Homework Assignment Details: The Start-up Expenses sub-section of the Descriptive Business Plan should include a discussion of the following elements: 1. A discussion of the applicable expenses to start the new business. These could include some (or all) of the following: costs of sales, professional fees, technology costs, administrative costs, sales and marketing costs, wages and benefits. Explain how each of these would impact your particular venture. 2. A discussion of any contingency percentage to cover any under estimation along with your rationale for this percentage The Capitalization sub-section of the Project Template should include a discussion of the following elements: 1. The sources of all loans (existing or proposed) including amounts, terms, and collateral. 2. The names and amounts contributed by each investor in the business including the percentage of ownership of each investor. Assignment Details We discussed Keith’s concerns with establishing Greenfield ventures in Bolivia and Peru, at the urging of the head of Zip- 6’s Brazilian unit and you discussed some entry alternatives. In this Assignment, you are asked to assume the role of a Zip-6 Business Analyst preparing a report for Ravi and Keith outlining the possible economic and political risk factors involved in establishing plants within these two countries. For this Assignment, research the following web resources: Look up Bolivia and Peru on the CIA Fact Book site and the Michigan State University global EDGE site by placing the links below in your browser: CIA Fact Book: https://www.cia.gov/library/publications/the-world-factbook/index.html Michigan State University globalEDGE™ website: http://globaledge.msu.edu/Countries Respond to the following checklist items: Checklist: 1. Analyze the possible political risks in building plants in each of these countries (Bolivia and Peru) 2. Analyze the possible economic risks in building plants in each of these countries (Bolivia and Peru) 3. Outline these risk factors for each country in your report Political Risk Factors according to Hill, (2011) refers to “The likelihood that political forces [or the government] will cause drastic changes in a country’s business environment that will adversely affect…goals of a business enterprise” (p.82). Economic Risk Factors according to Hill, (2011) refers to “The likelihood that economic mismanagement will cause drastic changes in a country’s business environment that hurt the profit or other goals of a particular business enterprise” (p. 83). Reference Hill, C.W. (2011). Global business today (7 ed.). New York, NY: McGraw- Hill. Respond in a minimum of 1 page in APA format to this Assignment Running head: Narvin-Café and Lounge Narvin-Café and Lounge Parvin Hasanova Oskouie Kaplan University AB209: Small Business Management Instructor: Laura Pogue 11/ 19/ 2012 .

1. Homework Assignment Details:
The Start-up Expenses sub-section of the Descriptive Business
Plan should include a
discussion of the following elements:
1. A discussion of the applicable expenses to start the new
business. These could include some
(or all) of the following: costs of sales, professional fees,
technology costs, administrative costs,
sales and marketing costs, wages and benefits. Explain how
each of these would impact your
particular venture.
2. A discussion of any contingency percentage to cover any
under estimation along with your
rationale for this percentage
The Capitalization sub-section of the Project Template should
include a discussion of the
following elements:
1. The sources of all loans (existing or proposed) including
amounts, terms, and collateral.
2. The names and amounts contributed by each investor in the

2. business including the
percentage of ownership of each investor.
Assignment Details
We discussed Keith’s concerns with establishing Greenfield
ventures in Bolivia and Peru, at the urging of
the head of Zip- 6’s Brazilian unit and you discussed some entry
alternatives. In this Assignment, you are
asked to assume the role of a Zip-6 Business Analyst preparing
a report for Ravi and Keith outlining the
possible economic and political risk factors involved in
establishing plants within these two countries.
For this Assignment, research the following web resources:
Look up Bolivia and Peru on the CIA Fact Book site and the
Michigan State University global EDGE site
by placing the links below in your browser:
CIA Fact Book: https://www.cia.gov/library/publications/the-
world-factbook/index.html
Michigan State University globalEDGE™ website:
http://globaledge.msu.edu/Countries
Respond to the following checklist items:

3. Checklist:
1. Analyze the possible political risks in building plants in each
of these countries (Bolivia and Peru)
2. Analyze the possible economic risks in building plants in
each of these countries (Bolivia and Peru)
3. Outline these risk factors for each country in your report
Political Risk Factors according to Hill, (2011) refers to “The
likelihood that political forces [or the
government] will cause drastic changes in a country’s business
environment that will adversely
affect…goals of a business enterprise” (p.82).
Economic Risk Factors according to Hill, (2011) refers to “The
likelihood that economic mismanagement
will cause drastic changes in a country’s business environment
that hurt the profit or other goals of a
particular business enterprise” (p. 83).
Reference
Hill, C.W. (2011). Global business today (7 ed.). New York,
NY: McGraw- Hill.
Respond in a minimum of 1 page in APA format to this
Assignment

4. Running head: Narvin-Café and Lounge
Narvin-Café and Lounge
Parvin Hasanova Oskouie
Kaplan University
AB209: Small Business Management
Instructor: Laura Pogue
11/ 19/ 2012
Project Deliverables Checklist: (All units)
Place a checkmark here as a reminder that you have completed
this particular section of your descriptive
business plan!

5. ___Unit 1 (None)
_X_Unit 2 (Business Description, Vision Statement, Mission,
and Motivation Statements)
_X__Unit 3 (Description of Products or Services)
_X__Unit 4 (Marketing Plan)
_X__Unit 5 (None)
_X__Unit 6 (Operational Plan)
_X__Unit 7 (Management and Organizational Plan)
_X__Unit 8 (Financial Plan) (Descriptive)
Executive Summary (Unit 9)

6. (This portion of your mini-business plan should contain a brief
overview of everything in your plan. This brief
overview should contain an explanation of your product/service
line, the market you will serve, and a brief
summary of your financial goals. This should be completed in
Unit 9.)
Business Description (Unit 2)
“NARVIN”-Café and Lounge has founded and created by 2
young and energetic sisters, Parvin and Narmin
Hasanova in 2012. This Atlanta based lounge, will operate in
Buckhead area, a single unit, medium-size
restaurant serving healthy, fresh, tasty and homemade dessert
and appetizers. Exact location will be determined
based on budget and target market.
Vision Statement (Unit 2)
“NARVIN” will be totally unique concept and different. The
mission will be to exceed beyond the customers’
expectations in every sense and define the perception of
excellence. The atmosphere and the menu will not only
please customers taste but also will create exciting and fun
environment where they get away from everything
to relax and take out a stress. The employees will be trained by

7. professionals with outstanding customer service
and will be empowered to make quick decisions based on a
philosophy and ethic codes of our business.
Mission Statement (Unit 2)
The company’s goal to achieve success in every path we step
into. The first mission is to create financial
security of a lounge. These are the certain point we have to
consider to accomplish our goal: 1) to make sure of
safety and health effects of our products on the health and well
being of our customers (and our staff), 2) the
impact that our business and its practices can have in our
modern society and affect of choices we make in our
environment 3) provide high quality of attitude, understanding
and communication between management, staff,
customers, and vendors. 4) To create neat, comfortable and
modern premises for our guests and staff to meet
high standards.
Personal Motivation (Unit 2)
Being very social and outgoing girls, Parvin and Narmin love
hanging out with friends over coffee or just be in
a place where they can grab a tasty coffee with some nice
dessert and at the same time hangout at the bar area

8. till late with friends. But they always were drawn to upscale
coffee and dessert places where they enjoy not only
the goodies they offer but also environment and great quality
people. Living in Atlanta area for 7 years now ,
Parvin always had a problem of finding good place to hang out
where you will be fine only ordering a coffee
beside being in Starbucks or other coffee shops or just get a
drink without feeling obligated you need to order
full entrée in order to sit down in upscale restaurant. So, the
idea came to the owners when she shared hew new
idea with her younger sister of creating this fine and exciting
environment with full of quality, passion,
excitement and personality as themselves. Having great skills of
baking Parvin wanted to put her skills to work
as well, where Narmin wanted to create the environment with
her designer skills. So, that’s where the all dream
started and they are committed and determine to achieve their
goal. This lounge will serve a dual purpose by
providing not only quality food and desserts as well as will
provide the area for upscale intimate hangout. In
addition to its very unique decor, one of the more unique
features of this lounge will be music entertainment and

9. fresh custom made crepe menu where you build your own crepe.
Skills and Experiences for New Venture (Unit 2)
Having great baking skills Parvin will try to master her
homemade baking recipes and offer high quality fresh
made pastry to all clientele. Narmin’s designer skills will come
handy designing the location to modern, high
standards which will please our upscale clientele. In addition to
all handy skills, these 2 girls have the right
enthusiasm, passion, commitment and dedication for their
business. They believe in hard work, they are
motivated, determined and have right approach to business.
Their outstanding people personality, social life
totally matches their gorgeous look and this great combination
is what strives for success. They are in a right
place, at the right time with right attitude!
Basic Decision Making Process (Unit 2)
The purpose business plan is development of basic business
planning principles and to identify ways of
effective management. The development and decision-making -
is a creative process in the work of leaders at
every level, including: the formulation and goal setting, study

10. of the problem on the basis of the information
received, the selection and justification of the criteria of
efficiency and the possible consequences of a decision
and a discussion with specialists of different solutions to the
problem. This process is activities combined in a
system of management subjects, aimed at achieving the
objectives of the company through the implementation
of specific functions by using control methods. Decisions
should be based on accurate, current and projected
information, analysis of all the factors that influence the
decision, taking into account the anticipation of its
possible consequences. Managers must continually and
comprehensively study the incoming information to
prepare for and acting upon management decisions that can be
agreed at all levels of the hierarchy in-house
management. The amount of information that must be processed
to develop effective management decisions is
so great that it has long surpassed human capabilities.
Description of Products or Services (Unit 3)
NARVIN menu will be moderate sized, offering a
collection of ethnic and American items describing

11. (low-fat, low cholesterol, natural ingredients) flavor and
quality. It will offer very creative and fancy menu of
desserts including fresh baked cakes, roulettes, crème Brule,
different taste and flavored pound cakes and also
some dough pastries with fillings and tapas style variety of
authentic and American appetizers with images and
take out menu.
In addition, we will have full menu alcoholic and non alcoholic
beverages with few signature drinks that only
will be available in NARVIN for its great clientele. These
products will be available to our customer in 2
different ways: sit down service at the lounge and take out
menu.
“NARVIN’ will sell gourmet desserts with exceptional customer
service in a comforting and cozy
atmosphere. The big difference between “NARVN’ and other
cafés will be selection of custom crepe menu
.Customers will be able to custom create their own crepe
depending what flavor they like (banana, strawberry,
chocolate, rum, cinnamon flavored) and also they will have an
option to choose their toppings as well such as
with ice cream, fruits, chocolate cream, peanut butter. They will
have dine-in or take out option. For later on,
we also plan to offer carry-out to prepare our desserts at home

12. or have a special cake or crepe trays to be
prepared for a celebration. Another feature that “NARVIN” will
implement is offering music entertainment in
dessert lounge. Typically, music entertainment is offered at
nightclubs or high end restaurants where you have
to actually use full dining menu or opposite, if customer
chooses to eat dessert there is not much of selection to
choose to take your perfect date or have any form of celebration
but being in a coffee shop as Starbuck’s,
Caribbou Coffee or etc which is not exactly some clients are
looking for. “NARVIN” will be definitely different
experience than just having a cup of coffee. It will gather all
features of upscale living, quality, taste and
experiencing different aspect of Eastern and Western culture.
“NARVIN’s menu will feature a selection of Mediterranean
desserts and appetizer dishes influenced by owner’s
Mediterranean background and traditions. Despite the fact that
it will target all market, it will still have the
Mediterranean origin/influence to it.
Generally, the dishes will offer variations on "Mediterranean"
cooking themes. Fruits and vegetarian offerings
will change seasonally.
Musical selection will span jazz, Latin, urban and Eastern

13. musical traditions to create that cozy and fun
atmosphere.
Production
Food production, processing and assembly will take place in the
main kitchen area of the lounge. Fresh fruits
and dairy products will be used to crate most of the dishes from
scratch and will be purchased in weekly basis to
meet the high quality standards. The chef must exercise strict
standards of sanitation, quality production, and
presentation or packaging over the kitchen and service staff.
Marketing Plan: Market Analysis (Unit 4)
Researches show that the restaurant market is a $100+ billion
industry in the United States and increasing 5%
every year. So, it means more and more people are choosing to
eat out and same thing can apply to dessert and
pastry industry as well. Eating out has become part of lifestyle
lately. According to many financial experts and
based on Consumer Spending Report the numbers shows an
increase in dining out at restaurants and lounges. In
the recent study, 27- percent said that they have spent more than
they planned eating out while 18 – percent said

14. they actually spent less. This study showed that there was an
upward trend of 5-percent in dining out since last
November.
We believe that another factor that influences and raises up a
percentage number of eating out frequency is the
recent law which was part of the health care overhaul that
required calorie-posting in restaurants with 20 or
more locations to include calorie counts on menus, menu
boards, and drive-thrus. Revealing calorie counts also
encourages consumers to eat more healthfully and fresh food
items.
Now, looking to dessert industry, coffee being major beverage
in café and lounge is a $5+ billion per year
industry in the United States, and has grown at a rate in excess
of 20% per year in the last decade. That
sustained growth is expected into this decade according the
Specialty Coffee Association of America.
In the mid-1990s, Atlanta had only a handful of specialty
coffee retailers as San Francisco Roasters, Cafe
Diem, Cafe Intermezzo, Aurora Coffee, J. Martinez, and others.
Now, coffee roasters, shops, and suppliers take
more than two full pages in the Yellow Pages. Starbucks
announced last year that it expects to open 600

15. additional stores in 2000.
So, looking at all these factors, although café and lounge market
is highly competitive, Atlanta, GA is still in
high demand for a healthy, fresh made pastries combined with
specialty coffee and full bar offering exclusive
non alcoholic and alcoholic drinks in fun and exciting
environment. Generally, we do understand that entering
into this market might not be that easy. The industry is highly
and in addition there are large number of
substitutes and the suppliers to this market with great deal of
power as little shops and supermarkets that offer
small pastries on the go.
http://nutritioncommunicationexperts.com/Nutrition-
Experts/nutrition-communications-experts/nutrition-advocacy-
and-testifying/
Market Segmentation
As “ Narvin” will be located in Buckhead area, our target
market will be wide and vary in age group, ethnicity,
status and etc., Being uptown district of Atlanta and
comprising approximately the northern one-fifth of the

16. city, Buckhead is a major commercial and financial center of
the Southeast, and it is the third-largest business
district in Atlanta, behind Downtown and Midtown. The
district's high-rise office buildings, hotels, and
condominiums form a highly urbanized core along Peachtree
Road. Surrounding this dense core are Buckhead's
suburban neighborhoods, which feature large single-family
homes situated among dense forests and rolling
hills. Buckhead which is in intersections of Lenox, Peachtree
and Piedmont Roads, is a shopping district with
more than 1,400 retail units where shoppers spend more than $1
billion a year .So, by all means NARVIN
would provide one of the best dessert and beverage
opportunities for the wealthiest district in Atlanta area for
upscale clientele.
“Narvin” café and lounge will vary in age, ethnicity, religion,
culture, income and gender. Owners of this
upscale café and lounge been born and raised in Azerbaijan
located at the crossroads of Western
Asia and Eastern Europe had opportunity travel all over Europe
as well as Canada and North America where
they experienced best of the eastern and western culture,
cuisine, traditions and mentality. So, their idea to
provide not just café and lounge that will provide coffee and

17. pastry but also being able to show and share from
their experiences around the world to their multicultural side of
their ethnicity, mentality, traditions and bring
different aspect to Mediterranean culture with possibility to
present to their consumers combination of Eastern
culture where they were born with Western culture where they
have been raised.
Typical age group will be between 20 to 34. Although the café
will appeal to all age groups, it’s this group that
will seek our healthy food item as well as can enjoy the lounge
atmosphere till late that NARVIN can offer. It’s
also true that educated consumers tend to seek out healthy food
items and who maintains their healthy lifestyle.
Our target market audience will be all Metro Atlanta area
residents but based on location it will also target, in-
town residents, downtown hotel visitors/conventioneers, and
workers of nearby businesses.
http://en.wikipedia.org/wiki/Southeastern_United_States
http://en.wikipedia.org/wiki/Downtown_Atlanta
http://en.wikipedia.org/wiki/Midtown_Atlanta
http://en.wikipedia.org/wiki/Peachtree_Street
http://en.wikipedia.org/wiki/Western_Asia
http://en.wikipedia.org/wiki/Western_Asia
http://en.wikipedia.org/wiki/Eastern_Europe

18. Located in the heart of Buckhead which is home to the ninth-
wealthiest zip code in the US (30327), with a
household income in excess of $341,000 per year, Narvin café
and lounge is targeting high end clientele and
upscale neighborhoods which mean our customer's dining and
entertainment expectations are beyond the
definition of excellence. Narvin will be not only supplier of full
service dining experience with full dessert
menu and exclusive bar, but goal is also appeal with our lounge
experience to other customers who regularly
looking for an opportunity to enjoy Atlanta's coffeehouse and/or
evening entertainment scene.
Keeping the menu and the entertainment "fresh and exciting"
will be a constant challenge to the business.
Atlanta is experiencing new trend to create more and more
dining/entertainment venues. So, “Narvin” will be
perfect fit in this industry at the moment.
Competitors
This is very competitive market and expects full commitment,
determination and full research of our
competitions around. NARVIN’s big competition is typically a
20 to 30 seat restaurant/ café venues. All of the

19. surrounding dining establishments offer full dinner menu with
limited dessert menu and full bar. “Narvin”s goal
to target those customers that have sweet tooth and are looking
for only dessert and fresh made pastries if they
don’t feel like having full dinner entrée.
One of our signature items will be crepe menu, where our
customers will have an opportunity to custom build
their crepe from scratch and the way they want it, including
flavor, taste and toppings and all freshly made,
instantly before their eyes.
As bite-size desserts have been predicted as a food trend for
years, but they haven’t really made their way out
from dining sector to dessert industry. That’s one feature item
NARVIN will offer as well. Bite sized desserts
http://en.wikipedia.org/wiki/Wealth
and cookies will be signature dessert items in our menu for
customers that don’t want to go over their sugar
limit.
The most important element of our marketing strategy is to
deliver quality product and outstanding customer
service. Our food items, entertainment should sell with only
going mouth to mouth references and

20. recommendations. “Narvin” will closely work and establish
business relationships with the concierges of the
nearby hotels and with the Atlanta Convention and Visitors
Bureau to expand our target market and reach out
for more audience. We will offer Special Event Sales offering
to sell to companies for private parties and
special events including gathering services for special
occasions. As we stand for our exclusive brand name,
offering first class entertainment and top quality food items, we
will include attendances to food conventions,
participation in local radio and tv channels on local stations,
guest appearances in nearby business openings as
our main promotion strategy in marketing.
Segments of the target market tend to offer to our customers to
dine out with full dessert menu along with
exclusive signature appetizers, visit coffee shops, and seek
evening entertainment frequently in one place.
Operational Plan (Unit 6)
“Narvin” café and lounge will offer moderately-priced
food to an upscale casual dining market. The venue
will feature not only brewed coffee and espresso-based
beverages, fruit smoothies and juices but also will offer
full bar with alcoholic drinks as well. A dessert bar will serve a

21. range of freshly prepared desserts including
cakes, mini bites as well as fresh made crepes from scratch. Our
menu will contain both carry-out and dine-in
menu selections, while evening hours will accommodate full-
service dining along with full-service bar and light
with entertainment. Depending on a target niche market, a
limited selection of foreign newspapers, as well as
art, architecture, cinema, design and lifestyle magazines will be
sold here as well. Additionally, the venue will
eventually consider featuring art and products made by young
and talented artists in future, providing a cross-
selling opportunity.
Most of our products will be produced in our own facility
including crepes, cakes, mini bites, roulettes;
appetizers and etc. “Narvin” also will work with different
variety vendors to meet our supply demand as well.
Our pastries mostly will be baked on regular basis as 3-4 times
a week depending how short or how far we go
with it. But our crepe menu will be freshly made right there at
the time of the order and that is what it will make
it signature item of the venue. Clients will be able to pick a
crepe and build it from scratch within minutes with
flavor and toppings that they desire.

22. NARVIN’s menu will feature a selection of Mediterranean
desserts and appetizer dishes influenced by owner’s
Mediterranean background and traditions. Despite the fact that
it will target all market, it will still have the
Mediterranean origin/influence to it.
Generally, the dishes will offer variations on "Mediterranean"
cooking themes. Fruits and vegetarian offerings
will change seasonally. Lounge area of this establishment will
need reservations to be made in advance or will
run on “wait to be seated” policy by hostess of the facility.
Thus, generally desert items and appetizers will be
served in lounge area of the establishment along with full bar
and non alcoholic beverage menu. Our bar area
however will run on first come and first serve basis which also
will offer appetizers and desert to be ordered to
the bar area.
Musical selection will span jazz, Latin, urban and Eastern
musical traditions to create that cozy and fun
atmosphere.
“Narvin” lounge and café will be located in heart of Buckhead
Atlanta in a newly renovated facility designed
by special designer group to meet latest trend and expectations

23. of our target market. This facility will be divided
equally to cafe/lounge function and the bar/entertainment
function. Café and Lounge part will feature seating
area for approximately 50-60 people with flexible
indoor/outdoor patio seating for an additional 30 seats. The
bar/entertainment area however will provide a full-service bar
with alcoholic and non alcoholic beverages and
also dine-in and carry-out coffee based beverages, as well as a
dessert bar. Bar/entertainment portion of the
business will also contain small entertainment stage with live
music or DJ, and niche magazines and
newspapers available for purchase. The facility's entrance area
will feature a simple garden type of courts to
provide comfortable waiting areas during the warm weather
months where they can have drinks on the go while
they wait to be seated.
Normally, as any other business that is located within the city
limits “Narvin” must apply for a business license
with the city's clerk office. If, the facility will be located in an
unincorporated area of the county then this
business may not need a business license. Generally a business
license costs a flat fee, with annual renewal. As
a small business “Narvin” will have to charge sales taxes on all
sold items. “Narvin” must obtain health permits

24. which will be issued by the county health department to protect
the general public from restaurants that practice
unsafe food handling and storage procedures. Like the business
license, it might be involve an annual licensing
fee. The health department regularly inspects the cafe, and has
the power to issue a fine or revoke the health
permit, should the cafe pose a public safety risk. As “Narvin”
café and lounge will be offering alcohol listed bar
menu, it will also need a liquor license issued from the state's
liquor authority. Typically, this is the most
difficult, and most expensive, of all licenses. Normally, a
license to sell beer and wine is less expensive than
one for a full bar. Rules regarding liquor licenses vary by state,
yet normally involve an application process
where the state investigates the applicant, and neighbors of the
intended cafe have an opportunity to object to
the license. Check list for pre-opening must be completed and
meet all requirements as well. (Reference A)
1
“Narvin” is a small family business with approximately 18
employees in total including: One Executive
chef/baker, two Chef Assistants, two dishwashers, two

25. bartenders, 6 wait staff, one hostess, three bus staff and
one accountant. Management will be consisted of two co-
founders sisters who will be in attendance during
normal business hours from 11 a.m. to 11 p.m. Monday thru
Thursdays and from 11a.m to 2 a.m Friday thru
Sunday. In addition, specific employees will have supervisory
roles in future for times when owner-founders
are not able to be present.
Hours will be shifted and divided between groups of staff
equally not exceeding 40 hours a week per staff
member. Kitchen staff will be working from opening to closing
every day shifting hours between each other.
Weekly schedule of employees will be posted monthly by
management and pay will be paid biweekly every
second Friday of the month. Company will have executive
accountant on board to operate and manage
company’s operational expenses as well as to assist with all
finance related matters including profit and loss,
vendors, paychecks, vacations, yearly tax paperwork.
“Narvin” will conduct inventory to measure the amount of food,
supplies and other products the facility uses
over time. This usage can be converted to a cost, which is then
will be compared to total sales for a given period

26. to get a feel of how much profit your business makes from the
product sold.
Total inventory generally will be counted once a week. Since it
is physically counted by hand and by sight and
to avoid problems with counting, the same person will count the
inventory every time. Because it is important
that the same hands and eyes are counting it every week so that
counts are consistent. Even one of the owners
will count the inventory once more in case the person is
unavailable one week or miscounted somewhere, so
two pairs of eyes consistently verifying the counts to confirm
the right numbers. It also can be done with the
general manager and the kitchen manager, for instance.
There will be times where company will experience loss in
inventory. Some of these scenarios will include:
1
http://www.riversideca.gov/building/pdf/handouts/RESTAURA
NT%20GUIDELINES.pdf
http://www.foodserviceresource.com/PreOpeningChkList.pdf
http://www.riversideca.gov/building/pdf/handouts/RESTAURA
NT%20GUIDELINES.pdf
http://www.foodserviceresource.com/PreOpeningChkList.pdf

27. Waste- it happens in each restaurant business, everywhere
where server can accidentally spill food or a
kitchen worker can burn crepe or mess up appetizer. No matter
how it happens, restaurant staff should
get into the habit of recording all wasted items.
Complimentary items. Sometimes, restaurant staffs have
specific reasons to give a customer a
complimentary item as being loyal valued customer for his
return business, or even it can be certain
customers are celebrating a special occasion at your restaurant.
Even for situations where free items are
given as rewards rather than compensation for an unpleasant
experience, but these items must be
approved by management. This is to verify the legitimacy of the
transaction, as well as to appropriately
account for the depleted inventory.
Transfers. Transfers usually involve moving inventory from
one department to another, such as from
the bar to the kitchen or vice versa. Just make sure any transfers
are accounted for so they do not
negatively affect your P&L.
The training of chef assistants will be done by experienced

28. chef/baker who is specialized in restaurant industry
and the rest of the staff will be trained by owners and
experienced managers to meet high standards of quality
and professionalism. Wait staff must have at least year
experience in food industry and must be at legal age of
serving alcohol, however in addition to all these requirements
bartenders must be highly experienced with
outstanding personality and fast hands on skills of handling one
full busy bar area on their own.
Credit procedure defines how company implements offering
credit to its customers. Company’s policy will
show what steps we should take to collect money when the
customer has not paid. This should detail when the
customer will be contacted, how they will be contacted and
what steps to take at what intervals to get the
highest return from the customer.
To extend credit to customers can be a difficult decision for any
small business owner. If the business is going
to offer credit, they will need a credit policy. The business,
amount and types of credit company offers will
affect the type of policy they actually will need. Credit policy
generally will need to cover all these aspects:
who gets credit and how much do they get

29. how business will handle collections
What the business do if they don’t pay
There are 4 types of credit is offered for business credit which
are:
Cash
Checks
Credit Cards
Open Credit Account
The types of credit “Narvin” will offer and the terms under
which that credit is granted will likely be
determined by the company. Credit terms will be used as a
sales tool, in fact, credit terms is a function of
product price. The terms also will affect company’s cash flow
and credit risk.
“Narvin” café and lounge will accept major credit cards and
cash as a form of payment.

30. Management and Organization Plan (Unit7)
“Narvin” is a small family business with approximately
18 employees in total including: One Executive
chef/baker, two Chef Assistants, two dishwashers, two
bartenders, 6 wait staff, one hostess, three bus staff and
one accountant. Management will be consisted of two co-
founders sisters who will be in attendance during
normal business hours from 11 a.m. to 11 p.m. Monday thru
Thursdays and from 11a.m to 2 a.m Friday thru
Sunday. In addition, specific employees will have supervisory
roles in future for times when owner-founders
are not able to be present. Supervisor role will be major role
that will manage and operate the café when owners
not around and also will report daily manual to owner on daily
basis. His job will be to supervise the day-to-day
running of the café in accordance with the aims and objectives
described as the purpose of “Narvin” Café and
Lounge. He will be working approximately 37.5 hours per week
and will be paid on salary. General tasks will
include but not limited to:
• To ensure café has sufficient supplies needed to maintain the
daily menu.

31. • To supervise other café staff during shift hours
• To supervise other kitchen staff in the preparation and cooking
• To ensure that a weekly “cash & carry” run is carried out
which takes into account birthday parties,
outside catering activities or any other special activities that
might require extra supplies or special
requirements.
• To ensure that any transactions for the café are covered by
appropriate receipt.
• To assist in the planning and other operational practices
required when putting on special events i.e.
buffets, parties or any special occasions.
The first priority of the café staff is to provide a friendly and
efficient full service to all customers at all times
which will be:
• maintaining the opening and closing times as well as shift
hours as agreed
• providing the full menu throughout the opening times of the
café, unless is requested otherwise by café

32. management.
Every new hire will be in Training in order to provide
efficient customer service and familiarize
themselves with required rules and regulations. Thus, supervisor
will have major role to ensure the quality of
service café offers. These tasks will include:
• Provide induction training (including health & safety, general
farm rules and etiquette) to casual workers,
volunteers and trainees
• To ensure that all members of staff and any new members have
up to date health & hygiene certificates and to
liaise with the café manager and training manager regarding
other relevant training opportunities.
• Ensure that all Café staff are fully aware of customer service
commitments which
Mean having regular meetings with Café staff and management
Two co-owners of the “Narvin” café and lounge will be
in charge of staffing to ensure that a monthly
schedule is completed with necessary staff holidays, vacation
days, illnesses etc.
It will be the responsibility of the café owners to hire and fire
staff although supervisor will be consulted on this

33. issue. Most of the staff will be on clock in system to ensure that
all members of staff complete their time sheets
on timely manner. These sheets will be handed on to finance
officer or accountant for evaluation and
calculation.
It will be supervisor’s responsibility to inform one of the café
owners of any problems concerning staff not
carrying out duties, being late, staff illness etc.
Hours will be shifted and divided between groups of staff
equally not exceeding 40 hours a week per staff
member. Kitchen staff will be working from opening to closing
every day shifting hours between each other.
Weekly schedule of employees will be posted monthly by
management and pay will be paid biweekly every
second Friday of the month. Company will have executive
accountant on board to operate and manage
company’s operational expenses as well as to assist with all
finance related matters including profit and loss,
vendors, paychecks, vacations, yearly tax paperwork.

34. Financial Plan (Unit 8)
A key part of your Business Plan is the Pro Forma Financial
Statements! This sub-section will provide the
following documentation: An estimated 12-month profit and
loss projection; a pro forma balance sheet; and a
pro forma income statement. In order to accurately make these
critical estimates, it is necessary to conduct
primary and secondary research into the particular market and
venture. The goodness of the business plan rests
upon the accuracy of these financial estimates.
While this course examines these financial elements, you will
not create these pro forma (forward looking)
financial statements in this descriptive business plan. Instead,
you will focus on two other important sub-
sections; the Start-Up Expenses Sub-Section and the
Capitalization Sub-Section.
The Start-up Expenses sub-section of the Descriptive Business
Plan should include a discussion of the
following elements:
1.A discussion of the applicable expenses to start the new
business. These could include some (or all) of

35. the following: costs of sales, professional fees, technology
costs, administrative costs, sales and
marketing costs, wages and benefits. Explain how each of these
would impact your particular venture.
2.A discussion of any contingency percentage to cover any
under estimation along with your rationale for
this percentage
The Capitalization sub-section of the Project Template should
include a discussion of the following
elements:
1.The sources of all loans (existing or proposed) including
amounts, terms, and collateral.
2.The names and amounts contributed by each investor in the
business including the percentage of
ownership of each investor.
References (Separate Page)

36. All citations in your text above need to also be in your
references here in APA format. Include no references if
you have not also cited them above.
Appendix (Separate page at end of document, if necessary)
(An appendix would be used in a business plan to contain large
or lengthy elements that would make reading
the body of your plan cumbersome. It would also contain
associated elements like figures, charts, drawings,
photographs, etc.)