1. Type of Bussines

Type of business: Sole trader, Partnership, Limited liability

The business is an Arabic restaurant.  It will be limited liability business Type Company. The restaurant will be specialise in Arabic food and will be Locate in high street, in Southall, London. It will sell healthy fresh Arabic food, Such as, homos, falafel, traditional dishes, and act. Also I will serve drinks such as, cold drinks, hot drinks, and alcohol.

   Aims and objectives: Profit, Turnover, Customer service, Market share

The aim of my business is to have an Arabic restaurant in Southall, London. Furthermore, my aim is to make £ 200,000 per year and receiving 10% profit. The objective of my business is to make a good profit at the same time to make a loyal customer for long term.

  Unique selling point

My unique selling point it will be the restaurant itself as I am going to provide Arabic food with shisha which is unique for people who are lives around Southall area. Furthermore, there is no restaurant in this area similar to mine so my business will be unique and attractive. 

  Establishing potential demand for new business

To establish demand for my business I will carry out primary and secondary research to find out if my business would be a successful. I will do that by using different methods of market research such as, questionnaire, surveys, focus group. Furthermore, to establish my business I need to spend money on promotion raise brand awareness. 

  Balancing owners need with business needs

Every business needs to balance the business needs with owner’s needs. As running a business can be a quite stressful task. In order to balance my business needs and my own personal needs to avoid being stress and focusing on my business to use my time wisely. For example I need to do a good research to find out more about food industry to make my business become successful. Also to learn more what the business needs to run in order.

  Estimate Potential profitability
Below is an estimate of my optional profitability for my business
Total Sales Revenue =200.000 per year
Cost of sales = 50% of sales revenue                             Assumed
Number of customers= TSR/Revenue per sale
Gross profit= Total sales Revenue – Cost of sales
Gross profit = £200,000 – £100,000= £100,000
Net profit= Gross profit – Expenses
Expenses = 50% of Gross profit (Assumed)

      Identifying business trends
   My business needs to identify and keep up with business trends in restaurants industry. This is can be done     by looking at restaurant industry to find out what my business will need in order to compete with different       business within this industry. Furthermore, I will look at different businesses within restaurant industry will       help me to identify what will my business outstanding.

         Business environment: PESTLE analysis

Below is a PESTLE analysis of my business identifying factors that will affect my business.

Political- In order for my restaurant I need to have a government regulation to regard hygiene, health and food regulations, food standard. Furthermore I have to get all these political licenses to run my business.

Economic- rising of inflation and interest rates will be the most important factors for my business. As due the increase in these people are spending less money because they will be considerate about what they are spending their money on. Therefore I believe this affect my business if people have to spend less. At the same time during winter time less people like to go out for a meal. Whereas in Summer time more people are likely to visit my restaurant, so if less people are coming into the restaurant, less staff members will be needed.   

Social- certain cultures don’t eat certain food such as, Hindus people don’t eat beef therefore I have to provide vegetarian meals to attract this culture people to visit my restaurant. So social media such as Face book, Twitter and emails will help me to promote for my business at the same time to communicate with the customers. Furthermore, this will help me to find out about eating habits of the people to decide what to provide into my restaurant.

Technological- my business is a restaurant, so I need to buy a good equipment to be up to date. I mean by that technological machinery will be so important for the restaurant, because we need to serve a big numbers of customers, so technological machinery will help my business to run better and faster. By doing this the customers will be satisfied as they will receive the order in less time.

Legal- the legal aspects for the restaurant will be tax obligations, employment standards and quality requirements. Also the most important factor for restaurant will be health regulations for food preparation.

Environmental- restaurant environments are generally required the utmost efficacy. I mean by that reinforce staff roles are very important to make the restaurant more efficient. So the staff members will know about the tasks and roles which they are responsible. Also maintain an open-door policy is very important, because it’s a key to creating the most efficient work environment.

   Self-esteem – choose a Business Mentor from seminar profiles

The business mentor I have chosen from the business Start Up event is Chef- Greg Malouf, born in  Melbourne to Lebanese parents. I have chosen this mentor as I believe that he is the best chef, as he has  many years experience. Also he awarded ‘’two hats’’ (roughly the equivalent of two Michelin stars) for  the new style of new Middle Eastern. Therefore he is an inspiration and successful, so by using this  mentor I will gain knowledge and advice that will help me to start up my business to become success.

Seven steps for business plan

In order for a business plan to be a success, concrete research into the following 7 things is essential.

1) Type of business
2) Target Market
3) Human Resources
4) Legal and Physical Resources
5) Financial Resources
6) Growth and Development
7) Financial Contingency

2. Target Market

 Primary Research- survey

In order to make a primary market research for my restaurant I produced a survey which is linked to my organisation. Below is the link to my survey which is will help me to identify my target market and to identify who my potential customers will be? 

Survey Monkey: https://www.surveymonkey.com/r/MY7T8XD

Secondary Research- Competitor’s website

I gathered my secondary research for my restaurant by looking at my competitor’s websites.

In order I needed to know about my competitors’ prices , product and services which they are offering to the customers. The two main competitors I found in Southall are Madhu’s and Spice Village.  These two restaurants are close by to where the location of my business is. Therefore they are my main competitors’ so I will be looking at the prices that they have set and what they are offers.

Madhus restaurant Southall: http://www.madhus.co.uk/madhus-menus.php#7_menu-tab

Spice Village: http://www.spicevillage.co.uk/restaurants/southall/

Sales forecast

The formula to work out the sales forecast is Annual Sales Revenue/ estimated average amount spent per customer. So by using this formal it will allow me to work out the sales for my restaurant in the future. The average amount which the person spends will be depending on what they want to order.  

The table below shows the target market of my business in terms of the acorn classification. So the 5 customers below will be my potential customers who will visit my restaurant and make it success. Therefore my regular customers will be skilled workers, mature couples, young and home Asian families.

Type ID	Type	Group ID	Group	Category ID	Category
8	Mature couples, smaller detached homes.	B	Affluent Greys	1	Wealthy Achievers
17	Young educated worker, flats	E	Educated Urbanities	2	Urban prosperity
21	Singles & sharers, multi-ethnic areas	F	Aspiring   Singles	2	Urban prosperity
31	Home owning Asian family areas	H	Secure Families	3	Comfortably Off
41	Skilled workers, semis and terraces	M	Blue Collar Roots	4	Moderate Means

Strengths and weaknesses of Madhus restaurant

Strengths	Weaknesses
Products- Madhus offer Indian food such as rice, breads, dessert and vegetarian food. So it attracts lots of Asian people. Price- the meal in average cost around £20 per dish including drink. Added value- they provide a special hall for wedding do people can rent it and what is good about it is that if you have more that 15 people they will offer you a discount	They only specialised in Hindi food, so they don’t have a wide range of products. Also they don’t offer a halal food which means Muslim people cannot eat into their restaurant. Other weaknesses for Madhus restaurant is that they charge a big amount of money for meal which is mean low income customers cannot afford it.

Strengths and weaknesses of Spicy Village

Strengths	Weaknesses
Products- the Village offers traditional tandoori cuisine such as chicken, meats and Biryani. Price- the meal in average it cost around £15 per dish includes bread and drink. Therefore they attract so many customers Value- they provide halal food for Muslim people.	One of their weaknesses is that they don’t provide vegetarian meals, so they could have fewer customers. Also their prices quit high so not all people could afford it.

My business idea

Strengths	Weaknesses
I have a good business idea that is aimed at Arabic restaurant. As my location is an Asian community I believe that people will like to have an Arabic restaurant. It will be open every day from afternoon till midnight. Also I will provide halal food and vegetarian meals to attract more customers. Furthermore, my prices will be reasonable so I can attract more customers to visit my restaurant.	There are competitors close by who are already well- known and have loyal customers. People could take times to try my restaurant and to be well known.

Market Trends 

Each business has a market trends and have recent developments in every sector of business. The market trends for my business continuing to change throughout the years. Therefore my business needs to be up to date with new trends and the needs of my business with the customers wants.

Environmental issues

Environmental issues for my restaurant include making my restaurant carbon footprint lower. The restaurant needs to ensure that it is the best to protect the environment by using energy-efficient cooking machines and light. This is will help the environment if my restaurant using lighting and temperature control, so the money is not wasted and the environment is not damaged. At the same time my business needs to ensure that water is not wasted in the kitchen, so the floor is appropriate for the customers and the environment. Making the gym eco-friendly is not easy and needs to work hard for it but it will benefits the community/ environment. 

3. Human Resources

Skills The Business Requires

Do I have them?

1)     Marketing- marketing skills are needed as without marketing the business cannot generate profit. Marketing is including promotion of the business. 2)     Finance- managing the business money on what is being spent, as the business needs to know about cash flow, money coming in and going out of the business. Finance includes the price of the products and expenses of the business. 3)     Customer-Service is about providing excellent service will attracts more customers to come to my business. 4)     Human-Resource Management to manage the number of staff needed and recruiting the appropriate candidates with the right skills which is very important to make the business run successfully.

As I am studying a business. I have a fully idea about marketing and what the business is needs to be well- known. However, for my business I need to have a marketing department to carry out all promotional offers. I still need more time to have this skill, therefore for my business I need to have accountancy as I don’t have experience to manage finance. As I am friendly and reliable I have a good relationship with my friends and family. Therefore this is will help me to provide an excellent customer service as they can help me to start up my business. As I don’t have the right human resources skills, In the main time I will recruit some friends and members of my family to help me to run the business as I can pay them small amounts of salary until my business become famous.

·        My personal strengths

My personal strengths are: well-organised, helpful, quick learner, friendly and trust worthy.  Well- organised is very useful skill which I have in my personal life as well as in college and for my future career.

·        My personal weaknesses

My weaknesses are: my confidence, presentation skills and math. Therefore I have to work in order to improve my weaknesses.     

·        Skills and abilities I do not have

The skills and abilities that I don’t have are: marketing, HR Management, Accounting and Finance. All these skills are important for my business. The reason for this is I need to have these skills in order to be able to run my business successfully, at the same time when I have these skills I t will help me to reduce my expenses on hiring staff to do the work for me. 

·       How I will compensate for those weaknesses

I will compensate for the weaknesses by using a wide range of sources to improve my presentation skills. At the same time I need to try speaking loudly and being more confidence. Also I need to pass my GCSE Maths therefore I will practice more by using a pass paper.                                      

·      What I will do about each of those missing skills and abilities

For each one of my missing skills and abilities, I will work towards it in order to improve it. The table below shows my ranking of the different skills that I need to develop, the green boxes show the skills that I am good at, the orange boxes show the skills I need to improve and the red boxes show the skills which I am not good at. 

4. Legal and Physical

Legal aspects
The legal statue of a business could be a sole trader, limited company, partnership and franchise. My business is sole trader because the benefits of being a sole trader are that no need to share the profit with anyone and decision can be made by you directly. The disadvantages of being a sole trader are working for long hours and it may not have enough skills. Therefore once my business picks up I will be able to change the status of my business from sole trader to partnership which is much better for my business to become successful.

Trading terms and conditions

The trading conditions need to be clear for the customers. This because that the customers should be aware from the trading terms in term of price and the methods of making payments and delivery service. Therefore the trading terms should be written clearly to avoid any problems. Furthermore, the government give the businesses information such as consumer’s right, food, law, fair trading, safety and welfare.

Record keeping

Record keeping is very vital in business to keep a track of what is happening in the business to have a proof if any problems happen. For example, the records that the business keeps are credit card statements, invoices, inventory, bank statement, employment applications, and permits and licences. This is because keeping record will help the business to be more efficient and other cretin records have to be kept by the law. Therefore, for my business I need to keep records of health and safety, employment applications and permit licences.

National/local laws

There are two different laws which are national and local lows. This is means that a certain areas might have a recycling and waste law, which local businesses have to follow. However, if the rules and regulations are not followed it will impact on the business as it can result in fines and closing the business in some cases.

Health and safety

Health and safety regulations within a business environment are very important for both employer and employees. The reason for this is the employer is responsible for the safety of the employees and customers. Therefore, it’s very important in the business to decrease the possible risks to make sure that the environment safer. Furthermore, to avoid risks there should be a written health and safety procedure to be followed by the employees and customers. For my business I need to make sure that the restaurant is safe as well as the food and if it’s something wrong happen I have to deal with it as quickly as I can. At the same time i have to ensure that Fire exists are clearly labelled.

Contract duties and responsibilities

Employers have many legal responsibilities such as paying employees, hours of work, contract of employment, VAT and discrimination. Furthermore, contracts of employment should be presented in a written statement from the employer to the employee includes information such as, job duties, hours of work, salary and any entailments to holidays pay. The contract is very important for the employees because it tells you about duties and responsibilities, how much salary you will receive and about the times hours. At the same time businesses need to be registered for VAT if they making more than £82,000 of service/products a year. Therefore, my business will need to abide by all of the above.

Regulatory bodies

Regulatory bodies have been set up to monitor standards; businesses have to keep to these standards. Regulations bodies are include Food Standard Agency, Financial Service Authority, Medicine and Healthcare Regulatory Agency. Furthermore, there are certain organisations that provide you with advice to run your business successfully. Examples of such organisations are trade associations, Business Link, British Chamber of Commerce.

Financial aspects

Financial planning is very important by the law. This is because a start-up business could be expensive. Therefore, the best things to do id to start-up cost as low as you can. For example, renting the premises is much better than buying it as the business just start-up. For my business I would rent premises to start off with and when I improve my financial position to move to bigger premises or buy my own ones.

5. Financial Resources

6. Growth Development

Growth and Development Aim and Objectives

The main aim of my Arabic restaurant is to provide the West London area with an Arabic restaurant to try a delicious taste. At the same time, my aim is to make £200,000 per year, receiving 10% of profit. The objective of my business is to ensure that I have a sufficient number of staff and to make sure that customers will receive quality meals at an affordable price.

However, a strategy of continues growth will minimizes the amount of VAT that the company has to give to tax-man, also the amount of Capital gains to reduce net profit. Therefore, maximizing expenditures will allow the company to claim back VAT against the outgoing.  

7. Financial Contingency

My Arabic restaurant business’s financial contingency plan is made up of two categories which are:

1.     Raising more finance through internal and external sources of finance
2.     Cutting back on expenditure

            Potential additional revenue for the 1^st year

 
     Internal sources 

Own saving: Raise additional £6,000 from Directors.

Gifts from friends and relatives: Raise £ 3,500 given debenture stocks as security.

External Source of Finance 

Grants and sponsorship:  The Prince’s Trust is a charity that helps and assists young people from 18-30 years old, who are aiming to starting-up business venture. Therefore, this charity will help me as I fit into the age group which will be very beneficial for my business. This charity provides 24 hours legal helpline for free, online accounting system, free web design packages, and many more. Furthermore, the services which they provides will help me to start-up my business as they well support me if asks them for help. 

Loan and Borrowing: Mortgages, Bank loan, leasing, overdraft and venture capital.

Cutting-back on 1^st year estimated expenditure  

It is very important to cut back on expenditure and there is one way of doing this is by investing money in the business very carefully on what the money is spend on. Therefore, for my business I will set a department only for budgets. At the same time I am going to review the cash-flow forecast regularly.  However, the expenditure for my business would include employees’ wages, premises, advertising, equipment etc.