Restaurant Business Plan

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Requirements For Starting a New Business

Background Work

Business Requirements

1. Assess yours and Sally’s strengths and weaknesses as an entrepreneur

My strength is that I have the ability to conduct extensive market research which will help discover the factors and elements which will affect the operations of the business including opportunities for expansion of the business. However, I lack the administration skills that are needed to run the business operations smoothly. Sally has an advantage of being innovative and having the ability to recognize business opportunities and convert them into a business. However, Sally has poor time management skills.

2. What are your business and personal goals?

One business goal is ensuring that the business is launched successfully. Another business goal is helping to ensure that the business is able to capture a large market share to help boost its sales and profitability. My personal goal is to understand all the legal aspects of the business and ensure that all the documentation process is done well.

3. Assess and list your financial resources and identify potential sources of funds.

Financial resources

1. Personal investment.

2. Support from family and willing partners.

In this case the financial resources are limited to the personal investment and the support from family members and other partners that might be willing to be part of the business venture. The process of starting a business is very challenging when it comes to getting financing and this is because it is hard to convince investors to invest in a business they are not sure will do well.

4. What are the financial risks of this adventure?

There are various financial risks and one of the risks is that there might be insufficient flow of cash flow. This will be causes by inaccurate estimation, a business will take a long time to realize cash flows and there is a risk that the time we expected break even might be later than anticipated. Another risk is defaulting on loans used to start up the business which might result into the closure of the business and repossessing of the business assets by financial institutions.

5. Determine the start-up costs?

Various costs will be needed for the startup of this business. The business will need around $2000 to facilitate the certification of the business. $10,000 will be needed to purchase or hire the needed equipment and resources needed to start the business. Advertising costs of around $3000 will be required to ensure that the business communicates its brand, products and services to the target market.

6. Why is business location important?

The location of the business determines the success of the business. Since the business is a restaurant one location factor which is important is the ease of access. If the business is not located in a place where the customers can easily access it then the sales will be affected. The business also needs to be in a more populated region for more customers.

7. What does the market research indicate?

The market research shows there is a considerable market in Florida and the market is growing as more people are becoming aware of their health and desire to have healthy meals. The market also has a purchasing power because of the income level of the people in Florida.

8. Identify your customer market.

Our target market is made up of individuals who are health conscious and those who have the purchasing power as well. For the startup period the business will target the middle class population and this is because they have the purchasing power.

9. Identify your competitors.

The main competitor will be the Floridian restaurant and this is because the business is big and has captured a big market share. The business has also makes huge sales and has a large space to serve more customers.