Talk of the Chops: A Business Plan for a New Concept Café

This report discusses the business plan for Talk of the Chops, a new concept café offering unique experience to customers. It covers areas such as competitors, customers, projected profit and loss, cash flows, and sources of funding.

BM564 ENTERPRISE AND
ENTREPRENEURSHIP

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Purposed future business..............................................................................................................3
Customers....................................................................................................................................3
Competitors..................................................................................................................................4
Skills Analysis.............................................................................................................................4
2 year profit and loss account and cash flow with a break even..................................................4
Sources of funding.......................................................................................................................7
Plans of obtaining resources and a breakdown of start-up costs.................................................7
Type of organization and different management information systems to control the business...7
Vision of the business Idea..........................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
1

EXECUTIVE SUMMARY
The main purpose of this report is to discuss to business plan of the new idea with regard
to different areas such as competitors, customers, projected profit and loss and cash flows and
other services. This report will explain the different features of this idea and present its
feasibility.
2

INTRODUCTION
Entrepreneurship is the process of starting and running a self-established business with
the help of creative and innovative ideas developed by the entrepreneur. The major decisions and
functions of this type of business is managed by the owner itself which helps in maintaining
uniformity in the work that is presented by the organization. The current business plan will be
based on Talk of the Chops, which is a new concept café which offers unique experience to the
customers with a variety of dishes and beverages to enjoy.
MAIN BODY
Purposed future business
Talk of the Chops is the new business idea which is an attractive restraint offering an
overall experience to the customers in order to increase their satisfaction. The business is
dedicated towards introducing uniquer and innovative dishes for the customers and improve their
contribution in its overall success. Designed in an attractive way for providing an enhanced
experience of meals to the customers. There are several services which are accompanied by the
business such as live music, movies, cricket matches etc. which may help in preparing an
effective image of the brand among the customers. The organization has applied for the
intellectual property rights of the interior design of the business which is developed with the help
of professional designers and architects.
Customers
It is a B2C business which offers direct services to the customers by promoting the brand
through various social media platforms. These marketing practices of the business will be useful
in order to attract the customers towards the brand. The USP of the business is its delightful
experience and unique taste which may be helpful in gaining competitive advantage in the
business. The end users of the product are the customers from different who like to have a better
experience of having a meal in an attractive restaurant (Minto-Coy, Lashley and Storey, 2018).
The customers who actively search for new places in the city are the potential clients of the
business. The company will focus upon the customer satisfaction and try to make effective
changes in their approach on the basis of the feedback received from the customers. These
customers will be provided by promotional messages and advertisements in order to improve
their knowledge about the business.
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Competitors
There are several businesses which have a significant market share in this industry.
Various strategies may be used by the competitors of the business in order to attract the
customers towards their business which has a crucial impact on the market share of the new
business. The famous restaurants like Osip, Pensions and L’ Enclume are one of the major
competitors of the business. These competitors are popular among the customers and have an
effective image in the business. This is a crucial factor for the business to consider in order to
gain competitive advantage over these businesses and gain benefit in the industry (Tien and
et.al., 2019). The customers may be attracted towards the services provided by Talk of the
Chops due special services and amazing ambiance that is provided by the business to the
customers. It is the USP of the restraint which differentiates it from its competitors.
Skills Analysis
The major skills of the organization is to provide the customers with and enhanced
experience of having their meals. Talk of the Chops has a unique ability to improve the customer
satisfaction by understanding their needs and preparing effective strategies for targeting them.
The business has a better approach towards doing business and is always ready to make
appropriate changes in their business environment for increasing the interest of the customers in
the business (Kyrylov and et.al., 2020). The organization still requires proper knowledge of
different data analysis tool in order to increase the efficiency of the business to provide the
customers with a better experience of the restaurants. The management may improve their
knowledge by adopting appropriate training and development in order to increase their overall
profitability.
2 year profit and loss account and cash flow with a break even
Projected 2 years’ cash flow forecasting-
Particulars Amount for the
year 2023
Amount for
the year 2024
To depreciation
To salary
To marketing expenditures
9000
5000
7500
9000
6500
10000
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To advertisement
To bank charges
To rent
To miscellaneous charges
To loss on sale of assets
Total expenditures of the organization
To income from taxation consultancy
To tax management charges
To income from tax planning commission
Total revenue for the year
5000
1250
7500
3200
1560
40010
45000
22000
18000
85000
5600
1500
7800
2500
2000
35900
49500
24000
25000
98500
Net projected profit for the year 44990 62600
The Profit and loss accounts reflects that the future business plan is appropriate for the
organization and will provide good profits for the business.
Projected 2 years’ cash flow forecasting-
2023 2024
Cash flows from operating activities for
the year
Net Income
Adjustments pertaining to operating
activities-
Depreciation
Loss on sale of equipments
Changes in current assets and liabilities-
Increase in current assets
Decrease in current liabilities
Net cash provided by operating activities
Cash flows from investing activities
Capital expenditures
44990
9000
1560
-5200
2000
52350
-
62600
9000
2000
-6000
2500
70100
-
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Lease expenditures
Amount generated from sale of equipment
Net cash used for investing activities
Cash flows from financing activities
Amount generated from issuing debentures
Dividends paid to stockholders
Net cash provided by financing activities
Net increase in cash during the year
Cash at the beginning of the year
Cash at the end of the year
-3000
-
-3000
90000
-
90000
10000
139350
-2500
-
-2500
-
-
149350
From the above cash flow statements, it can be understood that the business is having a
decent control over their flow of cash and the business idea is considered as viable for the
organization.
BEP
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The break even point is referred as the position of the business where it generates no
profits or losses. The business idea of the organization is innovative which reduces the chances
of it coming to BEP. It may be understood by the P&L accounts that the business can be
profitable from the starting of its operations.
Sources of funding
There are different sources of funding that may be available for the business such as
personal investment, venture capital, angel investors etc. which may provide the business with its
desired capital (Onikiienko, Polishchuk, Ivashchenko, 2021). Talk of the Chops may get funding
from the angel investors as the restaurant business requires a significant amount of money to
conduct their daily operations appropriately. This funding source may be useful for the business
in order to get the expertise of an angel investor and take better decisions towards development.
Plans of obtaining resources and a breakdown of start-up costs
Talk of the Chops may get funding from the angel investors as the restaurant business
requires a significant amount of money to conduct their daily operations appropriately. The
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organization will purchase their resources from the trusted suppliers in the industry in order to
provide better quality of output for the customers. It will try to resource all the appropriate raw
material and services at the minimum cost and increase the profitability of the business. The
start-up costs are shown with the help of a budget which is as follows:
BUDGET
Particulars Amount(€)
Salary 5000
Incorporation Fees 7000
Raw Material 4000
Equipments 8000
Rent 9000
TOTAL 33000
Type of organization and different management information systems to control the business
Talk of the Chops is a sole proprietorship business that is owned and managed by the
individual owner which takes all the crucial decisions of the business practices. The restaurant
may be controlled by the owner by giving instruction to their staff on how to operate the daily
business activities effectively. The restaurant will be monitored by the owner with the help of
advanced management information system (McCready and Molls, 2018). It may be a useful
approach of the company to improve the performance of their staff members and increase the
quality of output produced by them. SAP Software will be used by the organization to manage
their business activities and increase the overall productivity of the business.
Vision of the business Idea
The main purpose of this idea to provide a unique experience to the customers in order to
enjoy their meals properly. Talk of the Chops will focus on increasing its market share in the
industry and preparing an effective brand image among the customers (Inkon, 2019). The
business will target a wider audience in the future in order to increase the popularity of the new
business idea and attract more customers towards the business. It will expand into newer markets
and look forward to improving the sustainability of the business in the competitive advantage.
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CONCLUSION
According to the above report it has been concluded that the business has been able to
increase its opportunities to grow in the business environment by properly analysing their
environment. There are different aspects which have been useful for the organization to evaluate
in order to increase its market share in the competitive business environment.
REFERENCES
Books and journals
Inkon, K., 2019. A cross-sectional study on the relationship between business plan, entrepreneur
type, development stage and profitability of US SMEs. Academy of Entrepreneurship
Journal. 25(1). pp.1-21.
Kyrylov, Y. and et.al., 2020. Formation of Enterprise Management Strategies and
Entrepreneurship Training.
McCready, K. and Molls, E., 2018. Developing a business plan for a library publishing
program. Publications. 6(4). p.42.
Minto-Coy, I.D., Lashley, J.G. and Storey, D.J., 2018. Enterprise and entrepreneurship in the
Caribbean region: Introduction to the special issue. Entrepreneurship & Regional
Development. 30(9-10). pp.921-941.
Onikiienko, S., Polishchuk, Y., Ivashchenko, A., 2021. Prior credit assessment of long-term
SME projects with non-standard cash flows. Banks and Bank Systems. 16(2). pp.148-
158.
Tien, N.H. and et.al., 2019. Sustainable social entrepreneurship in Vietnam. International
Journal of Entrepreneurship. 23(3). pp.1-12.
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