Question

Our business is a Japanese restaurant in Melbourne (Australia). This is Entrepreneurial Finance subject. This question in the Venture Planning part.

It is widely acknowledged that entrepreneurs are an important engine of commercial and social change in the global economy. Entrepreneurs embark on developing their ideas to create value. However, in starting and growing their ventures, entrepreneurs must consider their development through management funding various stages of growth and finance. You are considering setting up and growing a venture, which could be classified under one of the following structures:

•Soletrader

•Partnership

•Company

•Not for profitmaking

•Trust

•Other

You believe you or your venture associates have the necessary skills to run the venture. However, you are exploring the entrepreneurial process leading to value creation for your startup. You are required to identify a business structure for your proposed venture and research the financial planning requirements that may affect the operations of the type of your business. Your report should address the following issues:

--> Explain where your business fits in terms of “time to market”. You are required to clearly define the concept of “time to market” and how it applies to your proposed business. Please explore validation of you product/service and how you will reach your customers?

Answer 1

Ans: Restaurant Business sturcture and planning:

Structure of Restaurant Business:-The structure of restaurant is Sole proprietorship, where one man or his family have control over it . They can't invest money fro others / investors. It is most easiest and inexpensive structure of restaurant. It is very common typre of restaurant business and business owned by a single individual or his family.

General Financial Planning for Business:-

• Restaurant Building should be purchased which is fixed and one time cost.
• For it we have to prepare a Capital budget.Which includes one time cost like building for restaurant,Restaurant furnitures and decorative architecture.Other part is variable cost that includes general day to day operation cost, monthly salary of manager and workers, vegetables ,groceries and other items procurement.
• General revenue plan and annual or monthly profit and loss statement to understand cost structure of business.
• Break even Analysis part should be done for recovery.
• Marketing expenses and advertising expenses.

Time to Market:-

It is the duration in which the business becomes able to bring its product to sale. This stage means starting from idea generation, whole business design cycle,developement and launching its first product in the market.

- In this situation seting up of restaurant , recruitment of staffs, whole business developement, food preparation and placing it infront of customers.

For restaurant business product types are non durable or perishable product. So for gaining sustainable competitive advantage proper marketing planning need to be done to incurre profit from it.

How we can reach to target custmers:-

For a start up business from the very beginning a some amount of expenses are done to attract our target customers or make them known about our products and other services.for that promotion and advertisement are needed and some temporarly workers are need to be hired for advertising restaurant business.We can advertise our business offline or online but in beginning offline advertising are made like banner ads in the area where restaurant business operate, print media and social media platform.