A New Business for the Entrepreneur

Question: Create a Proposal for an Innovation with a Business Start-Up Plan. Answer: Introduction Food cuisine industry is flourishing in the global market. The food is not confined to home now. The interest of the people to taste the food of different countries and different culture has been increased. Thus the global presence of the food industry has been realised. The restaurant business has become the prestigious business now. The assignment proposes to open an Indo-Chinese restaurant in Jalan Sayur in Kuala Lumpur of Malaysia. This will focus on the young people those who prefer fast food and the Chinese food. The Industry and the Company and its products or services The proposal has been made for opening an Indo-Chinese restaurant in Jalan Sayur in Kuala Lumpur of Malaysia. The business plan is in the food industry and the restaurant will focus on the young customers who are fond of the Chinese and Indian food. The restaurant will be located in the prime location as the place is very crowded and large number of visitors comes to this place for officials and business purposes (Bapuji Beamish, 2008). The restaurant will be opened in a building taken on lease for 10 years in the beginning. The company will make a plan for the investment (Bjork, et al., 2013). The first year of the restaurant will expect 10% profits and then it will expect to rise later in the subsequent years. Market research and analysis There has beencrazefor food all over the world. People expect food of different taste with a different flavour. The customers are interested in eating the food which is different in taste. The new Indo-Chinese restaurant expects the young customers to step in the restaurant and taste the fast food. The different Chinese food and Indian traditional food will help the customers to get delicious food. The restaurant will be located in a prime location of the city. It will be established in Jalan Sayur, Kuala Lumpur. The place is located in the prime location and the customers will visit the restaurant easily. The restaurant will be well connected with different modes of transport (Cooper Vlaskovits, 2010). The restaurant will have different competitors who have been established in the food business in the city. Pudus Wai Sek Kai and Jalan Sayur Food Street will the competitors of the new restaurant Jalan Sayur Food will be the competitor of the restaurant as it also provides Chinese food. The demand for the Chinese food is high in the city. Thus for the local people and for the visitors, the restaurant will play an important role in providing the best food at an affordable price. The restaurant will expect a 10% profit in the first year of its operation (Pike Page, 2014) The Economics of the Business The business plan for the startup does not expect to receive revenue in the very beginning. The business plan will focus on getting less revenue instead of proposing for immediate success (Crawford Benedetto, 2011). The business plan during the period of making a plan for the change of its products will anticipate less revenue. The plan will present the account of the innovation plan. It will take the consideration of the customers as the customers are focused to be changed as per the need of the startup. The startup will target for the low revenue as it will have accountability (Gray, et al., 2011). The restaurant has made a plan to spend a huge amount of money for the start up. The plan estimates to spend $ 800.000 on the different heads. The area of the expenditures will be on food, decoration and the services. There will be a genuine expenditure as the business is a start-up. The owner of the restaurant will expect a margin profit of 10%. The expectation of the owner is to get a return from the expenditures made primarily. This will help the owner not to face any difficulty in meeting the operating expenses at least for one year. The proposed restaurant will take a building for 10 years on the lease basis. The expenditure on lease, dcor and other equipment like equipment for cooking, refrigerator, storage etc come under fixed assets. The food material cost will be there (Tan, 2015). The company will also spend on promotion of the business, printing materials, laundry and for the disposal of the damage. The owner will also spend for the fee for credit card transaction. Staff salary will also be another expenditure of the company. The owner will also make expenditure on the supply of the food. The owner will spend 20% of the revenue on the staff salary. Marketing Plan The business plan will have an approach that is called approach of the development of the customers. This business plan will help the startup. The entrepreneur prepares the hypothesis and the startup follows it (Khan, et al., 2011). This is an innovative approach as it brings a direct link with the product users, the consumers, and the stakeholders those who take part to offer their rich feedback (Gelec Wagner, 2014). This is very crucial as it talks about the features of the products, pricing of it and the distribution channel. The innovative plan focuses on the strategies that are affordable for the customers. The purpose of this principle is to get immediate feedback regarding the product from the consumers.The rich information received by the entrepreneur of the business helps the entrepreneur to make amendment in his assumptions. This is the best way for the entrepreneur to make a test of the design and to make an amendment of the design as per the expectations of the customers . This is the right way to give good inputs and make an adjustment (Mintzberg, 2008). Design and Development Plan The place has been famous for food. There are different competitors those who offer the best food to the customers (Dixit Aggrwal, 2015). The restaurant will offer food to the residents of the locality. Visitors prefer to come to this place as it is well connected to transport. The environment of the place is healthy. The lovers of the food will get attracted to this place. The Chinese fast food, seafood will invite more customers. The cost of the meal is affordable. The average cost of two meals will be between $ 40-50. As the price is an affordable number of visitors will come to the restaurants (Wong Hvolby, 2007). The restaurant will follow a sales tactics and will offer reservation provision for the customers. The restaurant will also focus on home delivery policy. The food will be served to the customers as per the service standard or the country (Magloff, 2016). The restaurant will accept credit cards. There will be provision for parking of the vehicles of the customers. Manufacturing and Operation Plan The restaurant will offer high quality Indian and Chinese food to the food lovers of Kuala Lumpur. The primary concern of the restaurant will be quality food and hospitality to the visitors. The authentic Chinese Indian food will be offered. The food like kebabs, butter chicken and seafood will be offered to the customers. The visitors will find an ambience in their first visit. The location of the place will be attractive (Stevenson, et al., 2007). The visitors will be welcomed by the staff and all efforts to satisfy the customers will be made. The customers will also offer special provisions for the kids and the elders. The restaurant will remain open from 11.30 am to 11.30 pm. The restaurant will offer lunch and dinner to the visitors. The average cost of the food will be between $ 40-50. The area of the restaurant will be 3500sq feet. There will be a good parking provision for the vehicle of the visitors. The restaurant will offer facilities for 50 people to sit at a time. There will b e 20 tables. Some tables will be for two people and some tables will be for four people. There will be three cabins for the visitors to provide on demand for their privacy. There will be also a provision for banquet facilities for party functions. The restaurant will follow the rules and the regulations as per the law determined by the country for the operation of the restaurant in the cities (Hoyer, et al., 2010). Management Team Getting skilled and qualified people is a major challenge for the food industry. The restaurant will follow a very clear duty policy for the workers of the restaurants. The owner of the restaurant will offer the best salary to the employees. The owner of the restaurant will be head of the management. The owner will be assisted by the manager of Operations, manager of Kitchen and other support staff. The restaurant will have a database to maintain the track record of the workers and it will also record their performance. The owner will make provision for offering hands-on training to the workers The owner will pay $20,000 to $35,000 to the manager of the operation as salary per a year. The manager of the kitchen will be $1,000 per week. The restaurant will paygoodsalary to the chef. The service providers, suppliers, supervisors etc will be employed as the support staff and they will be paid on weekly basis (Beattie, 2012). Overall schedule The restaurant business is a lucrative business. There will be the plan of the overall functioning of the restaurants. The restaurant will open at 11.30 am and it will be over by 11.30 pm. It will offer lunch and dinner to the customers. The restaurant will offer hospitality management. The restaurant will appoint security at the entrance and the exit point of the restaurant. The restaurant staff will welcome the visitors with a smile. The restaurant staff will remain alerted to serve the food to the visitors and to take their order. The cleanliness will be the most advantage of the company. The customers service will be given top priority. There will be customers log book. The customers can write their comments and can suggest for further improvements (taurangabusiness case.co.nz, 2017). The suppliers will also be given preferences. The owner will make a list of the suppliers and the vendors who can offer the best quality food materials at a reasonable rate. The suppliers will be encouraged to supply the food materials and other related items as per the schedule price and schedule date. Critical risks, problems and assumptions The restaurant business is a very sensitive business in the sense that it belongs to the service sector. The entire growth of the restaurant depends on the quality food and services that it offers to the customers. The risks of the market are always there. The competitions in the market also are a risk for the restaurant. There are established competitors in the market (Kreafle, 2011). They are the main hindrance to the growth of the restaurant. The business is a start up. It is investing he amount of money. That is one of the greatest problems as return is at the risks. The profits of the company may not be the first year as it has not earned brand image in the market. Getting good employees will be a problem for the company. The Financial Plan Statement of Income (from 1st June 2017 to 31st May, 2018) Revenues received from sale $ 200.000 ( expected) Expenditure and losses $185,000 ( expected) Net Income $ 15,000( expected) Statement of the cash flow Cash Flow for the restaurant business (from 1st June 2017 to 31st May, 2018) Month June July August Sept October Nov December January Feb March April May Total Year Receipts Sales $200000 Total receipts 0 0 0 0 0 0 0 0 0 0 0 0 200000 Payments Fees for Legal Accounting Advertisement promotion fees $13000 Loan payment $14000 Wages $11000 payment on lease $2400 Freight Insurance $7000 Interest charges of bank $6000 Expenses on printing, postage, stationery packaging Rent of the premises Repairs ,maintenance cleanliness Superannuation Payments for tax Taxes $1000 Telephone electricity, gas $2500 operating costs for vehicles Salaries wages $100000 Expenses( others) Total payments 0 0 0 0 0 0 0 0 0 0 0 $185000 Net cash for the period 0 0 0 0 0 0 0 0 0 0 0 0 Opening bank balance 0 0 0 0 0 0 0 0 0 0 0 Ending cash 0 0 0 0 0 0 0 0 0 0 0 $15000 Income and Expenditure Account Income Expenditure Date Particulars Amount Date Particulars Amount Sales $200000 Legal and Accounting Fees Fees on advertisement and promotion $13000 Payment on loan $14000 Lease payment $14000 Freight $2400 Insurance Interest and bank charges $6000 Printing, postage, stationery, packaging $5000 Rent of business premises Repairs and maintenance, cleaning Superannuation Supplier payments Taxes Telephone $1100 Utilities (electricity, gas) Vehicle operating costs $2500 Wages and salaries $110000 Other Expenses Balance C/F. $20000 $185000 $185000 Balance Sheet Assets Liabilities Date Particulars Amount Date Particulars Amount June Equipment of Leasing $100000 June Capital $350000 Income on Sales $20000 Bank Loan $200000 $430000 $550000 $550000 Proposed Company Offering The restaurant is a start up. The startup costs will be on the lease, decoration, patter location. The different requirements will be covered by the owner. The funds will be from the owners and the bank loans. The Sources of Fund Types of investment Amount Contributions of Owner Capital contribution $500,000 Bank loan Loan $ 200,000 Equipment ( Leasing) Lease $100.000 Total ($800,000) Conclusion The business plan for a start up is very crucial. There are different situations in which the entrepreneur thinks differently and goes for innovating new product so that it can easily sustain in the market. The innovation depends upon the need of the market and to gain competitive advantage in the market. The entrepreneur of the startup requires to gain knowledge on the development and growth of the market. The knowledge on the market affords huge amount of knowledge to the entrepreneur to make new plan. The proper plan of the entrepreneur brings failure or success to the company. Bibliography Balcarov, P., 2011. 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