Being a new restaurant the place will be fitted with air conditioning and a state of the art drinking Bar. Ideally the restaurant is for adults who have an eye for traditional African dishes but to an extent will compromise with customers who eat vegetarian and more English meals.
Finance is a major issue when starting up a business. Finance is money, which enables you to purchase goods and services. Without finance in a business there would be no business. The finance pays for wages and contributes to the buying of material assets.
The Business has decided to become a sole trader organisation. This form of business is the most common and is operated by one person only. One of the reasons the sole trader organisation is so common is because there are very few legal requirements.
Advantages of Sole Trader
- The owner maintains control of the business
- Freedom to choose own holidays
- Has incentive to work hard as he or she keeps all of the profits
Disadvantages of Sole Trader
- The owner of the business is fully liable for all the debts of the business
- Business account is joint to owners account
- No one to discuss business matters with
I would choose this organisation above anything else, as it is the most effective for a new small business. I would not go into a partnership as this involves 2 or more people and can become irritating. A disadvantage of a partnership is if a partner died then the partnership would end or if an important decision needs to be made then all the partner would have to be consulted which can take time. Another disadvantage is that partners do not get limited liability. If the business failed the creditors could still force the partners to sell their own property to pay business debts.
A very important issue especially in a Food restaurant is about Health and Safety.
Health and Safety Act: Employers must comply with health and safety rules so it
Creates a place of work that is safe and healthy employers agrees to follow rules.
Restaurants have to conform to a high standard of hygiene and if they don’t then
Health and safety is an issue.
(Stage two: Market Research)
Market research is the systematic gathering, recording and analysis of data about problems relating to the marketing of goods and services. I shall carry out market research in order to help me answer the question. What do people want from a food shop in Victoria? In order to answer this question! I shall put together a questionnaire to answer the following points of information
- What age, sex, occupation are my potential customers
- How much money are they prepared to spend
- What shops do they use
- What are their hobbies
- Which newspapers and magazines do they read
- What are their favourite pop groups and famous personalities
Questionnaire
Business Studies Coursework
- What is your favourite type of food? (Please tick a box)
Chinese[] Indian[] Italian[] Thai[] Mexican [] African [] West Indian[]
Other[]
- How often do you visit food restaurants per month?
0-1[] 2-3[] 3-5[] Above[]
- When eating fast food which do you prefer?
Eat in[] Take away[]
- Do you enjoy eating hot or cold food or both?
………………………………………………………………………………..
- How much money do you spend at a food restaurant per visit?
0-£5[] £6-£10[] £10-£15[] Above[]
- Are you a vegetarian? Yes[] No[]
- When eating a meal do you drink healthy drinks? Yes[] No[]
- Do you normally drink alcohol? Yes[] No[]
- What is your ethnic background? (Please state)
…………………………………………………………………………………………………
- Are you familiar with any African food? Yes[] No[]
11) If given the chance would you be willing to try a variety of African dishes
Yes[] No[]
From my questionnaire I have gathered a series of results using a number of methods. I asked people at random walking in Victoria and put my results into pie charts and bar graphs. The questionnaire and market research has helped a lot in determining how the business should be run. The information collected will enable the business to create an idea of the products people like.
Results
Qs.1 What is your favourite type of food?
Qs.2 how often do you visit food restaurants per month?
Qs.3 When eating fast food which do you prefer?
Qs.4 Do you enjoy eating hot or cold food or both?
Qs.5 How much money do you spend at a food restaurant per visit?
Qs.6 Are you a vegetarian?
Qs.7 When eating a meal do you drink healthy drinks?
Qs.8 Do you normally drink alcohol?
Qs.9 What is your ethnic background?
Qs.10 Are you familiar with any African food?
Qs.11 If given the chance would you be willing to
Try a variety of African dishes?
(Stage Three: Collecting The Information)
Primary Research
Primary research or as it’s also known field research is the collection and collaboration of original data. It involves direct contact with potential or existing customers. This form of research is planned and then carried out by those who want to use the data. However it is an expensive way to gather information. Primary research can be used on the market to test if a new product could succeed. There are various types of primary research methods.
- Questionnaires – postal, face to face
- Interview – face to face
- Experiments
Stages of Primary research
Secondary Research
This research sometimes called desk research deals with the information that has been collected. It is either collected from an internal or external source of information.
The agency of the new business will be using both Primary and secondary research, primary through using a questionnaire and secondary research to compare with my results and see whether peoples views have changed at all.
There are five main types of sampling. When collecting information. These are;
-
Random Sampling –When everyone has an equal chance to be selected at random to form collection of data.
-
Purposive Samples – a Bias investigation, which focuses on, a particular issue of the market. For example when investigating a football match the sample will contain more men than woman.
-
Stratified Samples – Chosen to provide a cross section of the population. Splits population into different groups such as age and ethnic background. Very quick process of gathering information.
-
Cluster Sampling – involves choosing a group at random rather than choosing individuals at random. The group chosen would be the sample. Cheap to sample.
-
Quota Samples – Usually used on street interviews where the interviewer has a choice of who to approach. Must interview certain amount within a group.
The business will be using the stratified sampling methods, as it is the most accurate and representative information. The other samples are not needed for a new business, as the others focuses on random choosing and bias investigations. The sample the business needs involves looking different groups.
Qs. Do you think building a new African cuisine in Victoria would be a good idea?
A graph like this would be evident in helping the marketing campaign. It allows you to see if the idea would be popular in the area. Each answer strengthens the quest to build the restaurant. Each person has there own reason for there answer but most of the no came from the fact that there are so many restaurants around.
(Stage Four: Designing the promotions)
After looking at the different types of advertisement I have decided to use the Regional newspaper to promote my African food cuisine. I decided to choose this because it’s a cheap advertisement and there are a large number of people in Victoria who read the newspaper. I would choose this advertisement over the television as the television is nationwide, very expensive any might not get viewed by those who might be interested. I would advise my client to advertise for a lengthy period of time.
Finance
For the business the main worry is finance. Whether they can maintain invested money without losing it. I would advice my client to loan some of the cost to set up a business from a bank.
The advantages of using your own money: -
- You don’t have any debts.
- All profits made are yours.
- If the business goes bust you don’t have to worry about paying back the bank.
The disadvantages of using your own money: -
- You might lose all your money if the business becomes a failure.
Business Plan
Every business has a plan on how to run a business successfully. I would advice my client not to over price his goods and offer bargain deals so it will attract people. You need to work out the amount of staff needed and where to get these staff. The management is a major issue if it is to succeed. You need to decide whether or not it should be a sole trader, partnership organisation. I would also advise my client to come up with new products and deals every so often and decorate around the place to keep in fashion.