Individual Assignment: Business Plan for Ozone Restaurant in Malaysia

This business plan outlines the establishment of 'Ozone,' a restaurant in Malaysia focused on providing nutritious and tasty sandwiches, salads, and continental recipes to upscale customers. The venture, initiated by Mr. and Mrs. Ericsson with a $100,000 capital, aims to differentiate itself from competitors by offering healthy alternatives to fast food. The plan details key success factors such as business repetition, prime location near Petronas Towers, and a sales target exceeding $200,000 within five years. It includes a mission to specialize in modern sandwich and salad preparation, objectives to maintain positive cash flow and repay bank loans, and strategies for marketing, promotion, positioning, and pricing. Financial projections, including profit and loss, cash flow, and balance sheet statements, are provided for a five-year period, assuming a constant profit increase of 2% annually and a 4% loan interest rate. The plan addresses competitive analysis, target market segmentation, market trends emphasizing health and nutrition, and competitive pricing strategies to ensure market penetration and customer loyalty.

Running head: BUSINESS PLAN
Business Plan
[Ozone Restaurant in Malaysia]
Name of the Student
Name of the University
Author Note

1BUSINESS PLAN
Table of Contents
1.0: Executive Summary............................................................................................................3
1.1: Key Success Factors........................................................................................................3
1.2: Mission............................................................................................................................4
1.3: Objectives........................................................................................................................4
2.0: Company Summary.............................................................................................................5
2.1: Start-up summary............................................................................................................5
2.2: Company Location..........................................................................................................5
2.3: Company Ownership.......................................................................................................6
3.0: Products and Services.........................................................................................................6
3.1: Competitive analysis.......................................................................................................6
3.2: Market Analysis..............................................................................................................6
4.0: Target Market......................................................................................................................7
4.1: Target Market Segment...................................................................................................7
4.2: Market trends..................................................................................................................7
4.3: Competition and buying patterns....................................................................................7
5.0: Strategy and implementation..............................................................................................8
5.1: Marketing strategy..........................................................................................................8
5.2: Promotional strategy.......................................................................................................8
5.3: Positioning strategy.........................................................................................................8
5.4: Pricing strategy...............................................................................................................9
6.0: Financial Plan......................................................................................................................9

2BUSINESS PLAN
6.1: Important Assumptions...................................................................................................9
6.2: Profit and Loss Statement...............................................................................................9
6.3: Cash Flow Statement....................................................................................................10
6.4: Balance Sheet Projections.............................................................................................11
Reference List..........................................................................................................................13

3BUSINESS PLAN
1.0: Executive Summary
The name of the restaurant will be ‘Ozone’, which will focus on providing the dishes that are
nutritious, healthy and tasty for the upscale people of the Malaysian town. The menu will
consist of different varieties of sandwiches and salads along with continental recipes so that
the customers can gain maximum nutritional values by consuming it. The distinct menu will
help the company in gaining an advantage over the place, as most of the food that is produced
by the other restaurants are fast foods.
The company will be started by Mr. and Mrs. Ericsson with a capital of $100,000. The
owners will give $20,000 and the rest of the money that is $80,000 will be taken from the
bank at an interest rate of 4 percent. The market entry of the company will not be easy, as
there are many competitors that are operating in the place along with the substitutes that are
present in the area. The suppliers in the market also have the ability to control the rates of the
raw materials that are being supplied to the restaurants.
1.1: Key Success Factors
The major factors that will help in implementing the business in the market in a successful
manner are:
 Repetition of business- The products that will be given by the company will allow the
customers to be loyal to them and they would recommend it to other member of the
society as well. The use of better marketing strategies will also allow the company in
advertising the products in the local market.
 Location- This is another important factor, as the restaurant will be located in one of
the prime areas that will be able to attract more number of customers.
 Sales forecast- The Company has a target of achieving more than $200,000 by selling
the dishes within a period of 5 years.

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1.2: Mission
The mission of the restaurant will be to specialize in the art of making the sandwiches in a
modern manner along with the choices of salads that will help in providing a better and
nutritious life to the customers.
1.3: Objectives
The objectives of the company will be as follows:
 To maintain a positive flow of cash for a period of 5 years
 To repay the bank loans with the period of 5 years so that they can be self-sufficient
 To increase the level of sales at the end of every financial year

5BUSINESS PLAN
2.0: Company Summary
2.1: Start-up summary
The cost of starting the restaurant will be borne by the owners along with the bank
from where the rest of the amount will be taken up as loan. Additionally, the amount will be
divided in purchasing the materials that will help in the production of the food materials. It
will also be used in paying the salaries of the employees for the first year after which the
profits of the company will be used in paying off the liabilities along with the wages and
salaries of the employees.
Summary Statement
Sources of Capital
Owners' and Other Investments $ 20,000
Bank Loans 80,000
Other Loans -
Total Source of Funds $ 100,000
Startup Expenses
Bldgs / Real Estate $ 15,000
Leasehold Improvements 10,000
Capital Equipment 45,000
Location / Admin Expenses 2,500
Opening Inventory -
Advertising / Promo Expenses 5,500
Other Expenses -
Total Startup Expenses $ 78,000
2.2: Company Location
The restaurant will be opened up near the Petronas Towers, as it is one of the busiest
places in Malaysia. It will also help in attracting more number of customers towards the
company due to the increased number of footsteps in the area. The restaurant will provide a
seating capacity of maximum 30 people along with the commercial ovens and stoves that will
be required for producing the food products (Belasco, 2014).

6BUSINESS PLAN
2.3: Company Ownership
The restaurant will be a sole proprietorship business, as it will be managed by Mr. and
Mrs. Ericson who are husband and wife. The profits and losses of the company will be shared
equally among the owners and will also be responsible for the conditions of the restaurant
that are taking place in the market (Bourdain,2013).
3.0: Products and Services
The company will be providing different varieties of sandwiches and salads to the
customers so that it can help them in getting a competitive advantage in the market. It will
also allow the company in differentiating the products from the rest of the businesses that are
present in the area (Ballamingie & Walker, 2013).
3.1: Competitive analysis
There are many restaurants that are operating in the particular area such as Burger
King, McDonalds and Subway along with the ‘mom and pop’ style that are present among
the locals. They have a large number of loyal customers, which will hamper the sale of the
new restaurant that will be opened up in the area. The use of proper techniques in marketing
needs to be done so that it can attract the customers and spread awareness amongst them
regarding the food that is being supplied by the company (Bellia, Pilato & Seraphin, 2016).
3.2: Market Analysis
The restaurant has classified three major markets so that the products can be sold.
Firstly, the customers of the down town region who are looking for a place to enjoy good
quality food products as breakfast and lunch can be able to get it from the restaurant.
Secondly, the customers who are busy with their office hours can capitalize by getting a meal
within 10 minutes so that they can continue with their office meetings. Lastly, the customers

7BUSINESS PLAN
who have families may take the packed food to their homes so that they can enjoy the meal
after a tedious work day (Choi, Nguyen & Phan, 2013).
4.0: Target Market
4.1: Target Market Segment
The restaurant will target some of the companies so that the employees working in
those offices can avail the food products that are being provided by the restaurant. The
business will also capitalize on the peak hours that is from 12 pm to 3 pm, as most of the
restaurants try to attract the customers during this period. The company will also be going in
to joint ventures with other local companies, as they will be having a better knowledge
regarding the current scenarios that are present among the customers. This will allow in
increasing the level of profit of the company (Bowen, Brenton & Elliot, 2014).
4.2: Market trends
One of the important needs of the customers in the modern world is to stay fit and
healthy so that they can be active. This has resulted in providing the foods that can retain the
highest quality of nutritional values after they are cooked. The use of better quality of
vegetables and meats has allowed the customers to be active and maintain their physique as
well. The restaurant will be using the vegetables and meat products that are grown in an
organic manner so that maximum nutrition can be retained in the food (Chan & Park, 2015).
4.3: Competition and buying patterns
The location of the restaurant in the Malaysian market will enable them in enjoying a
competitive advantage over the other restaurants that are present. The price sensitivity among
the customers need to be taken in to account by the restaurant so that the products can be
priced accordingly. This will allow the company in supplying the food products at a cheaper
price (Fost et al., 2016). The quality of the food that is being provided to the customers will

8BUSINESS PLAN
also be taken in to account, as it will help the company in gaining a competitive advantage in
the market as well. It will also allow in gaining the trust of the customers so that they can be
loyal towards the company and the products that are being supplied by them (Corvo, 2014).
5.0: Strategy and implementation
5.1: Marketing strategy
The company will be organizing an opening party for the people who will be present
in the market on the opening day so that it can spread awareness regarding the products that
are being offered by them. The restaurant will also be using the flyers so that it can be
distributed in the areas and office premises, which will help in informing the potential
customers (Christiansen, 2014).
5.2: Promotional strategy
The restaurant will be promoting the food products through the use of radio and
television, as it will help in attracting large number of customers. Radio is one of the
strongest medium in the country that will allow in attracting large number of customers. The
use of advertisements in the local channels during prime and matinee time will also result in
getting the attention of a large number of customers (Esparza, Walker & Rossman, 2014).
5.3: Positioning strategy
The company will position itself in the ‘high quality, low price’ quadrant so that it can
help them in attracting the customers. The low pricing strategy will allow in gaining a
competitive advantage as well as the better quality of food products will increase the level of
loyalty among the customers (Davis et al., 2014).

9BUSINESS PLAN
5.4: Pricing strategy
The price of the food products will be kept at a minimum so that the profit for the
owners can be minimum. This will ensure that the prices of the food products that are being
provided by the company are competitive in nature (Dermer et al., 2013).
6.0: Financial Plan
6.1: Important Assumptions
 The rate of profit for the company will increase at a constant rate of 2 percent every
year.
 There will be no impact of recession or inflation on the sales of the company on an
annual manner.
 The rate of loan for the amount taken from the bank will be 4 percent
 The cost of goods sold on the products will be fixed at 12 percent
 The financial statement will be provided for a period of 5 years
6.2: Profit and Loss Statement
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Gross revenue $94,250 $96,135 $99,980 $105,979 $114,458
Cost of goods sold $11,310 $11,536 $11,998 $12,718 $13,735
Gross margin $82,940 $84,599 $87,983 $93,262 $100,723
Other revenue [source] $0 $0 $0 $0 $0
Interest income $0 $0 $0 $0 $0
Total revenue $82,940 $84,599 $87,983 $93,262 $100,723
Operating expenses
Sales and marketing $5,500 $5,610 $5,834 $6,184 $6,679
Payroll and payroll taxes $0 $0 $0 $0 $0
Depreciation $14,000 $14,280 $14,560 $14,840 $15,120
Maintenance, repair, and overhaul $0 $0 $0 $0 $0
Total operating expenses $19,500 $19,890 $20,394 $21,024 $21,799
Operating income $63,440 $64,709 $67,588 $72,237 $78,923
Interest expense on long-term debt $2,879 $2,288 $1,673 $1,034 $370
Operating income before other items $60,561 $62,421 $65,915 $71,203 $78,554

10BUSINESS PLAN
Loss (gain) on sale of assets $0 $0 $0 $0 $0
Other unusual expenses (income) $0 $0 $0 $0 $0
Earnings before taxes $60,561 $62,421 $65,915 $71,203 $78,554
Taxes on income 30% $18,168 $18,726 $19,774 $21,361 $23,566
Net income (loss) $42,393 $43,695 $46,140 $49,842 $54,987
Cumulative income $42,393 $86,088 $132,228 $182,070 $237,057
6.3: Cash Flow Statement
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Operating activities
Net income $42,393 $43,695 $46,140 $49,842 $54,987 $237,057
Depreciation $14,000 $14,280 $14,560 $14,840 $15,120 $72,800
Accounts receivable $0 $0 $0 $0 $0 $0
Inventories ($509) ($1,038) ($1,620) ($2,289) $0 ($5,456)
Accounts payable $0 $0 $0 $0 $0 $0
Amortization 0 0 $0 $0 $0 $0
Other liabilities 0 0 $0 $0 $0 $0
Other operating cash flow
items 0 0 $0 $0 $0 $0
Total operating activities $55,884 $56,936 $59,081 $62,393 $70,107 $304,401
$0
Investing activities $0
Capital expenditures $0 $0 $0 $0 $0 $0
Acquisition of business 0 0 0 0 0 $0
Sale of fixed assets
($18,168
)
($18,726
)
($19,774
)
($21,361
)
($23,566
)
($101,596
)
Other investing cash flow items 0 0 0 0 0 $0
Total investing activities
($18,168
)
($18,726
)
($19,774
)
($21,361
)
($23,566
)
($101,596
)
Financing activities
Long-term debt/financing
($14,770
)
($15,361
)
($15,975
)
($16,614
)
($17,279
) ($80,000)
Preferred stock 0 0 0 0 0 0
Total cash dividends paid 0 0 0 0 0 0
Common stock 0 0 0 0 0 0
Other financing cash flow
items 0 0 0 0 0 0
Total financing activities
($14,770
)
($15,361
)
($15,975
)
($16,614
)
($17,279
) ($80,000)
Cumulative cash flow $22,945 $22,849 $23,331 $24,418 $29,262 $122,805
Beginning cash balance $22,000 $44,945 $67,795 $91,125 $115,543
Ending cash balance $44,945 $67,795 $91,125 $115,543 $144,805

11BUSINESS PLAN
6.4: Balance Sheet Projections
Assets Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Cash and short-term
investments $22,000
$44,94
5
$67,79
5
$91,12
5
$115,5
43
$144,
805
Accounts receivable $0 $0 $0 $0 $0 $0
Total inventory $25,447.50
$25,95
6.45
$26,99
4.71
$28,61
4.39
$30,90
3.54
$30,9
04
Prepaid expenses 0 0 0 0 0 $0
Deferred income tax 0 0 0 0 0 $0
Other current assets 0 0 0 0 0 $0
Total current assets $47,448
$70,90
2
$94,78
9
$119,7
40
$146,4
46
$175,
709
Buildings $15,000
$15,00
0
$15,00
0
$15,00
0
$15,00
0
$15,0
00
Land 0 0 0 0 0 0
Capital improvements
$
10,000 10,000 10,000 10,000 10,000
10,00
0
Machinery and equipment
$
45,000 45,000 45,000 45,000 45,000
45,00
0
Less: Accumulated depreciation
expense 0 14,000 28,280 42,840 57,680
72,80
0
Net property/equipment $70,000
$56,00
0
$41,72
0
$27,16
0
$12,32
0
($2,8
00)
Goodwill $0 $0 $0 $0 $0 $0
Deferred income tax 0 0 0 0 0 0
Long-term investments 0 0 0 0 0 0
Deposits 0 0 0 0 0 0
Other long-term assets 0 0 0 0 0 0
Total assets $117,448
$126,9
02
$136,5
09
$146,9
00
$158,7
66
$172,
909
Liabilities Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Accounts payable $0 $0 $0 $0 $0 $0
Accrued expenses 0 0 0 0 0 0
Notes payable/short-term debt 0 0 0 0 0 0
Capital leases 0 0 0 0 0 0
Other current liabilities 17,448 41,672 66,640 93,006
121,48
7
152,9
09
Total current liabilities $17,448
$41,67
2
$66,64
0
$93,00
6
$121,4
87
$152,
909
Long-term debt from loan
payment calculator 80,000
$65,23
0
$49,86
9
$33,89
3
$17,27
9 $0
Other long-term debt $0 $0 $0 $0 $0 $0
Total debt $97,448
$106,9
02
$116,5
09
$126,8
99
$138,7
66
$152,
909
Other liabilities 0 0 0 0 0 0
Total liabilities $97,448
$106,9
02
$116,5
09
$126,8
99
$138,7
66
$152,
909

12BUSINESS PLAN
Equi
ty Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Owner's equity (common)
$
20,000
$20,00
0
$20,00
0
$20,00
0
$20,00
0
$20,0
00
Paid-in capital 0 0 0 0 0 0
Preferred equity 0 0 0 0 0 0
Retained earnings 0 0 0 0 0 0
Total equity $20,000
$20,00
0
$20,00
0
$20,00
0
$20,00
0
$20,0
00
Total liabilities and equity $117,448
$126,9
02
$136,5
09
$146,8
99
$158,7
66
$172,
909

13BUSINESS PLAN
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14BUSINESS PLAN
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