Developing a Business Plan Essay - 2475 Words

Developing a Business Plan (Essay Sample) Content: NameProfessorSubjectDateBUSINESS PLANContents TOC \o "1-3" \h \z \u CHAPTER ONE PAGEREF _Toc418760017 \h 11.0 EXECUTIVE SUMMARY PAGEREF _Toc418760018 \h 11.1 BUSINESS DESCRIPTION PAGEREF _Toc418760019 \h 11.2 MARKETING PLAN PAGEREF _Toc418760020 \h 11.3 ORGANIZATION AND MANAGEMENT PLAN PAGEREF _Toc418760021 \h 11.4 PRODUCTION AND OPERATION PLAN PAGEREF _Toc418760022 \h 21.5 FINANCIAL PLAN PAGEREF _Toc418760023 \h 22.0 BUSINESS DESCRIPTION PAGEREF _Toc418760024 \h 22.1 BUSINESS NAME PAGEREF _Toc418760025 \h 22.2 BUSINESS LOCATION AND ADDRESS PAGEREF _Toc418760026 \h 32.3 TYPE OF BUSINESS PAGEREF _Toc418760027 \h 32.4 PRODUCTS AND SERVICES PAGEREF _Toc418760028 \h 42.5 JUSTIFICATION OF OPPORTUNITY PAGEREF _Toc418760029 \h 42.6 INDUSTRY PAGEREF _Toc418760030 \h 52.7 BUSINESS GOALS PAGEREF _Toc418760031 \h 52.8 ENTRY AND GROWTH STRATEGY PAGEREF _Toc418760032 \h 6CHAPTER THREE PAGEREF _Toc418760033 \h 63.0 MARKETING PLAN PAGEREF _Toc418760034 \h 63.2 SALES TACTICS PAGEREF _Toc418760035 \h 73.3 DISTRIBUTION STRATEGY PAGEREF _Toc418760036 \h 7CHAPTER FOUR PAGEREF _Toc418760037 \h 74.0 ORGANIZATION AND MANAGEMENT PLAN PAGEREF _Toc418760038 \h 74.1 ORGANIZATION PAGEREF _Toc418760039 \h 7CHAPTER FIVE PAGEREF _Toc418760040 \h 85.0 PRODUCTION/OPERATIONAL PLAN PAGEREF _Toc418760041 \h 85.1 INTRODUCTION PAGEREF _Toc418760042 \h 85.2 PRODUCTION FACILITIES AND CAPACITY PAGEREF _Toc418760043 \h 85.3 PRODUCTION PROCESS PAGEREF _Toc418760044 \h 8CHAPTER SIX PAGEREF _Toc418760045 \h 96.0 FINANCIAL PLAN PAGEREF _Toc418760046 \h 96.1 PRE-OPERATIONAL EXPENSES PAGEREF _Toc418760047 \h 97.0 APPENIDXES PAGEREF _Toc418760048 \h 10CHAPTER ONE1.0 EXECUTIVE SUMMARY1.1 BUSINESS DESCRIPTIONThe proposed name of the company is Royal Motel, which will be owned by ABC. It will be located in K-Street town next to Java House. The company will commence on 1.1.2013. It will be a sole proprietorship type of business offering food, beverages, accommodation, functions and a secure place for parking guestsà ¢Ã¢â€š ¬ vehicles. For the convenience of the business operation, the following address will be used; 165 U.S and telephone number (055) 345676.1.2 MARKETING PLANCapitalization of factors such as prices and the quality of products will be considered for the operation of the business. The potential customers will include motorists, tourists and visitors, students, churches, government and non-government organizations and the community around. The business will have a market share of 37.5% at the start and intends to increase and promote this share. Advertising, moderate pricing and expansion of the market will do this.1.3 ORGANIZATION AND MANAGEMENT PLANThe business will have an organization plan in such a way that it will identify and group the work to be perfumed defining and delegating responsibilities, ranging from top management to the lower management. The proprietor of the business will be the manager. Below the manager, the company will employ a superviso r, head waiter, head chef, cashier and other personnel (Zimmerer et al. 34). To be able to motivate employees, attractive salaries and incentives will be given to them.1.4 PRODUCTION AND OPERATION PLANThe production and operational plan will facilitate the provision of high-quality products and services to the customers. It will be achieved by acquiring high-quality facilities and equipment. The production process will involve preparation and production of the food item in the production area up to the time it is presented to the guests for consumption. In addition, it involves the conversion of raw materials /food to finished or final products. The proprietor will observe laws and regulations required by the government e.g. health, safety, etc.1.5 FINANCIAL PLANIt will indicate the source and calculation of the capital, which is the total amount required for the operation of the business. Royal Motel will have its profits and losses calculated each year beginning with the year of b usiness commencement. The break-even point and proposed capitalization will also be calculated. Expenses will be incurred during the business operation. The company will acquire its finances from the following: Owners contributions, donation from friends, loan from bank, and donation from familyà ¢Ã¢â€š ¬Ã†â€™CHAPTER TWO2.0 BUSINESS DESCRIPTION2.1 BUSINESS NAMEThe proposed business will be named as Royal Motel. The name is derived from the geographical, climatic region in the continent of Africa. This region is characterized by evergreen grass, trees and shrubs. Royal Motel is to be situated in an area that is rich in green grass and trees. It will present beautiful and attractive scenery that will entice customers from both near and far.2.2 BUSINESS LOCATION AND ADDRESSRoyal Motel will be located in K-Street town next to Java house that is 5 KM from the town. The area will be considered because of its geographical environment that favors it. The location also is near and accessib le by potential customers. The availability of good infrastructure and visibility of the potential market also supports the position.Royal Motel will be a sole proprietorship form of business owned and managed by ABC. The proprietor is a diploma holder and now in her final stage of completing a Degree course in Food and Beverage Management.The advantages of running a sole proprietorship type of business as compared to partnership are: Decision making is easy, there are enjoyment of all business profits, there is close supervision of the business, it allows for personal contact with customers. To be able to turn ideas into reality, the proprietor acquired a startup capital of $9,000.The bank will require collateral for security purposes. Therefore, the proprietor will use her fatherà ¢Ã¢â€š ¬s land title deed to acquire the loan to be paid within three years. The loan will be a medium term fund with an interest rate of 20% p.a.2.3 TYPE OF BUSINESSThe business will be a classic mode set up in a beautiful countryside. The environment around where the business will be located is rich in evergreen trees and grass. The area is rich in flowering trees and diverse color and scented air. A constant fresh breeze and the magnificent scenery of Lake Nasra at a far distance add to the beauty of the place. The business will offer a wide variety of foods and beverages as well as restrooms for guest.2.4 PRODUCTS AND SERVICESRoyal Motel will be offering products and services ranging from breakfast, luncheons, classic dinners sequences and snacks at fair prices. The hotel will also provide services like swimming pools, accommodation, indoor games such as pool and table tennis and laundry services. The products will be of desirable quantity. The meals will be served to the customers at the business premises, or they can take away their food, and attractive packaging will be provided. Most customers will consider the hospitality of Royal Motel because of the production of deli cious food served in clean and beautiful environment by well dressed welcoming staff. The countryside scenery will provide a pleasant atmosphere fit for the rest, unlike the noisy stuffy town environment (Honig et al. 14).The Royal Motel will be offering a wide variety of food with the provision of local vegetables from the locality, traditional meals from finger millet and porridge served in calabash to the customers. These different types of food and beverages will give the business a unique feature from other existing business in the locality. Other foods and beverages produced are; soups, rice and pasta dishes, meat and poultry, potatoes, egg dishes, cakes, drink; both alcoholic and non-alcoholic (Mason et al. 24).2.5 JUSTIFICATION OF OPPORTUNITYThe proprietor found out from a survey carried out that the locality of the business is the best because the sceneries that attracts customers both from far and near. The trees sway in the air thus providing fresh air and cool breeze m aking the place admirable. Royal Motel will be such kind of businesses that will serve some of the following purposes: Providing and serving quality food items and refreshing drinks in a conducive environment for generation of income and creation of employment opportunities for the people of the locality improving their standards of living. Utilizing of skills obtained from the college and experience obtained from field attachment. The business will serve as a role model in the locality because the existing businesses are owned and managed by men. The business will be facilitated since there will be the availability of raw materials and infrastructure to ease transportation.2.6 INDUSTRYRoyal Motels fall under the hotel and hospitality industry. This industry provides food, drinks and accommodation for people at school, hospitals, leisure and even at work. The industry provides these services and products at any time of the day or night for people of all ages, races, creeds and all s orts of lifestyle. The development of this industry is as a result of steady growth in the standards of living an increase in the number of people taking holidays and eating away from home hence. As for Royal Motel, it will be situated along the highway for people traveling with space for parking vehicles near the rooms. Royal Motel will be located away from the industries and other firms. It will be to avoid pollution and noise to the business premises and the customers. Labor intensive kind of technology will be applied in Royal Motel whereby most of the works will be done by man but only a few by the use of machines e.g. laundry machines.2.7 BUSINESS GOALSSetting goals will be an important factor for Royal Motel. It is through these goals that one can know whether the company will be moving towards its expectations. Royal Motel will strive to achieve both short-term and long-term goal...