The type of business I have chosen is a restaurant and I called it (K.A for life)
My business is going to be as a sole trader as it is simple and there will be no legal requirement where you just set up your business and get on with it. The profit you get will be for you only but you also have to be income tax for the money you get. However, there will be just some legal constraints and you have also unlimited liability. So any depts. You get will be mine and mine only and if I stop trading with any other companies will be all my own responsibilities. Creditors will claim to take your house or any other things to cover these depts.
2. Aims and objectives
I want to make my business one of the most successful business in England and my aim is to become a franchise company worldwide and have more shops open and in order to achieve that, I set up some objectives which will support my aims.
· To have more profit
· turnover
· Increase my reputation within the market
· be the head of the market
· provide good service
3. Unique selling point and the competitive edge the business will have.
They’re going to be a lot of discounts in my business and I am going to give out loyalty cards where customers will get two meals for free after their 5th one and each one of these meals worth £10 so basically, there are going to get £20 off their 6th visit.
4. How their can establish the potential demand for their new business.
Primary and secondary research is the two methods I am going to use to find out the demands of the customers. The Research includes, what customers are looking for in order to make their visits to restaurants more enjoyable and satisfied and kind of food they like to see in my business and suggesting that might improve it. Where primary research, I will hire a member of my stuff to go around local areas and fill out surveys from customers face to face and interview with clients. And the secondary research method can be taking from journals from companies already made the research and they have the same type of my business.
5. How their will balance their personal and business needs.
Definition of Work-life Balance: “Working practices that acknowledge and aim to support the needs of staff in achieving a balance between their home and working lives” HEBS 2002,
This will help me relax and have more time with my family and friends as the business am going into is going to be so hard and stressful.
6. Estimated: potential profitability.
Example: Potential (estimated) profitability.
Gross profit = (TSR) Total Sales Revenue – cost of sales
Assume: Total Sales Revenue = £240,000 per year
Cost of sales = 50% of Sales Revenue
Number of customers = TSR / Revenue per sale
Therefore: Gross profit = £240,000 - £120,000 = £120,000
Net profit = Gross profit – Expenses
Assume: Expenses = 50% of Gross profit
Therefore: Net profit = £120,000 - £30,000 = £90,000
7. Business trends:
The trends of my business are managing the food and services where these are the two things the can save my business and make it grow more. And trend of my business will be known on everybody’s mouth and attracts more customers to come to it
8. Environmental and PASTL Analysis
PESTL analysis is a useful to my business so that to understand the way of the environment in where the restaurant operates. And also to understand the risks associated with in the market development or turn down.
Political factors: the political is to do with what happening with the environment in which my restaurant is going to operate in, this is also includes areas such as tax policy, government laws such as the equality for the applicants, no sexism or racism toward the applicant, advertising the job to everyone in UK.
Economic factors – these include how the economy affects the business, for example the economic growth and decline, the interest rates, wage rates, minimum wage, working long hours, unemployment(local and national) and the cost of living, all these factors affect the employees in my business.
Social cultural factors – Demographics in terms of business are the population statistics with regard to the field of study that examines the social and economic factors to understand better and how the combination of both influences my restaurant .
Technological factors – the use of computer and IT have increased and are growing the ownership. Also the internet affects the way the people market their products. Also the technology is leaping every two years this would have a big impact if the business does not react to it. Therefore the new discoveries, idea and improvements able staff and employees to learn new IT skill and keep up with the technology skills and techniques to give themselves a better chance in a competition for a job. Also in my restaurant I want my employees who are up to date with the computer and other IT system and software’s.
Legal factors – the legal climate constantly change when government introduces new laws, for example smoking laws.
Environmental factors – this depends on what the weather will be like and this would allow me to make decisions whether to keep the store open or close it or whether to bring more stuff or less. For example when it was heavy snowing in November and December and also because of Xmas, there will be more people coming to my business so therefore I am going to have more stuff coming to work.
9. Personal development self-esteem through a business mentor - picking a mentor from Businesses Startup seminars - linking profile to their answer.
I chose James Caan because he is an entrepreneur and would see opportunities I would not see. Also he would be able to introduce me to his contact through his networking pattern
10. How a structured business planning would assist their success.
In my business ii have to follow some steps to be satisfied with my business and they are as follow:
1. Business target
2. Human resources
3. Legal and physical resources
4. Financial resources
5. Growth and development
6. Financial contingency
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