Oyster Business Strategies - Essay Example

BUSINESS PLAN Business The of the business comes from unique mushroom dishes that the hotel will be offering to the s hence the name ‘Oyster’ after oyster mushroom species. Business Location: The business will be located in the suburbs of Manchester city. It will be located in the next to the office blocks in order to target customers coming from the offices. This will place the business in a strategic position to serve more than 500 customers from the offices next. Vision: To be a leading food service establishment in Manchester city and to expand to other cities in the next five years. Goal: Oyster hotel aims at creating a large customer base through provision of quality meals to be a leading hotel of choice in the city. Objectives: 1. To produce and provide quality meals to serve about 350 customers a day. 2. To sustain operation by generating profit of about 10,000 pounds per month. 3. To open a new hotel chain after ever one year of operation 4. To provide employment opportunities in every hotel chain. Business financing: The business will be financed through personal savings and loan from a bank. The business will require ₤950 000 for the start. ₤350 000 will be form owner’s savings while ₤600 000 will be from the bank. Market analysis: The business is embracing itself to enter in an already packed market and its survival will primarily depend on its competitive edge. Food provision market is a market that is constantly growing and at a high rate. Food provision is turning to be more professional in order to attract customers in the growing market. The market is assumed to be constant with no seasonal trends since its target customers work daily hence sales are expected to be constant throughout. The market is segmented in that there are quality hotels, restaurants, fast food and some providing food in open air kiosk. Oyster hotel is expected to include services of a quality hotel through provision of quality dishes and also meet the demands of travellers by providing fast foods. (Clifford, 2001) Customer analysis: The hotel industry has varied customers. There are residence customers who usually frequent quality hotels for rooms. There are also travellers who mainly buy fast foods to consume as they are travelling and there are usual customers who frequent hotels for quality dishes in a relaxing atmosphere or to hold discussions as they take their meals. The hotel will be targeting all these customers. Marketing strategy: The hotel will use a variety of marketing strategy aimed at attracting and retains customers. The business will look toward cutting an edge in the market through provide of high quality meal, offering wide range of menu at reasonable prices and operating for 24 hours. The hotel will also carry out direct marking strategies to reach individual customer and also it will advertisement in the mass media. It will also be proving special nights on weekends for couples as a way of advertising. (Ron, 2003) Products and services The business will have a central procurement procedure for raw material which will be used to prepare quality meals. The menu for the hotel will provide quality dished and buffet meals. Apart from buffet meals there will also be plate service served by well trained food waiters. Organization plan The hotel will be headed by the hotel manager who will be responsible for coordinating the activities of the hotel. The management will be helped by hotel supervisor and assistance manager. The business will also hire chief cook and five assistant cooks. It will also hire a cashier and six waiters who will be responsible for serving food. (Oliver, 2001) Financial statements In order to start its operation the business will need a capital to purchase fixed assets of about ₤395,800. This will include ₤37, 500 to purchase furniture, ₤245, 300 to purchase food service equipment, ₤80,000 to purchaser a tax register, ₤25,000 for television set, and ₤8,000 for a radio and its sound systems. In order to cushion the business from further borrowing once it opens up, it will need to be planned for labour cost in advance before it starts operation. In this regard, it will need to have ₤70, 700 to pay for the labour for the first month. It will also need to have another ₤70, 000 to meet other cost of operation for the first month including rent, operation licenses and the deposit for the premise which will total up to ₤70,000. To be on the safe margin of operation, the business will need to preparer its accounted well for the first three months and set aside enough money for the operation. Therefore for the first three moths, the hotel will require 920,000 for setting up the business and mandating its operation for the three months as follows: Cost for rent for 3 months = 20 000 * 3 ₤60 000 Labour cost for first 3 months of operation = 70 700 *3 ₤212 100 Purchases ₤100 000 Cost of equipment ₤395 800 Licenses ₤20 000 Good will ₤50 000 10% contingency ₤83 700 ₤920 700 However for the first year of operation, the business hopes to incur other expenses like the cost of fuel, water, office expenses, repair and maintenance of equipments, advertising cost and other mysterious cost. Therefore in order to make profit the business will be aiming at cutting down the cost of operation and at the same time increasing the volume of sales. Therefore it will carry out advertisements especial in the first month in order to attract more customers. The following is the projected statement of account for the business in the first year of operation. (Pinson, 2003) PROFOMA INCOME STATEMENT: OYSTER HOTEL Trading profit and loss account For the year ending 31st June 2009 ₤ ₤ Sales 6 500 000 Less cost of sales: Opening stock 0 + Purchases 1 500 000 Cost of goods for sale 1 500 000 - Closing stock 60 000 (1 440 000) Gross profit 5 060 000 Less expense: Rent 600 000 Salaries 2 121 000 Fuel cost (electricity and gas) 120 000 Water 15 000 Office expenses 25 000 Repair & Maintenance 10 000 Licenses 20 000 Advertisement costs 15 000 (2 926 000) Net profit 2 134 000 Less 30% tax 640 200 Net profit after tax 1 493 800 References Clifford, M. (2001). How to organize and operate business. New York: Prentice Hall Oliver, W. (2001). Business owner’s guide. Oasis Press Pinson, L. (2003). Keeping the books. Upstart Publishing Company Ron, K. (2003). Advertising and Marketing. NTC Business Books Read More