Business Plan Fast n’ Good | My Assignment Tutor

Business PlanFast n’ GoodFAST N’ GOOD BUSINESS PLAN 1 ContentsPage(s)About the Business3Section 11.1 Business Plan Executive Summary41.2 Business Objectives41.3 Business Description51.4 Business Operations5Section 22.1 Key People72.2 Training Needs Analysis82.3 Management Team8Section 33.1 Market Research93.2 Porter’s Five Forces Analysis113.3 PESTEL Analysis123.4 SWOT Analysis133.5 Customers143.6 Competition173.7 Marketing Strategy19Section 44.1 Costing and Pricing204.2 Sales Forecast204.3 Running Costs214.4 Start-Up Costs and Funding Package22Section 5 – AppendicesSurvey Monkey Results23 – 31Fast n’ Good Financial Statement Forecast32Fast n’ Good Sales Forecast33 – 34Fast n’ Good Purchases Forecast35 – 36Fast n’ Good Profit and Loss37Fast n’ Good Balance Sheet38Fast n’ Good Basic Break-even Analysis39Curriculum VitaeElizabeth Caroline Ross40Jennifer Fletcher42Robin Trias44Benjamin Beaufort45Julien Venezian46Erin McKenna47 FAST N’ GOOD BUSINESS PLAN 2 List of DiagramsPage(s)1: Map, Aeirial View, Photograph of Proposed Premises for Fast’n Good32: Proposed Restaurant Lay Out for Fast’n Good53: Drive Thru Plan for Fast’n Good64: Computer Generated View of Interior of Fast’n Good65: Training Picture86: Management Team87 : The Boston Matrix10 FAST N’ GOOD BUSINESS PLAN 3About the business:Ø Business Name: Fast n’ GoodØ Business structure: Limited CompanyØ Owners’ Names: Jennifer Fletcher, Erin McKenna, Eleanor Ross, Julien Venezian,Robin Trias and Benjamin BeaufortØ Business Address: 25 Bothwell Road, Hamilton, South Lanarkshire, ScotlandØ Business Telephone: 07715546210Ø Business e-mail: fastandgood@gmail.comØ Website address: www.fastandgood.comwww.facebook.com/fastandgoodhamilton(Source: Google Maps, Google Earth, Google Street View)Diagram 1: Map, Aerial View and Photograph of Proposed Premises for Fast n’ Good020600000 25aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaFAST N’ GOOD BUSINESS PLAN 4Section 1: Introduction1.1 Business Plan Executive SummaryFast n’ Good is an eating establishment and drive thru which focuses on providingcustomers with healthy and nourishing fast food at value pricing and will be located onBothwell Road in Hamilton.Customers are able to purchase healthy, organic meals in a short time, similar toMcDonalds or KFC but without the guilty full bloating feeling afterwards. Many peoplewho work, go to the gym, who are busy with children and try to stay healthy may nothave the time or energy to prepare themselves and their family a healthy mealtherefore McDonalds drive thru may seem like the easiest option to go for rather thanmake a meal from scratch. Fast N Good will give customers the opportunity topurchase a good quality meal at a decent price and quickly.Based on this diverse menu Fast N Good will provide unique, or hard to findchoices to customers who prefer to eat good quality food.The keys to success for Fast N Good will be repeat business, the restaurant is ina convenient location for students as there is a University behind the premises andmany places of work. There are also three gyms located within 5 minutes from Fast nGood’s location.Fast n Good will be a limited company with Jennifer, Erin, Eleanor, Julien, Robinand Benjamin sharing ownership. They will provide £4,000 each from personalinvestments (total of £24,000) and will be looking for a loan of £20,000.1.2 Business ObjectivesShort TermOur primary objective is to provide a restaurant which serves healthy fast foodfor the people of South Lanarkshire as an alternative to unhealthy Drive Thru’s andtakeaways which are prevalent in the surrounding area. By doing this, we shallgenerate an ample profit for ourselves and for our investors.We aim to create a diverse, healthy and tasty menu of good quality foods ataffordable prices in order to help people improve their lifestyle choices and ultimatelyenjoy a better quality of life.Medium TermWe also aim to revolutionise customer service by paying our staff slightly aboveminimum wage and encouraging them to treat others in the way which they would liketo be treated.FAST N’ GOOD BUSINESS PLAN 5One of our top priorities is an impeccable level of cleanliness and hygiene. Staffshall be trained to clean up as they go, as well as which appropriate cleaning productsto use. Our facilities shall be designed with efficiency in mind, therefore shall be easyto clean and maintain, also accessible for all members of staff and customers(wheelchair friendly, baby changing facility etc).Long TermWe also aim to expand our business by opening another Fast n’ Good restaurantwithin 5 years, perhaps within Glasgow, which shall reach out to a wider and morevaried market.1.3 Business DescriptionOur business shall provide customers with a high quality service. Customers willbe able use a Drive Thru to order their food which will be healthy, good quality, freefrom unhealthy additives and delivered to their car within a reasonable time.Customers also will be given the choice to sit in our family friendly restaurant in orderto eat their meals. The “sit in” option will be a self-service procedure of going up to thecounter to order and collect the food, as seen with other fast food outlets such asMcDonald’s.1.4 Business OperationsDiagram 2: Proposed Restaurant Lay Out for Fast n’ GoodFAST N’ GOOD BUSINESS PLAN 6Diagram 3: Drive Thru Plan for Fast n’ GoodThis is a graphic design of our restaurants layout. Customers using the drive thruwill queue around the back of the building to collect their food at the left hand sidebefore leaving the premises. Customers sitting inside the restaurant are able to parkoutside the building. This design shows a layout of the kitchen and bathroom facilitieswith the relevant measurement for equipment.Diagram 4: Computer Generated View of Interior of Fast n’ GoodFAST N’ GOOD BUSINESS PLAN 7Section 2 – The people2.1 Key PeopleThe key people involved in our venture shall be ourselves (the managers), theemployees, our suppliers and our customers. We will each have a different role in ourbusiness. Eleanor will be the general manager. Jennifer will be the human resourcesmanager. Erin will be the purchases manager. Robin and Julien will be the sales andfinancial managers. Benjamin will be the marketing manager.Eleanor will oversee the running of the business on a day to day basis, ensuringthat each shift runs as smoothly as possible and ensuring high customer satisfaction.She will be in charge of dealing with any customer queries within the store that dayand shall also strive to resolve any complaints in order to ensure that customers leavethe store extremely satisfied with the experience.Jennifer will be involved in advising and implementing policies relating to theeffective use of personnel within our organisation. Her aim shall be to ensure that ourorganisation employs the optimal balance of staff in terms of skills and experience andthat the appropriate training and development opportunities shall be available to ouremployees to enhance their performance and achieve our company’s aims.Erin shall be our purchasing manager and will be responsible for sourcing thebest quality equipment, goods and services for our company at the most competitiveprices. Erin will oversee supply chain management. This is a key role, as purchasingand supply management ensures that more than two thirds of revenue can be spenton replenishing the company’s products or services.Robin and Julien will be our company’s sales and financial managers. Their jobrole will include producing long term business plans, managing our company’s budget,controlling income, cash flow and expenditure and undertaking strategic analysis andplanning.Benjamin will be our marketing manager. He will monitor and report on theeffectiveness of marketing communications, manage our online social mediacampaigns (such as Facebook, Instagram or Twitter) and design marketing campaignsfor Fast n’ Good. He will develop the marketing strategy for the company in line withcompany objectives.FAST N’ GOOD BUSINESS PLAN 82.2 Training Needs AnalysisFollowing Subway’s model, staff shall be trained on how to serve people (withclean hands and a smile), prepare the good and organise the stock. A typical Subwayworker is able to prepare, serve and organise with ease. This includes baking breadand chopping vegetables with little to no formal training. Staff must be legallydocumented to work in United Kingdom. Staff must undergo a full disclosure beforebecoming employed (such as criminal record checks) and shall need to be fully trainedin food hygiene, first aid and general health and safety. It is essential that training iskept up to date and that staff shall be assessed regularly on procedures within theworkforce in order to maintain high standards.Diagram 5: Training Picture2.3 Management TeamAs a rather small business, we do not yet need a large management team. Ageneral manager, human resources manager, purchases manager, marketingmanager and a group of two sales and financial managers should prove sufficient forour first venture. This can always be revised when we expand.Diagram 6: Management TeamFAST N’ GOOD BUSINESS PLAN 9Section 3 – Marketing Plan3.1 Market researchOur target market shall consist of everyone in South Lanarkshire who may behungry or in a rush but would not want to eat unhealthy food. Customers may prefer ahealthy, fast meal without the need to cook especially when leaving work, universityor the gym.Our main competitors within the Hamilton area primarily consist of Subway,Greggs and Baguette Express (please see 3.3 Competition for a more detailedanalysis of competitors).In order to gain a larger market share than our competitors, Fast n’ Good aimsto fulfil a need and develop a niche in the market, this will be achieved by serving fast,healthy foods. Although it may be difficult to actually overtake established outlets suchas MacDonald’s or KFC, we shall at least provide a healthier alternative and hopefullyattract some of their customers to our restaurant, therefore gaining a market share.We may even start to persuade customers who would never usually eat at fast foodrestaurants to begin to develop the habit of visiting our restaurant when they discoveran outlet which actually caters to their needs and wants.People in the West of Scotland (Glasgow and surrounding areas) are nationallyrenowned for leading a particularly unhealthy lifestyle and may even appreciate it asa part of their social identity. Many people in the region smoke, drink alcohol, eat friedfoods (such as pizza crunches, deep fried Mars bars, full Scottish breakfasts,takeaway munchie boxes), drink fizzy drinks (such as Irn Bru, Barr’s Cola, Red Cola)and often do not actively participate in sport. Whilst young people may still choose tosmoke and drink, an increasing number are becoming interested in diet and exercise(if only for physical and cosmetic appearance) and therefore may seek whole foodsrather than junk foods in order to achieve a “beach body”. Hopefully our restaurantshall convert a number of Hamilton residents to a healthier lifestyle and possibly alsoattract more customers from surroundings areas (such as North Lanarkshire).Our Marketing Mix looks at our product, pricing, placement and promotionalstrategies. The product (healthy fast food) must taste good, be fresh, nutritious andappealing. We aim to provide a varied menu, featuring choices such as wraps,burritos, noodles, jacket potatoes, soups, rice bowls, veggie burgers, sweet potatofries, smoothies, frozen yogurts etc.Our price range shall remain competitive with the average price for a fast foodmeal (£4-6 for a meal for one, including a drink) as that is the price which theoverwhelming majority of those surveyed in our primary market research project werewilling to pay (see appendices for our Survey Monkey results). Our placement shall bea restaurant on Bothwell Road, which is within five minutes walking distance from TheUniversity of the West of Scotland (our university) and Hamilton College (a privateprimary and secondary school) as well as a number of small local businesses.FAST N’ GOOD BUSINESS PLAN 10Bothwell Road is a main road which connects Hamilton to Bothwell and the RaithInterchange and is therefore a strategic location due to regular volume of traffic.In reference to the Boston Consulting Group Matrix, we predict that Fast n’Good shall be a Star (high investment, high market growth rate). A Cash Cow is themost preferable sector to be in, as they require little investment yet return a highmarket growth rate. However, as Fast n’ Good will be a part of the fast food industry,it shall require a high level of investment (restocking food, packaging, staff wages etc)making a Cash Cow situation unlikely in the first six months whilst the business grows.However, Stars can still be profitable.(Source: https://www.pinterest.com/pin/244109242273450133/Diagram 7: The Boston Consulting Group Matrix3.2 Porter’s Five Forces analysis:FAST N’ GOOD BUSINESS PLAN 11As Fast n’ Good’s Business Model bears similarities to McDonald’s restaurant(both in service style and supply of food in a short time), we carried out an internetsearch in order to see how Michael E. Porter’s Five Competitive Forces analysis couldbe applied and to try to gauge which improvements could be applied to our businessventure. The following extract shows an example of McDonald’s Five CompetitiveForces Analysis. The main lessons to be learned are that it is important to be at theforefront of product innovation and not to allow our menu to become boring, outdatedor overpriced..(Source: http://panmore.com/mcdonalds-five-forces-analysis-porters-model)3.3 PESTEL AnalysisFAST N’ GOOD BUSINESS PLAN 12Politically, there are many regulations regarding imports of foreign products(for example, Meat traceability and certain chemical components). Embargoes orregulations in force within certain countries may affect the market for fast food,although most of our produce shall be locally sourced or at least sourced from the UK.In economic terms, customer demand for a fast food market is very important.Indeed, many restaurant chains manage to establish a lasting presence in this highlycompetitive market. These include large companies such as McDonalds or KFC.At the social level, we see a change in lifestyle and changes in the eating habitsof many countries, particularly with young people. Indeed, people seemingly wish toconsume much healthier whole foods and health based products as compared toprevious decades such as the 1980’s and 1990’s. Dietary factors must be consideredin the launch of the restaurant. This has become a global concern for many customersas people have become aware of the need to eat healthy to prevent the risk of diseaseand reduce the Western obesity epidemic which is a major health issue.At the technical level, we note that the rise of the internet has had an impacton food consumption. Indeed, consumers can get a lot of information on dietaryinformation, company policies (such as Nestle and their bottled water scandal) andbusiness’ strategies for selling their products on the market. Most, if not all, majorcompanies have websites as to facilitate constant consumer demand and queries,which saves costs on employing call centre staff for a customer query helpline.Environmental concerns seem to be increasing, particularly the issues ofsustainability and pollution. Indeed, protecting the environment and reducing theimpact of human activities on the environment have become important criterion to theconsumers. Fast n’ Good therefore seeks to be as “green” as possible and implementa sustainable development policy in our overall strategy. Many businesses are focusedon limiting their amount of food/water/paper waste, reducing their carbon impact onthe environment and reducing greenhouse gasses. Environmental concern is requiredto take advantage of diminishing scale in coming years with the rarefaction of primaryresources.Finally at the legal level, we notice that governments promote competition inmany markets. However, the fast-food market is rather closed to the entry of newplayers. The barriers to entry are strict and limited by numerous laws relating tohygiene, products or consumers. All these measures have the effect of creatingmonopolies in many geographical areas as with companies like McDonalds or KFC.When entering into trading, Fast n’ Good should make sure to comply with all laws andregulations, including those of the British Standards Institute and the EuropeanCommittee for Standardization. It must also be taken into consideration that peoplecan peruse legal activity if exposed to false advertisements or mislabelling.3.4 SWOT AnalysisStrengths:FAST N’ GOOD BUSINESS PLAN 13Our enterprise to create a whole food based, fast food restaurant has manystrengths. The first of these is that the concept is relatively new in this market. Indeed,there are very few fast food restaurants which serve only healthy options. Our conceptis that we can help to change the negative connotations which customers havetowards fast food, that it is mainly greasy and bad for health. By working with localproducers, it will allow to provide a certain competitive advantage for our idea. Thesepartnerships will allow us to create a variety of products that can evolve and grow withthe years of experience in this market.A large aspect of our idea is that working with local producers shall betterenable us to offer consumers the right product quantity and quality.Weaknesses:However, our project also has weaknesses that must be corrected in the nearor distant future. Indeed, our project wants to expand into a saturated sector by manylarge chains of fast food. This requires that our idea manages to implant and sustainon this sector. We also need to change the image of the fast food created by theconsumers about food sold in fast food even if they are vegetarians. Finally the mainweakness is how we want to work with local producers, economies of scale will bedifficult to achieve, which is why the tariffs applied to products sold in our business.Opportunities:The market for fast food presents many opportunities. Coupled to the segmentof dietary food, we can get new opportunities for our business idea. We note thatconsumers have increased the budget dedicated to leisure and food. Indeed, whentraveling to the city centre or in a shopping mall, customers want to eat there. Whenconsumers come out of a gym, they want to eat quickly but healthily. Moreover, withthe reduction of the time dedicated to the achievement of meals, we see more andmore people decide to eat in fast food. This phenomenon can be explained by thedevelopment of women’s work which reduces the time available they have to cook forthe family. Accelerating the pace of living also influences the consumption of fast food.Finally the speed of execution, the proximity, quality and price are also importantfactors fast food consumption.Threats:The main threat to our business idea is the desire for change in lifestyle andeating habits. This be viewed as an opportunity but is primarily a seen as threat asconsumers may wish to restrict fast food consumption. Hopefully our restaurant will beable to show customers that healthy food can be enjoyed as tasty, fast food. Theglobalization of food is also a threat to our project.Indeed, with the development of the internet and lowering of customer relationbarriers, consumers have access to a significant amount of information on the majorFAST N’ GOOD BUSINESS PLAN 14fast-food chains. These same consumers want to eat a better quality meal, especiallyso if time is short with an accelerating pace of life.On the other hand, the high competitive intensity in this sector is to thedisadvantage of our project. It may be difficult to implement and sustain this field ofrestoration. The bad image of fast food in the public eye increases the barriers tomarket entry, yet opinions may be overturned in time by our company’s healthy foodpolicy.3.5 CustomersCustomers who will be attracted to this business are likely to be healthconscious, active people who spend a lot of time working and therefore may not havethe time or energy to prepare their own food. Students and schoolchildren from nearbyestablishments may visit Fast n’ Good for lunch or at home time. Pensioners may beinterested in healthy food which they do not need to stand and cook, as well as familieswith children as an alternative to purchasing an unhealthy takeaway such asMcDonalds.(Source: Response received on Eleanor Ross’s Facebook page when asking friendsto complete our Market Research survey, see appendices for full survey and results)We also found secondary sources of market research information concerningthe fast food industry on MINTEL (Market Intelligence), most of which correspond withour primary research (survey) findings.FAST N’ GOOD BUSINESS PLAN 15FAST N’ GOOD BUSINESS PLAN 16FAST N’ GOOD BUSINESS PLAN 173.6 CompetitionOur three main competitors located in Hamilton, based on the types of food weshall serve, are Subway, Greggs Bakers and Baguette Express.Competitor Key strengths Key weaknesses Subway• Great degree ofcustomization• Largest fast food chain inthe world by the number ofoutlet• Choice of healthier meal• There are 2 Subways inHamilton, one is near ourbusiness• Interior design lookscheap• High employeeturnover• Too much controlover franchisesGreggs• High growth rate• Barriers of market entry• Skilled workforce• There are 2 outlets inHamilton. Both are in thecity centre next to theRegent Shopping Centre.• Productivity• Small business units• Future profitabilityBaguette Express• Situated on Hamilton mainstreet• Offers wide range ofbaguettes, wraps and soups• Reasonable priced, friendly.• Requires parking andat least 5 minutes ofwalking• Must wait while orderis prepared• Very small, only 3 or 4tables Our niche shall hopefully beconvenience, quality and value. We aimto be convenient by being as efficientand accessible as possible. We aim forour food to be nutritious and goodquality. We aim to provide a high qualityand quantity of good for a reasonableprice, therefore offering good value. Weare aware of other competitors and theirmarket positions in the industry, such as McDonalds which is the most widelyrecognised fast food brand in the world. We have also researched the market shareof other fast food giants such as KFC, Burger King, Five Guys and Pizza Hut.Indirect CompetitionFAST N’ GOOD BUSINESS PLAN 18Indirect competition involves competing with a business which is notconceptually similar to ours, but whose products or services could satisfy the samecustomer requirement.As Fast n’ Good is essentially a catering business, our competition involvesanyone who sells food to satisfy hunger, which is a rather broad spectrum. Our targetmarket and other potential customers have a wide choice of other restaurants andfast-food outlets to choose from in the surrounding area. However, we hope toovercome this with our U.P.S (Unique Selling Proposition) of healthy fast-foodavailable via Drive Thru.Indirect competitors could involve cafes which usually serve bites to eat and hotdrinks in a small, comfortable setting. There are many small cafe type businessessurrounding our establishment, yet none of these offer a Drive Thru experience or thesame broad range of food and drink that Fast n’ Good aims to provide.Other direct competitors could also include supermarkets, particularly largechains such as Asda’s, Morrison’s and Sainsbury’s, all of which are situated relativelyclose to our business (all less than a 5 minute drive away). Each of these supermarketsoffer deli’s and hot food stalls (selling items such as Indian/Chinese takeaway and hotchicken products). However, supermarkets require parking, walking in and oftenstanding in queues to pay for food. They do not offer a Drive Thru, whereas Fast n’Good shall. Other disadvantages of buying a meal from a supermarket could includedistractions from unnecessary products, impulse buys and the fact that food may notbe hot (or even cooked) by the time the customer returns home.We must also remember to keep our pricing competitive with both direct andindirect competitors. Failure to do so may result in potential customers seeking a moreaffordable price from other catering establishment (or perhaps even a higher price, fora reassurance in quality).3.7 Marketing strategyChannel Method Timing CostFAST N’ GOOD BUSINESS PLAN 19 DirectStreet advertisement (large sign,leaflets)£50-100on largesign£50 onleaflets£150 maximum but£50 per month orless ideally.IndirectWord of mouth£0NetworkingWe aim to establish partnerships withlocal and Scottish farmers to provideus with fresh producee-businessSocial networking. We shall create aFacebook page, a Twitter accountand also an Instagram account topromote our business. We canbroadcast advertisements andphotos of the food sold in therestaurant and also createadvertising campaigns withdiscounts on certain products.Finally, we can promote ourrestaurant with the creation ofevents.We shall also design and create awebsite for the restaurant to promotediscounts, advertise our productsand provide a full menu withingredients and pricing lists. We shallalso create an email address tocommunicate with customers andsuppliers£0 – £10 (unlesshiring webdesigner). Example of an advertising campaign by the Dallas Farmer Market which aims topromote healthy food as a viable, fast option:Section 4: The MoneyFAST N’ GOOD BUSINESS PLAN 20All information in this section can be found in the financial statement forecast inAppendices.4.1 Costing and PricingPredicting income, we can presume to achieve an average £352,000 worth ofsales during this first year, with £24,000 stemming from our personal investments asowners. We also seek to contract a loan for £20,000 to cover our costs at thebeginning. With sales VAT, we arrived to predict an average of £468,000 income.Concerning the expenses, we forecast average £398,000 of cost. The twoprincipal costs are the employee wages with 31.74% of the total and purchases at31.03% of the total cost.Concerning the cash flow balance, we can say that during the year, the net cashflow for the month period of July, October January may be negative due to VATexpenses and a drop of attendance. We predict a profit of approximately £69,000 ofnet cash flow. By the end of the first year, we expect to make a profit, after tax, ofaround £30,000 and our balance sheet is correct. More details are in the appendices.4.2 Sales ForecastForeseeing the opening of our business, we have based our sales on varyingdata. We will be open all days (on average 30 days per month) in the morning,afternoon and night. We expect each morning to average 25 customers for eachmorning, 55 each afternoon and 50 each night. We calculate that the average expenseper morning and per person is £5, £7 in the afternoon and also £7 in the evenings.With this, we expect to earn £3,750 in total in monthly morning earnings,£11,550 for afternoon earnings and £10,500 for nightly earnings, for a total of average£26,000 per month, our sales base. We then estimated a probable frequency for ourbusiness per month. During this year, the months of June, July and August will be lessbusy than others due to many students leaving Hamilton in order to return home, asthey are an important part of our target market and customer base, therefore wepredict profits to be slightly less than the annual average.With our financial base, start-up adjustment and the seasonality adjustment inmind, we can expect to earn around £352,000 in sales profits for the first year. This isan estimate of our sale projections but, as with all enterprises, may turn out less ormore profitable than expected. It is usually better to underestimate than overestimatefinancial profits, in order to be able to better cope with unforeseen circumstances andlosses.4.3 Running CostsWe will now clarify the details of our financial spreadsheet template, concerningthe running costs of our venture. Concerning stock, we expect to hold 5% of previousFAST N’ GOOD BUSINESS PLAN 21monthly purchases on a regular basis, as we shall receive a delivery once per weekand some foods and products shall still be within their use by date and therefore fineto use, especially cups and packaging.When it comes to furnishing each part of the business such as the kitchen,dining area, toilets and office we need to buy furniture for short to middle term use. Atthe beginning, we shall have to spend more than average on furniture purchases todecorate the restaurant. Each month we must restock our cleaning products,packaging and other dry goods. In total our furniture costs are estimated to be around£250 to £500 each month (replacing broken furniture and remaining topped up on drygoods).We must also consider business operations. For example, purchases and supplierinvoices. The software is the most expensive aspect of I.T and the licence must berenewed every few years.• Computer: £700• Accountancy licence: £640• Office Pack Licence: £160Concerning rent and rates, the local annual rates in Hamilton seem to be pricedat around £19,500. We have to pay our overheads, including rent, each month(including interest rates) and we must provide a pre-payment deposit before startingour business. At the end of the year, we expect to pay £20,800. As for insurance, aftersome research, we found an insurance provider who is willing to cover almost everysituation and risk concerning our business, the employees and the owners, at a totallimit of £5,000,000 damage cost. For this kind of insurance, we forecast to pay average£400 in insurance per month with AXA insurance.For advertising and promotion, we will use flyers, local media outlets and socialnetworks mainly to promote business, generating a monthly cost of around £500 permonth, therefore £6,500 annually. Concerning heating and lighting, our restaurant islikely to consume a lot of energy, water, electricity and gas. We estimate our utility billsto cost around £900 per month, with a total annual cost of £10,800.Concerning wages, our company expects to employ four employees in additionto the six managers (us). After several calculations, we have deduced that salariesshall account for around £9,500 per month and £114,000 annually.Finally, we predict our employees’ wages to cost an average of £114,000 peryear plus £12,000 to cover employees National Insurance costs for an annual averageof £126,000.4.4 Start-Up Costs and Funding PackageEach manager will invest £4,000 each to launch our business venture. We shallalso source £20,000 with a bank loan to cover our initial costs and purchases, suchas cooking equipment, furniture, bathroom facilities, computer equipment, advertisingFAST N’ GOOD BUSINESS PLAN 22and promotional material, training for the employees, VAT fees and rent and rates fora total of £29,000 in pre-start-up costs.We would prefer to source a loan for more than estimated to require as weprefer to err on the side of caution and have liquid capital to be able to make variouspurchases. This loan should have a duration of five years (60 months) and we hopeto achieve a rate of 6% or less after negotiation with the bank and/or investors.At this rate, we expect to pay £1,200 of annual interest and £4,000 annually ofrepaying capital. More details of the financial forecasts can be found in theappendices.Section 5: AppendicesNumber 1: Survey Monkey Results, created on 3rd November 2015 with a total of 68responses analysed on 16th November 2015:FAST N’ GOOD BUSINESS PLAN 23For question one, we sought to ascertain the importance of a healthy diet fromour respondent’s point of view. The majority (44%) answered that they try their best toeat healthily but treat themselves occasionally, followed by yes, that they consider ahealthy diet to be an important priority. Only 8 out of 68 respondents answered that ahealthy diet was not an important priority for them. This could be beneficial for Fast n’Good, as most people say that they try their best to eat healthily and therefore may bemore willing to buy our food for health reasons as opposed to a MacDonald’s meal.FAST N’ GOOD BUSINESS PLAN 24For question two, we asked respondents if they would prefer to purchase froma health based Drive Thru as opposed to a mainstream fast food outlet. The majorityof respondents (54.41%) answered that they would try it, but only return if the foodwas of good quality and reasonable price. The second most popular answer was thatcustomers would be willing to try a health based Drive Thru as they are always seekinghealthy, tasty alternatives (with 42.65%). This is refreshing to see, as we now knowthat most people would at least be willing to experience our establishment at leastonce. Only two respondents said that they would probably stick to what they know,which is encouraging to see.FAST N’ GOOD BUSINESS PLAN 25For question three, we asked respondents how often they visit fast food outlets.Most people (47.06%) answered occassionally, followed by regularly (36.76%) thenhardly ever, if never (16.18%). These results are promising, as more people visit a fastfood outlet occasionally and regularly than those who do their best to avoid fast food.This also means that we could tempt those who usually avoid fast food to visit ourrestaurant, as we aim to provide healthier options than most typical fast food outlets.FAST N’ GOOD BUSINESS PLAN 26For question five, we asked respondents if they would prefer to Sit In, DriveThru or whether it depends on timing and surroundings. This was interesting, as anequal amount (25% respectively) answered with Sit In and Drive Thru. This shows thatour respondents had no overwhelming preference. Indeed, most people (50%) chosethe “Depends on time/atmosphere” option. This signifies that we should strive to createan inviting, time efficient restuarant in order to entice people inside, so that our DriveThru does not become too crowded and therefore inefficient.FAST N’ GOOD BUSINESS PLAN 27For question six, we asked respondents if they would be interested in certaintypes of food (some of which we have incorporated into our menu). 77.61% ofrespondents said yes, that they would be interested, which is fantastic news. 20.90%said they would be interested but only if good quality and reasonably priced. Only 1respondent answered that they would not be interested.FAST N’ GOOD BUSINESS PLAN 28For question seven, we asked respondents how much they would be willing topay for one meal (including a drink) at a fast food outlet. The overwhelming majorityof respondents, 77.94%, answered with “The average amount (£5 – £7)” followed by“More than the average amount (£7 – £9) with 13.24%. Only 6 respondents would bewilling to pay less than the average amount. This is a good sign for Fast n’ Good, aswe shall be able to keep prices similar and competetive to that of other surroundingbusinesses which should help us to become profitable.FAST N’ GOOD BUSINESS PLAN 29For question eight, we asked respondents for the time of day that they wouldbe most likely to visit Fast n’ Good. Most respondents answered “For dinner” (51.47%),closely followed by “For lunch”. Only 1 respondent answered that they would be mostlikely to visit “For breakfast”. This is useful information, as it shows that we shouldexpect most people through our doors/Drive Thru in the afternoon and evenings. Wecan therefore adjust our projected schedule and staff rotation accordingly.FAST N’ GOOD BUSINESS PLAN 30For question nine, we asked respondents if they found it difficult to make healthydiet choices in Hamilton and the surrounding areas. Most people, 48.53%, answeredYes, due to the abundance of Chip Shops and Take Aways. 47.06% of respondentsanswered “Sometimes, especially if hungry or in a rush”. Only 4.41% answered Noand that they manage to avoid most unhealthy foods. This is beneficial information forFast n’ Good, as we now understand that more than 95% of respondents find it difficultto eat healthily in Hamilton. This means that we can strive to provide healthy alternativeoptions. A Drive Thru would also be beneficial to those in a rush, who do not have timeto sit down and eat.FAST N’ GOOD BUSINESS PLAN 31To conclude, for question ten, we asked respondents if they believed that ahealth conscious Restaurant/Drive Thru would be a viable business. 58.82%answered “Yes, as it would provide an alternative to unhealthy fast food for a growingcustomer base”, followed by “Perhaps, but only if a continuois amount of people visitedregualrly” (which could be said for any business venture). Only 5 of 68 respondents(7.35%) answered that it does not seem viable. This is promising data, as over half ofour respondents believe our venture is viable and likely to succeed.FAST N’ GOOD BUSINESS PLAN 32Number 2: Fast n’ Good Financial Statement forecast:► Sales Forecast► Purchases Forecast► Cash Flow► Projected Profit and Loss Account► Projected Balance Sheet► Basic Breakeven Analysis Fast n’ GoodSales Forecast1Year 1EstimatedMonthlysales£Apr26,000May28,500Jun33,000Jul25,500Aug24,500Sep26,500Oct28,000Nov34,000Dec29,000Jan26,000Feb26,500Mar27,500Total335,000 FAST N’ GOOD BUSINESS PLAN 33 Fast n’ GoodSales Forecast2Year 1EstimatedStart UpSalesMonthlysalesAdjustment(cash)£%£Apr26,0003%26,780May28,5003%29,355Jun33,0002%33,660Jul25,5002%26,010Aug24,5003%25,235Sep26,5003%27,295Oct28,0004%29,120Nov34,0003%35,020Dec29,0004%30,160Jan26,0003%26,780Feb26,5004%27,560Mar27,5002%28,050Total335,000345,025 FAST N’ GOOD BUSINESS PLAN 34 Fast n’ GoodAverageSales Forecast3Customer SpendYear 1£6.30Represents:CustomersEstimatedStart UpSalesSeasonalitySeasonalitySalesper MonthMonthlysalesAdjustment(cash)AdjustmentAdjustment(cash)£%£+ve-ve£Apr26,0003%26,7803%1%27,3164336May28,5003%29,3554%1%30,2364799Jun33,0002%33,6603%1%34,3335450Jul25,5002%26,0103%1%26,5304211Aug24,5003%25,2352%0%25,7404086Sep26,5000%27,2953%1%27,8414419Oct28,0004%29,1204%2%29,7024715Nov34,0003%35,0203%1%35,7205670Dec29,0004%30,1603%0%31,0654931Jan26,0003%26,7803%1%27,3164336Feb26,5004%27,5604%1%28,3874506Mar27,5002%28,0503%1%28,6114541Total335,000345,025 352,796 FAST N’ GOOD BUSINESS PLAN 35 Fast n’ GoodPurchases ForecastYear 1Based on sales forecast monthly purchases % ofsales35.00%£Apr9,560May10,582Jun12,017Jul9,286Aug9,009Sep9,744Oct10,396Nov12,502Dec10,873Jan9,560Feb9,935Mar10,014123,479 FAST N’ GOOD BUSINESS PLAN 36FAST N’ GOOD BUSINESS PLAN 37 Fast n’ GoodProjected Profit & Loss AccountYEAR 1£Sales352,796Less Cost of SalesPurchases129,152Employee Wages107,698236,850GROSS PROFIT115,947ExpensesRent and Rates20,800Motor and Travel Costs0Vehicle Insurance0Other Insurances4,800Telephone and Internet1,300Refurbishment, Repairs and Maintenance1,500Professional Fees (Legal, Accountancy etc)2,000Postage and Stationery1,400Bank Charges1,800Advertising + Promotional Material6,500Heating + Lighting10,800Sundries200Loan Interest1,200Depn – Furniture1,850Depn – Equipment3,750Depn – Computer375Depn – Vehicle058,275TRADING PROFIT57,672Add Grants0PROFIT BEFORE DRAWINGS57,672Less Drawings0PROFIT AFTER DRAWINGS PRE TAX57,672Tax13,951PROFIT AFTER TAX43,720 FAST N’ GOOD BUSINESS PLAN 38 Fast n’ GoodProjected Balance SheetYear 1£FIXED ASSETSFurniture5,550Equipment11,250Computer1,125Vehicle Purchase017,925CURRENT ASSETSBank and cash88,074CURRENT LIABILITIESLoans Outstanding16,000VAT8,327Tax13,95138,278NET ASSETS67,720CAPITAL AND RESERVESCapital24,000Profit & Loss Account43,72067,720CHECK0 FAST N’ GOOD BUSINESS PLAN 39 Fast n’ GoodBasic Breakeven AnalysisYear 1Formula = Overheads= 58,275=£ 58,275 =Break evenyear£ 4,856 = Break even£ 1,214 = Break even£ 243 =Break evenday£ 58,275cash sum percash sum per monthcash sum per weekcash sum per + DrawingsGross Profit %+ 033%