Business Plan for Ramen Shop in Hertfordshire, UK

This presentation outlines a business plan for Ramen Shop, a new restaurant in Hertfordshire, UK that will offer Chinese style noodles and soups. It covers business description, objectives, market analysis, operational plan, and financial information.

New Business
Task 2 (Business plan)

Table of Content
 Executive Summary
 Introduction
 Business description
 Objectives
 Market Information
 Operational plan
 Strategy for growth/development
 Financial information
 Conclusion
 References

Executive Summary
 The presentation summarises that “Ramen Shop” is a new business that will be launched at
Hertfordshire, UK. It will offer ready to eat and packaged Chinese style noodles, flavoured
with miso and various kinds of soups.
 The individual presentation is based on business plan that covers description of the business,
objectives, market analysis, operational plan and financial information.

Introduction
 Business is said to an activity for making living of a person along with money through
manufacturing or purchasing and selling tangible items and intangible services. It entails series of
dealing as individual transaction could not be sated as business.
 For the business plan, “Ramen Shop” is new business that is planning to establish at Hertfordshire,
UK. The new business will offer Chinese style noodles, flavoured with miso and various kinds of
soups.

Business description
 Ramen Shop is a new business that will be launched as a restaurant in food and
beverage industry of UK. It will offer unique taste of Japanese dishes to people of UK
as per their taste and preference. It is a kind of sushi restaurant that will prepare all of
its foods-in house ‘from scratch’ comprising soups, ramen noodles, broths and so on.

Objectives
 Business objectives are measurable results which are expected by an entrepreneur to achieve
while maintaining organisational growth. Some objectives of Ramen Shop are as stated:
Short term objectives:
 Improve skill sets
 Positive experiences
 Establish brand message
Long Tem Objectives:
 Increase profit
 Enhance sale

Market Information
 Within UK market, food and drink industry is developing at an alluring rate and is
presently country’s largest manufacturing sector. It contributes more to economy than
any other manufacturing sector. In the market, consumers are seeking innovative and
new food product such as noodles that offers nutritional advantages and taste. The
noodles market size is valued at £ 318 billion in 2019 and is expected to reach more
than £ 525 Billion by 2027 that exhibit CAGR of 5.9% in forecast duration.

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Success factors
 Growing adoption of convenient food products to surge demand
 Increasing middle class population to favour growth
Consideration of issues that could impact on the start-up
 Increasing prevalence of Obesity to hamper growth
 Putting together perfect menu

Operational plan
 Operational plan is detailed oriented plan stating ways in which divisions or groups
contribute in attaining desired goals. Operational plan for Ramen Shop is as presented:
 Goals and objectives
 Production process
 Timeline

Strategy for growth/development
 All proposed businesses need effective growth strategy for the purpose of shifting its status from
being a small business to large company. Most proposed ventures are fuelled by positivity and
enthusiasm of its entrepreneurs. Proposed growth strategies that could be opted for further
development of Ramen Shop:
 Market penetration strategy:
 Market development strategy:
 Product development strategy
 Diversification strategy

Financial information
 Financial information could be termed to data about monetary transactions of a business. For
Ramen Shop, financial information includes sales and profit forecast, investment potential,
breakeven and cash flow forecast for upcoming three-year period.
 Sales forecast:
Sales Forecast for Ramen Shop
Sales FY 2021 2022 2023
Supermarkets 128,000 143,000 173,000
Grocery Stores 185,000 203,000 246,000
Total Sales 313,000 346,000 419,000
Direct Cost of Sales FY 2021 FY 2022 FY 2023
Supermarkets 12,800 15,000 16,400
Grocery Stores 18,500 20,300 23,900
Subtotal Direct Cost of 31,300 35,300 40,300

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 Break even analysis: The monthly break-even point is 24,989 units.
Break-even Analysis
Monthly Revenue Break-
even
24,989
Assumptions:
Average Percent Variable
Cost
10%
Estimated Monthly Fixed
Cost
22,490

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2021 (In £ ) 2023 (In £ ) 2023 (In £ )
Sales 313,000 346,000 419,000
Direct Cost of Sales 31,300 35,300 40,300
Other Production Expenses 0 0 0
Total Cost of Sales 31,300 35,300 40,300
Gross Margin 281,700 310,700 378,700
Gross Margin % 90.00% 89.80% 90.38%
Expenses
Payroll 199,200 215,136 247,406
Sales and Marketing and
Other Expenses
6,000 8,000 10,000
Depreciation 9,600 9,600 9,600
Leased Equipment 0 0 0
Utilities 3,600 12,000 12,000
Insurance 9,600 9,600 9,600
Rent 12,000 12,000 12,000
Payroll Taxes 29,880 32,270 37,111
Other 0 0 0
Total Operating Expenses 269,880 298,606 337,717
Profit Before Interest and
Taxes
11,820 12,094 40,983
EBITDA 21,420 21,694 50,583
Interest Expense 4,760 3,405 1,715
Taxes Incurred 2,118 2,607 11,780
Projected profit and loss statement:
Below is projected Profit and Loss statement for Ramen Shop:

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 Projected cash flow of Ramen Shop:
Pro Forma Cash Flow
Cash received 2021 (In £ ) 2022 (In £ ) 2023 (In £ )
Cash from Operations
Cash Sales 78,250 86,500 104,750
Cash from Receivables 203,750 254,756 303,755
Subtotal Cash from Operations 282,000 341,256 408,505
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0 0 0
New Current Borrowing 0 0 0
New Other Liabilities (interest-free) 0 0 0
New Long-term Liabilities 50,000 0 0
Sales of Other Current Assets 0 0 0
Sales of Long-term Assets 0 0 0
New Investment Received 0 0 0
Subtotal Cash Received 332,000 341,256 408,505
Expenditures FY 2021 FY 2022 FY 2023
Expenditures from Operations
Cash Spending 199,200 215,136 247,406
Bill Payments 94,829 115,954 133,454
Subtotal Spent on Operations 294,029 331,090 380,860
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out 0 0 0
Principal Repayment of Current Borrowing 1,200 1,200 600
Other Liabilities Principal Repayment 0 0 0
Long-term Liabilities Principal Repayment 18,000 18,300 13,700
Purchase Other Current Assets 0 0 0
Purchase Long-term Assets 0 0 0
Dividends 0 0 0
Subtotal Cash Spent 313,229 350,590 395,160
Net Cash Flow 18,771 (9,335) 13,345
Cash Balance 88,771 79,437 92,781

Conclusion
 From the presentation, it is concluded that business is regular production of goods
undertaken with the aim of earning profit together with acquiring wealth through
satisfying wants of humans. Business plan defines nature of business, strategies it
intends to execute, financial projections, etc.

References
 de Sousa Jabbour, A.B.L., 2019. Going in circles: new business models for efficiency
and value. Journal of Business Strategy.
 Kamargianni, M. and Matyas, M., 2017. The business ecosystem of mobility-as-a-
service. In transportation research board (Vol. 96). Transportation Research Board.
 Srnicek, N., 2017. The challenges of platform capitalism: Understanding the logic of a
new business model. Juncture, 23(4), pp.254-257..

Thank You