Business Venture: Provision of an eatery providing hot and cold meals.

Plan of Action:

Marketing Audit:

A simple market survey is to be conducted using observation, interview or questionnaire. This should be conducted among your potential customers and neighbouring food establishments to determine:

• Needs of the working community.
• Availability of other eatery establishments.
• Type and quality of service provided.
• Number of potential customers.
• Possibility of sustaining patronage.
• Financial success of existing establishments.

(See Appendix A)

In conducting your survey, keep in mind the macro and micro environmental factors as identified in (Appendix B).

Analysis of Information:

Use the information gained to do a SWOT analysis. Identify your strengths, weaknesses, opportunities and threats.

  Wright (1999) p.326                                                Fig 1

 MISSION STATEMENT

To be the best eatery and ensure customer satisfaction, by the provision of, good food and quality service, in a safe environment.

Specific Objectives: 

To make available:

• Clean, healthy, balanced meals to all customers.
• A pleasing and comfortable environment for patrons.
• Piped music to enhance the environment.
• To be a profitable business venture.

Business Plan:

A well thought out business plan will explain what is to be done and how it should be done.  It will encourage you to think through your business so that there is less risk and a greater chance of success.

Your personnel include your group of friends and any skilled person who it will be necessary to employ.  What purposes would they serve in the Business?  Such workers must meet health requirements.

• Legal:

You would also need to determine the legal requirements that need to be met before a business is set up. These include:

• Inspection of the proposed outlet by the Health Authority.
• Registration and naming the business.
• Registration with the Bureau of Standards.
• Registration with the Value Added Tax office.
• Health badges for 6 workers.

You would also need to look at the business structure you will be embarking upon.  Since you are a group of friends, a partnership may be the most suitable structure.  It is fairly easy to set up, but for safety, a lawyer should formally draw it up.  You need to ensure that within the document there is a business name, partner, and the length of time of partnership and how profits and losses are to be allocated.

SBDC (1994) p.20

(See Appendix C).

This type of structure is flexible and allows all partners to have a shared responsibility for the success/failure of the business.

• Financial:

There is need to do a financial plan to ensure that the money available is adequate to give you a good start. There is need to work out planned expenditure for at least a year, so that you will be able to note any pitfalls.

Suggested areas are:

Rent                        Gas

Equipment                Telephone

Supplies                Advertising/ Promotion

Electricity                Wages/Salaries if needed

Water                        Income for self

Your capital should cover at least six to twelve months’ expenses, as there may be initial unexpected expenses for which you did not cater.  If you realise that your income is insufficient you may have to consider a loan. Check out the various lending agencies very carefully, and choose the one with whom you are comfortable and who offers the best options.

Since there is need to budget for one year.  Based on past performances you will be able to determine quantities spent on the different areas and will be able to make adjustments as needed.

Marketing Mix Strategic Planning:

Once you have assessed your situation and the strengths and weaknesses of your competitors, you are in a position to develop your marketing mix, which will determine how you will create and maintain a profit margin.

The six p’s are product, place, price, profit, promotion and people.

• Product:

The product or service provided should be high in quality.  Meals should be clean, healthy, tasty and attractive.  They should cater for the varying tastes as identified by the mixed ethnicities of your target clientele.  There must also be some standards set so that the quality offered does not fluctuate from one day to another. Since you are looking for customer satisfaction you should maintain rapport with them and solicit feedback on the service offered to ensure that their needs are being met.

• Place:

The retail outlet, which you have identified, is well placed, being in the midst of a commercial area, with many young professionals who may be interested in procuring meals. It is also easily accessible, being just off the main street.

• Price/Profit:

The price should be affordable. Not too high, to send customers elsewhere and not too low, to have them feel that what is being offered is sub-standard.  It should also be borne in mind that it should also provide a profit margin if the business is to remain in operation.

• Promotion:

You also need to decide on how you are going to advertise or promote your business.  You may use:

• Fliers to the various offices around.
• Posters in the community.
• Newspaper adverts or any other appropriate measure.

However you must always remember that your best advertisement is the quality and taste of the food served and the service provided.

• People:

Finally, your desire is always to please the customer, a customer focussed culture. Every worker must be encouraged to give customer service, as they will determine the success and good name of the company.

Conclusion:

In conclusion, your business venture has the potential for success, but it must be approached in a structured way, ensure that all the groundwork is done and that all the partners in the venture have a part to play in the decision making and own the responsibility of making it the finest eatery in the area.

Bibliography

Brech, E.F.L., (1975) The Principles and Practice Of Management London, Longman.

Starting Your Own Business (1994) Trinidad, Small Business Development Company.

Wright, R., (1999) Marketing Origins, Concept, Environment, U.K., Business Press.

INTERVIEW/QUESTIONNAIRE (Potential Customers)

Guide Questions

1. Age                Under 20                        41 - 50

21 –30                                Over 50

31 – 40

2. Do you purchase food?        Yes                  No
3. If yes, tick the appropriate box.

Breakfast                        Lunch

4. What type of meals do you prefer?

Sandwiches           Roti                 Fast Foods             Balanced Meals

5. What price are you willing to pay, for breakfast?

Under $5        $6-10                $11 – 15        Over $15

6. What price are you willing to pay for lunch?

$10                $10-15                $15 – 20        Over $20

7. How often do you purchase meals?

Every day                3 days per week        

2 days per week        Occasionally

8. Are you satisfied with the meals purchased?

Very satisfied                Satisfied        Average

Dissatisfied                Very Dissatisfied

9. Would you be willing to try a meal at our eatery?

Yes            No                  Maybe              Depends on the meal

10. Which service do you prefer?

Eat in                        Take away

PARTNERSHIP AGREEMENT

1. Name of the partnership business.
2. Name and address of partners.
3. Business to be done by the partnership.
4. Capital (money) to be contributed by each partner.
5. Procedure for adding new partners.
6. Procedure for a partner to leave.
7. Procedure for death, bankruptcy, or retirement of a partner.
8. Procedure for making decisions.
9. Procedure for handling disputes.
10. Responsibilities of partners.
11. How profits and loss are to be shared.
12. Terms for ending the partnership.
13. Name of person/partner who will keep the partnership’s financial records.
14. Methods that will be used to keep the financial and other business records.
15. Any limitations, which may be placed upon the authority of a partner to act as an agent for the partnership.