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Business Planning

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Introduction

Task A - Business Planning For this task I have been asked to create an imaginary business in which I simulate all aspects of running the business. This ranges from the initial start up of the business, generating ideas, gathering capital and sorting out where to locate the business. Afterwards I will continue by analyzing the business using methods such as breakeven analysis, cash flow forecasts and balance sheets. A business is either a single person or multiple people who share the same interest to sell a product or a service to customers. There are four major types of business organizations; the first is a soletrader - the smallest of the four. A soletrader is a single person who runs the business and controls all aspect of the business. S/he will either gain all the profit and/or the losses. An important point is that soletraders have the risk of unlimited liability which has the possibility to lose all their personal assets if the company fails. The second type of business organization is partnership. This consists of 2 or more partners (the maximum of 20) who equally share the business. This is good for a starting business because there will be more shared ideas, shared work load, a range of skills, more members to contribute to starting up the business. Although there are some disadvantages of being a partnership there is unlimited liability, shared profits, some partners might not be reliable, the decisions must be shared and disputes are likely to break out. Each partner must sign the deed of partnership which is a legal document that brings together each partner. This covers any issues dealing with allocation of profit, decisions, votes for each person and closure of the business. Another important point is that a partnership still has unlimited liability unless there is a sleeping partner who has limited liability. A sleeping partner is one that invests into the business but does not join in the day-to-day running of the business. ...read more.

Middle

You need to keep a business going for certain period of time after opening, to do that you must ensure to invest enough money to keep your business operating over this time. During the survival period, the business must be able to make the least income that could cover the entire expenses such as wages, bills, rents, promotional budget, stock and inventories that are required to run your business without additional investment. Making profit at this stage is rare, but is also possible. However be able to survive your business prove that you have planned well in your business, this also indicate that your products has most likely met your customers' needs, and your business has probably established a good customer base and built up some business reputation. If a business is able to get past this stage then it is clear the business is doing well and will be able to take the next stage for a new objective. The next objective for any business will be to meet the stakeholders' needs. The stakeholders can include various parties each of whom would have different interest and hence different needs. For example, government as stakeholder, a business should comply with certain regulation or government policy in order to run the business legally, such as health and safety regulations. Another stakeholder could be shareholders in a company, who would be interested to know the business progress and company profit. In order to satisfy the shareholders needs, regular communication with all shareholders to ensure they are aware of the business situation and progress is very important, at the same time you can also find out if their expectation has changed over time. After meeting the needs of your stakeholders a business will want to maximize their sales revenue, the ways to generate more sales are to sell more, sell whatever you can and get more customers. ...read more.

Conclusion

They will also want good quality service, variety of food, good location and value for money. The local community will want to jobs available, a clean and environmentally friendly area, and food delivery service. Government wants my restaurant to comply with rules and regulations, the legislation, pay taxes and comply with Health and Safety regulation. Competitors want to know about other businesses/how they operate (i.e. information, prices, strategies). My main suppliers are Bayern Gourmet Food Company, they want to have a businesses loyalty, and also want to be paid on time. For my restaurant there will be many competitors, ranging from small cafes to large restaurants. I will need to ensure that my restaurant is different, new and fresh. I believe that my business can be affected by my competitors because with a new restaurant competitors may use new pricing strategies or use more promotional program to keep their existing customers. My restaurant is in Queens Road, Central. I have located potential competitors around the area. These include Mac Donalds, Can-teen, Mix, Intercept Caf�, Caf� Landmark and Mezz. Their locations, picture of the restaurants, and the average price per meal are shown in below diagram. Each business is different from one another because it has different objectives and plans. My restaurant will be in more competition with Caf� Landmark and Mezz, because of the nature of my restaurant. Mac Donalds, Can-teen, MIX and Intercept Caf� are more fast-food chains or quick food and is not my direct competitions. Caf� landmark and Mezz are both seated restaurants and serve western style of food, their average price of meal are $170 and $250 respectively which are more in line with my restaurant. One thing that differentiates from these two restaurants is fusion food that my restaurant offer which are new in this area, and I believe it would make a difference and should have a successfully business. However I would still need to keep an eye for any promotional offer or special program that these competitions could response to my restaurant opening. ?? ?? ?? ?? ...read more.

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