Whilst producing this business plan alternative approaches were considered by me. I was considering to open a take-away and a restaurant service at the same time. Meaning catering for all but I realised that this plan would incur high costs on me. I had decided to stick to just a take-away as this process is quick, rapid but I still took into consideration and brought in few table and chairs so customers would still have a place to sit down. This I feel is another way of increasing trade.
In order to find out if the market size to a greater extent I was considering to purchase the market size information on the fish and chips via the Internet by paying 200. I had decided not to do this as I feel the research I have collected is sufficient enough and it illustrated the market size in great enough detail. The questionnaire I carried out was a convenience sample as it represented the population, in order to interview a wide number of people would have left me with high costs.
S o convenience sample was took. Another service that I was considering to offer was free delivery for orders over 10 but decided not as providing this would leave me with high fuel costs. Instead I put the free delivery price to 15 as customers would be made to place a high order to benefit of the free delivery. Whilst producing a production plan I had to decide whether to mass produce or continuous flow. I had decided to produce the chips in mass quantity whilst the rest such as burgers would be produced when asked for. I have adapted this process as most take-away shops suffer from high wastage at the end of the night so this process should reduce waste and lower costs so future stock costs would be low.
Task 9/ A2 In this part of my plan I will demonstrate the effective links between the marketing, production and financial elements. The production plan which I have taken great care to produce, takes into account all the food hygiene factors and presentation. In my production plan I have stated how the products will be made how the highest level of quality must be provided to gain customer loyalty. I was considering to cater for parties and birthdays but to do this I would have required greater space. The shop could not offer this.
One of the reasons that the premises is chosen is of its size that is relatively small and this is to keep the costs of the rent low. So I could not cater for parties. There are several special requirements that I had to consider as stated by the Law. A3 planning permission and also other equipment as insects re coutors and such as health and safety checks and basic hygiene. Also in my production plan as food is being cooked I had to purchase a ventilation system in order to get all the smoke out and sustain a safe environment.
Whilst purchasing the equipment I had to remember that the costs must be low as possible as due to the fact that I’m a new business and with less capital. The objective of mine is to plan and control and to ensure that the available resources, staff, machinery and equipment are used efficiently to meets the needs of the customers and the most is made out of them. Methods of control will be used at the shop to keep the costs to a minimum. By turning off any unnecessary equipment. My aim will to provide good quality food at competitive prices so competition exists.
Due to the high costs I am unable to employ more than one worker. I feel this will effect us as we will have to work twice as hard. I could not recruit another worker as I would be paying another i?? 346. 50 a week that is a considerable amount and would results in high costs. The financial plan also links with the production I feel as one of my main aims is to keep the level of wastage to a very minimum. It has come to my understanding that the level off waste is at a great margin for take-away shops. In order to prevent this inspections will take place on the foods that are close to their expire date and sold for less.
This will reduce the costs of wastage. This will bring down the costs in the finance. I have come to price the goods at the prices I have by observing the various fish and chip shops in the area. The prices are competitive and would help my business to compete. By doing so the profits would increase. One of the objectives is to make a profit a the ratios indicate that the business will. The marketing plan also considers how the public could be made aware of my shop. There were several methods of promotion that I could use but the costs factors I had to consider.
The advertising will be done by quarterly leaflets the cost of this service is relatively low and have decided to do this as I cannot spend huge amount on advertising. I have also decided to sponsor the Edgware football club in the future to enhance the reputation and the name of my shop( Usman’s fish and chips). By doing so I feel my sales could be increased. The constant marketing will increase sales and I will have to purchase further more stock in order to meet the demand. I feel the production depends on marketing, if the marketing efforts are not working than the production would be effected.
As business would not be attracting the right number of customers so sales would fall. Resulting in less production and losses. When preparing all my production and marketing one of the main aims was to keep the costs to a minimum. I feel the start up costs are appropriate as most equipment is purchased from the Loot second hand and specialist equipment magazines. By doing so my costs have remained relatively low. Analysing my business to a greater degree I still feel more staff would be needed in order for the business to run successfully.
But I am not able to do this as the wage costs are too high already and I will not be able to increase the workforce as the business must run for a few months. I could also on my very first day of business could introduce special offers for the first day only. By doing so customer would be attracted and high number of sales could be made. To improve the production I could also hire a new member but as I cant afford to, me and worker will have to work hard and once the business is stable more staff could be recruited. Task 10/ A3 Below I will illustrate the advantages of me producing a business plan.
The business plan will persuade a lender such as a bank to lend money. Providers of finance need financial information about the business- a break-even analysis, cash flow and profit forecast- set in a clear way. This would help the chances of a business getting a loan from a bank or person. By producing the business plan I can monitor the progress and compare it to my plan and see if it is meeting by set targets. The business plan that I have produced evaluates and takes into account the market size, the population the prices that are being charged by the competitors.
In my business plan I have set my self a budget and also produces a sales forecast that I hope to follow. The budget is designed to keep the costs on track, I have allocated funds towards advertising and other commitments. The financial plan gives a clear indication on how the money should be spent. I have also produced a break-even analysis which indicates the number of sales needed to break- even. The advantage of this is substantial the break-even indicated that the business will be running successfully.
The only major difficulty I found was the market size once achieved all the other aspects were imminent. The above are the advantages of myself producing a business plan I feel it will enable me to keep track of my business. The plan clearly sets out the objectives that I will constantly look at and compare the performance to in order to find out if the business is doing as it was predicted. I believe benefits of IT have not been considered by the plan. Computers could have been used to produce the accounts resulting in saving time. Also online tax payments and the overall payments of bills by using the net.
If computing had been used this would have saved me valuable time and even money. By not using this method I feel the business is at a disadvantage. But I was unable to afford a computer as I had very little capital. In order to overcome this I will most probably purchase a computer in the second or third year of trading. Overall I feel the business plan is produced accordingly taking into account the interest rates and needs of the market. The various methods used to test the viability of the business such as ratios have proved the business has potential.