Business Finance for Managers - Restaurant Business Launch Plan

Business plan for opening of a new business i.e. restaurant named 'FOR FODDIE'

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Introduction Of Business Finance for Managers Assignment Sample

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The business plan is being used to create and develop something new to fulfil the market requirement and attain profitable outcomes in a timely frame. It is a written document that is used to describe the core activities and objectives of the business and it collectively results in the accomplishment of respective goals with prominence(Dal Mas, and et. al., 2021, p2(1)). The business plan for the launch of a new business comprised of executive summary, goods and services, marketing strategy, financial planning and analysis along with a preparation of budget. It usually advances the probability of neglecting the loophole from the launch as with this strength and marketing opportunity get advance perpetually.

A summary of the business idea

The business idea is related to the opening of a new business i.e. restaurant and it is due to the fact that restaurant services have been liked by people and a larger audience is attracted towards better food services. The restaurant is named “FOR FODDIE” and it is based in London along with this the services of the restaurant is based on Italian food and continental. The company maintain a target for the same because people are likely attracted towards the same. Along with this, the restaurant is based on a certain theme and it is a Heritage so that a warm surround is provided to the customers so that they can also relate to themselves and have peace while working. The customers of “FOR FODDIE” are youngsters as they are easily grab the culture of other countries and want to taste many foods. In this management of “FOR FODDIE” assure to provide quality and timely based services so that they can achieve and maintain long-term sustainability with suitability.

Yes, “FOR FODDIE” has many competitors such as local business or restaurant and other small hotels as they also offer similar services along with this have provide respective benefits and offer in order to grab the attraction of many audiences(Jukova, and et. al., 2019, p4(2)). In this, it is required that management ensure to maintain focus target and provide the respective services according to the customers so that they are able to attain maximised profit with regularity. There are other risk that is faced by businesses is as:

  • Financial risk: It is a risk of the business that is related to adequate funds and budget as it is required to establish the company. The opening of new business is related to the provision of better services and for this it is required to have an adequate budget and if there is no such budget or if the budget get exceeded that it is risk for the business as they aren’t able to achieve the similar task in respective manner.
  • Competition risk: The market risk is high and in this “FOR FODDIE” has to work more through which they are able to achieve profitable standards in timely frame. There are various restaurants in the marketplace and with this it is required that “FOR FODDIE” ensure that there services are completely different from the others so that able to attain attraction of others.
  • Operational risk: It is a risk with this “FOR FODDIE” worked on their staff and resource management under which they are able to achieve profitable ending and completion of certain task. The new business launch assists the business in operating and managing its function and operation in a timely frame(Souto and et. al., 2021, p5(1)). In this it is required that “FOR FODDIE” have skilled and talented employees so that working consequences and its consideration get advanced with prominence.

An outline and discussion of the key fixed and variable costs

In order to achieve the initial investment it is required that “FOR FODDIE” has a certain basis and it is as cleared below as:

  • Premises: It is an investment that is required for capital or land purchase so that an adequate premise has been developed by an organisation.
  • Equipment: This “FOR FODDIE” requires an investment in purchasing respective machinery and equipment that is used to perform various functions in restaurants such as knives, tables, furniture, ovens and many others.
  • Staffing levels: In this management invests the investment for human resources and hiring skilled candidates for the organisation.
  • Initial bank balance: It is an investment in which “FOR FODDIE” makes an investment to maintain balance and with this business is able to have some secured funds that has been used in future period.
  • Stock: “FOR FODDIE” invest in stock so that they are able to manage the inflow and outflow in business along with making a strong presence in a competitive marketplace(Lin, 2019, p4(2)).

The “FOR FODDIE” generate its income with respect to various aspects and that is as summarised below as:

  • Pricing: In this “FOR FODDIE” provides respective services to the customers with accurate prices and it is a form through which they are able to generate income.
  • Quantities:It is a basis for “FOR FODDIE” in which they generate income as by selling higher quantities and through this they are able to process the flow of funds with adequateness.
  • Cash or credit terms: It is related to the flow of cash in which “FOR FODDIE” generate this as in terms of the exchange of services so that a sustainable ending is results in systematic manner.

Cost is related to the payment that is processed with respect of certain object or in the action of something. The Fixed and variable costs of the business process the respective flow of income and it maintenance lead to attaining a sustainable ending(Götz, 2020, p4(1)). The Fixed cost of business is related to the amount that remain the same such as rental payment, interest payment and insurance along with this variable cost is the one that get varied such as raw material, labour etc.

The business will operate in London and in this they have provide the respective services to the customers that is basically Italian food and continental food. The initial equipment and stock that is required by business writing tool such as pen, paper, computer, printers, Wi-Fi, credit card processing, online data storage, time tracking, POS system, anti-virus system and web hosting.

“FOR FODDIE” employs staff such as a manager, server, cashier, runner, kitchen manager, line cook and food and beverage manager. The running cost of the “FOR FODDIE” is $425,000 and it is related to all investments such as human resources, machinery, equipment, capital generation, infrastructure and additional costs as well.

Key performance indicators (KPIs) to monitor progress towards business goals

The critical success factor of “FOR FODDIE” is related to better potential customer, brand recognition, higher revenue generation and strong market presence. The key performance indicator has been used in business so as to monitor and measure the success as in this business allocates the standard outcome and worked as per accordance to achieve the same. The financial and non-financialmeasure that has been used by “FOR FODDIE” is as explained below as:

  • Revenue: It is a measured in which “FOR FODDIE” expected to achieve 30% of sales increment within two months.
  • Net income: It is an income that is related to exact inflow and outflow in which such as attaining sales and provision of respective income to the staff and to imply the investment toward raw material(Grit, 2019, p6(3)).In this “FOR FODDIE” assures to take higher income and it is related to 25% as in initial 6 months.
  • Brand value: It is related to the higher value generation and in this “FOR FODDIE” assures to have higher market presence so that they are able to achieve profitable income in timely frame.
  • Brand recognition: It is dependent over attaining attraction of many potential customers so that customer base of “FOR FODDIE” gets advanced as per certain time period.

The respective measures has been taken to advance the profit credibility and by analysing the balance scorecard so that suitable profitability and productivity of business get analysed with perfection and with suitability. It has been frequently measures within a time period of 2 months and in this they are able to manage the profit standards with prominence. The balance scorecard approach that is being used by “FOR FODDIE” is internal process and growth and with this they have worked to manage and control the flow of working with effectiveness.

Recommendations based on the results

Based on the result it has been recommended that businesses provide timely services along with the provision of effective and efficient infrastructure so that they are able to achieve profitable and systematic profit in a timely frame(Masciocchi, 2020, p6(4)). In this “FOR FODDIE” can attain market attraction with ease. In addition, as per timely constrained “FOR FODDIE” assure to make respective innovations in infrastructure and in working attribute so that customer receive favourable changes with suitability. Moreover, “FOR FODDIE” also worked for to satisfy the customers and for that make effective usage of social media platform and in this they are able to connect with the customers with effectiveness. In this the customers who are in reach also get attracted in a beneficial manner.

References

Books and Journals

B Masciocchi, 2020. How to make a business plan. In Studies in Surface Science and Catalysis (Vol. 179, pp. 465-484). Elsevier.

E Jukova, and et. al., 2019. Planning a new business: typical mistakes of a business plan in the service sector. Journal of Environmental Management & Tourism, 10(3 (34)), pp.441-447.

E Lin, 2019. The Business of Bariatrics: Creating a Business Plan.

F Dal Mas, and et. al., 2021. Translating knowledge in new entrepreneurial ventures: the role of business plan development. VINE Journal of Information and Knowledge Management Systems.

J Götz, 2020. Business Plan. In Seasonal Affective Disorder and Light Therapy (pp. 165-203). Springer, Wiesbaden.

J Souto, and A Rodríguez-López, 2021. Entrepreneurial learning in an experiential and competences training context: A business plan in Bachelor thesis. The International Journal of Management Education, 19(3), p.100513.

R Grit, 2019. Making a business plan. Routledge.

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