sale, the expenditure of firm is also increasing every
year.
 However, it can be assumed that because of uniqueness in products and services, it helps
in increasing the profitability of firm in the market.
 Business has to pay interest to financial institutions and to private money lenders.
Sources and uses of funds
It is essential for the firm to make initial investment in order to carry out the results. Also,
there are varied sources from which funds can be collected such as internal and external sources
of finance. New venture has taken loan from bank which is the liability and it helps the firm in
fulfilling its long term requirement. However, bank loan acts as an effective source that is used
by the organization in meeting the needs appropriately. Business requires huge requirement of
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fundfor purchasing the land or building for starting its operations However, both these sources
have helped the firm in satisfying long term business requirements effectively and efficiently
(Parks, Olson and Bokor, 2015).
Further, there are varied other sources that have been identified in order to finance the
new venture concept i.e. Zara Fast Food Restaurant. However, business can obtain funds through
overdraft facility in order to meet the working capital requirements. Thus, here, business can
withdraw money more than what is actually present in the account. Also, it can be used for the
further expansion. In order to utilize such amount, business needs to pay extra rate of interest to
the bank.
TASK 4: PROPOSING TO MANAGE BUSINESS RISKS
It can be evaluated that any start up business idea will face enough risk in order to
execute the business plan. The entrepreneur is required to carry out risk analysis before
launching the product or service in market. Thus, through risk analysis, individuals can obtain
useful information about the probable risks that business can face in future and thus, proper
measures can also be taken in order to manage the business risks. These are as follows- Product risk- In such type of risk, it can be assessed that business owns the risk
regarding manufacturing of similar products or services which are required by the clients.
Therefore, there is risk in the market that clients will like the product or service
developed and will they be ready to pay value for the same. Thus, it is essential for the
entrepreneur to assess such risk and to carry out proper market research in order to assess
the needs and preferences of consumers and then, to develop the product to satisfy
customer’s demand (Parker, 2010). Market risk- In such type of risk, it involves market risk which states that the market will
develop differently than expected. Through evaluation, it can be assessed that sometimes,
markets take long time to develop and thus, reduces the availability of cash. Therefore,
being a fast food restaurant business, entrepreneur is required to carry out proper
promotional activities to attract the potential customers and to manage the market risk. People risk- In every company, there is risk of certain kinds of employees who are
skilled. However, it is essential for the firm to satisfy the needs of people and to make
them happy otherwise they will leave the job. Thus, in order to minimize the attrition rate
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of employees from firm and to save the cost of training, it is essential for new start up
business to provide motivation to their workers and to manage the risk (Gyamfi, 2007). Financial risk- Here, company faces risk of obtaining funds from different sources.
Therefore, at the time of new start up business, there is huge financial risk because
business has taken loan from several investors. Thus, it is important for the entrepreneur
to smartly manage the risk otherwise poor investment policies can sink them.
 Competitive risk- It is the risk that a competitive product or service will be able to win in
the market. There are several fast food businesses which possess high competitive risk as
they can be started with few investors and have no effective way of locking the clients.
Thus, in order to manage such risk, it is crucial for startup venture to deliver the best
quality food and services to gain the attention of customers and to retain them for long
time within firm (Butler, 2015).
TASK 5: CONDITIONS WHICH MUST PREVAIL TO AVOID FAILURE
At the time of starting up new business, it is essential for the entrepreneur to focus upon
the failure factors. Through addressing the failure factors, it is essential to overcome such
reasons of failure from business and thus, to attain the results. Here, businessman should obtain
expert opinions so that they can survive in the market and avoid different failures from business.
These are as follows- Lack of planning- It is essential for every business to carry out certain planning before
launching the business in market. Planning needs to be done regarding different factors
such as business product or service, financial requirement, analyzing competition etc.
Thus, all these factors need to be planned in advance otherwise it will lead to business
failure. However, through obtaining a team of professionals who have expertise in
planning, the requirement of new concept venture helps in developing effectual business
idea that attains the business goals and objectives (Jones and Penaluna, 2013). Poor management- There are varied reports which cites that main reason of business
failure is poor management. However, new business owners lack proper management
expertise in different areas such as finance, marketing and sales etc. Thus, they need to
gain knowledge regarding such subjects in order to avoid the failure. Also, they need to
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develop strategic thinking and build better vision of firm so that poor management can be
avoided by new start up of fast food business (Connolly, Wolfgram and Santos, 2012). Insufficient capital- It is a common failure for many businesses such as they possess
insufficient operating funds. Entrepreneurs are not able to make proper estimate
regarding the extent to which funds will be required in order to start up new venture.
Also, they may have unrealistic expectation of incoming revenues from sales. Thus,
business owner should undertake the help from financial analyst in order to predict the
requirement of funds at the time of startup of business so that it would assist in avoiding
failure (Lewis, 2014).
 Location- It is one of the critical success factors of business. But at the same time, it is
also essential for the entrepreneur to decide suitable location for starting up the new
concept such as crowded area so that potential clients can be attracted and maximum
revenues can be earned. It should be at probable distance from the competitor’s business.
Thus, in order to avoid such failure, it is crucial for the owner to place business at
appropriate location and to attract the target customers (Schiraldi and Silva, 2012).
CONCLUSION
From the above accomplished business plan, it can be determined that a new Fast Food
Restaurant named Zara is going to start in the UK market. However, the new venture concept has
the main opportunity gap that there are varied young and business class people who prefer quick
made food. Also, business has the aim to launch several outlets as the expansion plan in different
countries. Thus, for this, they need to adopt the best skilled and talented workforce so that they
can carry out effective operations in the business. Such type of food outlet needs to be opened in
the crowded area so that target clients can be attracted. It is essential for the entrepreneur to
possess varied management skills such as communication, customer focus and interpersonal
skills so that they can attain successful launching of new business. Further, financial projections
have been made so that business can assess the time when they can actually start earning profits.
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