Business Plan for Restaurant

Only available on StudyMode
  • Download(s) : 358
  • Published : May 11, 2013
Open Document
Text Preview
INDIAN MARITIME UNIVERSITY
2013
BUSINESS PLAN FOR RESTAURANT- SEASONS
SUBMITTED TO MR. JAYAN AND PATNAIK
BY M.S.SIJIN, 2ND YEAR MBA ITL- 11999052026
INDIAN MARITIME UNIVERSITY, ECR ROAD, UTHANDI, CHENNAI- 600119

INTRODUCTION
Here is the business plan for a restaurant that is been planned to be operating in Atlanta.The following are the over all plans that is to be executed for the well being of the restaurant. The name of the restaurant been selected as SEASONS.

Executive Summary
Our initial statement to Investors and Financial Lenders, this restaurant/ethnic food business plan, is a candid disclosure of the SEASONS Restaurant & Lounge business proposal - our intent is to set realistic business expectations, and eliminate any questions about the profitability of this business venture. Entrepreneurs have a tendency to paint the restaurant business plan with a very optimistic brush, highlighting strengths and camouflaging the risks. We, as business owners, have a vested stake and financial commitment in the success of this restaurant. Our intent is to have a definitive business, financial, and marketing plan that not only serves our need for capital financing, but is utilized as our daily business roadmap. We have taken all precautions to validate our business and financial models, focusing on realistic projections. We have accomplished this as follows: Our financial model is rooted in industry facts, not optimism. We have based costs on our vast industry and practical experience with similar ventures, validation against National Restaurant industry cost averages, and analysis against local market averages. We have taken a collective look at all figures to make solid business estimates. Our business concept was derived from detailed Market Analyses. Instead of building a business around a preconceived concept, we analysed the market findings and built a concept around our consumers. In other words, our business is built to service an unmet consumer 'want'. A buffered financial plan that ensures adequate capitalization. A contingency buffer is included in the start-up cost to ensure the business in not under financed, as well as giving the business adequate funding to sustain it in the first six months of start-up. Our industry experience confirms a longer ramp-up stage for restaurants over other retail/service businesses. A common mistake for new entrepreneurs , but fully addressed in this business plan.

A solid Risk Mitigation Plan. We have evaluated traditional and non-traditional risks associated with Restaurant failure and accounted for them directly in the business plan. Instead of dismissing the risks, we have identified valid mitigation strategies for each. Deep Management Experience. Our management team has 20 years combined experience, involved with over 86 restaurant openings, and deep involvement with the Atlanta restaurant industry. The total capital requirement to launch SEASONS Restaurant & Lounge is $740,000, of which $643,000 is allocated to start-up capital, and $97,000 as business operations cash reserve. This Plan is being submitted in order to secure a Business loan for $430,000. The loan will be used towards Equipment purchase, Design, Construction, and Operational Start-Up expenses. As I am the owner, I am investing $110,000 in personal capital. Private Investors, who will be part owners with a non-managerial interest in the business, will contribute the remaining $200,000. As owner, our commitment is to take personal accountability for all financial debt. We have taken the necessary precautions to ensure the business is fully capitalized, and have addressed all financial shortfalls to ensure a successful business start-up. Under a realistic scenario, the company should have over $84,000 in cash balance the third year. Even with the worst-case sales scenario, we reach a Net Worth break even at the end of Year 5. On a linear projection, the entire financial debt will be retired...
tracking img