Business plan


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Business plan

  1. 1. Cover Page 1. The name of the business is Byakko ramen Company. 2. The address of this business' company is Aizu-Wakamatsu city, Ikkimachi. 3. Telephone number is 0242-24-xxxx. 4. Group B members(Yukihiro Chiba, Yusuke Sato, Kengo Kuroki, Ryo Kato). 5. Logo (A professional, attractive logo can be used to dress up the cover page) 6. Submitted to Toho Bank.
  2. 2. Executive Summary A. This business, Byakko ramen, will serve healthy and delicious ramen. B. The business will make profit which is about *******************30,00,000 yen  in first year, and   make our ramen global standard in the world finally.  C. First,   a   shop   of   this   business   will   open   in   Aizu­Wakamatsu   city,   and   serve  inexpensive, heavy ramen to students mainly. Then, the shop will become popular among young people in Aizu-Wakamatsu city, and expand this business and its area. D. The   business   will  make  much  profit,   about  *****************10,000,000,000  yen  in a year, and make people living in the world ramen fan. If you're obtaining a loan or equity your Executive Summary should also include: A. The company of this business is public company. B. This plan request *************************15,000,000 yen and it will be paid  back for ten years. C. ****************************15,000,000 yen is some of cost for Generation  equipment, Land, Renovation, Labor and Equipment. D. By budget of ******************************15,000,000 yen, this business will  be grow monotonically.
  3. 3. The Business: Description of the Business 1. Description of the Business  1. The business of Ramen shop located leased space at Ikkimachi, Aizu­ Wakamatsu city, and the estimated date is April 20xx. 2. The shop will use clear water in Aizu­Wakamatsu and give a fair for  students to draw freshman and other young people. 3. We are going to operate our Ramen company based on community,  and our target is all of people in those community.
  4. 4. The Business: Industry Analysis • Is it a fad? →  No, it isn't. • Is it seasonal? →  Yes, it is. • Is it increasing or decreasing? →  It is increasing. • Does it simply grow with the population? →  Yes, it does. • Is the market always there, always the same? →  Yes, it is. • What   are   the   factors   affecting   the   growth   of   the   market,   and   of  market share?  →   To get many customers, our target is all of people  in those community. • Where are they located? →  At Ikkimachi in Aizu­Wakamatsu. • How large is the market? →  It is entire of Aizu­Wakamatsu. • What are their characteristics? →  It is based on community at Aizu­ Wakamatsu,  and we are going to use ingredients from Aizu­ Wakamatsu. • What percentage of that market is the business' share? →  40 percent. • Who are the potential customers for the business' product or service?  →  It is some students who cook their dishes themselves.
  5. 5. The Business: Vision Statement In five years, Byakko Ramen will share the 80 percent of the market in Aizu­ Wakamatsu, and expand the business, Miyagi, Akita, Aomori, Iwate and Tokyo, futher  more, get businessmen as new target of target.
  6. 6. Vision Trigger The main vision trigger will be catchy slogan: “Best Eat”. The vision trigger will express Byakko ramen shop's best and selling point, lower price and delicious. The vision trigger tell that Byakko ramen shop serve best food for price.
  7. 7. The Business: Mission Statement Byakko ramen shop’s mission is presented below: We serve healthy and delicious to customers. We promise to effort to listening to customers' request. Our goals has been changing constantly to reach best goal. We provide best place for all people. We are proud of making our customers happy.
  8. 8. The Business: Business Objectives Byakko ramen shop will have these business objectives during its first three years of  operation: Owner draw of 150,000 yen per month in Year 1. Cash balance of  5,000,000 at the end of Year 1. Owner draw of 250,000 yen per month in Year 2. Cash balance of 3,500,000yen at the end of Year 2. Owner draw of 600,000 per quarter in Year 3. Cash balance of 2,500,000 at the end of Year 3. 
  9. 9. Business Operations: Marketing 1. Marketing Product: We cook and sell various kinds of ramen and side menu.  Problem is food  safety and speed to give a product to customers.  Product attribute is  we  use Aizu clear water for cooking. Menu: Chinese soba, Miso­ramen, Sio­ramen, Fried rice, Dumplings,  Drink (Orange, Coke, Meronso­da). Price: Methods of the pricing of the product is total of staff cost, utility cost,  material cost and incidental cost.  We keep on having maintained the price  even if the pricing of neighboring competitors is lower or higher than us. Menu: Chinese soba...250yen, Miso­ramen...350yen, Sio­ramen...350yen,  Fried rice...300yen, Dumplings...150yen, Drink...150yen Place: We are going to open a shop in Aizuwakamatsu city ikkimachi. Promotion: First advertising budget is 100,000yen, we will increase amounts of money  step by step.  We are going to time­limited 100 yen dumpling sale.
  10. 10. Business Operations: Competitive Analysis 2. Competitive Analysis Major competitors of the ramen industry “ 幸楽苑” “ 幸楽苑”is the ramen chain that  there are stores in the all over Japan. Chinese noodle 290 yen, and a set  is 650 yen with a high thing. A price becomes low­priced generally. In  addition, there are menus of the season limitation. However, they do not  sell it by mail order. “ 8 番ラーメン” “ 8 番ラーメン”is a ramen  chain presenting a shop around the Chubu District. Vegetables ramen is  famous, one cup of around 600 yen. They open a store in Thailand, Taiwan,  and Hong Kong. They sell Dumplings by mail order. “ 山頭火” “ 山頭火”is a ramen chain that there  are stores in the all over the world. There is little it when I compare the  number of their menus with other shops. Because one cup of ramen is  around 1,000 yen, they become the high pricing. They sell several kinds  ramen and several kinds rice by mail “ すみれ” “ すみれ” is a ramen chain  presenting a shop around the Hokkaido. Miso ramen is famous, but, for  one cup of 900 yen, thinks it to be high pricing. They sell several kinds  ramen by mail order. “ 味の時計台”http://www.ajino­ “ 味の時計台” is a ramen  chain presenting a shop around the Hokkaido. The high pricing that is one  cup of ramen 700 yen ­ 1,200 yen. There is a strange menu called the king  crab ramen of one cup of 2,100 yen. They sell several kinds ramen by mail  order.     Our strength is  inexpensiveness of the prices and numerousness of the  volume, but weaknesses is it is difficult to call in a person who particular  about ramen. Using the weak point, we can make friendly atmosphere. 
  11. 11. Business Operations: Legal Structure 3. Legal Structure:   Byakko ramen shop will be operated as a Corporation owned by D.S.  Entrepreneur.
  12. 12. Business Operations: Management Expertise 4. Management Expertise The owner,D. S. Entrepreneur, was engaged in management with a ramen  chain after graduation at a university and became independent in five  years later. Salary of key personnel is 300,000yen. Work of key personnel is  cooking and management.
  13. 13. Business Operations: Support Personnel 5. Support Personnel: The business will operate using local City, and  Community College, junior  college and high school students as its principal employees. The majority of  the employees will work part­time with a full­time manager. Student  employees will earn 650yen/hr. initially with an opportunity for pay  increases.
  14. 14. Financial Information: Cash Flow Projections 1. Cash Flow Projections The following objectives are for the first three years of Byakko ramen shop. Owner draw 150,000 yen per month in Year 1.  Monthly cash flow of 5,000,000 yen by end of Year 1.  Owner draw 250,000 yen per month in Year 2.  Monthly cash flow of 3,200,000 yen by end Year 2.  Owner draw of 400,000 yen  in Year 3.            Cash balance of 2,000,000 yen end of Year 3. Source of Information: • Data from trade associations, technical journals  • SBA resources such as SCORE and SBDCs  • Other persons in similar businesses  • Real estate agents  • Major suppliers  Time Line for Required Filings Food sanitation supervisor –  need one day to attend the lecture. Accounting System Sources of Cash. 1. Personal Funds. The owner will invest 7,500,000 yen into the business. 1. Loans. The owner will borrow 15,000,000 yen from Toho Bank as a five-year revolving line of credit at 10%. Interest will be charged only on the amount actually borrowed with principal payments of 20% of the amount borrowed due each year (See item 26). 2. Cash Receipts. 15,400,000 yen in cash receipts net of sales taxes is estimated. This projection involves selling 10,000 chuka-soba, 5,000 miso-ramen, 6,000 double scoop sio-ramen, 5,000 Dumpling, 1,000 soft drinks sandwiches, and other foods and beverages. The total is calculated by multiplying the number of each item sold by their sales and totaling the revenue from all
  15. 15. items. This is a conservative estimate of cash receipts. The Institute estimates that the industry average cash receipts last year for a start-up ramen shop were $194,000. 3. Available Cash. 4. Uses of Cash. 5. Equipment/Supplies. Basic is estimated to be $32,200. This expense includes: dipping cabinets, refrigerators, tempering freezer, three- compartment sink, stove, serving equipment, dishwashing equipment, and equipment installation. Operating supplies such as napkins are also included. Estimate is from Valley City Restaurant Fixtures Supply, Inc. 6. Vehicle Purchase/Lease. A utility van will be leased at $360/month for three years from Valley City Motor Sales for a total of $4,320. 7. Fixtures. Fixture costs will total about $9,300. These cost will include purchasing tables, chairs, and removable service items. 8. Security Deposits. Security and other deposits will include $5,000 for lease- related deposits, $2,000 for utility deposits, and $2,000 for miscellaneous deposits for a total of $9,000. 9. Signs. Byakko ramen shop will have extensive Riverside Faire approved signage on all four side of the building. Signage and installation will cost $9,200 according to an estimate by Valley City Quality Sign Co. 10.Leasehold Improvements. Net leasehold improvements after the $10/sq.ft. allowance by the landlord will total $7,500. This estimate was provided by Smith Construction of Valley City and includes floor and wall coverings, window treatments, painting and decorating, window decorations, and miscellaneous minor improvements. 11.Cost of Goods Sold. Cost of goods sold is based on the sales projection of $154,000 and is estimated to be an average of 34% of sales totaling $52,360. This information was provided by an industry trade journal. 12.Telephone/Utilities. Valley City Gas, Electric, and Telephone Company estimate telephone and other utilities at $400/month for an annual total of $4,500. 13.Lease/Rent. Lease payments are $4,500/month ($3/sq.ft.) plus $275 for Common Area Maintenance (CAM) fees for an annual total of $57,300. The first year lease cost is $40,500 reflecting the three months free rent allowance (($54,000-$13,500). The CAM fees must be added to this amount for a total of $43,800. This information was provided by the commercial real estate agent representing Riverside Faire. 14.Business License Fee. The business license fee based on business revenue (2% of gross revenue) will be $3,080 (License and Permits Office, Valley City). 15.Insurance Premiums. Goldsmith Insurance Agency, Valley City, estimated annual premiums at $6,000. These premiums will cover business liability, property damage, workman’s compensation, and all other types of insurance. 16.Office Expense. This item includes all office-related expenses including
  16. 16. copying and paper supplies. The owner will perform office duties. Total is estimated at $2,000 annually based on the owner’s previous experience. 17.Legal And Accounting. Jerome and Associates, CPAs, and the Jensen, Barker, and Symthe law firm will provide basic bookkeeping, accounting, and legal services. Jerome and Associates, CPAs has a bookkeeping subsidiary, Personal and Business Bookkeeping LTD that specializes in low cost bookkeeping. This firm will be engaged for bookkeeping with Jerome and Associates providing tax preparation and other professional services. The total estimated annual cost is $6,760. 18.Advertising And Promotion. $9,000 will be allocated to the advertising and promotion campaigns discussed in the Marketing section above. Source is Valley City Creative Advertising. 19.Real Estate/Other Taxes. Real Estate and Personal Property taxes will total $3,700/year. The Management Office, Riverview Faire, provided this information. 20.Miscellaneous Expenses. $6,000 has been estimated for miscellaneous expenses based on information provided by the Institute. 21.Payroll. Wages total $46,200. This total includes 126 winter workdays, with one employee working 5 hours a day at $6.50/hour. It also includes 217 summer workdays, with two employees each working five hours a day at $6.50/hour. Payroll includes the manager’s annual salary, employer taxes such as FICA, unemployment insurance, and workers’ compensation, but does not include withholdings. 22.Payroll Taxes and Benefits. These are estimated to be $9,240, 20% of wages and include FICA, scholarships, and manager benefits. 23.Loan Payments (Principal and Interest). All of the $75,000 loan allocation will be used during the first year of operations. Assuming this amount was available at the beginning of the business’ fiscal year, interest at 10% totals $7,500. In addition, according to the loan agreements, principal payment of $15,000 was also required. One semi-annual payment of $7,500 will be made during the fiscal year while the second payment will be made at the beginning of the second fiscal year. The total payments for this category will be $15,000 (interest and principal). 24.Owner’s Draw. This information was obtained from Exhibit 2, Monthly Personal Living Expenses, and is $1,000 per month or $12,000 annually. This amount is increased in future years. 25.Total Expenditures. Total uses of cash. 26.Balance Remaining. Available cash (line 6) less Total Expenditures (line 28). Please note that balance remaining can never be a negative number because the Cash Flow Projections assume cash spent during the period. 27.Data. Numbers used to make calculations in spread sheet. For example, 0.34 is used to calculate Cost of Goods Sold which is estimated to be 34% of expected cash receipts for the following month.
  17. 17. SUMMARY Byakko ramen will be successful. This business plan has documented that the establishment of Byakko ramen is feasible. All of the critical factors such as industry trends, marketing analysis, competitive analysis, management expertise, and financial analysis support this conclusion. We invite you to attend our grand opening. We promise that we will make the experience, "Best Eat"
  18. 18. 1. Supporting Documentation 1. Resume D.S. graduated University and has worked in Food industry for five years. 2. Letter of Recommendation D.S. graduated high level University and he is very wise. I promise that D.S. is a good manager. -- Yukio Hatoyama. D.S showed me a concrete and close plan to manage ramen shop. His plan is perfect and he will success surely. -- Naoto Kan. 3. Special Awards, Achievements reward for perfect attendance award for excellence highest award booby prize
  19. 19. A. Why is it important to launch this business? We like ramen very much, so we would like to provide good ramen service. And ramen is very popular food. It is very good for food culture to spread ramen culture. B. Ideas for launching this business We will expand this business by managing based on each local community, for example, clear water and special product. How should we reach out to the potential customers We will distribute handbills and discount tickets to adverse to potential customers, and we put up Byakko ramen shop poster around the area. D. How should we advertise our product ? We will distribute handbills and discount tickets to adverse to potential customers, and we put up Byakko ramen shop poster around the area. E. How could the UofA assist us? UofA can help us to manage this business with advertising Byakko ramen shop in mnews and putting up posters and distributing handbills. F. What do we need to start the business? We need money to prepare land and store, and employed and a filing which is Food  sanitation supervisor. G. Give an example of a company who offers similar training program for corporate professionals. Korakuen, Santouka, Azinotokeidai