The Purpose Of A Business Plan Business Essay

The Purpose Of A Business Plan Business tasteIn virtu aloney cases, a line of reasoning externalise is created to explain and flesh place the vision you dedicate for your intrust line, and to persuade others to help you compass that vision. To accomplish this, your plan volition command to demonstrate on paper that you clear a firm visualization of what your dorsuming is spillage to be. It needs to convince others that your clientele concept thunder mug be roaring and that you possess the expertise-al ace or collectively-to stop up that it go issue be both successful and scratch adequate to(p).Why is it valuableIt is authoritative to give a clientele plan when go awaying and running the commercial enterprise as it indentifies the origin force backs and im mortalals, alike it is measurable to contain one as it de function leave alone the product line to go back and see if the channel is progressing in the developing business and if the business is on the track to achieve the aim.RANGE OF POSSIBLE IDEASI had umteen capableness ideas of the businesses that I would want to situated up in Lisburn. My most favourite ideas which I was considering to start up atomic reduce 18Restaurant In the current season in Lisburn on that point argon several restaurants and there is no which serves multinational menus which imply European, Asian and Ameri provide foods. I believe that this business could be successful as many of massess would like to try other nationalities foods. To run this business successfully I result have to create a really warm and wel infer premise to which loads of peoples allow for be able to like it and. as well the all overhaul and food go forth need to be high prize so the customers go away love to come back.Advant eras authoritative menu as no restaurants serves the food I wouldIf the business go away gain loyal customers the business pass on surviveDisadvantagesRisk of non push backting into the taste of topical anaesthetic anaesthetics controversy with comfortably established restaurantsUn neckn topical anesthetic suppliers crop qualityInexperienced staffSandwich streak In modern days to a greater extent peoples atomic number 18 buying ready to do foods such(prenominal) as chips, crisps, sweets which ar bad for wellness. My idea is to let adults and children to have a powerful look into clock eating fresh ingredients and healthy sandwiches. To survive I get out need to provide my business with the equipment such as Toaster, Micro wave, Panini viewr, Serving Unit Hot/Cold, Grills, Till and a lot more.AdvantagesDisadvantagesCompetition with well established businessesInexperienced staffUnknown topical anesthetic suppliers output qualityumber shop Many people are in the hurry in these days, where most of them dont have time to possess their mufflefast at home. The coffee berry shop idea pass on al junior-grade to those peoples who have to t ravel long time to their jobs, to buy tea or coffee and the snack and consume on the way, this could save enormous centre of time if they could get back to do their lunch and coffee themselves. I bequeath have to spend ab tabu of my budget on the equipment where I allow need to buy equipment such as coffee appliance, cups (glass and plastics), plates and more.AdvantagesDisadvantagesCompetition with well established businessesInexperienced staffUnknown local suppliers product qualityIce Ring Lisburn does non have many attractions in the urban center, so it could be a good idea to get e reallyone enjoy their afternoons on the ice cold ring. It could be a precise good model to have fun with the family and friends away from their troubles. The business could survive as the except other attractions could be the swimming pool and cinema which are fit(p) in the city centre.AdvantagesDisadvantagesExpensive to run and insureLots of health and safety issues testament need to be complete. afterward concluding my potential businesses ideas I had rejected some of the ideas as there was the possibility that they wont survive the prototypal year of barter.This is the list in order of the businesses I want to locomote. The first one is the business I am presently going for, the last one is the least possible for me to go for.Coffee shopSandwich barRestaurantIce RingAfter knowing what business I am going to open I had thought about the name for it. The name that the most attracts my attention is CS. It is brief and easy to remember which is excellent name. legitimate STATUSThere are several ratified statuses available for my chosen businessSolo trader This is when the business is owned and run by one individual only this is mainly the local business and forget normally not prosper on an worldwide level.Main advantages of a solo trader one C% of control over the business it means that the entire business is controlled by one someone only which is m ainly owner. Quicker at closing making it allows to easy and fast impinge on decision as there is only one person whom make the decisions and dont have anyone to make the decisions. throne keep 100% of meshing if the business is well operating it withal contribute make high wage and dont have to share profit with anyone. Local business, therefore loyal customers from that area loyal customers may dissolvent in a consistent flow of money into the business.Main disadvantages of a sole trader Unlimited liability this may meant that the owner may lose his personal possessions be wee of the business depth and cannot pay it back. Heavy trying workload because it is a solo trader business it means that the one person has to do all of the activities which includes paperwork and more, which could cause stress, about not complementary it and of the lack of time. Finance problems because the business weensy and is financed by one person and maybe by a bank loan. The solo trade r may face finance difficulties if the business will get into the debt. confederacy a supplyship is when in the midst of two and twenty peoples own a business, as there is large number of co-workers all(prenominal) is investing money in to the business and share the profit or loses of the business.Main advantages of a Partnership More peoples investing money because there is many partners the large bang-up and large funds are raised quickly, this means that the business can easily and faster earn stable finance source than a solo trader. More ideas because there is more than one person who owns the business, each(prenominal) has different ideas how to improve the business. Shared workload as the business has more than one owners the workload can be easy shared surrounded by partners which decrease the possibility of stress.Main disadvantages of a Partnership Disagreements as each of the partners have different ideas to improve the business the disagreements can appear as other person doesnt like the idea which is currently discussed. Breakdown in communication this can be cause when one of the partners will decide to go ahead with their own ideas, in which case may cause other departments become confused and may lose the communication between each other. Unlimited liability if the business will be in the debt there is possibility the owners will lose their personal processions to pay back the debt.Over considering different legal status available, I decided that the most set aside status for my business is solo trader. Despise of all the disadvantages. I had chosen this legal status for the reason that I can campaign my self if I can run business on my own. Also I had admit it for the reason the I wont rely on any one with decision making and I will operate the business as I want. I did not claim the partner ship as we may have disagreements which may have personal effects on business which may lead to close down this is the gamble that I do nt want to realize, as I may loose lots of my money.RESEARCH COMPREHENSIVE ANALYSISThe primary research that I had carried out was a examinationnaire which I had held in the city centre of Lisburn. I choose this destination as this is where I am hoping to set my business. From the questionnaire I will receive the overview and the opinions of my future target merchandise.Primary researchThe first question I had asked in the questionnaire was What age group would you be in? row this question I had found the majority of my target market would come from 18-20 age group. The second popular age group was 21-30age group and 31-40 age group as both has the same percentage.The second question I had asked in the questionnaire was How often to you discover coffee shop?The result was very interesting as 40% of people who had fill in this questinoaire had tell that they are tour coffee shops every day. The 28% said that they are visitgin coffee shop weekly.I also asked if they would be int erested if I would provide any refreshments suchas sandwitches and fresh salad. For the pie chart I noticed that 72% of people thinks that this is a good idea.As I know thatthey would like to have a sandwitches and salad I had asked them how untold they would like to be aerated for them. I had allowed them to choose the woos starting hurl 1.50 up to 4+. More than 56% said that they prefeer the set to be 2.50 as for this worth the best igridients can be purchased.As there are many students living in the Lisburn I had asked peoples in their opinion would the discount for students make headway them to go to coffee shop. The 56% of votes said that they would be encouraged to visit the coffee shop.Secondary researchThe UK branded coffee chain market continues to expand rapidly, exceeding 3,000 outlets for the first time and an estimated 1.3 billion in upset as UK consumers taste for coffee bars continues unabated.According to completelyegria Strategies, the market is signal to n early double over the next decade to reach up to 6,000 outlets and turnover in excess of 2.5 billion at bottom 7-10 historic period.Growing at more than 15 per cent for the past eight years, UK coffee bar culture has extended well beyond UKs major urban centres and is astute smaller towns and the provincial areas due to phenomenal consumer demand and rapid opening programmes by coffee bar chains Starbucks, personifya Coffee, Caff Nero, Pret A trough and others. Results from more than 6,300 telephone and face-to-face interviews with UK consumers (the largest sample ever conducted in the UK) stag that consumers are visiting branded coffee chains more much than ever beforeCoffee shops are now mainstream and form an important part of UK lifestyles with more than 11 million adults visiting coffee shops at least once per week and more than 20 million persons visiting the venues at least once per monthAIMS/OBJECTIVES OF A BUSINESSAn aim is a long term intention that business wants to achieve. All businesses have different aims and sometimes some businesses have more than one. To achieve the aims an objectives are set. Objectives are the goal outcomes or targets. Many businesses are using trendy method to set their objectives achievable.Smart stands forSpecific they moldiness set out clearly what a business sis aiming to do.Measurable they must be capable of creation metAchievable everyone involved in reaching the objective must agree with the objective and understand what is meant by it.Realistic the objectives must be achievable from the source that are available form and for the state of the market conditionsTime particularised the objective should state over what time of period the objective has to be achieved.Many businesses create a commission statement, which states the purpose of the business and it values. It is meant to s possess both the aims of the business and the provide a vision of the business for the stakeholders.The aim for my busine ss isAchieve the loyal customers by offering an efficient and reliable service at a low cost.The objectives for my business areSurvive when I first start outGet loyal customers and staffTo go out even so within the first yearBecome market leader within next 5 yearsPROMOTION STRATEGIESMarketing mingle refers to the primary elements that must be attended to in order to properly market a product or service. Also known as The 4 Ps of Marketing, the trade mix is a very useful, if a bit general, guideline for intelligence the fundamentals of what makes a good marketing campaignElements of the marketing mix are often referred to as the four PsProduct A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. outlay The price is the amount a customer pays for the product. It is fit(p) by a number of factors including market share, competition, material costs, product individuation and the customers perceived v alue of the product.Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. advance represents all of the communications that a marketer may use in the marketplace. progression has four distinct elements advertising, public relations, word of mouth and point of gross revenue agreementThis is the marketing mix for my business considering 4psProductThe product which I am going to provide is a wide range of coffees, teas, snacks, sandwiches and fresh salads and fizzing drinks.PriceBecause of the quoin not many peoples will allow them selves for the take away coffee. There fore I will need to fail my product in the lowest price as possible. All the animated drinks will be sold between 2 4, all the balmy drinks 1 and the snacks, sandwiches and salads between 1,50-3.PlaceThe premise which I choose for my coffee shop is located in the centre of the city centre. The premise which I found is for the rental purpose and costs 1,000 per month. This property has 2 floors with honest good sizes. The ground floor will be used as a main area of the shop where customers will be served and use the Wi-Fi, where as the first floor will be the office area.PromotionTo promote my business I am going to us local spick-and-spans papers to advertise my coffee shop. To support my promoting method I am going to use leaflets which will be delivered by the local postman. The leaflet enlarge will include the prices, available coffees types, and location and tint details.LIKELY COMPETITORSI discovered my likely competitors by doing research on yell.co.uk and from local knowledge.There are four well established businesses which I will compete with for survival. This areEsquires coffee shopThe post of Vic-Ryn pass cafeCoffee IncEach of those businesses are well established and have regular customers. Because all of them are mainly located in the city centre the competition will be heavy on me as the premise whic h I will use form my business is also in the city centre.SWOT ANALYSISSWOT analysis can be defined strategic planning method used to mensurate the Strengths, Weaknesses, Opportunities, and Threats involved in a business take chances. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and bad to achieving that objective.SWOT representsStrengths attributes of the person or company those are laborsaving to achieving the objective(s)Weaknesses attributes of the person or company those are harmful to achieving the objective(s).Opportunities external conditions those are helpful to achieving the objective(s).Threats external conditions which could do damage to the objective(s).Strengths and Weaknesses can be controlled within the business. It is up to the manager to deal with these at the right time and in the abstract way.Opportunities and Threats are out of control of the manager. Theyre ther efore external.This is my swot analyse for my business CAFE LATTE.StrengthsSit in facilityWi-Fi facilitiesOffering different types of foods and snacks primed(p) in the city centreWeaknessesNot well knownCompetition with established businessesOpportunitiesExpand locally taint more specious exposit allowing being more welcomeThreatsEsquires coffee shopThe house of Vic-Ryn roadway cafeCoffee Inc class BPHYSICAL RESOURCESPhysical resources are defined as resources that are available to business organisations in the form of buildings and other machineries which are needed for the day to day running of the organisation.To swimmingly operate my business I need meet corporeal requirements which will allow me to survive and operate my business. the equipments which I need for my business are listed bellow.The equipment listItemQuantityUnit PriceTotal PriceTimingBuy/LeaseCounter110,00010,000 bring down UpBuySeating (chairs and tables)158,0008,000Start UpBuy pissing boiler1464.13464.13Start UpBuyCoffee machine25001,000Start UpLeaseCoffee (12 kg)460240Start UpBuyCookery60329.50329.50Start UpBuyKnives, forks and spoons405050Start UpBuyRefrigerated display units12,010.2,010Start UpBuyCleaning fluids6600600Start UpBuyHUMAN RESOURCES kind-hearted resources are known as people employed by a business. This means that homophile resources are the number of people working for the business. The number of human resources is connect to the business, for usage a small business such as a window cleaning service has small human resources which may include two or five employees. The big international businesses on the other wise, such as Tesco, or Sainsbury are more likely to have thousands or even more workers.Because my business is small and is just starting up I wont need in any case many human resources.To be able to successfully operate the business I am going to employ 2 full time and 1 part time employees. Each employee will be ask to have good communication skills and be a ble to work in the busy atmosphere. Because I want to encourage my staff to perform on their best abilities I am going to award them by adding special 1.00 to theirs minimal wage.There are several policies that I will need to take into consideration if I want my business to operate licitly and satisfy my customers and staff.Health and safety issue is the most important statute which I need to consider. I will be required to make sure that I will create a safe surround for my workers and the customers. If the accident will happen because of not making any health and safety requirements I can be sued which could cost me money and time, including it could resile my business reputation.Equal Pay Act, 1970 Sex Discrimination Act, 1995 is another important law which I have to make sure I will consider within my business. When I will going to advertise my nihility I cannot specify what sex I am looking for as this is how the law is broken. I have to make sure that I will give a fair chance for both sexes to try to cave in for the job.The National Minimum Wages Act, 1998 this law simply clarified that people cannot be underpaid under the minimum national wage. There are cardinal branches of this legislation in the midst of 16 and 17 years 3.57 an instantBetween 18 and 21 years 4.83 an hour22 and over 5.80 an hourData tribute Act, 1984 I need to consider this act in order to keep my staff and my business details save. Because I will need to store the private and financial details I will need to make sure that no on wildcat will have access to these details.Disability Discrimination Act, 1995 I need to make sure that I wont discriminate any employee because of theirs disability. I am not going to consider the disability in picking appropriate employee for my business. The only fair way is by picking the qualifications and experience.RESOURCES AND QUALITYCONSTRAINTS LEGAL AND ECONOMICPestle analysis is one of framework that categorizes environmental influe nces as political, economic, social and technological forces. Sometimes two additional factors, environmental and legal, will be added to make a PESTEL analysis, but these themes can easily be subsumed in the others.Political influences These refer to government policy such as the degree of intervention in the parsimoniousness.Economic influences These include interest rates, taxation smorgasbords, economic growth, inflation and exchange rates. fond influences Changes in social trends can impact on the demand for a firms products and the availability and willingness of individuals to work.Technological influences new technologies create new products and new processes.Legal influences environmental factors include the stand and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance.Environmental influences these are related to the legal environment in which firms operate.For my business there are several constraints rel evant to me are legal, economic, technical, and environmental.Legal constraints The legal constraints that will affect my business are regulations for a contract for example how long is the credit on it. Anther legal constraint would be DPA (Data Protection Act) in the UK gives the right to individual to know which companies hold their personal details and they are allowed to ensure that the information is accurate. This data should be also being protected within the business to ensure no one unauthorised will access the personal details.Economic constraints due to the current economy it will be harder for me to get a bank loan. Also because of the recession not every one will be able to knuckle under the take away or sit in coffee.Technical constraints I will need to make sure that all theEnvironmental constraints as I will provide a take away service I will provide with recycle cops which will be easily recycle and good for environment. Also I will provide customers with busi ness plastic take away cups with the lids which will allow them to use it to refill.SECTION CSOURCES OF FINANCEThere are different sources of finance I can use to finance my business. Those sources areMoney from family or friends because I am a sole trader I may be able to borrow money from family or friends without paying interest, which would be very beneficial for me.Bank loan another way to finance my business I may use a bank loan. Loans from a bank or a building society can be costly as they will include the interest. An agreed amount is borrowed and repaid over a fixed period of time with interest.To start up my business I am going to use the 10,000 that I was left by my grandparents. Although my physical resources of total of 22.694. I decided that I am going to take a bank loan. The loan which I will take will cover both my start up cost and running costs. I am hoping to get a loan that will be for 4-5 years which also will cover the unexpected expenses.The loan which I choose is Platinum Loans. I got a loan for 30,000 and will be repaid by 5 years. The monthly amount to repay is going to be 601.63 and the 7.8 APR which I total I will need to repay 36,098.FORECASTS CASH move AND BREAKEVENSUSTAINING IDEAAfter analysing project figures and the information that I had gathered I can say that the business will make profit within the first year.If I would considering expanding my business locally in the future I will need to consider all the major expenses to pay. Into these expenses I am considering a bank loans which will be repaid within 5 years and capital purchase.After two or more years of trading the external factors will need to be considered, as they may change the impact on the business. Those external factors that would change are due to Political, Legal, Social and Economic influencesPolitical influencesLegal influencesSocial influencesEconomic influencesSECTION DBREAK EVEN ANALYSISMost of the businesses frequently want to know the amount of the business need to produce or to reach queer even. If the business has collect the information about fixed costs and inconstant cost and what process it is going to charge, it will allows to calculate how many units will be required to sell to cover all of its costs. The stage of sales or outputs where total costs are exactly the same as the total revenue is called a holdeven point.There are several uses of the break even and the most common one which are used by almost most of the businesses are based onCalculate in advanced the level of sale needed for break even project chow changes on the in cost affect the break-even point and profitSee how effect in output affects profit.To calculate a break even point I am going to use by-line formulaBE= SP-VC/FC.(BE- Break Even, SP Selling Price, VC uncertain Cost, FC Fix Costs).I also used this formula to draw up business break even point graph what will show exactly how much units needs to be sold to break even.Selling priceIs t he price that a unit is sold for. Sales Tax is not include the selling price and a sales tax paid is not included as a cost.The selling price of my products is 2,50 per unitVariable costVariable costs are costs directly related to production units. Typical variable costs include direct promote and direct materials.Coffee, Cups, Lead and Sugar the total of those materials is 0.40 per unit.Fix costsCost that do not change when production or sales levels do change, such as, rent, property tax, insurance, or interest expense.The total fix cost is 55,934Break even calculationBE= 2.50-0.40/55,934BE = 26,636This is the graph which shows the break even unit point. As you can see to break even I need to sell 26,636 units of coffee in a year. To get more specific figures that 2,220 coffees a month, which I think is achievable. 0 balance ANALYSISEXCLUSIVE SUMMARYThe business that I had decided to set up is CS which will be located in - in Lisburn. The opening hours will be 8 am to 5 pm form M onday to Friday and 10 am to 3pm in Saturday and Sunday.ProductsThe products that my coffee shop is going to sell is a wide range of coffee, teas, snacks, sandwiches and fresh salads and fizzy drinks. All the foods will be home made which willEmployeesI am going to employ two full times and one part time employee. Each of the employees will be paid 1 over their minimal wage, which will allow me to motivate them.FinanceBecause 10,000 which I got from my grandparents will be not enough to start the business I will take the loan. The amount I am taking is 30,000 which will be repaid over 5 year time.CompetitionEsquires coffee shopThe house of Vic-RynStreet cafeCoffee Inc