Business Plan with risk assessments and the success of the business
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Course
Business planning
Institution
The University Of Essex (UoE)
This essay provides a business plan for a small business that provides the weaknesses and strengths of the business. It also worksout the profit that the business is most likely to make.
Executive summary
The business is seeking £100,000 investment to start up a well needed casual dining
place in Liverpool One area.
Yum Noodles will aim to serve Indo Chinese food to the residents of Merseyside.
The business will take traditional skills and techniques to envision a modern
experience while providing the best value for money. It will not only focus on great
taste but also provide the best customer service experience.
Yum Noodles will have up to 50 different options to choose from to fulfil everyone’s
cravings. In addition, it will also focus on sustainability by using only eco-friendly
products. This is to cater for the increasing demand for eco-friendly products to
reduce the impact on the environment.
Market Plan
Liverpool is a fast-growing area and includes Wirral, Warrington, Flintshire, Chester,
and some other areas counts over 2 million residents. The Liverpool One area where
the business will be based has over 70,000 students in Liverpool which will account
for most of the sales as the business will be based in the middle of the town where
all the universities and colleges are. The area also has a large number of
organisations such as business offices, clothing shops, banks, restaurants, and
takeaway places. There are also many transport links to the area including railway
stations and bus stops.
With this investment, the business will be given an opportunity to serve the residents
of Liverpool. With further investments, the business can expand in different cities of
the UK to become the biggest Indo Chinese casual dining place.
The market segmentation can be seen in image 1 in the appendix where the
demographics segmentation has been highlighted.
Competitive analysis
There are 4 other noodle places in the area which are Chopstix, Noodle Stop, Wok
to Walk and Wok and Go.
However, all of these noodle places have limited options. Yum Noodles will not only
have up to 50 options but will also provide a better fusion of Indo Chinese food. The
eat-in facility would be a lot bigger and better decorated than the other noodle places
to attract more customers. It will facilitate around 10 families to eat in.
Yum Noodles prices will be competitive while maintaining a good profit. The SWOT
analysis highlighting the strengths, weaknesses, opportunities and threats can be
found in the appendix. In addition, PESTEL analysis can also be found in the
appendix with all the different elements explained.
Specific marketing actions
,There will be several marketing campaigns to inform the local residents of our new
business and attract customers. Each marketing campaign will be monitored very
carefully to find out how effective they have been.
Radio and newspapers
To inform the customers what we will be selling and when we will open up will be
advertised in local radio and newspapers before at least one month of starting the
business.
Events
We will be launching events such as tasting sessions around the area. In addition,
the customers will get up to 20% discount on the launch day. The opening up timings
and the launching day of the business will be displayed at the front of the restaurant.
Leaflets
Leaflets of the restaurant will be dropped off to businesses and residents around
Liverpool one.
Digital marketing
The business will use digital marketing to attract more customers by making them
aware of the business. Social media is used by all organisations these days to grow
their business. Yum Noodles will use Facebook, Twitter, Instagram, and LinkedIn as
its social media platform.
Delivery Services
The business will deliver food within 4 miles of the restaurant. The delivery services
such as UberEATS, Deliveroo, and Just Eat will be used to deliver the food to the
customers.
Start-up costs
This will include display equipment and all other machines required for food
preparation. The start-up costs will also include buying the stock which will total up to
£200,000. The breakdown of all the start-up costs is included in the appendix. The
company has got £100,000 through government loans and some personal savings.
The business is looking for an investor to invest the other £100,000.
Financial projections
Projected target sales
The following projected target sales are based on sales generated by a proposed
restaurant in Liverpool One. The sales are targeted to increase by 15% as shown in
the table in the appendix.
, Break-even analysis
The following breakeven analysis is based on 1-year projections.
The expected sale of the 1st year of the business is £145,600.
The following table shows the fixed costs of the business.
Fixed Cost
Insurance £350
Rent £9,000
Electricity bills £3,600
Telephone bills £720
Gas bills £5,400
Water Charges £720
Office supplies £1,200
Total fixed cost £20,990
The following table shows the variable costs of the business.
Variable Cost
Travel and Entertainment £2,184
Marketing £2,000
Repair £1,000
Maintenance £1,500
Staff wages £20,000
Stock £20,000
Total Variable cost £46,684
(Sales-Variable Costs)/Sales=Contribution Margin
(145,600-46,684)/145,600= 0.679
Breakeven=Fixed Costs/Contribution Margin
30,913=20,990/ 0.679
Based on the above analysis, the breakeven point is £30,913 annually.
Our sales forecast exceeds the breakeven point by £114,687.
Income statement
The income statement can be found in the appendix.
Management Bios
John Terry- General Manager
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