Business Plan Presentation

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Business Plan Presentation

  1. 1. fusion<br />Make People Happy, Have Some Fun and Be Number 1!               Yours Truly Restaurant. For AM & PM people <br />
  2. 2. EXECUTIVE SUMMARY<br /><ul><li>Blend of Italian, Chinese, continental and Indian.
  3. 3. Located in the booming, and rapidly expanding city of Mumbai.
  4. 4. Inspired menu from different countries'
  5. 5. Seven days a week
  6. 6. Relaxed, friendly and correct service
  7. 7. Hiring of experienced staff
  8. 8. Venturing into the Catering business
  9. 9. Total sales allocation to be 85% restaurant sales and 15% catering sales. </li></li></ul><li>RAISING OF FUNDS<br /><ul><li>Secured loans </li></ul> 40,000,000 at an interest rate of 10% <br /><ul><li>Unsecured loans</li></ul> 20,000,000 at an interest rate of 6%<br />
  10. 10. FINANCIAL SUCCESS<br /><ul><li>We believe this will be achieved by offering high-quality service and excellent food with an interesting twist.
  11. 11. Start-up expenditure </li></ul> Lease deposit 26,00,000<br /> Furnishing and Interior 22,00,000<br /> Support Equipments 20,00,000<br /> Licensing 7,00,000<br />
  12. 12. MISSION<br /><ul><li>Great tasting food, but have efficient and friendly service
  13. 13. Choice for all families and singles, young and old, male or female
  14. 14. Employee welfare </li></li></ul><li>OBJECTIVES <br /><ul><li>Keeping food cost under 35% revenue.
  15. 15. Keeping employee labor cost between 25-30% of revenue.
  16. 16. Stay in the restaurant business with excellent food and service.
  17. 17. Expand our marketing and advertising in neighboring cities viz. Pune and Nasik.</li></li></ul><li>KEYS TO SUCCESS<br /><ul><li>Unique and innovative fine dining atmosphere
  18. 18. Great food, great service and atmosphere.
  19. 19. Appeal to a wide and varied clientele.
  20. 20. Public relations
  21. 21. Controlling costs at all times without exception</li></li></ul><li>Future Plan<br /><ul><li> If the business is meeting its projections in an year than, we will start scouting for a second location and develop plans for the next unit.</li></ul>5 Year Plan<br /><ul><li>3 restaurants in different parts of the country like Delhi, Kolkata, Pune, Mumbai etc.
  22. 22. Although the restaurant industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth.</li></li></ul><li>COMPANY DESCRIPTION<br /> Vision: <br /><ul><li>Extraordinary dining experience
  23. 23. Aim to be the best in the multi cuisine restaurant business</li></ul>Company ownership:<br /><ul><li>Partnership between Shantanu Singh & PriyankaBabbar
  24. 24. Each partner will have a holding of 50%</li></ul>Company location:<br /><ul><li>Palm Spring Mall, Malad (west) - Link Road, Mumbai</li></li></ul><li>COMPANY DESCRIPTION CONTD.<br /> Basic product offering : <br /><ul><li>Italian, Chinese, Indian & Continental
  25. 25. Healthy food (low fat, low cholesterol)</li></ul> Markets to be served:<br /><ul><li>Students
  26. 26. Couples / families
  27. 27. Destination customers
  28. 28. Working class singles
  29. 29. Business persons
  30. 30. Tourists </li></li></ul><li>ENTREPRENEURSHIP<br /> Formalities & expenses: <br /><ul><li>Registration of the company
  31. 31. Licensing
  32. 32. Furnishing
  33. 33. Electrical Fitting
  34. 34. Kitchen and Crockery
  35. 35. Insurance </li></ul>Risks & liabilities<br /><ul><li>Not able to break even at the expected time
  36. 36. Repayment of loan’s
  37. 37. Unlimited liabilities of the partners.</li></li></ul><li>Competition/Competitive Advantage<br />Direct Competition <br /><ul><li> Kareem's
  38. 38. Lemon Grass Café
  39. 39. Machan</li></ul>Advantages <br /><ul><li> Location
  40. 40. Multi – Cuisine
  41. 41. Expert Management Team</li></li></ul><li> Competitive Edge<br /><ul><li> Fusion will leverage it’s multi-pronged competitive edge to </li></ul> quickly gain market share.<br /><ul><li> Our competitive edge is the menu, the chef, the environment, the </li></ul> management, the service and our friendly place.<br /><ul><li> The chef has an excellent taste for what fine dining is and requires
  42. 42. Our environment is elegant and comfortable and our decor is </li></ul> warm and relaxing.<br />
  43. 43. Strategy And Implementation Summary<br /><ul><li> Our strategy is simple, we intend to succeed by giving people a </li></ul> combination of excellent and interesting food in an environment <br /> that appeals to a wide and varied group of people.<br /><ul><li> We will focus on maintaining quality and establishing a strong </li></ul> identity in our community.<br /><ul><li>We will keep our standards high and execute the concept so that </li></ul> word-of-mouth will be our main marketing force.<br /><ul><li> We will create an appealing and entertaining environment with </li></ul> unbeatable quality at an exceptional price.<br />
  44. 44. Marketing Strategy<br /> Sell For Tomorrow—Not just Today<br /><ul><li>Print media advertising
  45. 45. Flyers
  46. 46. Entertainment book coupons
  47. 47. Mass Media Vehicles
  48. 48. Billboards
  49. 49. E- business</li></li></ul><li> Sales Strategy<br /><ul><li> Word’s Of Mouth
  50. 50. Discount Coupons
  51. 51. Free Home Delivery
  52. 52. Concentrating on the customer's experience
  53. 53. Offer various specials throughout the week that people can come to </li></ul> enjoy.<br />
  54. 54. .<br />MARKETING ANALYSIS<br />7 P’s of Restaurant<br />PRODUCT:<br />Product marketing deals with marketing the product to prospects, customers, and others. <br />The products being offered at FUSION are-a cosmopolitan flair, comfortable atmosphere, striking décor, entertainment, engaging clientele along with an international menu comprising of multi- cuisines: INDIAN, ITALIAN , CONTINENTAL and CHINESE. <br />FUSION will be the only restaurant among all the competition which focuses the entire menu on healthy and low-fat cooking <br />PRICE:<br />Pricing is one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organization.<br />It costs to produce and design a product, it costs to distribute a product and costs to promote it.<br />The pricing strategies that we at FUSION will be considering during the preparation of the menu are- Competition pricing<br /> Product Line Pricing<br />Premium pricing<br />
  55. 55. PLACE<br /><ul><li> This refers to how an organization will distribute the service they are offering to the end user.
  56. 56. The organization must distribute the service </li></ul> to the user at the right place and at the right <br /> time.<br /><ul><li> Fusion is located at Palm Spring, Malad.</li></li></ul><li>PEOPLE:<br /><ul><li>An essential ingredient to any service provision is the use of appropriate staff and people.
  57. 57. The staff at FUSION is efficiently and well trained to serve the guests in the best possible way.
  58. 58. Our staff is well trained to give to our customer’s high quality of personal service.
  59. 59. The service delivered by our employees is a very important element of value. It is also an area where we can distinguish our selves.</li></ul>PROCESS:<br /><ul><li>This refers to the systems that are used to assist the organization in delivering the service.
  60. 60. A big emphasis is being placed on extensive research into the quality and integrity of our products.
  61. 61. They will constantly be tested for our own high standards of freshness and purity. </li></li></ul><li>PROMOTION:<br /><ul><li>Promotion involves disseminating information about a service, product line, brand, or company.
  62. 62. Promotion is generally sub-divided into two parts:</li></ul> Above the line promotion <br /> Below the line promotion <br />PHYSICAL EVIDENCE:<br /><ul><li>Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization.
  63. 63. Physical evidence is an essential ingredient of the service mix.
  64. 64. Consumers will make perceptions based on their sight of the service provision which will have an impact on the organization’s perceptual plan of the service.</li></li></ul><li>MARKET ANALYSIS SUMMARY<br /><ul><li>FUSION focuses on local and tourist restaurant seekers. People that have a desire for good food and a fascinating atmosphere.
  65. 65. The market customers for FUSION would develop from:
  66. 66. Local Neighborhood Marketing Program
  67. 67. Customer Frequent Diner Loyalty Program
  68. 68. Suggestive Selling Program to increase average check
  69. 69. Tremendous growth in upper level family income </li></li></ul><li>MARKET SEGMENTATION<br /><ul><li>The Business Man
  70. 70. Happy Couples
  71. 71. The Family
  72. 72. High-end Singles
  73. 73. Tourists</li></li></ul><li>MARKET PENETRATION<br /><ul><li>Entry into the market should not be a problem.
  74. 74. Restaurant has high visibility with heavy foot traffic all day long.
  75. 75. The local residents and students always support new restaurants and the tourists do not have fixed preferences.
  76. 76. In addition, Rs.4,00,000 has been budgeted for a pre-opening advertising and public relations campaign. </li></li></ul><li>SERVICE BUSINESS ANALYSIS<br /><ul><li>The restaurant industry is highly competitive and risky.
  77. 77. Most new restaurants opened by inexperienced owners struggle or fail.
  78. 78. However, those based on solid understandings of the market needs have a much higher chance of success.
  79. 79. Restaurants make money by taking inexpensive ingredients, combining them in creative ways, cooking them properly, and selling them at a much higher price</li></li></ul><li>UNIQUE SELLING PROPOSITION<br />
  80. 80. Market Feasibility Study<br /><ul><li>A market feasibility study is essential to gauge the practicality, prospects, potential of the project, and therefore it’s feasibility
  81. 81. We obtained an online sample of a survey conducted to gauge the tastes and preferences of city goers. The survey was done on about 120 people residents of Mumbai between 16 and 21 years.
  82. 82. From the survey, we came up with a SWOT analysis and marketing strategy to follow.</li></li></ul><li>SWOT ANALYSIS<br />STRENGHTS<br /><ul><li>First mover advantage
  83. 83. Economies of Scale
  84. 84. Varieties of food of the cuisine
  85. 85. Large number of bachelors/students/IT professionals
  86. 86. Catering to a wide range of people
  87. 87. No good restaurant near the location</li></li></ul><li>WEAKNESSES<br /><ul><li>High cost of operation
  88. 88. Not from a known group
  89. 89. Pricing
  90. 90. Competition
  91. 91. Difficulty In obtaining licenses</li></li></ul><li>OPPORTUNITIES<br /><ul><li>New restaurants in other parts of the city
  92. 92. Offer greater variety
  93. 93. High growth of the Hospitality Industry and tourism
  94. 94. Rising standard of living</li></li></ul><li>THREATS<br /><ul><li>Other concept restaurants
  95. 95. People may be restrictive
  96. 96. High attrition rate.</li></li></ul><li>Questionnaire<br /><ul><li>Based on the questionnaire, following feedback was obtained:
  97. 97. People look for customer service most, followed by décor.
  98. 98. People mind spending more money, even if they are offered quality of service
  99. 99. 3/4th of the people surveyed visit a restaurants at least once a week.</li></li></ul><li>Questionnaire<br /><ul><li>They prefer Indian cuisine the most, followed by Chinese, Italian and others
  100. 100. They look forward to new dining experiences given the opportunity
  101. 101. While choosing a restaurant, customers are price conscious.</li></li></ul><li>Entrepreneur’s personal resources<br />Financial institutions<br />Angel investors<br />Unusual resources<br />Venture capitalists<br />Public offering<br />Business development programme<br />POSSIBLE FINANCING OPTIONS<br />Financing Options<br />
  102. 102. Evaluating Financing Options<br /> Personal Personal Potential <br /> Control Risk Reward<br />Personal Resources H HH<br />Financial Institutions<br />(Debt Financing) L - M L L – M<br />Venture Capitalists<br />(Equity-Debt Financing) L – M L L – M<br />Angel Investors <br />(Equity Financing) L – M L L – M<br />Public Offerings<br />Equity Financing) L LL – H<br />Business Development <br />Program L – M L L – M<br />Unusual Sources L – H L L- H <br />L – Low M – Medium H - High<br />
  103. 103. COMPARISON OF VARIOUS SOURCES<br />
  104. 104. WHAT WE ARE CHOSING<br />LOANS FROM FRIENDS AND RELATIVES-<br /> 20 LAKHS(UNSECURED)<br />LOAN FROM FINANCIAL INSTITUTIONS<br /> -40 LAKHS(SECURED AGAINST THE BUSINESS ITSELF)<br />INTEREST:<br />6% annual rate from friends and relatives<br />12% annual rate from bank<br />
  105. 105. FINANCE<br /><ul><li> Profit and loss account.
  106. 106. Balance sheet.
  107. 107. Cash flow statement.</li></li></ul><li>P&L<br />
  108. 108.
  109. 109. Projected Balance Sheet of Fusion Company For First Three <br /> Years<br />
  110. 110.
  111. 111. Cash Flow Statement<br />
  112. 112.
  113. 113. Break Even Analysis<br />Thus the company is going to break even in the begin of the third year.<br />
  114. 114. Gross margin ratio<br />Gross profit = 14518635<br /> sales = 34675000<br />Gross profit ratio = 0.4187<br />
  115. 115. Liquidity ratio<br />Current assets<br />Cash = 92960<br />Closing stock =101135<br />Prepaid expenses=500000 <br />Total =694095<br />Current liabilities =6100000<br />Liquidity ratio= 0.1137<br />
  116. 116. OPERATIONAL ANALYSIS and HR <br />
  117. 117. LOCATION ANALYSIS<br /><ul><li>Customer access
  118. 118. Nearby business
  119. 119. Population
  120. 120. Population growth
  121. 121. Economic conditions
  122. 122. General business factors</li></li></ul><li>MACHINERIES<br />Main equipments in kitchen:<br />Support equipments:<br /><ul><li>Chimney
  123. 123. Air Conditioner
  124. 124. Music System
  125. 125. Computers
  126. 126. Water Filters
  127. 127. Software’s for data analysis
  128. 128. Heaters
  129. 129. Stoves
  130. 130. Fridges
  131. 131. Griller
  132. 132. Chillers
  133. 133. Trolleys
  134. 134. Microwaves
  135. 135. Mixers</li></li></ul><li>QUALITY TESTING PROCEDURE<br /><ul><li>ISO 9000-the only available internationally accepted standard for quality management system
  136. 136. Applicable to all kinds of organization of industries in manufacturing or service sector.
  137. 137. Systematic standardization and certifications
  138. 138. That allows complete freedom on selection and use of processes and framing of operating procedures an work instructions</li></li></ul><li>PROCESS FLOW CHART<br /> Place order<br /> Give the order to chef<br />Get drinks for customer<br /> Deliver salad or soup <br /> order to customer<br /> Deliver dinner to <br /> customer<br />Deliver check to customer<br />Cash <br /> Bring change to <br /> customer<br />Cash or Credit<br />Credit <br />Return credit slip to <br /> customer<br />Close table and <br /> collect tip<br />Collect signed slip<br />
  139. 139. ORGANIZATION STRUCTURE<br />
  140. 140. QUALIFICATION & CONDITION REQUIRED FOR MANPOWER<br /><ul><li>Good health and stamina
  141. 141. Keen sense of taste and smell
  142. 142. Excellent hand/eye co-ordination
  143. 143. Good memory for details
  144. 144. Artistic and creative talent
  145. 145. Excellent communication skills, interpersonal skills and team-building skills
  146. 146. Ability to remain calm in hectic circumstances
  147. 147. Excellent organizational skills
  148. 148. Desire to do a precise and thorough job</li></li></ul><li>SALARY STRUCTURE<br /><ul><li> Main chef -500000
  149. 149. Chef (15000*2) -300000
  150. 150. Helper (7500*3) -22500
  151. 151. Waiter (5000*10) -50000
  152. 152. Manager -12000
  153. 153. Cleaning staff (2000*2) -4000
  154. 154. Total -161000
  155. 155. Security (3000*3) -9000
  156. 156. For three floors for 365 days -6066000</li></li></ul><li>DUTIES & RESPONSIBILITIES <br /><ul><li>Creating new recipes to please customers
  157. 157. Hiring and supervising kitchen staff
  158. 158. Estimating labour and food costs and altering menus to stay within budget
  159. 159. Meeting with customers regarding menus for special occasions such as weddings, birthday parties and banquets
  160. 160. Arranging for equipment purchases and repairs
  161. 161. Checking the quality of raw and cooked food products
  162. 162. Ensuring that sanitation standards are maintained
  163. 163. Assisting with staff development and training
  164. 164. Meeting with other managers in the organization</li></li></ul><li>LONG TERM DEVELOPMENT PLAN<br /><ul><li>Goals
  165. 165. Strategies
  166. 166. Milestones
  167. 167. Risk Evaluation
  168. 168. Exit plan</li></li></ul><li>LONG-TERM DEVELOPMENT & EXIT PLAN<br />Goals<br /><ul><li>FUSION is an innovative concept that targets a new, growing </li></ul> market.<br /><ul><li> We assume that the market will respond, and grow quickly in the </li></ul> next 5 years.<br /><ul><li>Our goals are to create a reputation of quality, consistency and </li></ul> security (safety of food) that will make us the leader of a new style <br /> of dining.<br />
  169. 169. Strategies<br /><ul><li>Our marketing efforts will be concentrated on take-out and delivery, the areas of most promising growth.
  170. 170. The market changes, new products may be added to maintain sales</li></ul>Milestones<br /><ul><li>After the restaurant opens, we will keep a close eye on sales and profit. If we are on target at the end of year 1, we will look to expand to a second unit.</li></li></ul><li>Risk Evaluation<br /><ul><li>The success of our project hinges on the strength and acceptance </li></ul> of a fairly new market.<br /><ul><li>After year 1, we expect some copycat competition in the form of other independent units.
  171. 171. Chain competition will be much later.</li></ul>Exit Plan<br /><ul><li>Ideally, FUSION will expand to five units in the next 10 years.
  172. 172. At that time, we will entertain the possibility of a buy-out by a </li></ul> larger restaurant concern or actively seek to sell to a new owner.<br />
  173. 173. THANK YOU<br />

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