Where is it located
To run a Retail Indian fast food company, specialising in selling paranthas at very low prices. I will be running a private limited company with twenty shareholders. I will employ twenty workers to run this business. The total amount invested in my company is twenty pounds. My job is to sell fast food to pupils in Challney High School for Boys. I will provide a quality service to all my customers and hopefully succeed in my business. My company will be allocated near to the rear side of Challney High school next to the sports hall gym.
Present Market and Local Business Environment
How big is the market?= how many consumers and producers are there? What is the value of the market? How much more do pupils bring and spend at the school?
In my company the main consumers will be students aged 11 to 16 years. There will roughly be about 500 hundred students situated around my business.
The two main competitors for my business will be the Buttery and the Lower Cafeteria which both sell snacks to the pupils of Challney high school. Both companies sell food for very low prices and could potentially cause a problem towards me in a way that consumers would go to the place where the cheapest product is sold.
The food category which both companies sell is limited and so could give my business a chance to succeed
Limited competition food category
Currently no other businesses sell food on the playground and so it would tempt other businesses to sell on the playground. This might also prove to be a problem in the way that I would have to reduce my prices to meet the demand of the customer.
Gap in the Market and Unique Selling Points
How did you find whether there is a need for your product?
Is anyone already selling the same product?
Business viability- break even, cash flow forecast (400 words)
Explain your break even. How many do you need to sell in order to break-even?
Explain your own cash flow. Why was there a need to do a cash flow?
Very low overhead because we make food our selves
Only Asians
We are first to market this type of food category but if we where to have success
The only fast food outlet
Lunch time demand consistent
Aims
What do you want to achieve?
Break even
Make a profit
Run a business for the first time and gain experience
Meet customer needs etc
To successively run the business
Maintain standards
Reach the Break even point and hopefully overcome it.
Maximise return on Investments
Short term aim is to maximise market share by selling excellent quality food at very low prices
To be the market leader in selling paranthas in Luton
Median aim is to breakeven within three weeks
No initial cost for plant and machinery
Since we will produce the product ourselves labour cost are flexible
The profit margin on all cook food
The value added for fast food is always high since the raw materials are cheap compared to the finished product.
Other variable cost such as packaging, fuel and storage are also initially negligible.
Objectives
What do you need to do in order to reach your target
Market research, advertising
Division labour= organisation chart(what are the advantages, explain)
Cash flow break even etc
Marketing mix
Long term aims maintain market and maximise profit by satisfying customer’s superior quality food. Make 40% net profit on the paranthas for a long period
Within 3 weeks break even point.
Within 1 month give an exact number of products which I could potentially sell
Constraints and Controls on Business Activity
Limitations are:
Time
Capital
Labour
Inexperience of staff
Controls
Health and safety
School regulations
Risk assessments were there any potential risk to you and your customers while setting up and running your business e.g. food poisoning accidents etc
The way in which I make the product
Food hygiene
Health and safety
Limited resources labour, storage, initial capital investment
Time and labour mix
Asking permission from school to sell the product on their property.
Disposal of waste and how is done
I will also need liability insurance in case someone sues me
Marketing
Primary Market Research Report
Terms of Reference
Findings
Conclusions
Recommendations
Secondary Market research Report
Marketing Campaign
Pricing Strategies
Marketing Mix
Company Organisation
Sales
Finance
Sources of Finance
Fixed and Variable Costs
Break-even Analysis
Cash-flow Forecast
Profit Forecast
Business ViabilityEvaluation
Summary Statement
Account Analysis
Problems
Strategies to Overcome Problems
Appendix