Delish-on-the-Go Restaurant Financial Analysis

This project report provides an in-depth analysis of Delish-on-the-go restaurant's financial situation, including a cash budget from January to April. The report also explores different legal structures for businesses, such as sole proprietorship, partnership, and companies, and concludes that Delish-on-the-go is best suited as a partnership firm. The report highlights the importance of preparing an appropriate cash budget and having sufficient resources for a new business venture.

Launching a New Venture

Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1 Identification of specific target markets and competitive analysis..................................3
P2 Specific tangible and intangible resources that required for a new venture.....................5
TASK 2......................................................................................................................................6
P3 Formulation of credible proposal to launch a new venture..............................................6
P4: Skills and capabilities required to launch a new venture................................................7
TASK 3......................................................................................................................................9
P5 Determination of promotional activities and channels for launching new venture .........9
P6 Formulation of appropriate promotional activities plan for both launch and pre-launch 9
TASK 4....................................................................................................................................10
P7 Monthly cash budget for the pre and after launch phase ...............................................10
P8: An appropriate legal form for the venture.....................................................................13
CONCLUSION........................................................................................................................14
REFERENCES.........................................................................................................................15

INTRODUCTION
In competitive market, there are different types of ventures which are operating its
business functions to meet market needs and requirements in different way, it supports the
GDP of a nation due to which get maximum support from governmental in terms of filing
legal requirements. The thinking of starting a new venture in market comes in the mind of
entrepreneurs only when they have new and innovative ideas which can differentiate their
new venture from their existing rivals currently operated in market. It requires specific skills
and knowledge that entrepreneurs should attained in order to make new venture more
successful within shorter period of time. The present assignment report is based Delish-on-
the-go restaurant which is a going to start as a restaurant providing multiple range of food
dishes of different nations in London Market of UK. The project discusses the identification
of the target market and competitive analysis, types of resources utilised to start a new
venture, credit proposal, skills and capabilities of entrepreneurs to make venture more
successful, promotional activities and channels, cash budget for both pre and post launch
phase and an appropriate legal form for the venture.
TASK 1
P1:
Delish-on-the-go restaurant is a multi-cuisine restaurant which is going to launch in
London Market with an aim of earning huge profits as well as facilitating people of UK to
taste the food of different nations at one place. The special items included in their offering list
is chicken rice, tacos, Som Tam, Masala dosa etc. which can easily attracts maximum number
of customers within shorted time period. The idea of starting a restaurant came into mind of
entrepreneur when they have been observed that mostly people of UK especially in London
where large number tourists are visited every year prefer to visit restaurant for dinner,
breakfast etc. on daily basis. It will ensure entrepreneur to generate huge profits within
minimum time period. The decision of deciding London as location of restaurant made after
identifying that London is more popular for tourist destinations which attract maximum
number of people from different nations every year. This will definitely increases their sales
and sustainability in market within less time period (Baron and Tang, 2011).
The restaurant is launched in partnership due to which it has been following all rules
and regulations made by government for partnership firm. To establish a restaurant in
London, the entrepreneurs have purchased around 1700 square feet near London Eye on a

lease of 4 years with the purpose of continuing its operations without any obstructions. As it
is formed in partnership thus it is easy for entrepreneurs to manage funds as all partners
brings certain portion of capital as mentioned in partnerships deed along with the raising
capital from different sources such as bank, venture capital etc.
Objectives:
 To generate huge profits.
 To facilitate people of London to taste the dishes of different nations at one place.
 To achieve brand image and huge sustainability in market.
 To make changes in their offering list on regular basis.
Mission: The mission of Delish-on-the-go restaurant is “to serve maximum number of
customers to taste the food dishes of different nation at one place and increases their
satisfaction level to achieve their loyalty for longer period of time”.
Target Market: Before entering into market, the entrepreneurs has targeted particular
market whose needs and preferences are taken into consideration. The market is segmented
on three basis which includes Demographic, Geographic and Psychographic. It is important
for a venture to segment the market which makes easy for them to identify the people having
common needs and preferences due to which the decisions and plans can be implemented
accordingly to fulfill their requirements. It can be further discussed as under:
Demographic: Under this, the market is segmented on the basis of different variables
which include gender, age, income level, religion etc. This will help in understanding the
people having similar needs preferences. For example, Delish-on-the-go restaurant offers
dishes of different nations which can easily attracts youth as they are more likely to visit at
restaurant on regular basis (Burns, 2017).
Geographic: Under this, the population of London is divided on the basis of geographical
location. It helps in assessing the amount of people where the new venture can receive huge
demand of their products. For example, Delish-on-the-go restaurant has targeting London due
to having number of tourists who are preferring to taste dishes of their own nation.
Psychographic: Under this, the population of London is segmented on the basis of
lifestyle and buying behaviour. As generally middle and higher income level group prefer to

visits restaurant on regular basis due to having more purchasing power. Therefore, Delish-on-
the-go restaurant has targeting these groups to increase their sales and revenue.
Competitive analysis:
This is essential for a new venture to analyse its competitors first before deciding to
enter into market. According to the market research done by Delish-on-the-go restaurant, it
has been observed that there are large number of restaurants are already exist in London to
attract people which includes Led Bury, Bar 61 Restaurant etc. Such high competition forces
Delish-on-the-go restaurant to bring something new in their menu offerings that will help
them in differentiating their restaurant from such rivals in customers’ mind. Due to this, the
restaurant has offering quality food items of different nations at one place (Duggal and
Sassoon, 2015). The competition increases the satisfaction level of people as lots of
companies tried to meet the customer's expectation and needs. Therefore, the business owners
of Delish-on-the-go restaurant need to prepare an effective strategies and plans through
consulting with experts and professionals so that they can achieve strong stability in
competitive market for longer period of time.
P2:
To successfully formulate the business strategies for a new venture it is very important
to manage the resources in a given period of time. The required resources can be categorized
as, tangible resources and intangible resources. These resources play a very important role in
providing services to the customers in efficient manner. The tangible resources can be
defined which are present in physical form in nature like representatives, funds, lands and
equipments, etc. whereas, the intangible resources are not seen in the physical form but, are
very beneficial for the business organisation. The delish-on-the-go restaurant will serve their
customers with various cuisines like Chinese, Spanish, Italian, etc. and they will also provide
with the facility of take away as it is suitable according to the business environment in which
they will operate. The partners are liable to utilize the resources in effective and appropriate
manner to attain the desired objectives. The tangible and intangible resources are as follows:
Tangible resources: These are the resources which are available in physical form and
contribute in formulating the new business venture in effective manner. The tangible
resources will help the restaurant in setting a strong establishment in the market within a
desired period of time. These resources are infrastructure, funds, representatives, etc.
tangible resources are also critical in nature and one of them is finance and it should be

sufficiently available to get other resources effectively. It will result in strengthening the
business venture internally and will lead to attract the customers. Accessibility of wide range
of cuisines can be made only if the restaurant has human capital and other resources for
proper utilisation (Fernhaber and Li, 2013).
Intangible resources: These resources can be defined as the resources which will not
appear physically in nature but will have the great the contribution towards the new business
venture. Intangible resources are business trademarks, socio culture, customer-employee
relation, etc. In creation of the new business venture some fresh thoughts are developed
which are necessary to assure the ideas of several property rights like copyrights certificate,
trademark and patent. These resources leads in the development of business venture.
Stigmatization is the primary component that incorporates the use of a image or mark that
will make the restaurant brand image in the market and by this the customers will recognize
it. This will aid them in building their contrasting recognition in the marketplace by which
they will be able to accomplish competitive edge and intensify the possibility of achieving
success in short period of time. These resources comes with number of advantages which are
related with the restaurant like identity in market, representatives involvement, goodwill, etc.
Delish-on-the-go restaurant is required to acquire customer relationship approaches as it
manufactures prosperous bond with the customers. Achievement of the trust and reliableness
of customers bestow in their holding for longer time frame (Gerasymenko, De Clercq and
Sapienza, 2015).
TASK 2
P3:
An appropriate plan is must present with the entrepreneurs in order to make their new
venture more successful within shorter period of time. Achieving mission and objectives
requires an effective plan which is must required to be formulated by entrepreneurs with the
help of using their skills and market knowledge. Such plan can be made according to the
following structure which makes easy for entrepreneurs to make effective decisions for the
future growth of restaurant (Hmieleski, Cole and Baron, 2012).
Executive Summary A restaurant named as Delish-on-the-go restaurant is going to
launching in London Market with having number of food dishes
offerings popular in different nations with a clear objective of earn

huge profits and capture large market share of London market.
Company description Delish-on-the-go restaurant is started as restaurant in partnership in
London market in order to facilitate people of different nations to
taste their home country’s popular dishes at one place. The main
offerings in their menu list are chicken rice, tacos, Som Tam, Masala
Dosa etc.
Market Analysis Business environment brings more complexities towards business
through internal and external factors which can either make positive
or negative impact on their existence in market. Such factors include
employees and customer behaviour, demand of suppliers,
technological advancements, and fluctuation in political system etc.
For this, PESTLE and SWOT analysis is much effective to conduct in
order to analyses such factors and make easy for entrepreneurs to
make decisions related with the future growth of restaurant in market.
PESLTE is conducted to analyse external factors such as political
changes, economic stability etc. which can affect the decision-making
of business owners of Delish-on-the-go restaurant either in negative
or positive manner. On the other hand, SWOT analysis is conducted
to evaluate the intrinsic factors such as employee morale,
technological changes etc. which can either make negative or positive
impact on internal capabilities of an organisation\.
Financial projection Acquisitions of valuable resources such as land and building,
employees, cooking equipments etc. can be easy for new business if
they have enough financial resources. For this, entrepreneurs should
raise funds on their own as well as from financial institutions such as
Banks, Venture capital etc. At present, bank provides low rates of
interest to the new venture due to which it makes easy for Delish-on-
the-go restaurant to acquiring sufficient amount of funds for running
business.
Benchmarking Launching a new venture requires proper plans to execute activities
which support them in an effective establishment in market. For this,
entrepreneurs must set benchmarks towards itself as well as their

employees which brings motivation among them to work hard and
give their maximum contribution in achievement of growth and
success within shorter period of time. Benchmark is made only after
forecasting the situations that will be happened in near future. It
ensures about achieving growth and success in competitive market
world thus it is more effective for Delish-on-the-go restaurant.
P4:
In acquiring the objectives of every new business the assistance of tangible and
intangible assets are not enough, the skills and capability of businessperson is also very
essential to make the new business operations successful. These required skills give the
opportunity to consider various ideas in the risky conditions from average people and
embrace proper resolution for exclusion of such issues. Outstanding skills in businesspersons
allows in finding best solutions for the tough situations in the business environment and
allows in finding new ideas and strategies to achieve the desired objectives. The skills and
capabilities which are required by the entrepreneurs to run a new business venture are as
follows:
Ability to manage funds: Money is the vital perspective which is essential from the
initial stage to its execution. At the time of launching a new venture huge amount of funds
and assets are required and sources are restricted. In this way, the skills and abilities of
entrepreneurs in regards to viable management and allocation of funds brings maximum
return in near future (Kariv, 2013).
Ability to fund-raise: Funds are essential need to every last phase of business and it
isn't conceivable to begin the business through their very own investments. In such manner,
to achieve success entrepreneurs required to have persuading ability through which they can
raise assets from various sources effortlessly like banks, money related establishments,
speculators, private funders and so on.
Ability to identify strengths and weaknesses: To achieve success entrepreneurs need to
evaluate qualities and shortcomings which enhance their understanding about their future
decision making. It gives the open door is to utilize their strengths in desired areas to
overcome its weaknesses and brings out maximum possible results for restaurants in market.

Risk taker: At the time of launching a new firm number of challenges and risks has
been faced which brings negative impact on their execution of launching. For this, risks need
to be tackled only if an entrepreneur have an ability to manage risk before it affects the
establishment of new venture.
Leadership skills: It is crucial role in having leadership skills which should be attained
by an entrepreneurs that inspire other workers to provide their best efforts in an organisation.
It aides in arrangement of better groups within an organisation in order to achieve their
desired goals and objectives within pre-determined time period (Read and et. al., 2016).
TASK 3
P5:
There are several promotional alternatives and channels which are accessible and also
which can be utilized by the “Delish-on-the-go” restaurant for promotion activities of their
actual contributions in the potential market. Such extraordinary sort of options which they
can utilize are characterized underneath:
Social media platform: Social media is the most suitable platform through which this
restaurant can promote their products and also generate customer lead along with setting up
of infrastructure to promote its food product at the optimum level. Such platform includes
twitter, Facebook, Instagram etc., through which “Delish-on-the-go” can accelerate of their
food products. It is most essential since it serves to effortlessly reach towards their objective
market customers which are youth generation. It is considered as popular platform at which
large number of people are active on daily basis. Thus, it provides an opportunity to business
owners to market their new venture in more effective and efficient way within minimum time
and cost (Simon and Shrader, 2012).
Mobile Billboards: It is another viable & fixed promotional tool which can be utilized
to grab an attention of targeted people through giving the sufficient amount of information
about the offers of restaurants. This is why, because usage of mobile has resulted into
acquisition of customer It incorporates utilization of turns of phrase, stickers, logo and so
forth. It helps in making their own identity as compared with their rivals.
Personal promotions: This will incorporate the utilization of strategies, for example,
distribution of catalogues and brochures for publicity of their business between nearby
network. The significance of this strategy that it makes face-to-face communication with

targeted people which makes easy to recognise their actual needs and preferences. It
constructs successful bond with targeted people through which they can achieve their trust
and steadfastness.
P6:
It has been proved essential for “Delish-on-the-go restaurant” is to structure distinctive
promotional activities for both pre launch and launch of restaurant. Also, it is necessary to
pursue promotional activities to beat the rivalries to overcome market circumstances and also
measures to resolve customer engagements issues. Along with this, launch occasion will give
an opportunity to customer to interaction with staff of this restaurant to get exact knowledge
of products or services.
Pre-launch promotion: This pre-launch activity will inform customer and others about
products, which will be offer the complete launch with price discussion. In an initial stage,
correct knowledge of food product will be given along with price factor to say about matter
of affordability and premium. Also, this will includes discount or offers, which will given to
customer in initial period of restaurant service.
Launch: In this stage, media or their representatives will be allowed to visit the
restaurant after its launch to get suitable information over the what products or services can
be offer by “Delish-on-the-go”. After the media involvement, correct knowledge of food
products will be given to them, so that they would publish it in newspaper through press
media, TV advertisement, in-magazines and books or through pamphlets etc. (Simon. and
Shrader, 2012). As, this is the introduction, this new venture has an opportunity to build their
brand image along with it reputation into the market to their business operations with higher
level of customer's.
TASK 4
P7 :
Cash budget is a statement showing cash inflow and outflow for a business over a
particular period of time. It is essential for entrepreneurs to prepare such kind of statement
which assist them whether the restaurant has enough cash to operate or should make
decisions regarding raising funds from other sources such as Banks etc. Therefore, here is the
cash budget of Delish-on-the-go restaurant before the launch of restaurant and after first 12-
18 months (Yu, Chen and Nguyen, 2014).

Cash budget of Delish-on-the-go restaurant before launch
Pre-launch cash budget (2017)
Interpretation: Delish-on-the-go restaurant has made 8000 pound investment shows
limited budget for company. As the company has incremented credit sales from January to
April but then falls due to facing bad-debts. The new venture has enough funds to invest in
acquring equipments such supports them in operating their business more effectively.
Post launch cash budget

Interpreation: Delish-on-the-go restaurant has made lots of investment due to
provide products on credit in order to maintain huge customer base within shorter period of
time. The company has lots of equipments which help them in operating business and
adoption of new technology in market on regular basis. Thus, the new venture has enought
amount of budegt due to running business in partnersip form.
P8:
There are various forms of legal structure which has been followed by organisations on
the basis of their nature and size. An entrepreneur make decision of starting new venture only
after identifying the complexities and advantages of particular business structure. Therefore,
an entrepreneur has three options to launch a new venture which includes sole proprietorship,
partnership and companies. It can be further understood as under:
Sole proprietorship: It is kind of business which is owned and monitored by single
person known as sole trader due to which all the rights and power to take decisions for the
betterment of firm are kept with itself only. Such sole trade is personally liable that means all
debts and losses can be recovered by selling personal assets as well. It is simplest form of
business due to having less rules and regulation followed by owner while incorporating.

Partnership firms: It is another effective form of business in which two or more person
meet together and decide to start business to achieve common objective by entering into
contractual agreement known as partnership deed. The liability of partners is limited that
means they are liable to pay debts of company upto the amount of capital subscribed by them
in business.
Company: It consists of private and public company which is owned by private individuals as
well as government. It follows strict rules and regulations formulated by government. For
example, private company are prohibited to allot shares directly to the general public.
In the present report, Delish-on-the-go restaurant is formed as restaurant in partnership
due to which it required entrepreneurs to follows all rules and regulations implemented by
government for the partnership business. It increases the possibilities of achieving growth and
success in the new market as there are partners who can provide an adequate support in
formulating plans and policies which provides profitable result to company (Launching a new
venture, 2018).

CONCLUSION
It has been concluded from the above project report that an entrepreneur can only decide
to launch a new venture of they have new and unique ideas in terms of offerings to public so
that existing rivals cannot be much affected their business operations. It is also required to
have sufficient amount of resources which can assist new business venture to execute its
functions more effectively. Such resources include tangible and intangible. It also required
for entrepreneurs to prepare an appropriate cash budget in order to assess their financial
capabilities which makes easy for them to make decisions regarding raising funds from
various sources such as Banks.

REFERENCES
Books and Journals
Online
Launching a new venture 2018. [Online]. Available through:
<https://www.exed.hbs.edu/programs/lnv/Pages/default.aspx>.