BBMM605 Entrepreneurship: Chilli and Spice Business Plan Analysis

This document presents a comprehensive business plan for "Chilli and Spice," a proposed Indian cuisine restaurant located in Melbourne, Australia. The plan encompasses an executive summary, financial projections, and a detailed timeline for implementation. The financial section includes capital requirements, break-even analysis, and a projected income statement spanning from 2021 to 2025. The timeline outlines key activities such as product launch, marketing, renovation, sales strategy, and prototype development, along with their respective durations and associated costs. The plan emphasizes market research, environmental analysis, and operational strategies, including staffing, training, and service offerings. It aims to provide affordable and healthy food while adapting to current market trends, including online ordering and delivery services. The document also includes references to relevant academic sources supporting the business plan's strategies and methodologies.

ENTREPRENEURSHIP

Table of Contents
Executive Summary.........................................................................................................................3
Financial Summary.....................................................................................................................3
Timeline for Business Plan.........................................................................................................4
REFERENCES................................................................................................................................7

Executive Summary
The study is about a restaurant company named Chilli and Spice which specialises in Indian
cuisine dishes . The company is based at Melbourne, Australia and aims to provide affordable
and healthy food. Market research and environmental analysis of the plan has been done.
Financial analysis of the plan has been done in which break up of costs were given and focus on
capital costs, break even analysis and also there is an income statement projected. The plan also
gives an insight into the scheduling of various activities in the time table form.
Financial Summary
The rental charges of opening up a new business may seem a bit expensive initially which is
around $500 per week. As the restaurant is new, furnishing needs to be done of the restaurant
with bringing in new dining tables and sofas adding up to the maintenance and furnishing costs
to be $5000. The other costs which are required is of utensils and utilities such as land line,
electricity etc. coming up to $2000. The requirement of staff salaries being a new business set up
can be kept around $200 per week. Initial capital requirement for starting a business will be
$15000 which can cover the fixed and variable expenses.
Break-Even is when a company covers its production costs including direct and indirect
costs and this is the point where company starts making profit after realising break-even (Sintha,
2020). Break-Even analysis includes the fixed costs for restaurant which includes rental charge
and employee salary. The contribution depends upon the dish order by customer and the
minimum amount of sales every month (Calabrò, 2017).
The methods to increase finance for the restaurant can be taking support of friends,
relatives as it is a small organisation. Venture capital funding can be the next method which can
help the company grow its finances by projecting a business plan which is fault proof and works
on the time-tested model including scope of innovations according to the target market. The
funding can also increase with investments in banking schemes for institutions. The restaurant
can earn interest money through bonds and debentures. The company can also go for debt

through banks at less rate of interest supporting new ventures although a fine balance of debt and
equity has to be maintained.
Projected Income Statement
Particulars 2021 2022 2023 2024 2025
Sales 20000 24000 30000 50000 45000
Less:
COGS@70%
14000 16800 21000 35000 31500
Contribution 6000 7200 9000 15000 13500
Less: Fixed
Costs
8340 8340 8340 8340 8340
EBIT -2340 -1140 660 6660 5160
Timeline for Business Plan
Name Duration
(days)
Start Finish Cost ($)
Product
launch
14 03/03/21 03/18/21 16300
(Begin product
launch)
03/03/21
Marketing 7 03/03/21 03/12/21 9920
(Determining
concept)
2 03/03/21 03/04/21 560
Preparing of
marketing
message
5 03/05/21 03/11/21 9360

Marketing
message
structure
complete
03/12/21
Projection 2 03/03/21 03/04/21 800
(Marketing
product
release with
marketing
plan)
2 03/03/21 03/04/21 800
Renovation 2 03/03/21 03/04/21 520
Sales 1 03/03/21 03/03/21 300
(Group
staffing and
training)
1 03/03/20 03/03/21 300
Prototype 1 03/03/21 03/03/21 360
(Planning of
prototype)
1 03/03/21 03/03/21 360
Local Service 1 03/03/21 03/03/21 640
Supply
requirements
on budget
3 03/12/21 03/16/21 3480
Updated plan
and budget
approval
1 03/17/21 03/17/21 280
The time plan describes the activities of the new set up. It gives the main activities highlighted in
bold and the sub activities comprising under them. Being a new set up, product launch has been

kept as number one in the list. A new product launch has to be such that it can influence
customers. Here, in this case, the product is Indian cuisine comprising of many healthy dishes.
For this, product planning has been done as per the market to be targeted. After that marketing of
the product has been done; focus has been laid on infusing creativity in the concept. Then special
focus has been laid on preparation of marketing message (Baldassarre and et.al., 2020). The
marketing message has to be such that it should reveal the product specifications and the
customers can get a fair idea of what the product is going to be. The projection next has been
kept such that the product release timing matches with the marketing plan. Thus it has been seen
that there is no time delay and things keep moving in momentum. The place of launch has to be
renovated according to the restaurant needs so that the customers get a feel of entering in a one
which has furnishings according to the restaurant. Sufficient emphasis on renovation will lead to
good results in catching market attention and easily cover up costs in the future (Papageorgiou,
and et.al., 2019).
Next, comes the factor of sales which is the back bone for any company. The new
restaurant has to group and staff sales executives who can not only perform the duties in
restaurant but also multi-task and find ways to improve customer experience. In this factor,
therefore emphasis has been given on training of staff as well. The next step is of launching of
prototype. This is like a marketing technique of launching a sample of the product to customers
who can check on it and give their feedback (Reymen and et.al., 2017). If feedback is positive,
restaurant goes ahead with the product else makes changes in the product. Rest factor is of
providing local service which can make the language barrier go off and making the customers
comfortable. Emphasis is then laid on budget making check on requirements on per category of
product. The is made the updated plan and budget given for approval.

REFERENCES
Books and Journals
Calabrò, F., 2017, July. Local communities and management of cultural heritage of the inner
areas. An application of break-even analysis. In International Conference on
Computational Science and Its Applications (pp. 516-531). Springer, Cham.
Sintha, L., 2020. Importance of Break-Even Analysis for the Micro, Small and Medium
Enterprises. International Journal of Research-Granthaalayah. 8(6).
Baldassarre, B. and et.al., 2020. Addressing the design-implementation gap of sustainable
business models by prototyping: A tool for planning and executing small-scale
pilots. Journal of Cleaner Production. 255. p.120295.
Papageorgiou, G. and et.al., 2019, September. Effective business planning for sustainable urban
development: the case of active mobility. In ECIE 2019 14th European Conference on
Innovation and Entrepreneurship (2 vols) (p. 759). Academic Conferences and
publishing limited.
Reymen, I. and et.al., 2017. Decision making for business model development: a process study
of effectuation and causation in new technology‐based ventures. R&D
Management. 47(4). pp.595-606.