Business Plan For Business 100: Enterprise - Coursework Example

BUSINESS 100: ENTERPRISE Section Executive Summary Business 100: Enterprise is a restaurant that is to be based in the of Chicago. The restaurant commits to providing high quality services and related products at affordable and competitive prices. We believe in upholding design by seek to facilitate continued relationship between out customers and the companies. Ensuring accessibility of same restaurants that spread over the state of Chicago. Section 2: Business Description Business 100: Enterprise is mainly a restaurant enterprise established in the State of Chicago. The enterprise seeks to tap in the restaurant market through target of the female and male clients, most of use services on a daily basis. As a result, since the opening of the business it boasts to over 200,000 clients that reside in Chicago sate. The service industry has experience a boom with increasing demand for restaurant services in Chicago. So far, Chicago has only forty large restaurants that provide a variety of services. As a result, the enterprise acknowledges that there exists a business opportunity in which it undertakes to take advantage of. Mission is to; Provide Quality services that enhances the satisfaction and guarantees longevity at affordable prices. Vision: To Become the Leading restaurant in the State of Chicago and Beyond, through the provision of Quality Products at convenient Prices to all (Abrams & Kleiner, 35). Unlike many other restaurants, Business 100: Enterprise major in all restaurant products. As such, there are no other services sold in the restaurants. The nature of the enterprise specialization dictates out target market as women and young girls. Business 100: Enterprise seeks a total of $96,000 for additional funds that will help in financing of its operations. Section 3: Marketing The enterprise seeks to get into the services market which is majorly made up of females and male of between age of 16 and above clients. As a result, the enterprise target would remain to be women and men that are interested in restaurant services and other related Products. The enterprise seeks to initiate appealing strategies that will attract this market niche and ensure that qualities of the products are of high standards (Abrams & Kleiner, 48). The total market size totals up to 400,000 persons in the Chicagoan Suburbs. The enterprise seeks to get a large size of this market through product and service orientation strategy. This would involve ensuring that its products are accessible, are of high quality and relatively cheaper prices than that of its competitors. On commencement, the enterprise seeks to create a brand that is unique from the rest, in order to deal with the completion from other general restaurant services in Chicago. The enterprise seeks to facilitate widespread promotion of its products on commencement. This is expected to help create awareness about these services to the public, and the unique features that Business 100: Enterprise brings to the market. Section 4: Operations The enterprise will substantially operate in the State of Chicago. The enterprise vision is to acquire a chain of restaurants in various locations, in the state. This will enable to reach the wider market of the stats, while avoiding the challenges that come with diverse American market that different sates offer. The location of the various restaurants is based on the population of a given area and market analysis on demand for services. As a result, all the restaurants would be targeting a clientele of not less than 100,000 customers per month. As a result, differentiation in zoning is expected, based on the differences in population structure, jobs and the culture of the surrounding population. The decision to invest in Chicago state is also guided by the accessibility to services. Indeed, Chicago is rated most industrialized in the USA. It is also expansive with a large number of populations as compared to other states. As a result, the enterprise will access a wide market, in spite of limitation to the state of Chicago. The enterprise will also easily access supplies from nearby industries hence save on the transportation costs. This will also ensure that there is constant regulation of flow of supplies, depending on the state of demand. The transport system in the state is well coordinated which makes easy for operations of the enterprise including transportation of supplies (Abrams, Kleiner, 114). Section 5: Management The Enterprise is owned by two shareholders who share the stakes at equal proportions of fifty percent each. As such, each shareholder, or owner of the business has equal opportunities to dealing with management. The shareholders have the powers of appointing members to the board of the enterprise. This will also be done on a fifty-fifty ration unless otherwise. The board will be the top management authority, which has the obligation of appointing senior manager of the enterprise. The enterprise seeks to have an objective employee relations platform. All employees will only be allowed to work after they have signed employment agreements, which will be provided to them in a reasonable time. Employment of employees at the enterprise will be both on contract and permanent basis. Employees that are recruited on a permanent basis must be ratified by the board of the enterprise. Contractual employees can be appointed directly by the CEO or other authorities of the enterprise. Section 6: Financial Projected Profit and loss The enterprise is working on an income of $48,318 which should be achieved by the end of the first year of business. This amount is expected to grow up to $193,120 by the end of the thirds year. Year 1 Year 2 Year 3 Revenue $48,318 $125,306 $193,120 Cost of Goods Sold $44,500 $115,200 $175,500 Gross Profit $3,818 $10,106 $17,620 Operation Cost $110,575 $14,575 $14,575 Financing and Admin cost $129,360 $129,360 $129,360 Total Expenses $239,935 $143,935 $143,935 Net Income Before Tax $238,195 $142,735 $142,735 Less: Income Tax $1,200 $1,200 $1,200 Net Income ($191,617) ($18,629) $49,185 AS AT Year 1 Year 2 Year 3 ASSETS $48,318 $125,306 $193,120 LIABILITIES 239,935 $143,935 $143,935 EQUITY ($191,617) ($18,629) $49,185 Financial Summary Cash flow Malinda expects to carry out management of Cash Flow in three years. Achievement through growing cash flow of the business. The enterprise expects to generate more cash flow to run all expenses. Break-even analysis The enterprise hopes to heat the Break Even mark after a period of five months. This will mean the enterprise to have sales of not lower than 1,220 units at the end of the five months. Achievement of this target will see the enterprise running its operations and generating income for employees. This is in line with the average per unit cost of the products. The table below illustrates the monthly units break even projections. To break even the enterprise must sell at $17.41. Section 7: Critical Risks The main challenge that is there for the enterprise is breaking even in the market that already controlled by other restaurants. Indeed, Chicago has a number of restaurants that call the shots. With less financial power, the funds available for intense marketing not enough. However, the enterprise hopes to focus on product orientation and testimonials from its customers in order to attract a large number of customers. Business 100: Enterprise spoilt for options when it comes to action. With a substantial amount of loan, the enterprise does expect to reach the breakeven point at the end of the first 10 months of operation. Failure to have reached the breakeven point by this time frame will compel the enterprise to consider other options. One of the options or courses of actions would be to change tact and diversify in restaurant products. This achieved with the hope that the enterprise will get running and slowly return to its initial objectives. Section 8: Harvest Strategy The issuer of transfer of assets as well catered for in the Partnership deed between the two owners of the enterprise. Through this deed, ownership of the shares of each partner would always remain on a basis of 50% between each shareholder. This means that the two owners of the enterprise will always remain to be equal partners of Business 100: Enterprise. Transfer of share can only be affected through agreement by both shareholders on the modalities of the transfer. Section 9: Milestone Schedule Timing and objectives The enterprise undertakes to be carrying out status review ever June and December of each year. This time frame may be changed depending on the deliberations and agreements made by the board. These reviews will give the board and the owners of the enterprise a clear picture on the performance of the enterprise (Abrams & Kleiner, 151). It is from these reviews that the enterprise may decide, through decision by the board to initiate changes in budgeting and allocation of resources. This done in order to cater for contingent issues that face the industry as a whole. The enterprise seeks to grow further through adopting policies that will see its operations becoming effective and efficient. In order to provide for this, the enterprise seeks to learn from its past operations and activities. This will enable to maximize of practices that have proved to be efficient and minimize for those that are inefficient. Work cited Abrams, Kleiner. The Successful Business Plan: Secrets & Strategies. Chicago: The Planning Restaurant, 2003. Print. Read More