Lebanese Flower Restaurant Business Plan - Assignment Example

Lebanese Flower Restaurant Business Plan Affiliation TABLE OF CONTENTS 0. EXECUTIVE SUMMARY……………………………………………………3 2.0. MANAGEMENT PLAN………………………………………………………4 2.1. Type of ownership……………………………………………………...4 3.0. BUSINESS OBJECTIVES ……………………………………………………5 4.0. MARKETING STRATEGY…………………………………………………...5 4.1. Market analysis…………………………………………………………5 4.2. Marketing Plan…………………………………………………………6 5.0. LOCATION SELECTION…………………………………………………….8 6.0. HUMAN RESOURCE MANAGEMENT PLAN……………………………..8 7.0. FINANCIAL PLAN…………………………….……………………………..9 7.1. Proposed Profit…………………………………………………………9 7.2. Source of Financing……………………………………………………10 7.3. Credit Policy……………………………………………………………10 8.0. RISK MANAGEMENT………………………………………………………..12 9.0. RECOMMENDATION……………………………….……………………….13 10.0. CONCLUSION………………………………………………………………...13 11.0. REFERENCES…………………………………………………………………14 12.0. APPENDIXES………………………………………………………………….15 1.0. EXECUTIVE SUMMARY The paper is about a business plan for a Lebanese restaurant, Lebanese Flower that will get located in Ottawa City, Canada. The multicultural restraint will get to serve its customers that desire Lebanese and American food. The business plan aims at pointing out the appropriate location of the restaurant, the time that the company will start, the services and products, how it will operate and the legal structures. The plan shows the market strategy of the entrepreneur that comprises price, place, people, the process, promotion, and products. The management plan gets discussed majorly for the costs and benefits for the workers. The financial plan also shows a balance sheet, industry ratios, profit and loss statements and address the risks that are very possible and how to manage them along with various recommendations. 2.0. MANAGEMENT PLAN 2.1. Type of ownership Lebanese Flower restaurant will be a sole proprietor ownership in that it may get contented with a limited capital for startup. The owner’s plan on instantaneous restaurant’s growth business is to invest the earnings. The key backbone of the business will be reinvestment after the business startup. The reinvestment process will ensure that the business will have a good incorporation transition in the future. During its first stage, the business will not disperse the owner’s independence. Though, the main essential sole proprietor ownership type legal aspect is the unlimited liability stature. The owner of the business, Fredrick, can get seized to settle claims against the business. Thus, the owner manages every operation in the business and makes every decision. The characteristic of a small business establishment makes it more compelling and comfortable to manage in this manner. Fredrick will have a business attorney that will act as the consultant upon any business decisions that get connected with the laws. It is because the attorney is precisely an expert in handling the business legal records. The owner’s, Fredrick Noel, prior experience in the restaurant management lead to his desire of owning a restaurant and managing it. Currently, Fredrick works at Fosters Catering and Entertainment Corporation. Thus, Fredrick will be in charge of the operation in Lebanese restaurant, it is due to his aim of owning and operating a restaurant. Therefore, he can utilize his proven experience along with his professional skills. Noel’s skills and experiences in the business of restaurant go back as far as 2006 where he worked as a cook at the restaurant of Burger King from 2006-2011. From 2011 to 2013, he operated as the cook for Raymond Restaurant. At Fosters Catering and Entertainment, he had the role to manage the bar and plan special events. His ability comprises working long hours, use creative skills to solve issues, leading to the positive direction and give constructive significant criticism where significant. One of his weakness is being impatient though he is willing to take some risks. 3.0. BUSINESS OBJECTIVES The Lebanese restaurant will be a multicultural restaurant that will provide services to its customers that desire both Lebanese and American food. The restaurant will seek to serve the needs of diverse and to increase the ethnicity of Canada, and it targets to be the first in offering the authentic Lebanese foods. The restaurant will have to form a Lebanese atmosphere. International culture and music will be incorporated into the Lebanese Flower using paintings, arts, Lebanese music and murals. The restaurant will get started in five months’ time, and the location be in the south central of Ottawa city. The size of the restraint will be 1500 square feet and will include cooking area that will have freezer and refrigerator, dining area, counter eating area, restroom along with waiting area for the takeout food. 4.0. MARKETING STRATEGY 4.1. Market analysis Lebanese Flower will have to establish an audience in the market for the restaurant. Increasingly, some individuals will visit the restaurant not that they a hungry but due to their desire to experience the particular new taste. I am very confident that the restaurant will be able to generate great profits and sales successfully. The nearest competitor based on this kind of restaurant gets located in British Columbia, thus keeping the competition for Lebanese cuisine minimal. The proposed business locations for the Lebanese restaurant gets already established and growing fast. Following the opening of great sports and cultural arena nearby, the business in Ottawa city and the nearby area grow fast. The change of percentage of the population in 2005-2013 was 4.5%, resulting to approximate population of 300,000 along with the projected requirement for the fast food restaurant around the area averaging 23%. Thus, it is possible to reach the projected sale of $500, 000. 4.2. Marketing Plan The indirect advantages and competition of the Lebanese Flower restaurant over fast food restaurant in the location are as follows; The Burger King restaurant gives their customers high-quality services and family-oriented atmosphere. But, its food is very expensive and very unhealthy. The McDonald restaurant is known to serve a great breakfast, and its common for its Egg McMuffin and coffee. But, they do not make use of seasoning in their meals or food. They usually make use of regular boilers when frying lard grease and cooking their burgers. The kind of cooking is majorly undesirable to most of the customers and a great disadvantage to business. The Pizza Hut is also an option food restaurant though it does not offer and has a limited menu. On the other hand, the Kentucky Fried Chicken (KFC) does a lot of deep fryings, which is not healthy for the customers, and also they have a long wait in line in the restaurant. The Lebanese Flower is planned to offer their customers meal that will have their customers a culinary adventure. Evidently, natural food is very nutritious and healthy to the customer’s body, and Lebanese Flower plans to give a healthy menu. Often, it will prepare fresh food products along with unavoidable and little-frozen food products portions. The Lebanese Flower restaurant will have quite differently menu compared to other Lebanese and Americans menu. Though, food items may be similar to the Lebanese and Americans foods, the specific ingredients, preparations and species methods will give a certain flavor that will not be like the other restaurant. The menu will get created by a finest Lebanese cook, and I sincerely hope that the customers will enjoy the entrees. The Lebanese flower’s marketing plan will get designed in a way to incorporate the customers as a share benefactor in the profitability of the business. The aim and profitability of the restaurant will get reached through the guarantee of customer satisfaction. The menu will also have additional items provisions. The suggestions and evaluations of the customers will also get considered. The Lebanese Flower expects to have a great successful restaurant emphasizing on service and product. A good quality work develops over just a constant income and leads to an endless referrals stream, more business, and higher profits. There is also a great threat from the new competitors to the existing and related business though Lebanese Flower policies have a strategy oriented towards developing a great quality brand image as possible. The influence of social and economic concerns in the society has a significant role in the success of the business. In turn, Lebanese Flower will emphasize in contributing to the society through participating in anti-drugs campaigns, area residents employment and participating in charities. The restaurant’s advertising media will be via social media, telephone directory, newspaper, television, direct mail coupons, and radio. 5.0. LOCATION SELECTION The Ottawa City is the largest city in Canada, with a population of over 900, 00. The business location of the Lebanese restaurant has a population concentration approximately 250, 000 that may get served in the restaurant. The area average income of every household is $30, 300 (Homburg,Sabine & Harley, 2009). The effective media buying income in each household IS $32, 000 and over. The target segment is approximately 12- 60. The median population age is 28 with ages 12- 22 being 17%, age of 23 to 30 being 18.5%, age of 31 to 41 being 14% and ages of 45 and over being 30%. Thus, the young people are most likely prone to assimilation. Additional, they are mostly aware of changes happening in the community compared to the elderly. A primary market survey part can get performed by using social events like Canada festivals along with other cultural events. Majorly, majority individuals that attend the festivals or events get to relate their fun on the basis of music or food they get to enjoy. The events make memories that get shared with families and friends, the essential connection of music, people, and food that is unique to a culture. 6.0. HUMAN RESOURCE MANAGEMENT PLAN The workers management in the service industry comprises diverse interrelated activities like; training, selection, compensation, recruitment, and supervision. The objective of this process is to retain, develop and obtain employees. The Lebanese Flower restaurant will employ between ten to fifteen personnel in the future. The recruitment of the retail personnel will get performed through potential worker’s sources like employee recommendations, educational institutions, employment agencies and in the business upon its expansion. Workers will get compensated through direct monetary payments, though, as the business progress, some indirect payments will get paid to the employees who are full-time employed. But, due to its small in size, the employees will get paid a comfortable wage and other possible bonuses. The total compensation should be fair to employees and the business. In complex situation event, business banker, lawyer, insurance agent and lawyer should get consulted. The manager roles will be pricing, handling produce, organizing money and handling individual resources. Additionally, the manager will be responsible for the arrangement of the organization’s environment to have the employees attain their goals by directing their efforts to the business goals. The workers will have the responsibility of providing honest, friendly, courteous, and helpful services every time. Hence, Lebanese Flower will get developed around the unique services given. 7.0. FINANCIAL PLAN 7.1. Proposed Profit Fredrick will have to set consistent objectives with his interests, talent, and values. His belief in the achieving ability towards his goals will get required for the business success. The desired profit as the year will, which gets decided before opening, will be $7, 000. Following continuous plans, profits get expected to maximize every year approximately 20 to 35 percent in the beginning year. As the management expects to gain money, the main motivation will have to be performing something extremely good but not wealthy. With the knowledge that income is an essential factor in a running business, Noel should decide on not using profits as the way to wealth but use it as a success indicator of the business. Averagely, Canada companies make about 8% net income. The Lebanese restaurant should make enough interest to have a continuous growth through reinvestment. Profit should be there after every normal business expenses that get accounted for, including the owner’s fair wages. 7.2. Source of Financing The Lebanese Flower will get financed through combined owner’s savings, his friends, family, commercial banks, public offering and trade credit at its initial stage. Hence, the owner’s account of drawings is expected to be inactive when the restaurant gets established or even after six successful operational years. The earnings will get reinvested while the owner will be a worker during his wage collection. The strategy aims at ensuring that the all incurred debts in the restaurant get paid in short period to assist the business to acquire loans. Before the 1980s bank failure, the capital funds were available for the entrepreneurs who are prospective and other individual’s small business. The economic reform Clinton administration and small business incentives made extra money that is available currently compared to the prior years. It is as a result of consumers often savings in their liquid investments. The SBA had new funds influx, though; the demands tend to maximize due to economic growth. The owners of small business tend to appreciate the Urban League efforts in giving programs and opportunities for loans to small business. Hence, restaurant business operations have hopes on commencing in a short time as possible. 7.3. Credit Policy Since Lebanese Flower restaurant will be in its first stage, purchases will get paid through checks and cash only. But, in the future, MasterCard, American Express, Visa, and Discover will also get used. The charge accounts will also get used in future to the contract agreement for food services in the organized events. The credit policy of the restaurant will need major variables established within the managed accounts receivable. The variables comprise deciding to whom the credit will get extended, the invoice payments time length, and if prompt payments will have discounts (Michael, 2008). It is also possible to use the receivables as collaterals for the short-termed loans. Also, with a factoring arrangement it is possible to sell the receivables as a commercial factor or a discount to the commercial banks. Hence, with this arrangement type, the business will get relieved of the need to make additional decisions on the policy of credit. The policy of capital of financial working issue gets concerned with the account payable established in the payment policy. Often, the suppliers offer a discount on the accounts payable to induce client prompt payment. There two primary concerns in the payment policy establishment in a business. First, it is the money cost and availability concern. The missing discount cost can get translated into an appropriate annual rate on interest percentage; as lending period becomes short, the missed cost discounts maximize. When discounts get missed, payments are supposed to get delayed until the latest allowable payment date. The common rule is that business should not engage for early payment if the discount gets missed. Second, the primary concern comprises payment accounts payable policy establishment and the business credit rating effects. The Lebanese Flower will promptly take discounts and pay their payable even when the discounts are not attractive in cost basis. It is because a prompt payment record enhances the business’s future credit reputation access to and external financing cost. 8.0. RISK MANAGEMENT In order to reach the restaurant dreams, there is a need for new behavior that comprises taking risks. Lenders require assurance that the entrepreneur gets committed towards his goals. The owner of Lebanese Flower will have to risk his reputation, time, money, and personal assets. Hence, there exists a total commitment towards his objectives. From the investor or a lender perspective, financing a business that is new is riskier compared to lending or financing an established enterprise (Linda, 2004). Most of the business uncertainties disappeared when it established its track record where most of them take three years to have enough ongoing income for the wage of living. In the three-year, personal living expenses and their equity capital of their business should originate from the owner. Lebanese Flower plans to reserve the business earnings so as to eliminate hardships like employees and customer’s liabilities, owner’s death event and protecting against property damages. In order prevent bad debts, the restaurant will use cash only in the events of purchases. The manager along with other employees will get trained to point out criminals, and there will be every payment verification that get made through checks. The management will also consider the business risk of affairs assumptions. Both theories of economy and common sense suggest that a risky dollar profit is much less valuable as it is for a certain dollar profit. The two common risk management categories should contend with financial and business risk. Business risk gets defined as the risk that gets imposed on economic and business environment, and financial risks get imposed on financial firm’s manner. But, there are no rules of regulation set that guarantee success. The management will also consider insuring the business to loss on damage of property, liability and disability and life insurance. The restaurant will take a ten-year coverage from Unit Life of Canada. It will help the company to recover quickly in case of any hazard. 9.0. RECOMMENDATION In order to have a successful business plan, the Lebanese Flower restaurant should take certain steps. First the company should maximize its resources along with offering free online resources. Second, the knowledge of the restaurant should get integrated. In this case, it should combine knowledge from other sources and perform further research on the market position. Lastly, the company should have good timing as they conduct their operations. Every performance should get conducted according to the planned time. 10.0. CONCLUSION From the discussion, it is in the plan that Lebanese Flower Restaurant will get located near Ottawa city. The restaurant ownership will be the sole proprietorship. In the strategy in marketing, the restaurant will focus on providing natural, healthy, fresh menu to compete effectively in the market with other established hotels. The initial process will get financed through owner’s savings, his family, friends, public offering, commercial banks, and trade credit. Thus, with everything in place, it is recommended that the organization to perform further research and have its knowledge integrated with good timing. 11.0. REFERENCES Pinson, Linda. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future (6th Edition). Dearborn Trade: Chicago, USA. Baker, Michael (2008). The Strategic Marketing Plan Audit 2008. p.3. Homburg C., Sabine K., Harley K. (2009): Marketing Management – A Contemporary Perspective (1st ed.), London. 12.0. APPENDIXES These are the expected financial status of the company for the initial three years and source and use of funds. Fig. 1. Source and Use of Funds Fig. 2. Start up costs Fig. 3. Break Even Analysis Fig. 4. Expected Profit and Loss Fig. 5. Expected Cash Flow Fig. 6. Expected Balance sheet Read More