Semester 1, 2019: RMIT BUSM3322 Financial Plan for Chick n Beer

This assignment presents a comprehensive financial and operations plan for a proposed Korean chicken and beer restaurant named "Chick n Beer," targeting the Australian market. The plan encompasses a detailed business idea summary, outlining the restaurant's concept, target audience (millennials aged 17-35), and unique selling propositions like signature Korean sauces and high-quality chicken. The document further delves into operational aspects, including recruitment strategies, position descriptions (CEO, Human Resource Manager), and human resource management objectives with associated costs. Time management, productivity timelines, and a maintenance plan for equipment are also outlined. Key performance areas, monitoring systems, and industry networks are identified, alongside workplace health and safety measures with associated costs. The plan covers various financial aspects, including revenue and expenditure estimations, start-up costs, cash flow projections, and profit and loss statements, providing a holistic view of the business's financial viability and operational strategies. This assignment is a practical example of business planning, covering key areas such as operations, recruitment, and financial forecasting, and includes relevant details to help launch a business.

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School/Department/Area
Assessment Record & Cover Sheet
Assessment information
Program Name: Business Skills
Course(s) BUSM3322 / 3223 /4598 /4599
Semester & Year Semester 1 2019
Teacher Name &
Contact Details
Ngoc Le Chow
[e-mail]
Student to Complete:
Student Name(s)/Number(s):
Title of Assessment Task: The Financial & Operations Plan – Assessment 3
Student Declaration:
I declare that in submitting all work for this assessment I/we have read, understood and agree to the
content and expectations of the Assessment declaration.
Assessor to Complete:
Assessment Result:
Comments/Re-submission Arrangements (if
applicable):
Teacher Name:
DATE:
Resubmission Assessment Result: (if applicable)
Comments
Teacher Name:
DATE:
Submission Instructions
Format
Work is to be saved as a word document or PDF, and uploaded from the assessment tab in your blackboard
course shell by the required date. Work sent by email will not be marked. Work submitted after the
deadline and without an extension or special consideration (details below) will not be accepted or marked.
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Cover Sheet
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using this then you must complete, and submit a cover sheet with your work, whether individual or group
work. Cover sheets for submission of work are available from the Student forms website.
Student Instructions - Assessment Task 3: Financial Plan
Using the business idea identified in the Business Proposal, students are required to research and prepare a
formal business plan using the following template.
Completion of this assessment will require you to:
Prepare a Financial Plan
1. Estimate revenue relevant to your proposed business idea
2. Estimate expenditure relevant and appropriate to your business idea
3. Estimate business start up costs
4. Develop statements of personal and financial position
5. Complete cash flow statements and projections
6. Determine business start up costs
7. Develop and interpret profit and loss statements
8. Use financial reporting templates (Excel)
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Assessment Task 3: The Financial Plan
Name: Student No.:
Please provide a brief summary of your Business Idea (1 paragraph)
The business idea that I am proposing is Korean chicken and beers. “Chick n beer” brand name will be
our considered name which we are planning to open in Australia. The reason why I target my business
in Australia is because they have a huge population approximately 26 million in 2019. We are planning
to open our first chick n beer store in Melbourne, and after that to Brisbane, and lastly Perth. It is
because these cities are the 5th largest and developing cities in Australia. In addition, we are planning
to get the signature proprietary sauce from Korea, which we will have a special technique to apply the
sauce which no other restaurant uses. Lastly, we are planning to use higher quality of chicken and
double fry our chicken which gives us the crispier outer layer. Besides that, starter menu such as
kimchi pancake, ttek bok ki (rice cake), fish cake soup and corn cheese would be an option for
customer which satisfy customer needs and wants. Atmosphere we are trying to create is like a chill
out restaurant for family and friends to gather around a meal. We offer excellent service, music and an
atmosphere with drinks that include draft beers, soju, traditional Korean rice liquor, which is like sake
and rice wine. Our target audience is for people with age 17 to 35, middle-class to upper-middle-class
millennials. The main thing is millennials enjoy eating at restaurants that have less of a chain feel.
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Operations & Financial Plan
1. Recruitment
With the growth in business capital, the company will expand the scope of its services and hence there will
be a need for the recruitment of more workers. The company will use recruitment methods such as
advertisement through social media platforms like What Sapp, Facebook, LinkedIn, and others. The
company will also use recruitment agencies. The company will also use internal applications.
2. Position Descriptions
(CEO) Operations
Key Duties Skills Required
Providing strategic
direction to the
company. The chief
executive officer is
tasked with the
formulation of policies
to run the company
Man have leadership skills
Must have mobilisation and management skills
Type of employment (Full-time, part-time, fixed term or casual): _Full time
Salary/Wages per month: $_____300______
Withholding tax per month: $20________
Superannuation entitlement per month: $__0__________
Annual leave: ______0___
Work-cover payment per month: ______0_____
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Human resource manager
Key Duties Skills Required
1 The human resource manager is tasked with
employee recruitment.
The HRM must have leadership skills
2 The HRM is also in charge of employee training
and development.
The human resource manager should be a
proficient communicator and motivator
Type of employment (Full-time, part-time, fixed term or casual): _________________
Salary/Wages per month: $___200________
Withholding tax per month: $10____
Superannuation entitlement per month: $____________
Annual leave: __1_______
Work-cover payment per month: _______0___
3. Human Resource Management
Identify two business objectives and demonstrate how you will meet those needs using human
resources. Include the costs associated with the human resource strategy you have chosen.
 Business
Objective
 Human Resource Strategies  Cost
Launch adverting
company by feb
Secure a web developer for one year
 Make research on the best advertising platform.
 Look for the best professionals in the art of marketing and
ad development. three quotes and preliminary design
ideas
 Contract the experts to undertaking company
advertisement
$1000
Launch an employee
recruitment drive
 Run an employee advert
 conduct interviews
 choose the best employees
$400
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4. Time Management
a. I will work for 140 hours a week on the business to give it the best chance of success
particularly in the face the stiff competition.
b. I will work for 52 weeks a year to ensure that I have a full grip on the operations and
management of the business. In periods of off season, workers some employees will be
allowed a non-pay leave to reduce on the operational costs. Similarly some seasonal
products and services will be put on hold.
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c. The business will make use of the Todoist, Be focused and Focus booster app in time
management while executing business activities. This will help save a lot of time and
enhance the efficiency business operations.
5. Productivity Timelines
Month Production Focus
Jan Setting objectives for the year and the associated costs
Feb Designing marketing and promotional campaigns
Mar Contacting suppliers and negotiating the cost of supplies
Apr Recruitment of more sales staff
May Making customers try the business food
June Engage in massive sales promotion campaigns
Jul Invest in employee refresher courses and trainings
Aug Invest in brand awareness
Sept Research on the competitors of the business
Oct Make evaluations of the business performance across the year
Nov Organise Corporate social activities
Dec Close the financial year and start plans for the next financial year
To account for sudden changes in demand for the product, I will have to maintain good relationships with
the suppliers to ensure that they supply the company more materials to enhance its production capacity in
the event of enhanced demand. Should the demand of the company products and services subside, the
company should have alternative market in which sell its products. We shall also plan well in advance for
such changes in demand.
8. Maintenance Plan
Complete the table below listing the items requiring maintenance, and explain how you intend to
manage this requirement. Include all equipment used in your business including plant, tools and
office/computer equipment. Estimate the costs associated with carrying out these maintenance
activities Tip: remember to include it in your financial cash-flow projection
Item Potential fault Maintenance Plan Associated
Costs
Shelves and racks Breakage, rusting
and bending
Clean and dry all the racks and hang them in
the right places. Use kitchen towels in
drying of the shelves and racks.
$100
Refrigerators Short circuiting Through good connection and changing of
the old wires at the prescribed time.
Switching off the refrigerator when it is not
in use.
$200
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Item Potential fault Maintenance Plan Associated
Costs
Pre surfaces and
equipment (food
processors, slicing
machines, knife
holders, blenders,
cutting boards and
knives)
Rusting (wear and
tear)
Thorough cleaning and drying. Replacing the
old boards in time
$150
Cooking surfaces
and equipment
(microwave ovens,
deep fryers,
broilers, deck
ovens and gas
ranges)
Leakages. Filling any leakage as soon as it is detected.
This will help to reduce on the expansion of
the leakage.
$80
Cleaning,
sanitation and
safety
requirement.
Scum formation Using software instead of hard water $70
Small-ware, bake-
ware, cook-ware.
Cracking due to
high temperatures
Use the recommended temperature on the
apparatus
$80
Computers for
controlling finances
Water
contamination
Keep the computers out of water $300
9. Monitoring Performance
Complete the table below listing a minimum of 4 business key performance areas and identify the
systems you would use to monitor and record necessary information for these areas. (EG: resource
usage, product service output, wastage, profit, stock levels, stock turnover, debtor / creditor
payments, market share, customer feedback, product returns, safety, efficiency, breakdowns).
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Key Performance
Area
Monitoring Resources & Recording systems
to be used
Frequency
Food costs Monitoring the amount of
chicken being slaughtered.
Use of an updated POS system daily
Gross profit Profitability of the business Accountability (using auditors) Monthly
Customer feedback Customer satisfaction and
complaints raised.
Customer feedback surveys post
service delivery
Complaints register
weekly
Break-even point The sales and the expenses Total fixed costs/ (selling price-total
variable costs)
monthly
10. Networks, Industry and External Business Environment
a. Identify any current personal contacts and associations within your specific industry who
could provide you with initial advice or mentoring while you set up your business or
search for employment.
The available contacts will include;
 Zip-recruiter
 Chefcrossing.com
 Sirvo
b. List three industry networks you intend to be involved with. What is the cost of yearly
membership to the network?
The three industry networks include;
 Alliance strategy
 Strategic innovation
 Corporate strategy development.
c. How will you stay informed of changes, trends and growth patterns of your industry?
This will be achieved through a few strategies. First and fore most, leverage on the team, this will help keep
on the workers ears and eyes to work. In this way, information from other companies can be tapped.
Second, is subscribing to all sorts of trade journals. These journals contain useful information that can help
a business get an opportunity window. Lastly, networking through engaging with the customers and other
stakeholders can also be a useful source of information.
11. Workplace health & safety
As an employer, you are responsible for providing a healthy and safe working environment for your
employees. List five potential hazards and detail procedures to be followed to minimize or eliminate risks
to self, staff and customers (& general public). Include the estimated costs associated with these strategies
Tip: remember to include it in your financial cash-flow projection
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Potential Hazards Strategies to minimize risk Costs
1. Slippery floors  Make sure all the
water is dried.
 Install a good drainage.
$80
2. Injury from lifting heavy  Use pulleys to lift
heavy equipment.
$120
3. Chemical and burn hazards  Minimise the use of
chemical
 Stock enough coolants
$80
4. Food safety hazards  Purchase poison
detectors and metal
detectors to keep food
safe.
$70
5. Dangerous machinery  Use protective gears.
 Create awareness
among the workers on
the importance of
safety.
$100
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12. Statement of Personal & Financial Position
Detail two ways below on how you propose to manage your financial planning with particular
emphasis on how you will separate personal and business finances.
I will put the business on the map. This should include an establishment of a separate legal entity
for the business and particularly as a limited liability company. The establishment of the company
as a separate legal entity for the business helps me to ensure the protection of the business’s
personal assets from the business debts, lawsuits as well as losses.
I will acquire a business credit card. Opening a credit or debit card for the business will help protect
personal accounts from business transactions. This provides a convenient way to draw a clear line
between business and personal expenses.
13. Personal Income & Expenditure
Copy and paste your personal income & expenditure statement from excel.
Personal Statement - Income & Expenses
INCOME $ EXPENDITURE $
(Average Monthly) (Average Monthly)
DRAWINGS
100
0 Credit Commitments -:
Other -: Mortgage 0
Spouse Income 0 Other Loans -:
Basic Family Payment 0 Personal Loans 200
Interest / Dividends 0 Credit Cards -:
Rent Received 0 Bankcard / Visa 100
Part-time work
200
0 Other credit cards (Store) 0
Other Commitments -:
Rent / Board
300
0
Superannuation 0
Insurance -:
Life 0
House & Contents 400
Living Expenses -:
Home Maintenance 100
Food
300
0
Take-Away-Food 0
Motor Vehicle -:
Registration & Insurance 0
Fuel & Oil 200
Repairs & Maintenance 100
Utilities -:
Gas 100
Electricity 50
Rates (Council / Water) 50
Telephone 50
Education -: (Self & Children)
Fees, Uniforms, Excursions 0
Books, Stationery etc 50
Public Transport 100
Clothing (incl. Shoes) 200
Children's Pocket Money
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Entertainment -:
Sport, Theatre etc 40
Pets 0
Cigarettes / Alcohol 0
Total Monthly Income
300
0 Total Monthly Commitments
774
0
Deficit
474
0 Surplus 0
TOTAL
774
0 TOTAL
774
0
14. Personal Assets & Liabilities
Copy and paste your assets & liabilities statement from excel.
Personal Statement - Assets & Liabilities
ASSETS $ LIABILITIES $
Cash at Bank
1000
0 Mortgage -: 0
Term Deposits 0
Other Bank Accounts -:
Building Societies 0
Credit Unions 0
Other Financial Institutions 0
House & Land at -:
Address 0
Other Properties -:
Address 0
Motor Vehicle/s -: Personal Loans 4000
Make Model Reg'n 1000 Mastercard -: 0
Furniture / Household effects 1000 (limit $ 0
Life Policies (Surrender value) 0 no. ) 0
Superannuation 0 Visa -: 0
Motor Bike 0 (limit $ 0
Caravan 0 no. ) 0
Boat 0 Other Credit Cards -: 0
Jewellery 0 (e.g. Store Cards) 0
Paintings 0 Current Bills (Total) 8000
Collections (Stamps, Coins etc) 0
Shares / Investments 0
Total Assets
1200
0 Total Liabilities
1200
0
Deficit 0 Surplus 0
TOTAL
1200
0 TOTAL
1200
0
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15. Value of Business Assets Currently Owned
The information contained here will provide the basis for your initial Balance Sheet. List any
asset(s) and their current value.
Item $
Cash at bank 10,000
Motor vehicle 1,000
Furniture/house hold 1,000
Total 12,000
16. Business expenses for the Next Two Years
Think of your business expenses as two categories; your start-up expenses and your operating
expenses. All the cost of getting your business up and running should be considered as start-up
expenses.
a. List start-up expense items for business operations (these are not business assets)
Item $
Accounting
Advertising
Bank charges
Furniture and equipment repairs
Insurance
Interest
Lease/rent
Legal costs
Utilities
Fuel and oil
Rego insurance
Repair and maintenance
Printing, stationery and postage
Professional development
Salaries and wages
Rates
Telephone
1076
5554
2153
2153
1076
2153
1076
1076
538
2153
1076
1076
538
1076
3229
1076
5382
0
1076
Total – Start-up expense $33,537
b. Using the table below identify ongoing operational resource required for your business.
The list should include any plant and equipment, fittings and tools needed for the business
for the next two years.
Item $ Date *
Office Furniture & Equipment: 3,183 2019-2020
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