Business plan for an outside catering business providing buffets and hot or cold drinks to businesses and to the general public for social events.
Client Name: Susan Jones NI Number: XL 21 12 21 A CERTIFICATION DETAILSEnterprise Centre: Trafford Business Venture Business Counsellor (Name): Alan Smith Business Counsellor (Signature): Date: 16 January 20021: Personal Details (To be completed by NBS Client)Full Name: Susan JonesTrading Address: 1 Enterprise Street Trafford Manchester M99 9MMTelephone: 0161-222 2222 Fax: 0161-222 2223e-mail:
[email protected] Business Name: Success Catering 2: Personal ProfileIn this section, please provide information in respect of your skills, qualifications and experience which have a direct bearing on your business and its chances of success.I have worked in local sandwich shops preparing food and serving customers for the past four years. Before this I had worked as a waitress in various restaurants. I have experience of cash handling through my work at the sandwich shops and have deputised for my last employer when he was not in the premises. I have a current Food Handling & Hygiene certificate (expires in 12 months) and have just completed the Business Start training course with Trafford Business Ventures learning all aspects of planning and operating a business.3: Business IdeaPlease provide a concise description of your Business Idea identifying clearly, the product or service you plan to supply.I will be opening an outside catering business providing buffets and hot or cold drinks to businesses and to the general public for social events. I will also be providing hot and cold food for sale through a local pub and using their kitchen for my food preparation.I will be providing hot food at the pub at lunchtimes on Thursdays, Fridays and Sundays and putting up sandwiches, salads, etc on the other days. 4: The MarketPlease describe your understanding of your target market, how you have researched it and with what results. You should pay particular attention to your target customers, who they are and why they buy the product or service, which you are offering. You should also explain your understanding of the competition you will face in the market.I am aiming to sell to a number of separate customer groups and will outline each separately in this plan:Business Customers – most of my commercial work will come from the larger companies that are established in the area. They hold breakfast meetings, lunches and evening meetings that require catering. I have telephoned 70 local large businesses and found that 16 of them have their own catering facilities and are unlikely to use outside caterers. Another 21 have suppliers that they use regularly and are totally satisfied with. I have been to visit 28 of the remaining companies and had promises of work from 6 at this stage. All of these companies have had a sample buffet provided and one has agreed an order for lunches as a direct result. General
Public - I have spoken to organisations that rent our rooms for parties and agreed with three of them that I speak to customers of theirs. I have found that 30% of them planned to do their own catering. Another 51% had a caterer in mind to do the work and had sampled their food. The remaining 19% said that they would like to have sample menus offered at the venue and choose from that. As a result of this, I have arranged to leave samples of menus and have provided a sample buffet to the staff that take room ...
This is a preview of the whole essay
Public - I have spoken to organisations that rent our rooms for parties and agreed with three of them that I speak to customers of theirs. I have found that 30% of them planned to do their own catering. Another 51% had a caterer in mind to do the work and had sampled their food. The remaining 19% said that they would like to have sample menus offered at the venue and choose from that. As a result of this, I have arranged to leave samples of menus and have provided a sample buffet to the staff that take room bookings. This should encourage them to keep the menu holder topped up and recommend my services to their customers.The Highwayman Public House – I have worked with the owner of this pub to research interest in food service at lunchtimes and found that there are many customers who would like to have hot food served. In exchange for hire of the kitchen for my business, I have agreed to provide the service and pay a commission on food sales to the owner. I have also researched my competitors, got sample menus, noted where caterers are making deliveries and have spoken to people who have used their services. I now have a good picture of this competitive market and feel that the contacts I have already made and the future contacts I should have through my work with The Highwayman is likely to make my business successful.5: Advertising and PromotionWhat methods will you use to advertise and promote your product or service, how often will you use these and what will it cost in total for the first year of your business?MethodFrequencyCost (£)Produce menus in leaflet style and distribute to businesses, via rooms for hire and through The Highwayman public house.Ongoing300.00Hold a fun launch event in The Highwayman and raise money for charity. Send invitations to local businesses.End of week one350.00Get coverage in local press with photo of the launch event End of week one 60.00Send birthday/anniversary cards out each year following bookings to keep my business in the mind of a customer and demonstrate customer careOngoing 25.00Explain how you will evaluate the effectiveness of your advertising and promotional activity.I will ask and record how people have found out about the outside catering services and I will review which parts of my promotional activity bring in most new trade. I will then revise my future plans.6: Business PremisesDescribe the type, size and location of the business premises that you plan to use.Identify clearly the cost of the premises plus any special legal requirements (eg lease) which will be associated with them. I will operate my business from the kitchen of The Highwayman public house. This kitchen has not been in use for over six months since the pub changed ownership. It does have excellent fittings of hob, ovens, microwave oven, fridge, freezers, storage and food preparation surfaces. The kitchen also has its own meter for electricity.I have worked with a legal advisor from Trafford Business Venture and drafted an agreement between me and the owner of The Highwayman which covers details of tenancy, responsibility, insurance, etc. I have taken this to a local solicitor and had witness of our signatures. As a result, I have sole occupancy of the kitchen at all times on an unpaid basis for as long as I provide food within the pub as agreed. If I wish to leave, I have to give one months notice in writing. 7: Start up Costsa) Business EquipmentUsing the table below, list all items of equipment, machinery, vehicles etc., which you will need to operate your business, plus your assessment of the value of each item.Enter the assessed values in the "Owned" column if you already have the item but in the"Required" column if you still have to purchase the item.Item of EquipmentOwned (£)Required (£)Van 4,500.00 Cooking utensils 100.00 290.00 Crockery 420.00Cutlery 278.00Uniform 106.00 Total Value 206.00 5,488.00 b) Other Start up CostsIn the table below list all items on which you must spend money before you can start to trade. If you have already spent money on some items, enter the amount spent in the "Owned" column. Please note that your entries for "Equipment" should match the value totals of the Equipment List, which you completed in section 7 of your plan.ItemOwned (£)Required (£)Equipment 206.00 5,488.00 Initial Stocks of Goods and/or Raw Materials 365.00 Advanced Overheads eg. Advance Rent, Insurance Public Liability Insurance (Deposit) 24.00 Motor Insurance (Deposit) 36.00Printing 300.00Launch Event 410.00Total Value 206.00 6,623.00The total of the "Required" column shows the total funds required to finance the start up of your business. In the next table show clearly from where you plan to access the required funds.8: Sources of Start Up CostsSourceAmount (£)Own Capital (Cash provided by you) 650.00PYBT Grant 500.00PYBT Loan 2500.00 Other Grants Bank Loan 2,000.00Bank Overdraft Facility 1,000.00 Trafford MBC Grant 1,500.00You will be required to provide evidence of the availability of the funds listed above.9: Personal Survival BudgetIn the table below, calculate the amount of money you need to draw from the business each month, to meet your domestic needs.ItemPartner (1)Partner (2)Partner (3)Partner (4)Domestic Rent & Rates300.00 Mortgage Gas/Electric/Fuel 60.00 Domestic Telephone 25.00 Food & Clothing210.00 Vehicle Costs 50.00 Loan Repayments Insurance's/Pensions 30.00 Holidays/Christmas100.00 Other Expenses 80.00 Class 2 N.I. 9.00 Total Expenses864.00 Grand Total of Domestic Expenses£864.0010: Business Running CostsHere, you must identify the total cost of running your business in its first year.Variable CostsVariable Costs are so described because the annual total will vary depending on what sales volume is achieved. The more product or service which is sold, the higher will be the variable cost. Because the costs depend on sale, they can be forecast as a percentage of sales valueNow list your expected variable costs below.Variable Costs% of SalesCost of Goods Sold (Trading Business)%Raw Materials Cost35%Labour Cost% % %Total Variable Cost as a Percentage of Sales Value35%11: Annual Fixed OverheadsIn the table below list your expected Fixed Overhead Costs for the first year of your business.Fixed Overhead Cost Item£Rent and Rates Heat, Lighting and Power 600.00Telephone 360.00Repairs and Renewals 240.00Postage 120.00Printing and Stationery 210.00Advertising and Promotion Employee Wages and National Insurance Insurances 600.00Motoring Cost/Travel Cost1300.00Consumables 200.00Licences Accountancy and Legal Fees 300.00Loan Interest 128.00Bank Charges and Interest 180.00Other Expenses 120.00Depreciation1,372.00 Total Annual Fixed Overheads5,625.00 12: Pricing Your Product or ServiceDescribe the basis upon which your product or service will be priced.Having conducted my market research, I have worked out the prices people are willing to pay. This differs between the pub food, the business catering and the catering for parties. I have calculated how much money needs to come in to cover the costs of my overheads and living expenses and have compared my planned prices with competitors.13: Sales ForecastThe best way to tackle the sales forecast is to identify the level of sales value required to meet certain profit targets and then to consider the viability of achieving the associated sales volume. To do this we need to first calculate the forecast Contribution Margin and to do this you will need to refer back to the Variable Cost percentage which you previously calculated. Contribution Margin = 100% - (Variable Cost %) Now calculate your contribution margin65% = 100% - 35%Break Even Sales Value_________________________________________________Calculates the Sales Value required to cover all costs and no more. Profit is zero, loss is zero.B/E Sales = Annual Fixed Overheads Value X 100 = Contribution MarginNow calculate your Break Even Sales Value.B/E Sales = 5625.00 X 100 = Values 65 14: Survival Sales ValueSurvival Sales Value is the value of sales required to cover all costs and in addition to provide for your minimum required personal drawings. For this exercise it is advised that you add 25% to minimum drawings, in order to make some allowance for tax and Class 4 NI.Survival Sales = Annual Fixed Overhead + Drawings x 100 Contribution MarginNow calculate your survival sales value.Survival Sales = 5625.00 + 10,368.00 X 100 = 65%You now need to consider the sales volume (customers, jobs, contracts etc.) implications of achieving your survival sales value and confirm that this is feasible. You may, on the other hand feel that you can achieve better than survival sales value. Explain your sales volume/sales value thinking below and identify your final sales forecast figure.I am confident that I can exceed my breakeven figure with the contracts I have already secured. This means that new contracts will be contributing directly to profit.15: Forecast Profit & Loss Account for Year 1.From: ___1 February 2002_____ To: ______31 January 2003____________ Sales27100.00 Direct Costs: Opening Stock 0.00Add Purchases 9850.00Less Closing Stock 250.00Cost of Goods Sold (or)Raw MaterialsSub-Contract Labour 9600.00 Cost of Sales9600.00 Gross Profit17,500.00 Overheads: Employee Wages and National Insurance Light, Heat and Power 0.00Telephone 660.00Printing, Stationary and Postage 600.00Advertising and Promotion 630.00Repair and Renewals 410.00Motoring Cost/Travel Cost 240.00Rent and Rates 1300.00Consumable Tools and Equipment 0.00Accountancy and Legal Fees 200.00Licences 300.00Loan Interest 0.00Bank Charges and Interest 174.00Other Expenses 180.00Depreciation 120.00Total Overheads 1372.00Pre Tax Net Profit 6186.00Less Personal Drawings11,314.00 Profit Surplus10368 16: Managing your BusinessDescribe how you plan to manage and control your business to ensure its continuing survival.I have arranged to attend the book-keeping and financial management courses at Trafford Business Venture to help my understanding of the records that I need to keep. I plan to use a simple cash analysis book-keeping system that my business advisor will help me draw up. I will have my business reviewed every couple of months by my business advisor at Trafford Business Venture who will be able to help identify areas of concern or opportunities for improvement.I will issue invoices using a computer at The Highwayman that I am allowed access to. All invoices are to be paid on delivery of food as agreed with customers.I have also put in place a simple diary system detailing what bookings I have and for what numbers, which buffet, etc.I will visit the suppliers every couple of days to get fresh stocks. The meat supplier and the dairy supplier are going to deliver.
