Small Business Plan

This document is a small business plan for opening a new restaurant in England. It includes information on pricing objectives and strategies.

Running head: SMALL BUSINESS PLAN
Small business plan
Name of the Student
Name of the University
Authors note

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SMALL BUSINESS PLAN
Table of Contents
Answer to question 1......................................................................................................2
Answer to question 2......................................................................................................3
Answer to question 3......................................................................................................5
References:.....................................................................................................................7

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Answer to question 1
Franks all American barbeque a famous restaurant at south England has become the
pioneer of good food products for nearly 20 years sand dealing with the good customer
satisfaction for the products. However the company is now thinking of increasing the
business and opting to open a new restaurant England. However the takeout business opted
by the company was very much old school type where the customers directly visit the
restaurant and order the food from the menu card. However the company is trying to
improve the ordering strategy where they are thinking for improving the ordering process
where the customers will be ordering the food in the company website. Apart from this the
company management is also thinking to offer combo meals to the customer which is cheap
and quality. Thus in order improve the process the company have identified the pricing
objectives and pricing strategy of the restaurant.
Pricing objectives: it refers to following the company objectives and to check on whether the
company forward in establishing the pricing strategy. However the different small business
have different pricing strategy which includes the in house capabilities, profit sales etc.
Sales based objectives: franks all barbeque could try to increase the sales volume and
relative market share to improve penetration pricing at the competitors expense and price
raising of the meal product to win over the competitors (Buchel and Frantzeskaki 2015).
Profit maximization objectives: the company could also try to increase the profit by
improving market skimming where they provide better quality products in high price than the
competitors. Apart from this the company could also increase the target market to provide
improve the business.
Pricing strategy : the company could also include the different new schemes for
improvement of pricing like discount based pricing , cost based pricing , prestige pricing and

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even odd pricing, geographic pricing which ranges different based on different geographic
location. Apart from this the company also trying to make variant of the food products which
offers the main dish , two side dishes and a desert in cheap price than the competitors. Thus
in order to increase the customer base the company needs to provide the dish in good price
than that of the competitors. In this way the company could try to go about different pricing
strategies in meals.
Answer to question 2
The company have also tried to expand the business since they were doing well in the
south Connecticut region with a varying region of superlative foods in family restaurant
atmosphere. Thus the company management believes that they could try to expand the
business by opening a second restaurant which would eye on expanding the making of the
signature sauces. Hence they have chosen a location in Darien, Connecticut which is very
convenient and have all the facilities which one could ask for. Thus the company could eye
on improving the business which offers more money incoming in the next three years.
However establishment of the restaurant depends upon various areas like the locality, income
of the people, transport availability, raw materials etc. similarly for this company these are
the main factors to consider. However the management have chosen to take thus location
because of the high population density of the consumer as well as average family size who
can easily cope up with the prepared meals and people does not have to order it from outside.
Apart from this the data shows that average travel time to this restaurant is less than the other
restaurants which tells that people will feel free to come to this place and enjoy the food.
However this place have high population density as well as high income variability. Hence
the company won’t find it hard to make more customers through this process. Again since
high income variant people live here then they could issue a good price over food and thus
could generate more money for the business. Thus it is said that the other factors could also

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play an important role in the business. However there are some supportive data relating to
this process which proves that this location is ideal to expand the business.
The above database is about te demographic region selection where various
parameters are been consided like total polulation, population density , income level , house
value , percentage of family households , travel time, tax rate on real estate and family size .
it is seen from the abive report that among the other cities Darien should be fruitful to start
the new business because the net incime is close to $181000 and the real estate valuation is
near about $1431 whuch is the highest amoung the others . further the place takes 30 minutes
to travel and the tax rate is 0.8% being lowest among other. Thus with that said it can be
concluded that this place have all the facilities to establish a new set up. Thus te company
will be profitable from this set up.

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Answer to question 3
From the balance sheet and the financial statement of franks all barbeque the ratio
analysis have been done on the basis of the data collected for the year 2008 to 2010. Here in
order to check the financial viability of the company statements different ratios such as gross
profit ratio, current ratio, acid test ratio and inventory turnover ratio is shown. The exchange
ratio f current assets and current liabilities are 1:1. From this statement it is seen that in all the
years the company have effectively managed the current ratio above 1. Thus it can be
concluded that the way the company have managed the current assets and liabilities over the
years is impeccable. Apart from this the company have also well managed the quick ratio for
the consecutive three years over the standard rate. Though the profit is quite less in these
three years but it is expected that the new set up will fulfil all the profitability gaps later on.
Lastly the company have been able to manage the inventory for the last three years over the
limit which is also a good sign for the company. Apart from that the trend analysis is been
done by the company over these details which shows that the company managed the finances
well as all the trends are upward increasing. Thus the trend line is high in this case.

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Thus it can be concluded that the company have managed the profitability properly
in the current financial year and also eying on improving the gaps later on.

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References:
Buchel, S., & Frantzeskaki, N. (2015). Citizens’ voice: A case study about perceived ecosystem
services by urban park users in Rotterdam, the Netherlands. Ecosystem Services, 12, 169-177.