How to Write an Effective Business Plan

How to Write an Effective Business Plan MIKLA TURKISH RESTAURANT BUSINESS PLAN Section 1 a. Business Idea Mikla Turkish Restaurant will be an 80-seat restaurant specializing in fine dining as well as encompassing a 30-seat lounge. We shall focus on delivering Turkish menu with an Asian influence touch. The list will comprise of various specialties from different countries that will appeal to a broad client base. At the restaurant, our client will access specialties, such as herring, meatballs, and gravlax, as well as gain an opportunity to select from basmati rice, red curry chicken, or Asian shrimp with tofu, spinach, as well as black bean cause. We shall also avail our customers with unique pasta dish daily in line with baked beans and barbecue beef. We shall also focus on adding value to the lunch menu by offering daily specialties. We shall concentrate on making our meals of exceptional quality as well as ensure that we cater for sensitivity and care. We shall embark on various initiatives to ensure that our guests gain ultimate satisfaction. We shall be changing the menu we offer after every three months, although we shall make sure they remain the favorite on the side of the customers. The portions we shall provide will be modest in size while the mode of presentation will be attractive.

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b. Unique Selling Point (USP) The products we anticipate offering to our clients will be unique, thus provide an exclusive environment to our customers. We shall create an innovative and unique dining atmosphere that will differentiate us from our rivals (Barrow, et al., 2013). The restaurant will manage to stand out from the various hotels based in London Bridge Area as shall adopt a unique décor and design. The environment we shall provide will ensure our customers experience a comfortable experience (Degerlier, 2012).

We shall also focus on offering high-quality products while at the same time providing excellent service. Our services will also extend to special theme nights, such as local artist openings, restaurant nights, Turkish parties, Easter dinners, wine tasting events, and other holiday celebrations (Aulet, 2013). We shall also ensure that we control the different costs ensure that the products and services we offered to appeal to our clients. Our business will also adopt the community’s look and focus on entertainment, thereby allow us to differentiate ourselves from rivals (Bygrave & D'Heilley, 2014).

Section 2 Marketing Mix -

Product The business will offer mostly dining and beverage goods and services. The product

mix that our company will provide comprises of specialties, such as herring, meatballs, and gravlax. They will gain an opportunity to select from basmati rice, red curry chicken, or Asian shrimp with tofu, spinach, as well as black bean cause (Schultz, et al., 2015).

Furthermore, the wine list we anticipate offering will feature a modest size while primarily focused on offering wines from Turkey and other international brands. We shall also focus on expanding our product mix over time to cater for the growing customer needs in the region (Meyer, 2015).

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Price The pricing strategy we shall adopt will revolve around price bundling in line with

psychological pricing. In the event of price bundling, we shall provide meals as well as other product bundles at discounts. For psychological pricing, we shall use amounts that appear significantly affordable to customers, such as $_.99 to encourage clients to purchase more goods and services (Hoffmann, 2012).

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Place London Bridge Area is a prominent place to establish the business. The major places

we shall unitize in ensuring that our customers gain access to our products and services will entail our restaurants in London Bridge Area as well as make sure that the clients can order through the company’s website and mobile application for the diverse products and services the business will offer. We shall also establish small mobile establishments to cater for seasonal events and competitions in the region (Gummesson, 2012).

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Promotion Product development serves as one of the ideal ways of attracting customers to the

business. We shall utilize a variety of promotional mechanisms including sales promotions, advertising, direct selling, and public relations. Advertising will serve as our core promotional tactic by using radio, print media, TV, and online media (Palmer, 2012).

Regarding sales promotions, we shall embark on offering discount coupons as well as freebies in the case of certain products. Additionally, regarding public relations, we shall support charities and environmental programs to facilitate in boosting our brand’s value (Kotler, et al., 2011).

Customer Segmentation Our business will lay emphasis on the tourist seekers from the local area and tourists while laying special focus on young individuals earning between £20,000 and £30,000

annually as well as a desire for appealing food and beverages as well as fun atmosphere. The market segment comprises of young individuals seeking restaurant products and services while having sufficient money to spend. The other section will include of tourists and adults famous for visiting London Bridge Area for enjoyment and recreation. Hence, regarding demographics, our customers will add young adults aged between 20 and 29 years as well as adults aged from 30 to 50 years, comprising of both females and males. The target customers will have about one year of a college degree in case, not graduates. The psychographics of the business’s clientele includes club hoppers, big spenders, and baby boomers among others.

The purchasing patterns of the clients will entail individuals who prefer spending money in buying quality food, pampering themselves, projecting wealth image, feeling unique, thrill seekers, and those who love trying new things.

Bowman’s Strategy Clock As for our company, we shall focus on a hybrid strategy, which entails moderate prices as well as moderate differentiation. Here, the products and services we shall offer will be low cost while providing relatively higher value goods and services compared to those of our competitors. Here, we anticipate building a reputation through availing fair prices for ideal products, thereby allow us to establish loyalty among our customers (West, et al., 2015).

(Mindtools, 2016) Section 3 SWOT Analysis Strengths The managers and owners of the business have unusual experience working in the restaurant business Owners and executives are familiar with the tastes of the target customers, hence have the capacity to establish stronger ties A well-established supply chain for ensuring customers get the desired products promptly Opportunities Fast growth of the tourism sector Insignificant rivalry in the specialty business area Rising popularity of restaurant serving specialty food and beverages

Weaknesses Cash flow is reliant on the resources of the owners and bank loans Generous ownership and employee benefits raise the financial risk of the business The many experience years by the management might limit the degree of risks adopted, and thus potential market returns

Threats Rapid growth of specialty and entertainment industry, as well as low entry barriers, create opportunities for emergence of new rivals Susceptibility to recession Recessionary pressures might minimize unsecured credit lines (Mbengeranwa, 2014)

Section 4 Competitor Analysis The primary competitors for in London Bridge Area comprise of Blueprint Café and Cantina Del Ponte. The businesses serve as the key competitors within London Bridge Area

as they offer competitive prices. They exist at the heart of the London Bridge Area, thus providing pleasant views to the customers. They also offer various kinds of products and services that appeal to diverse client groups visiting the region.

Table of Competitors Name, Product/ Service Location, and Business Size Blueprint European cuisine Café, 36c Shad Thames, London

Price

Strengths

Weaknesses

Average prices between £15.5 and £35

It has delicious food, focused service, and quality wine.

Lovely food, incredible service and very friendly, knowledgeable staff

Cantina Del Italian, European, Gluten Ponte, 36c Free Cuisine Shad Thames, London

Average Prices between £10 and £20

Good food, excellent service and an eccentric view A perfect venue for a London wedding!"

Lacks a variety of products for customers to select from Not ideal for children mainly mostly because the meals offered are not childfriendly (Trip Advisor a, 2016) Not appropriate for special occasion dining Level of service delivery not well-organized (Trip Advisor b, 2016)

Section 5 Finance a. Estimated Sales and Cost The costs that the business will incur amounts to around £70,000, which related to rent, expensed equipment, consulting, and legal costs affiliated with the firm establishment.

The company will also need an additional £76,000 of start assets comprising of £30,000 cash

and £46,000 long-term assets. The owners’ investment will finance the owner while seeking the assistance of a principal investor and bank loan. b. Cash Flow Forecast Pro Forma Cash Flow

First Year

Second Year

$319,500

$785,600

$1,245,000 $1,400,000 $1,600,000

Subtotal Cash from activities

$319,500

$785,600

$1,245,000 $1,400,000 $1,600,000

Extra cash needed Subtotal Cash Received

$319,500

$785,600

$1,245,000 $1,400,000 $1,600,000

First Year

Second Year

Third Year

Fourth Year

Fifth Year

$22,350 $25,248

$48,985 $27,844

$56,884 $32,510

$60,500 $35,000

$62,400 $37,340

Subtotal Spent on Activities

$47,598

$76,829

$89,394

$95,500

$99,740

Extra Cash Spent Subtotal of Spent Cash

$47,598

$76,829

$89,394

$95,500

$99,740

Overall Cash Flow

$271,902

$708,771

Cash Received Money realized from business activities Cash Sales

Expenses Expenses from Activities Cash Spending Bill Payments

Third Year

Fourth Year

Fifth Year

$1,155,606 $1,304,500 $1,500,260

References Aulet, B 2013, Disciplined Entrepreneurship: 24 Steps to a Successful Startup, John Wiley & Sons, New York.

Barrow, C, Barrow, P & Brown, R 2013, The Business Plan Workbook: The Definitive Guide to Researching, Writing Up and Presenting a Winning Plan, Kogan Page Publishers, New York.

Bygrave, WD & D'Heilley, D 2014, The Portable MBA in Entrepreneurship Case Studies, John Wiley & Sons, New York.

Degerlier, E 2012, Case study for Kebab Turco Chain Restaurants, Evren DEĞERLİER, Istanbul.

Gummesson, E 2012, Total Relationship Marketing, Routledge, London.

Hoffmann, S 2012, Are the 4 P's of International Marketing of Equal Importance to All Firms? What Factors Might Cause Some to More Or Less Important Than Others?, GRIN Verlag, New York.

Kotler, P, Kartajaya, H & Setiawan, I 2011, Marketing 3.0: From Products to Customers to the Human Spirit, John Wiley & Sons, New York.

Mbengeranwa, A 2014, Restaurant Business Plan - The Complete Practical Format, Lulu.com, New York.

Meyer, P 2015, McDonald’s Marketing Mix (4Ps) Analysis, viewed 30 July 2016, <http://panmore.com/mcdonalds-marketing-mix-4ps-analysis>.

[Accessed].

Mindtools 2016, Bowman’s Strategy Clock, viewed 30 July 2016, <https://www.mindtools.com/pages/article/newSTR_93.htm>.

Palmer, R 2012, Maintenance Planning and Scheduling Handbook, McGraw Hill Professional, London.

Schultz, DE, Barnes, BE, Schultz, HF & Azzaro, M 2015, Building Customer-brand Relationships, Routledge, London.

Trip Advisor a 2016, Blue Print Café, viewed 30 July 2016, <https://www.tripadvisor.co.uk/Restaurant_Review-g186338-d730297-ReviewsBlue_Print_Cafe-London_England.html>.

Trip Advisor b 2016, Cantina del Ponte, viewed 30 July 2016, <https://www.tripadvisor.co.uk/Restaurant_Review-g186338-d719699-ReviewsCantina_del_Ponte-London_England.html>.

West, D, Ford, J & Ibrahim, E 2015, Strategic Marketing: Creating Competitive Advantage, Oxford University Press, Oxford.