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BUSINESS PLAN Of

Jennifer Mayo Trading as ‘Burger Queen’

May 2008

Contents Section 1 -

INTRODUCTION 1.1

Background


Section 2 -

1.2

Personal Details and Responsibilities

1.3

Physical Legal & Financial Factor

MARKET RESEARCH 2.1

Customer Profile

2.2

Competition Analysis

2.3

Suppliers

Section 3 -

SWOT Analysis

Section 4 -

MARKETING 4.1

The Product / Service

4.2

Pricing

4.3

Location/Place

4.4

Promotion

Section 5 -

SALES TARGETS

Section 6 -

FINANCIAL ANALYSIS 6.1

Projected Cash-flow

6.2

Projected Profit & Loss

6.3

Break-Even Analysis

5.1

Balance Sheet

5.2

Notes to the Cash-Flow

Section 7 -

FUTURE DEVELOPMENTS

Section 8 -

CONTACT DETAILS

Section 9 -

APPENDICES e.g.

Photographic ID Proof of Address CV Qualifications Letter of intent Map of area Price list Insurance Quote Plant, Fitting, Machinery quotes Legal requirements (licences etc) Advertising/Marketing Quotes Examples of Promotional Material/Stationery Health & Safety Guidelines

Section 1 - INTRODUCTION My name is Jennifer Mayo, I am 25 years old and having worked in the mobile fast food business for the past three years as an employee I believe that I have enough experience and confidence that I could successfully become self-employed running

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my own business. The principle activity of my business would be the provision of hot and cold food via a mobile food van. I will operate as a Sole Trader from my home address of 7 Wimpy Road, Buntown, Glasgow G28 7AB and will trade under the name of ‘Burger Queen’. Having previously worked on a snack van I have seen the potential for a well-run van, pitched at the right location, offering quality food at an affordable price. I have also noticed that there are no existing snack vans around Sesame Street, the busiest, most central area of Buntown and I have decided to pursue the possibility of trading from a pitch in this area. I would like to become self-employed for the following reasons: •

To re-enter employment having been unemployed for a period of time

To obtain financial security, both present and future for myself and my family

To be in control of and have full responsibility for my own business affairs

To utilise previously gained skills and experience in a business environment

To date by way of preparation I have performed the following: •

Attended a series of one-to-one advisory sessions with a business advisor at Glasgow West Regeneration Agency, formerly Opportunities in Drumchapel.

Identified and priced a few mobile snack vans that would be suitable

Priced the required equipment for the vehicle, including safety equipment

Sourced quality, value for money suppliers for all food and drink stock

Considered my competition in the surrounding area

Sourced insurance quotations

Obtained a hygiene certificate

Applied for a street traders licence and paid the fee of £55 (award pending)

Opened a business bank account

Projected sales for the first 12 months of trading are £66,870 and I aim to commence trading on the 1st July 2007. I will register for VAT in May 2008. 1.1

Personal Details and Responsibilities

Qualifications I have an HND in Catering that I gained 2 years ago at Buntown College. I feel that I am suitably experienced and have a professional methodical approach towards everything I do.

I am aware of the planning required to commence in business

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effectively and realise the level of commitment required to ensure that the business trades effectively. Practical Experience I am 25 years old and have to date worked in a number of positions relating to food preparation and catering. Previous experience included two years working in various roles at McDaniel’s restaurant in Glasgow city centre and a year working as an assistant on Sam & Ella’s snack van in Greenock.

During this time I gained

invaluable experience in terms of the following: •

Food preparation

Hygiene issues

Stocking

Staff management

Public relations

I also hold an HNC in Deep Frying and 2 modules in ‘Toastie Making’ and ‘Using Mayonnaise Creatively’. I have the full support of my friends and family in particular from my husband, Coleman, he has been of vital assistance in my initial market research. He has also pledged to work in the van should staffing problems occur. There are three others (as detailed below) that will work in the van on a regular basis and these individuals will be adequately qualified and licensed from the outset. I will be responsible for all aspects of the day to day running of the operation. In particular: •

Transportation of the snack bar to and from storage.

Stocking the bar

Daily banking duties

Cooking and serving

Managing staff and scheduling rota

Sandwich and pre-packing meals preparation

Two staff members will be in the snack bar at any one time, one cooking and the other serving. Coleman will assist me each morning prior to trading in any food preparation duties i.e. sandwiches and pasta.

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Licensed staff (i.e. each holding their own street traders licence) prior to trading will include: •

Jennifer Mayo

Coleman Mayo

Dixon Pickle

Jan Teabrekk

Eva von Bratwurst

Mr Pickle and Ms Teabrekk will work mornings and afternoons respectively, Monday to Friday while Mrs. Bratwurst will be part time, working Saturdays only. Mrs Bratwurst will be available at short notice to fill in where necessary as will Coleman Mayo. Assistants will be paid a standard rate of £5.80 per hour. Should I be unable to fulfil my daily duties for whatever reason, Coleman will be available to take over my duties in the short term. My sister, Senga Bacon, is a qualified bookkeeper and will produce all books and records necessary to satisfy our accountant and ultimately HM Revenue & Customs. We will not initially register for VAT however will continue to review the £68,000 turnover registration threshold on a month to month basis. Professional support is offered by: Glasgow Central Enterprise Agency

Sloe, Sloer & Stoppe

The Info Institute

Solicitors

Grant Crescent

13 Olde Rope Avenue

Glasgow

Glasgow

Tel: 0141 655 2000

Tel:0141 335 7753

Richard Bore

Floyds ASB Bank

Chartered Accountant

52 Sesame Street

7 Penny Lane

Buntown

Glasgow G25 419

Glasgow G15 5FC

Tel: 0141 336 6666

Tel. 0141 944 4444

1.3

Physical, Legal & Financial Factors

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As already stated I will be the sole proprietor of the company and will operate in the Sesame Street/Cholesterol Crescent area of Buntown. (See map of area in appendices) I have considered all environmental health implications arising and the relevant department at Glasgow City Council have made an initial inspection of my snack bar and as the vehicle is in pristine condition, no delays are expected. Myself and all staff involved in the food preparation currently hold Hygiene Certificates obtained at Buntown College. The council has granted permission for my desired pitch on Cholesterol Crescent (see appendices) and will ensure that all four individuals have street trader’s licences to serve customers from the bar (as detailed in section 1.2). Insurance Having joined The National Federation of Mobile Food Vans, they will provide me with a competitive quote for combined insurance. This policy will cover for public liability (£2 million), employer’s liability (£10 million), business interruption and product liability. The annual premium will be £280 which I will pay by d/d over 12 months. My personal vehicle, which will be used to tow the snack van, has been insured for business use. My personal contribution to the business is as follows: •

Personal Vehicle

£ 950

Street Traders Licence

£ 75

Cooking equipment

£ 145

PC and Printer

£ 450

Total

£ 1,620

I will require the following to commence trading effectively: Vehicle Required:

Phoenix MKII Trailer Snack Bar

£ 4,100

Equipment/ Stock required •

Sharp Microwave Oven

Jennifer Mayo t/a Burger Queen

£ 60

6


Fridge/Freezer

£ 800

Cooker/conventional over (2nd Hard)

£ 300

Cooking utensils

£ 100

Shelving

£ 40

Frying Pans

£ 125

Fryer

£ 30

Worktop grill

£ 320

Cash Register

£ 125

Stock Food (see appendices)

£ 250

Gas

£ 50

Packaging

£ 30

Advertising 4 weeks Advert in local paper

£80

Sign

£250

Flyers

£10

Licences 5 x street traders licences

£375

Total

£ 7,045

While I am able to make a personal contribution of £1,620 towards my business in the form of equipment and a car, and £2,000 cash, I still require a level of funding to buy and equip the van effectively and cover my additional start-up expenses.

Start up costs can be summarised as follows: Vehicle

£4,100

Equipment

£1,900

Stock

£ 330

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Licences

£ 375

Advertising

£ 340

Total

£ 7,045

This would be funded with the following: Own cash

£2,000

Launchpad Grant

£ 200

GCRA Start-up Grant

£ 500

PSYBT Grant

£ 1,000

PSYBT Loan @ 4%

£ 3,700

Total

£ 7,400

The excess of funding will be utilised as additional working capital should trading results demand it.

Section 2 - MARKET RESEARCH 2.1

Customer Profile

Broadly speaking, my customers will be derived from the general public living, working and passing through the Buntown area of Glasgow. In particular I see the following as being the focus of my marketing: •

Working in the nearby Buntown Shopping Centre.

Office staff and workers from adjacent Cheepinleeky Business Park

Schoolchildren travelling to and from two local primary schools and Buntown High School

Taxi drivers

Freight drivers delivering to business sites

Construction workers working in two nearby building sites

Any individuals looking for fast, convenient service unwilling to buy from competitors from reason detailed in competitor analysis

In 2004 there were approximately 8,400 snack vans in the U.K. In 2007 this figure had increased to 13,500*. This is clearly a growing market. * Which burger Van – May 2007 issue

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2.2

Competition Analysis

Competitor

Comp. Price* 2.60

BQ price

Comment

2.20

3.20

2.20

3.90

2.20

10 minute walk from centre. More expensive Time consuming orders. Expensive. Emphasis on sit in meals. Chip shop. Unhealthy food.

3.40

2.20

McDaniel’s

3.30

2.20

Grogg’s Bakery

2.80

2.20

Dicky Tumm’s Burger Bar The Wokked Dog Chinese Restaurant Fat Frank’s World of Batter The Stab Inn

2.3

Bad reputation. Sit down bar meals only. Smelly atmosphere. Burger Restaurant. Long queues. More expensive. No parking. Slow staff, long queues. No hot food.

Price based on average lunchtime meals consisting of sandwich equivalent and a drink.

Suppliers

Wm Cleaver & Sons (Buntown) – Butcher-meat. The Halfinch Cash & Carry (Halfinch) – Drinks, Crisps, Confectionery. The Poke Company (Glasgow) – Containers and paper packaging. The Buntown Bakery (Buntown) – Bread, rolls scones etc. MICRO cash & carry (Glasgow) – sundry supplies. Having sampled the produce from a number of local butchers and bakers, the above were chosen as they offered good quality at value for money prices as well as having suitable opening hours and delivery services for my business. All goods will be paid for at time of purchase.

Section 3 – SWOT Analysis STRENGTHS •

Previous experience gained

Relevant qualifications

Personal commitment and personality

Planned approach

Professional support via Glasgow West Regeneration Agency

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Good team of staff

WEAKNESSES •

Lots of competition in city areas

Never ran a business before

Breaking into existing market

Burger van image (unhealthy, unhygienic)

OPPORTUNITIES •

May introduce a second van depending on demand

Excellent location and opportunity to develop the existing market

Large number of potential customers - no one major customer

Customer loyalty towards convenience/quality

Develop the healthy options on offer

THREATS •

Being undercut price wise

Lots of substitute products from customers

Easy access to market (low start-up cost for new competition)

Customer tendency to switch loyalty

Section 4 - MARKETING 4.1

The Product / Service

As already stated it is my intention to sell convenience hot and cold food from a mobile snack van situated in a designated pitch just off Sesame Street in Buntown. While Burger Queen will offer many of the traditional types of food available from similar snack bars such as Hamburgers, fried food and chips, a number of healthier options will be available such as low fat sandwiches, fruit and pasta. Historically many mobile snack bars have suffered poor reputations owing to unhygienic facilities or poor quality produce. It is vital, therefore, that I gain a sound reputation from the start as offering a convenient, friendly service with good quality food prepared under pristine conditions. All food will be prepared in the bar and in most cases orders will be prepared freshly as the customer waits. There will be, however, a range of pre-packed sandwiches,

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pasta and salads, which will be prepared each morning prior to opening. The bar will be fitted with a two-hob cooker, a microwave oven, refrigeration facilities, storage compartments and a display cabinet. Burger Queen will be open Monday – Saturday, from 8am to 10am; 12 noon to 2pm; 4pm to 6pm i.e. operating for 6 hours per day. A more detailed list of available consumables is as follows: Hot Food

-

Rolls with Hamburger, Vegi-burger, Sausage, Egg or Bacon All Day Breakfast Fries / Chips Hot Dog Soup Individual Steak and Scotch Pies

Cold Food

-

Assorted Sandwiches (Fresh & Pre Packed) Scones Fruit Pasta (Packaged for Eating Cold & Reheating)

Beverages

-

Coffee Tea Hot Chocolate Mineral Water Canned Drinks e.g. Coke, Irn Bru, Fanta

Others

-

Crisps Confectionery

A full menu is enclosed in the appendices to this plan.

4.2

Pricing

In comparison with other snack bar competitors, Burger Queen will be slightly more competitively priced. I am aware though that cheap prices can sometimes create an image of poor quality therefore I am conscious of not undercutting the competition substantially.

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Due to my low overheads in comparison with many of my premise-based competitors, I can easily offer a cheaper alternative to the various fast food outlets in Buntown. Pricing Examples: Selling Price (£)

Cost Price (£)

Cheese Burger

1.80

0.50

Ham Salad S/wich

1.50

0.45

Pasta Takeaway

1.90

0.35

Can of Coke

0.60

0.25

Steak Pie

1.20

0.40

Based on the price list, it is anticipated that the average sale will be £2.20 based on the customer purchasing a main food item plus a drink. In line with businesses of similar size and activity, an average gross profit of about 70% will be assumed for cash flow purposes. 4.3

Location

While my administration base will be my home address I will trade from an allocated pitch adjacent to Main Street, Buntown. The pitch on Cholesteral Crescent is positioned directly outside the entrance to the Cheepinleekky Business Park.

This pitch was chosen for the following reasons: 

Offers suitable car parking off the main thoroughfare

Close at hand for the 57 businesses residing in the business park

Conveniently positioned for school children routes to local schools

Convenient to main shops and offices on Sesame Street, Buntown

More centrally located than competitor snack van

Situated on main pedestrian flow

The snack bar will be stored overnight at a secure lock up off Largefrize Road. I am renting this space for £100 per month.

4.4

Promotion

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I will use a range of promotional methods to promote my business. These will include flyers, posters, local newspaper advertising and business cards. Distributed to the local business premises of Cholesterol Crescent. The most important type of promotion available to me will be word of mouth recommendation. In more detail: Initial Signage

£250

Buntown News

£80 per month

Flyers

£10 per month

Section 5 - SALES TARGETS It is anticipated that it will take time to break into the market hence the cash flow will demonstrate a gradual build up of customers. This will be due to word of mouth reputation and leaflet dropping taking some time to spread throughout the area. December will be a particularly busy month with a substantial number if high street shoppers passing by whilst doing their Christmas shopping. Typically, January will be a quieter month with poorer weather conditions and less money in circulation. Historically, June and July would have been quieter months due to holiday commitments however trends have changed and people now tend to holiday all year round therefore the summer months should continue the growth in sales values. Customers will pay at point of sale. No credit will be given.

Monthly sales for the first 12 months of trading are projected as follows: Month Days open

Jul 26

Aug

Sep

27

25

Jennifer Mayo t/a Burger Queen

Oct 27

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

26

22

25

25

26

26

27

25

13


Customers per day

60

75

80

90

80

75

55

60

65

70

80

80

Sales per day @ £3 per sale

180 225 240

Total Sales

4680 6075 6000 7290 6240 4950 4125 4500 5070 5460 6480 6000

270

240 225 165 180 195 210 240 240

Total sales £66,870 As the annual sales do not exceed the VAT threshold of £68,000 it will not be necessary to register for VAT. As such no VAT implications are incorporated into the cashflow projection.

Section 6 - FINANCIAL ANALYSIS 6.1

Projected Cash Flow

6.2

Projected Profit & Loss

6.3

Break Even Analysis

6.4

Projected Balance Sheet

6.5

Notes to the Cash Flow

Notes to the Cash Flow: 1.

Material costs relate to Stock, including Food (£250); Gas (£50); Packaging (£30). Ongoing costs are 30% of total sales.

2.

Other Direct costs (£55) relate to the cost of a Street Traders licence

3.

Wages are as outlined Below

4.

Rent relates to £100 per month for a lock-up on Largefrize Road

5.

Insurance P/L (Public Liability) and E/L (Employers Liability) is supplied as a package at £43 per month

6.

Advertising (£340) relates to signage at £250; Newspaper advertising at £80/mth and £10/mth avg. for flyers

7.

Equipment (£2,550) relates to the equipment brought into the business at £650 and the new equipment required at £1,900

8.

Vehicle costs (£3,050) relate to the vehicle brought into the business at £950 and the Trailer van required at £2,100

9. Wages Mr. Pickle & Ms. Teabrekk 6hrs per day @ £5.80/hr Monday – Friday £5.80 x 6hrs x 5 days x 2 = £348/wk (£348 x 52) / 12 = £1,508/mth Mrs. Bratwurst 6hrs Saturday only @ £5.80/hr £35/wk (£35 x 52) / 12 = £151

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Total Wage Bill = £ 1,659 / mth 10. Funding As I am younger than 26 and I have been out of work for more than six months I qualify for he Princes Scottish Youth Business Trust (PSYBT) funding as follows: •

PSYBT Grant £1,000 (must have been out of work for more than 6mths)

PSYBT Loan £3,700

(NB:

@ 4% over three years – premium: £125/mth

Other localised funding dependent on postcode)

VAT Provision No provision has been made in view of the level sales projections

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INCOME Sales GCRA Grant PSYBT Grant Leaf Grant Launchpad Grant Loans

Personal Investment TOTAL CASH IN EXPENDITURE Material Costs Other Direct Costs Wages Fuel Rent Gas Telephone/ Mobile Insurance P/L Licences Advertising/Marketing Stationary/ Postage Capital Expenditure Vehicle Road Tax Vehicle Insurance Vehicle Maint. Loan Capital Loan Interest Sundries Drawings Class 2 - N.I. TOTAL CASH OUT

Start up

Jul 4680

Aug 6075

Sep 6000

Oct 7290

Nov 6240

Dec 4950

Jan 4125

Feb 4500

Mar 5070

Apr 5460

May 6480

Jun 6000

500 1000 200 3700 3620

9020

4680

6075

6000

7290

6240

4950

4125

4500

5070

5460

6480

6000

330

1404

1822

1800

2187

1872

1485

1238

1350

1521

1638

1944

1800

1659 90 100 50 15 43

1659 90 100 50 15 43

1659 90 100 50 15 43

1659 90 100 50 15 43

1659 90 100 50 15 43

1659 90 100 50 15 43

1659 90 100 50 15 43

1659 90 100 50 15 43

1659 90 100 50 15 43

1659 90 100 50 15 43

1659 90 100 50 15 43

1659 90 100 50 15 43

90 10

90 10

90 10

90 10

90 10

90 10

90 10

90 10

90 10

90 10

90 10

90 10

28

28

28

28

120 28

28

103 12 30 1000

103 12 30 1000

103 12 30 1000

103 12 30 1000

28 120 103 12 30 1000

28

103 12 30 1000

28 120 103 12 30 1000

28

103 12 30 1000

28 120 103 12 30 1000

103 12 30 1000

103 12 30 1000

28 120 103 12 30 1000

4634

5052

5150

5417

5102

4835

4468

4700

4871

4868

5174

5150

450 340 2495 5050

8665

TOTAL 66870 500 1000 200 3700 3620 75890 20391 0 19908 1080 1200 600 180 516 450 1420 120 2495 5050 120 336 480 1236 144 360 12000 0 68086


NET CASH FLOW OPENING BALANCE CLOSING BALANCE

Jennifer Mayo t/a Burger Queen

355 0 355

46 355 401

1023 401 1424

850 1424 2274

1873 2274 4147

1138 4147 5285

115 5285 5400

-343 5400 5057

-200 5057 4857

199 4857 5056

592 5056 5648

1306 5648 6954

850 6954 7804

7804

17


Projected Profit & Loss Account for the year ended 30th June 2009-11-09

66870 20391

Sales Cost of Sales

46479 Add Other Income 1700

Grants

48179

Gross Income

EXPENDITURE Wages Fuel Rent Gas Telephone/ Mobile Insurance P/L Licences Advertising/Marketing Stationary/ Postage Road Tax Vehicle Insurance Vehicle Maint. Loan Interest Sundries Depreciation

19908 1080 1200 600 180 516 450 1420 120 120 336 480 144 360 1886

Total

28800

Net Profit

19379


Projected Balance Sheet As At 30th June 2009

Fixed Assets Fixed Assets Vehicle

Value 2495 5050

Current Assets Debtors Bank

N.B.V

624 1262.5

1871 3787.5

Total

5659

7804

Total Assets Less Liabilities Loan Balance Creditors

Depn

13463

2464 10999

Financed By Capital Introduced Net Profit Less Drawings Class 2 - N.I.

Jennifer Mayo t/a Burger Queen

3620 19379 12000 0

10999

19


Section 7 - FUTURE PLANS In the short term, probably after the first year of trading I shall introduce a minimal delivery service. Ultimately though my future prospects for the business are to put further snack bars on the road on well researched, viable pitches. I also plan to take up pitches at wellattended public events e.g. sporting events, pop concerts etc. I anticipate that these developments will not occur in the first year of trading. Ultimately I hope to move into premises and open my own fast-food restaurant. These ventures will clearly involve further employment, which can only be desirable for the local economy.

Section 8 - CONTACT DETAILS Jennifer Mayo Trading as:

Burger Queen

Home Address: 7 Wimpy Road Buntown Glasgow G28 7AB Business Address: Sesame Street Cholesterol Crescent area of Buntown Tel: 0141-333-8465 Mob: 07767-633-658 DoB:

18/07/1982

NI No. NW 54 12 89 B

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Section 9 - APPENDICES Price list CV Qualifications Letter of intent Map of area Photographic ID Proof of Address Insurance Quote Plant, Fitting, Machinery quotes Legal requirements (licences etc) Advertising/Marketing Quotes Examples of Promotional Material/Stationery Health & Safety Guidelines

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BURGER QUEEN HOT FILLED ROLLS       

Sausage Bacon Egg Black Pudding / haggis Hamburger Cheeseburger Chicken Burger

£ 1.10 £ 1.20 £ 1.00 £ 1.20 £ 1.50 £ 1.80 £ 1.90

ASSORTED HOT FOODS  King Breakfast  Queen Breakfast 2.50  Pasta (hot)  Pasta (cold)  Soup of the Day 0.75  Chips  Individual Streak Pie  Individual Scotch Pie

£ 3.50 £ £ 2.10 £ 1.90 £ £ 0.75 £ 1.20 £ 1.00

SANDWICHES / FILLED ROLLS      

BLT £ 1.70 Chicken Salad £ 1.40 Ham Salad £ 1.50 Cheese Savoury £ 1.20 Corned Beef Salad £ 1.30 Filled Rolls (Ham, Chicken, Corned Beef, Tuna Cheese) £ 1.30

DRINKS  Cans  Coffee  Tea 0.50  Hot Chocolate  Mineral Water

Jennifer Mayo t/a Burger Queen

£ 0.60 £ 0.60 £ £ 0.70 £ 0.50

22


CONFECTIONARY  Crisps  Cakes  Biscuits

£ 0.35 £ 0.40 £ 0.25

BURGER QUEEN – OUR HANDS ARE QUITE CLEAN!

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Sample Business Plan