Mock Business Plan
Economics of the Business
The profit potential for the proposed meal plan change is an increase in revenue for the University as well as the surrounding participating restaurants in the area. Both commuter students and students who reside on campus both agree that if more of the surrounding restaurants were to start accepting meal plans then they would definitely eat at the restaurants more often. The university would gain more profit through the profit it gains through more commuter students participating because of the variety of options they are offered and also from students who live on campus increasing their meal plans in order to be able to use it for other restaurants. By assigning a monetary value of $7 to each meal swipe any left over money would be then given to the University. For example, if the meal is $5 at Subway and the student swipes their card the $5 would go to Subway and the leftover $2 would go to the University. If the meal costs more than $8 then the student would use two meal swipes and the remaining $6 would go to the University. The University may also be able to network with the surrounding restaurants which may cause more jobs for students who may be looking to work while they are in school or even when they graduate.
The only costs occurred in this plan maybe the cost of the swipe machines and maybe advertising for the university to make the students aware of which restaurants participate. The swipe machines can be bought online for around $25.00. The restaurants would pay the equipment costs to the University. The university will pay their current cots for the current meal plan so the only extra costs would be the costs for advertising to let the students become aware of which restaurants participate in the program. The break-even point could be reached within the first three months. The months to reach positive cash flow should happen immediately because this plan is only adding to the existing meal plan and besides advertising
The profit potential for the proposed meal plan change is an increase in revenue for the University as well as the surrounding participating restaurants in the area. Both commuter students and students who reside on campus both agree that if more of the surrounding restaurants were to start accepting meal plans then they would definitely eat at the restaurants more often. The university would gain more profit through the profit it gains through more commuter students participating because of the variety of options they are offered and also from students who live on campus increasing their meal plans in order to be able to use it for other restaurants. By assigning a monetary value of $7 to each meal swipe any left over money would be then given to the University. For example, if the meal is $5 at Subway and the student swipes their card the $5 would go to Subway and the leftover $2 would go to the University. If the meal costs more than $8 then the student would use two meal swipes and the remaining $6 would go to the University. The University may also be able to network with the surrounding restaurants which may cause more jobs for students who may be looking to work while they are in school or even when they graduate.
The only costs occurred in this plan maybe the cost of the swipe machines and maybe advertising for the university to make the students aware of which restaurants participate. The swipe machines can be bought online for around $25.00. The restaurants would pay the equipment costs to the University. The university will pay their current cots for the current meal plan so the only extra costs would be the costs for advertising to let the students become aware of which restaurants participate in the program. The break-even point could be reached within the first three months. The months to reach positive cash flow should happen immediately because this plan is only adding to the existing meal plan and besides advertising