The business will offer oriental food.
h) The Market:
The market will be mostly everyone but the business will be targeting teenagers, young adults and those who want to enjoy good, quality oriental food. The market is fairly small as there is only a few “rivals”. My competition will be hard to put off as it consists of well known and accepted shops such as “McDonald’s” and “Nando’s Peri Peri Chicken”.
I) Personnel:
The entrepreneur/businessperson will be Liam Sumessur who has thought up the business idea and is also investing his personnel money into the setting up of the business.
k) Investors:
Name: Amount of Capital: % of Total:
Liam Sumessur £10 000, 16.7%
Bank Loan £50 000, 83.3%
l) Costs:
Shop Rental: £1250 (£15,000 p.a.)
Government Rates: £250 (£3,000 p.a.)
Refurbishment: £25,000
Stock: £20,000
Total: £42,000
Left: £18,000 which will help pay the wages for the staff, this is if I pay all my staff the minimum wage.
*All above figures are estimates.
The estimated costs above for setting up the business result in having an estimated £18,000 left over from the total £60,000 investment. This can then be used to buy more stock when required, advertising, hiring staff etc. The stock will be mainly supplied directly from a food wholesaler.
m) Premises and Equipment:
The location of the restaurant will be in a retail store situated in the high street of Epsom in Surrey. The restaurant will have machinery such as cash registers, smoke alarms, microwaves, stoves, gas cookers, knives, forks etc. Most of the equipment will not need to be the latest and most expensive devices as the restaurant involved will only be a small one.
n) Profit:
All the profit will go to the owner and businessperson Liam Sumessur. The estimated cost of setting up the business is around £42,000. Therefore the income received from the business after this amount will be the profit. An estimated monthly turnover would be: £3000 which would result in time period of about 14 months for the business to break even (assuming all income went towards breaking even).
o) Cash Flow:
Payments will be received whenever an item is purchased from the restaurant. Payment options will include cash, cheque or credit or debit card. This has been estimated to be around £3000 per month. Cash will also go out as the business will need to buy stock, pay staff, pay electricity rates for the restaurant and other payments. This is estimated to be around £1750. Therefore an estimated £1250 profit (assuming the business has broken even) will be made monthly.
p) Finance:
The businessperson Liam Sumessur will provide £5,000 of his own cash as an investment into his business. He will also take out of bank loan of sum £50,000 for business investment. Money will be needed for many aspects of the business as stated below:
Shop Rental: £1250 (£15,000 p.a.)
Rates: £250 (£3,000 p.a.)
Refurbishment: £25,000
Stock: £20,000
Total: £42,000
Left: £18,000
*All above figures are estimates.
With the money left over staff can be hired, cooking equipment for the restaurant can be bought, the business can be advertised, more stock can be bought, the company might go private(with the help of profit earned from the business - £50,000 will be needed and money from friends and family).
As the bank loan is of £50,000, and the estimated cash income per month is £3,000, it would take about 17 months to pay back the loan (assuming all income went towards paying the loan).
