5

Business Plan Part 3

Student Name

Institution

Instructor

Date

Business Plan Part 3

CJ’s Restaurant

8. Location and Place (distribution)

A. Location

CJ’s Restaurant will be located in San Fransisco, California. The restaurant will be at 13th Street, San Fransisco, CA 94103, USA. Since the location it is in town, it will make the restaurant more accessible to people. San Fransisco is known for its restaurants and coffee shops. Additionally, it has numerous businesses thus it attracts a lot of customers to the restaurant industry. CJ’s restaurant will use the location to gain a competitive advantage by introducing organic foods. Thus, since people are shifting to more healthy alternatives, they will prefer the restaurant to the many fast-food restaurants in the same area. The numerous business and restaurants in the area create human traffic thus availing potential customers to the business. Additionally, the area that has been selected has a reputation for the best restaurant in the US. There are minimal organic food sellers in the region despite the high number of restaurants. That will increase the visibility of the restaurant. The restaurant supply chain in San Fransisco is effective due to the numerous restaurants thus it will enable the restaurant to access low-priced inputs.

B. Place (distribution)

A distribution channel is used by a company to distribute its goods and services to customers. The company will integrate several distribution channels to ensure that its products reach the customers. The first distribution channel that the company will use is direct selling. This is a distribution strategy whereby the company sells its products directly to the customers. Therefore, the company will pen several company-owned restaurants and drive-ways to enable it to sell directly to its customers. The company will also promote e-commerce by selling its products through its website. That will ensure that their products reach a big market share. It will also ensure the effectiveness and efficiency of the distribution channel.

The distribution channels chosen will support the business in several ways. Firstly, the distribution strategies that have been chosen will ensure that the company's products reach a wide customer base. That will enable the company to gain a larger market share in the restaurant industry in San Fransisco and the US in general. The chosen distribution strategy will also increase the company's revenues, sales, and profitability. That will aid in the growth of the business.

12. Appendices

A. Map of Location

.

B. Employment Summary

C. Financial Documents

1. Key assumptions (Cash budget)

The key assumption will show the assumptions made when writing the financial statements in this case.

The prices that are used in the financial statements do not reflect the actual prices as they are all an estimation.

The costs will be calculated in US Dollars.

2. Start-up Costs Summary (Cash budget)

Item	Cost (In US $)
Cost of licensing	2,450
Cost of acquiring raw materials	300,000
Cost of labour	50,000
Cost of acquiring machinery	150,000
Fixed costs e.g cost of rent, insurance	25,000
Cost of utilities e.g electricity costs	5,000
Packaging costs	4,000
Distribution costs	10,000
Total projected start up costs	546,450

3. Projected Income Statement

CJ’s Restaurant Projected Income Statement For the year ended 2021
Revenue
	Sales	750,000
Less	Cost of goods sold	500,000
Gross profit			250,000
Less Expenses	Procurement costs	3,500
	Wages and salaries	50,000
	Packaging and distribution costs	12,000
	Rent	7,500
	Utilities	5,000
	Insurance premium	10,000
	Licenses	2,450	(90,450)
Operating profits			159,550
Less	Tax		(39,887.50)
Net Income			119,662.50

4. Projected Balance Statement

CJ’s Restaurant Projected Balance Sheet As at December 31, 2021
Assets	Amount	Liabilities and stockholder’s Equity	Amount
Current Assets		Liabilities
Cash	453,550	Accounts payable	41,412
Accounts receivables	50,750	Income tax payable	39,887.50
Prepaid rent	2,000	Salaries payable	25,000
Inventory	150,000	Total liabilities	106,299.50
Total current Assets	656,300	Stockholder’s Equity
Non-Current Assets		Capital	600,000
Equipment and machinery	150,000	Retained Earnings	100,000.50
Total Assets	806,300	Total liabilities and Stockholder’s Equity	806,300

CEO

Catering and waiting staff

Restaurant managers and supervisors

IT Personnel

Marketers

Accountants and Internal auditor

Chief Technology Officer

Chief Finance Officer

Chief Marketing Officer

Chief Operations Officer