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Business plan

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Introduction

Evaluation I decided to undertake this particular business plan as it is something that I see myself genuinely doing in a few years time. My research was based on the local Harrogate district. I searched online for other cafes in Wetherby and analysed them. I found out where they were, how successful they were, the profit levels they made etc. The research I carried out was an essential part of the business plan. Once I had the data I could see if my financial targets would be within reach and whether people would be interested in the food service that I would be providing. I constructed a questionnaire and asked around 40 people their views on my idea, improvements that could be made and features of Notons that they particularly liked. I also asked how much customers would be prepared to spend on food. After analysing my results I researched how my competitors worked and were run. I compared prices and from this was able to employ a pricing strategy. I decided to use cost plus pricing so that I could make a constant profit from the outset. I described my facilities and location for performing the work. Then I expanded on this, discussing when, where and why. I kept the plan fairly short. I felt that I needed to get all the information the audience needs into 20-25 pages or less. ...read more.

Middle

Notons will generate a total of �118000 in revenue. The company's cost of goods sold will be 86000. This leaves a gross profit of �32000 Subtracting �20000 in operating expenses from the �32000 gross profit leaves a net profit of 12000 �12000 net profit --------------(divided by)-------------- �118000 revenue The answer, 0.102 [or 10.2%], is the net profit margin. Return On Capital Employed This is a measure of the returns that Notons is realizing from its capital. ROCE = net profit capital employed x 100 12000 x 100 33.3% 36000 This ratio represents the excellent efficiency with which my capital is being utilized to generate revenue. I should have obtained at least 25% market share by the end of the first year. If I can gain a quarter of the market share then I will gain a strong foothold in the market. I will be able to build on this in the second year. The future success of my business will depend on whether Notons keeps up with competition or not. There are various opportunities and threats that I could face in the future. Different factors could affect the relative competitiveness of Notons. Opportunities * loosening of food regulations * arrival of new kitchen technology * introduction of training. The other cafes don't provide intensive training, but as the market becomes more competitive training is more in demand. ...read more.

Conclusion

I should have said what makes Notons different (and better) than each of them. I should have also shown that I know my audience. If I was really going ahead with the business I would have produced several versions of the business plan--one for bankers or venture capitalists, one for individual investors, one for companies that may want to do a joint venture with me rather than fund me, etc. I perhaps should have discussed any short-comings in the business plan factually, showing how and when I would address the situation. I could have discussed payout options for the sake of any stakeholders. All investors want to know when they can get their money back and at what rate of return. Most want out within three to five years. I should have provided a brief description of options for investors, or at least mentioned that you are ready to discuss options with any serious prospect. I think I ignored the fact that appearance counts. I could have pushed an artistic or imaginative idea, and show some creativity (but not at the cost of keeping the document easy to skim and find facts). Two column documents are easier to read than full pages of text. I could have used charts or tables or graphics or illustrations to break up long passages of words. Adding a spot of colour on the pages would have been good...a coloured line on the pages or a coloured logo. James Noton ...read more.

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