Hungry Hustle: Business Plan, Financials, and Legal Compliance

This assignment presents a comprehensive analysis of a business plan for a new restaurant, 'Hungry Hustle.' The document covers various aspects of the business, including tax requirements, business structure, and potential consequences of non-compliance. It delves into employment, health and safety, and data protection legislation. The assignment includes a detailed cash flow forecast, differentiating between cash, turnover, and profit. It also examines essential information required from customers and suppliers, the importance of invoices and receipts, and payment options. The plan outlines the use and benefits of a business plan, its content, and a suitable contingency plan. Finally, the assignment provides a reflection on the business plan, discussing background, resources, products/services, marketing, and pricing strategies. The plan's financial aspects, including a six-month cash flow forecast, are thoroughly assessed, highlighting both positive and negative factors.

22 QUESTIONS

Table of Contents
QUESTION .....................................................................................................................................1
1. Requirement to pay and submit tax. .......................................................................................1
2. Business structure....................................................................................................................1
3. Consequences..........................................................................................................................1
4. Identify....................................................................................................................................2
5. Employment legislation..........................................................................................................2
6. Health and safety legislation...................................................................................................2
7. Data protection legislation......................................................................................................2
8. Digital and copyright legislation.............................................................................................3
9 Structure of Cash flow forecast................................................................................................3
10 Completed cash flow forecast................................................................................................3
11 Assessment of cash flow........................................................................................................4
12 Differentiate...........................................................................................................................4
13 Information required..............................................................................................................4
14 Importance of invoice and receipts........................................................................................5
15 Invoice and payment receipts.................................................................................................5
16 Option of receiving and making payments............................................................................5
17 Use of Business plan .............................................................................................................6
18 Benefit of business plan.........................................................................................................6
19 Content of business plan........................................................................................................6
20 suitable contingency plan.......................................................................................................6
21 Business plan..........................................................................................................................7
22 Reflection on business plan....................................................................................................7
RESOURCES .................................................................................................................................8

QUESTION
1. Requirement to pay and submit tax.
In recent year, the amount of income tax that is paid on the profit for self employed have
the following requirement like
 Zero income tax on £0 to £12,500.
 If self employed is earning £12,501-£50,000 than 20% is paid on profit.
 On £50,001-£150,000 have to pay 40% on profit.
 In case if they earn Over £150,000 then 45% is paid on profit.
In companies, corporation tax is paid on profit which is around 19% if the gross income
is £12,501- £14,459. in order to submit tax return, companies and self employed are required to
have various requirement such as form 16, form 16A, 16B, 16C and form 26AS, Tax saving
investment proof.
2. Business structure.
In UK, a sole trader mainly notify the department of HM revenue and Customs that they
intend to start working and have to submit a business name and trading style. The HMRC
provide a UTR (Unique Tax reference) number that will be allotted after 10 working days after
requirement and registration is completed (Banac, 2015). In this a new business start-up of small
restaurant “Hungry Hustle” is discussed which is a sole trader business, thus have to follow the
specific guideline to get register with HMRC.
3. Consequences.
Tax evasion
Tax evasion is the act of unlawfully disguising IRS or other tax office profits or data. Profile
penalty is equivalent to £ 5,000 for six months in prison or a prosecution. The maximum
punishment in the UK is seven years in jail or an indefinite fine for revenue evasion.
Tax Avoidance
The average penalty in the courts of prosecutors is six months in jail or a fee of
equivalent to £ 20,000. Magistrates court trials could be a prison term of up to seven years or an
indefinite fine.
Non-compliance
The Office of the Information Commissioner (ICO) seems to have the authority to charge a
1

non-compliance organisation up to £ 17 m, or 4% of annual revenue, whichever is greater.
4. Identify
In UK, the main condition for businesses to register for VAT is that in case if the VAT
taxable overall turnover exceeds £85,000. The total taxable turnover is the complete value of the
entire sales that is done by a company in the respective tax year. After registration for VAT the
Hungry hustle is responsible to charge VAT on services and goods sold, paying any VAT in
context of HMRC submit return and most important records.
In present time, the current standard VAT rate for sole trader in UK is 20% that is
charged on every purchase of customer.
5. Employment legislation.
In present time, employees are secure by several employment laws and rights that help to
increase overall productivity in businesses. There are number of legislation that are needed to be
followed by “Hungry hustle” such as minimum pay rates, minimum wages and statutory pay
obligations, law of flexible working for every employee. It is very important for business to
implement employment laws which will support in growing worker interest to attain the desired
goals.
6. Health and safety legislation.
In business term, the Health & safety legislation is one of the most valuable part of
company working. There are basis requirement which are needed to be followed by respective
restaurant such as managing health and safety for employee, carrying out specific health and
safety risk assessment so that any future contingency can be resolved and problem with worker
can be overcomes.
7. Data protection legislation
In business starts up there is a legal requirement to implement Data protection laws so
that customer information, names, photos, addresses, card details, phone number and other
information is not disclosed to any outside party. In Hungry hustle, they store information about
customer therefore it is needed to comply with legal requirement of data so that personal
information remain confidential (Neves and Leser, 2015). Restaurant have to make a valid
registration with ICO which take 15 minutes and after that actual payment is asked by ICO.
2

8. Digital and copyright legislation
In every type company protection of IP is necessary which help to provide the business
owner a right so that available company material can be used and control in systematic manner
(Digital and copyright legislation, 2019). There are generally some requirement for copyright
and digital legislation for Hungry Hustle such as name, title, theme colour, logo must remain
protected. This will ensure a better systematic working environment and making each and every
plans productive to reach the main goal of restaurant.
9 Structure of Cash flow forecast
Cash flow statement presents the drift of cash resources among business operations and
production processes. The structure of cash flow forecast for start-up entities. The structure of
cash flow forecast for Hungry Hustle can be defined as follows:
Cash Flow Forecast Amount (£)
Particulars -
Cash inflows -
Investment -
Credit sales -
Total inflows -
Cash outflows -
Fixed: Rent and electricity -
Variable : Direct material -
Total outflows -
Net cash flow -
Opening balance -
closing balance -
10 Completed cash flow forecast
Cash flow forecast of Hungry Hustle
Cash Flow Forecast
Particulars Jan (£) Feb (£) Mar (£) Apr (£) May (£) June (£)
Cash inflows
Investment 10000 12000 14400 17280 20736 24883
3

Credit sales 5000 5750 6613 7604 8745 10057
Total inflows 15000 17750 21013 24884 29481 34940
Cash outflows
Fixed: Rent and electricity 2250 2500 2750 2800 3200 3570
Variable : Direct material 5500 10000 15000 12500 17500 20000
Total outflows 7750 12500 17750 15300 20700 23570
Net cash flow 7250 5250 3263 9584 8781 11370
Opening balance 0 7250 12500 15763 25347 34128
closing balance 7250 12500 15763 25347 34128 45498
11 Assessment of cash flow
Positive factors
The cash flow forecast of Hungry Hustle for first six months is prepared in order to
determine the feasibility and sustainability of business in near future. There are few positive
factors such as investments and revenues which are increasing 20% and 15% subsequently.
Negative factors
Material and administration expenses are increasing with higher rate comparative to
revenues that is one of the negative factor in the proposed start-up project. This is controllable
factor that can be controlled with proper compliance and governance.
12 Differentiate
Cash Turnover Profit
In accounting term, cash is the
defined as the total sum of
money company currently
have or will get in specific
period of time.
This refers to the net sales or
total of revenue flow within a
company that have been raised
during a year through number
of business dealings.
In business term, the amount
which is left over within
company after paying of its all
expenses is consider as profit.
In Hustle Hungry, the cash
spend on generating different
services and food product in a
specific year.
The amount of total sales that
restaurant makes in a
particular time period wither
cash, credit or debit card is the
In context to profit the amount
which remain at the end after
paying all cash expenses from
the entire turnover within a
4

complete turnover. specific period of time.
13 Information required
Customers
There are some common but important customers’ requirements needs to consider for
stating up the Hungry Hustle restaurant as greetings form staff members, clean and hygienic
environment, a well-structured menu with categorised information about the products (Breakfast,
beverages, lunch, dinner and meals).
Suppliers
Suppliers wants that they get their borrowed amount in reasonable time period, easy
payment modes, logistic requirements, documentation requirements as invoice, purchase order or
requisition note, tax invoices (Momoh and Adejumobi, 2017).
14 Importance of invoice and receipts.
In general term the invoices and payment receipts are preserved by sole traders or
companies to get tax rebates and filling the tax returns on time. Further benefits also there if a
trader keep the invoice and payment receipts which is reduction of additional cost, making
budgets, forecasting cash flows, financial planning and source of financing. Proper tracking of
payments and receipts helps in maintain control upon use of financial resources. This also helps
in generating additional revenues and profit for business (Ishikawa and Akamine, 2015).
15 Invoice and payment recepits.
5

16 Option of receiving and making payments.
Payment with cash: It is a direct method of collecting and making payment to
customers, suppliers. Instant transfer of currency in consideration of provided services from
service provider to customer.
Payment with cheques: It is a certificate of paper associated with a current or saving
account of customer. Payer issues in the names of the people or company that he/she is paying as
well as the amount for both words and numbers whenever payer issue a check to someone else.
17 Use of Business plan
Basically business plans are considered a communication tool to execute the start-up
information to stakeholders, investors and customers. A sustainable business plan is created to
create interest among investors, workers and business partners. It not only essential to circulate
the idea of business to investors or business but also helpful to enhance customer interest in order
to access the business idea towards sustainable growth and development.
6

18 Benefit of business plan.
Several benefits of business plans are there some of benefits can be defined as managing
the operations, scheduling the strategies and focus upon sectional areas. It reduces the
complexities of multiple actions at a same span of time. It maintains accountability and
transparency while making payments and utilising resources before incorporation of start-up and
business projects. A well organised business plan prioritises the requirements of business and
enables users to transform the business idea in real form (Henley, 2015).
19 Content of business plan
The business plan contains a general description of company, opportunities among
industries and market description. Strategies used in business, business models and explanations,
strategies, management structure, marketing strategy, operational plans and financial plan.
All these contents are useful for an entity to construct a successful business image. As
financial plan helps to analyse the finance requirement to form the business. Marketing strategy
presents an overview of implementing the strategies. All these contents are recognised essential
in a business plan and without these elements a business plan cannot be imagined.
20 suitable contingency plan.
In recent time, there have been different contingency that could hamper the food industry
in any manner, therefore manager of Hungry Hustle is required to make proper plans to remove
these issues (Curzon, 2016). There is a systematic plan made by the restaurant owner is that:
 Prepare the Crisis team so that decision are made properly.
 Determine and evaluate the overall business risks such as future taste and preference of
customer.
 Established and document procedure and plans that includes Environmental policies,
Security procedures, Insurance program and Finance and purchasing procedures.
21 Business plan
Background The new start up restaurant was set up in 2019, in London
at baker street UK. The main objective is to give customer
best services and promote digital technology (Bruster,
2016).
Resources Human resource, staff member, raw material, assets
7

Product and services Healthy and nutritious food items such as herbal coffee,
corn rice etc. Digital services to make order and receive
payment.
Marketing Social website, hoarding, promotion in events.
Cost and Pricing strategy. In this restaurant business owner implement penetration
pricing strategy.
22 Reflection on business plan.
It recent time, it has been noticed that customer search for the restaurant that provide
them best food stuff with number of additional services at reasonable. In the context of Hungry
Hustle it has been observed that in current market it will become successful because the concept
is totally different which will save time and cost of customer. This is because the restaurant will
provide online booking and payment facilities from table itself which will promote digital
technology. I think that this is the latest concept in the food industry which will boost the entire
sector as customer do not have to wait for waiter taking order and standing in line to make
payments.
8

RESOURCES
Books and Journals:
Banac, I., 2015. The national question in Yugoslavia: origins, history, politics. Cornell
University Press.
Bruster, D., 2016. Shakespeare and the Question of Culture: Early Modern Literature and the
Cultural Turn. Springer.
Curzon, G. N., 2016. Persia and the Persian question (Vol. 1). Cambridge University Press.
Henley, D., 2015. Asia-Africa development divergence: a question of intent. Zed Books Ltd..
Ishikawa, K. and Akamine, S., NEC Corp, 2015. Question answering device, question answering
method, and question answering program. U.S. Patent 8,983,977.
Momoh, A. and Adejumobi, S., 2017. The National Question in Nigeria: Comparative
Perspectives. Routledge.
Neves, M. and Leser, U., 2015. Question answering for biology. Methods. 74. pp.36-46.
Online
Digital and copyright legislation. 2019. [Online] Available Through:
<https://ec.europa.eu/digital-single-market/en/eu-copyright-legislation>.
9