Business Plan for “Pancakes and Crepes Café”
Larisa Morozova
Bachelor’s Thesis
Degree Programme in Hotel,
Restaurant and Tourism
Management
2015
Author
Larisa Morozova
Degree programme
Hotel, Restaurant and Tourism Management
Thesis title
Business Plan “Pancakes and Crepes Café"
Thesis Supervisor
Pirjo Nuotio
Number of pages
and appendix pages
53+31
Nowadays if one wants to establish a new enterprise, a written business plan is a must to
have, as the external economic factors make an entrepreneur evaluate each action he or she
takes. Particularly, the development of the project related to the restaurant business, is now
needed, as the situation in the industry is constantly changing and actions, calculated in advance, will definitely help the entrepreneur in his activities.
The goal of this project-oriented thesis is to create a business plan and justify the feasibility of
the establishment of “Pancakes and Crepes Café” in Helsinki.
The objectives of this project are the following:
1) Launch of the new café;
2) Development of the job descriptions for the staff of the café;
3) Development of the concept of business based on the location of the café;
4) Description of the services that the business will provide to the consumers;
5) Calculation of the financial side of the project.
The approach used is the entrepreneurial one, as the business plan and the thesis are analyzed and created referring to it.
We believe that our products will be in high demand, thanks to the location of the premises in
the center of Helsinki. Firstly, we expect to have a small amount of customers, due to the new
business establishment. But later on, by providing the customers with the high-quality products and by conducting an advertising campaign, we expect to attract more new customers.
Our products pancakes and crepes, as well as beverages, will be produced only from the
best ingredients, and by high-professional cooks using the modern methods of preparation
and equipment. We believe that our product will be a success in the consumer market, as it
has a reasonable price for this type of business entities, and most importantly - the high quality of the products and great taste.
The business plan has been made based on the literature in entrepreneurship and business
planning reviewed. The gained knowledge from the literature review has been implemented
in the business plan writing. The business idea has been discussed, the mission established,
organizational structure developed, and financial plans were provided.
In the end, the business plan documentation can be used as a source for attracting investors.
The business plan writing process has proved the viability of the new project and shown that
this idea of the new company establishment is going to be profitable.
Keywords
Business plan, entrepreneur, entrepreneurship, production process, financial plans
Table of contents
1 Introduction ................................................................................................................... 1
2 Entrepreneurship, its concept and definitions ................................................................ 2
2.1 Qualities of an entrepreneur .................................................................................. 4
2.2 Functions of an entrepreneur ................................................................................ 6
2.3 Characteristics of entrepreneurship....................................................................... 7
3 Business planning ......................................................................................................... 9
3.1 Why do you need a business plan?..................................................................... 10
3.2 Importance of planning........................................................................................ 11
3.3 Benefits of a major business plan........................................................................ 11
3.4 Business model and its types .............................................................................. 13
4 Business plan structure and development ................................................................... 15
4.1 Company formation package and additional supporting documents .................... 15
4.2 Company information .......................................................................................... 16
4.3 Industry outlook and environmental analysis ....................................................... 17
4.3.1 Industry overview ..................................................................................... 18
4.3.2 Sources of competitor information ............................................................ 18
4.3.3 Analysing competitors .............................................................................. 18
4.4 Business objectives and business idea ............................................................... 19
4.4.1 Define the business.................................................................................. 20
4.4.2 Identify your business objectives .............................................................. 20
4.5 Products and services ......................................................................................... 22
4.6 Service operations and manufacturing ................................................................ 23
4.7 Marketing ............................................................................................................ 25
4.8 Management and manpower............................................................................... 26
4.9 Financial plans .................................................................................................... 27
4.9.1 Cash flow statement................................................................................. 29
4.9.2 Sales forecast .......................................................................................... 29
4.9.3 Income statement..................................................................................... 30
5 Business plan for “Pancakes and Crepes Café” .......................................................... 32
5.1 Overview ............................................................................................................. 32
5.2 Limited company formation package and additional supporting documents ........ 32
5.3 Company information .......................................................................................... 33
5.4 Industry outlook and environmental analysis ....................................................... 35
5.5 Business objectives and business idea ............................................................... 37
5.6 Products and services ......................................................................................... 38
5.7 Service operations and manufacturing ................................................................ 40
5.8 Marketing ............................................................................................................ 43
5.9 Management and manpower............................................................................... 45
5.10 Financial plans .................................................................................................... 47
6 Discussion................................................................................................................... 50
References ...................................................................................................................... 51
Appendices ...................................................................................................................... 54
Appendix 1. Memorandum of Association ................................................................... 54
Appendix 2. Start-Up Notification for Limited Liability Companies Y1 .......................... 57
Appendix 3. Personal data form (for authority use) ...................................................... 61
Appendix 4. The lease of the business premises......................................................... 63
Appendix 5. Curriculum Vitae Larisa Morozova ........................................................... 65
Appendix 6. The menu example .................................................................................. 69
Appendix 7. Income Statement ................................................................................... 71
Appendix 8. Cash Budget ............................................................................................ 73
Appendix 9. Equipment cost calculation ...................................................................... 75
Appendix 10. Portion cost and menu prices calculation ............................................... 77
Appendix 11. Food usage and costs calculation (daily/weekly/monthly/yearly) ............ 79
Appendix 12. Appendix to Start-Up Notification ........................................................... 82
1
Introduction
The world is constantly changing and developing nowadays. In the era of globalization
and numerous opportunities in our fast-paced lives, there is always an excellent platform
for creation and implementation of new concepts. The type of people who explore and
bring these kinds of concepts and ideas to life are named entrepreneurs. In the recent
years, there has been a huge need in evolving the entrepreneurship, as it is of a high importance due to the economic reasons: economy is developing; the new working places
appear for the population.
The theoretical part of the work will include various points of view on the notion of what an
entrepreneurship is and who is an entrepreneur. The special qualities and characteristics
needed to become a businessman will be presented. The business plan structure is going
to be supported by the solid literature basis, which has been the result of many years’
work of a lot of researchers.
The aim of the project is the creation of the business plan for the Pancakes and Crepes
Café. The main goal and objective of the business plan is to make a plan, which some
entrepreneur could follow in order to establish a new company. The plan will cumulate the
most crucial points, which should be taken into account when preparing the business plan.
It as well is a written proof for the possible investors and moneylenders, that this kind of
business entity has all the potential to be viable and bring profits.
The idea for choosing this exact type of the café originates from the author of the business
plan’s vision of the future café. The pancakes and crepes are famous all over the world
and are considered to be one of the most delicious dishes. Moreover, the preparation of
pancakes and crepes has been a national tradition for a long time already in Russia, and
being Russian by nationality the future entrepreneur has come up with the idea of the
pancakes and crepes style café. The factor of the absence of heavy competition in this
particular café type area has been taken into account. In the business plan author’s opinion, the main customers of the newly-established café could be young couples, families
with children, women of different age variety, workers who have lunch break, tourists.
1
2
Entrepreneurship, its concept and definitions
The term “entrepreneur” derives from the French word “entreprendre”, which stands for “to
launch”. Referring to the business concept, it implies “to set up a business”. (Saroj &
Mehndiratta 2009, 1).
Urmila Rai suggests that the notion of entrepreneurship is a convoluted occurrence. In a
wider sense, it pertains to the entrepreneur, his or her perception and vision and the accomplishment of the latter. The main participant is the entrepreneur. Urmila Rai defines
the entrepreneurship as “a process of action an entrepreneur (person) undertakes to establish his/her enterprise” (Rai & Desai 2008, 1). Whereas, an entrepreneurship is “a cycle
of actions to further the interests of the entrepreneur” (Rai & Desai 2008, 1). Rai points out
that one of the characteristics of the entrepreneurship is the capability to find an investment possibility and set up a company, thus to further the economy growth. It can be done
thanks to the risk-taking and financial contribution, still under the typical for the entrepreneurship uncertainty conditions. An entrepreneur should be able to combine and get the
advantage of all the possible factors of production, stock, manpower, natural resources,
and as well of impalpable components, like the capability to put together science-based
and industrial attainments. (Rai & Desai 2008, 1.)
The idea of entrepreneurship contains an extensive variety of significations. On the one
hand, an entrepreneur can be referred to “a person of very high aptitude who pioneers
change, possessing characteristics found in only a very small fraction of the population”
(Saroj & Mehndiratta 2009, 1). On the other hand, “anyone who wants to work for himself
or herself is considered to be an entrepreneur” (Saroj & Mehndiratta 2009, 1). A common
and unique denotation of entrepreneurship does not exist, but eventually some educators
and thinkers have invented denotations justified by their personal viewpoint. (Saroj &
Mehndiratta 2009, 1.) In the Merriam-Webster Dictionary a notion of entrepreneur is defined as the one who composes, oversees, and expects the dangers and difficulties which
may occur when creating a new company. (The Merriam-Webster Dictionary, 2015.)
A.H. Cole in his works discussed: “my own personal experience was that for ten years we
ran a research center in entrepreneurial history; for ten years we tried to define the entrepreneur. We never succeeded. Each of us had some notion of it – what he thought was,
for his purposes, a useful definition” (Cole 1959, 10).
2
Cole, suggested that "Entrepreneurship is a purposeful activity of an individual or a group
of associated individuals undertaken to initiate, maintain, distribution or aggrandize profit
by production or distribution of economic goods and services" (Cole 1959, 13).
Entrpreneurship is an evasive idea. The idea of entrepreneurship has been a matter of
disputation, as it is decsribed variously by various authors. One part of them sees it as
connected with risk, whereas the other one defines it as an invention and a search of adventure. (Havinal 2009, 106.)
As claimed by McClelland, “practically all theorists agree that entrepreneurship involves,
by definition, taking risks of some kind” (McClelland 1961, 210). McClelland assumes, that
two main features of an entrepreneur are the following: act and perform work in a more
innovative and excellent manner and find the solutions in the conditions of unsteadiness
and variability. Different explanations of the term entrepreneurship define two fundamental
components of entrepreneurship: innovation and risk-bearing. (McClelland 1961, 210.)
Alternatively, in the opinion of Adam Smith,
“the father of political economy, the entrepreneur was a proprietary capitalist, a supplier of
capital and at the same time, a manager, intervening between labour and the consumer.
Adam Smith also treated him as employer, master, merchant and undertaker, but explicitly
identified him with the capitalist”. (Rai & Desai 2008, 3.)
As believed by Schumpeter, the pioneering economic theorist to have designated the
entrepreneur a leading part in the economic evolution procedure, entrepreneurship is substantially a creative work. The entrepreneur is considered to be a pioneer who brings
something fresh to the economy and therefore, makes changes. Entrepreneurs are regarded as work chiefs and not only capital possessors, but individuals of astuteness, motivation, energy and gift, who never miss their chance. (Rai & Desai 2008, 3.)
To put it differently, entrepreneurship corresponds to an activity of making something new,
establishing, arranging, systematizing, taking risks and dealing with economic uncertainty.
Higgins gives an explanation to the denomination consequently,
"Entrepreneurship is the function of seeing investment and production opportunity,
organising an enterprise to undertake a new production process, raising capital, hiring
labour, arranging for the supply of raw materials and selecting top managers for the day-today operation of the enterprise." (Rai & Desai 2008, 6.)
Entrepreneurs continually try to find dissimilar, new, uncommon and the one of a kind
things to do in order to qualify and fill demand of the consumers. Businessmen do not
have to be creators of unique commodities or services, yet shall have the capability of
taking advantage and utilizing the systems or items, that have already been created, for
3
the purpose of benefit of the company (for instance, to meet up with a constantly altering
requirements of consumers). Currently the fruit juice is catered in tins, in place of bottles,
as it enables consumers to carry the product conveniently and discard the vessels afterwards. That is why in the concept of entrepreneurship it is necessary to take use of inventions steadily for the purpose of satisfying customers' needs for various products and services. Every time when a new business is set up, the owner takes a risk. It is always perilous to start doing something unique from a scratch. It can consequently result in gaining
economic benefits, or functioning at a deficit, which is influenced and determined by many
aspects, such as modification of consumers' tastes, growing competition, deficit of raw
materials and etc. An individual with an entrepreneurial spirit should be brave in order to
incur an associated risk, and thus an entrepreneur is defined as a risk-taker, not a riskescaper. A risk-taking feature makes an entrepreneur continue striving to win, until he or
she scores a success. With no hesitation, the Japanese proverb can be employed to an
entrepreneur: “Fall seven times, stand up eight”. While the denominations entrepreneur
and entrepreneurship are applied as equivalents, still they are diverse conceptually. (Havinal 2009, 106-107.)
2.1
Qualities of an entrepreneur
To get into the idea of what kind of qualities entrepreneurs should possess, we would like
to pay attention to the question of what kind of features an entrepreneur should hold. According to Umesh Saroj, an entrepreneur possesses the following utterly essential traits
and has the dower of the following qualities: competence to show and take initiative; energetic; self-assurance and self-reliance; inward motivation to win; having leadership
traits; ambitious and pushing; comprehensive concentration and knowledge; goaloriented; capability to undertake properly calculated risk; looking for fresh concepts; singularity and uniqueness; craving for constant learning; farsight and prudence; ability to analyze; rational; ingenuity and originality; approval of constructive criticism; communicative
and sociable; proper planning. (Saroj & Mehndiratta 2009, 4-7.)
In order to get a better understanding of the entrepreneurial nature described above, let's
have a look at such a notion as habitual entrepreneurs. Rita Gunther McGrath and Ian
MacMillan in their book “the Entrepreneurial Mindset, strategies for continuously creating
opportunity in an age of uncertainty” define them as the ones, who “have made careers
out of starting businesses, some working within existing businesses and some in independent start-ups. They have in common finely honed skills in forging opportunity from
uncertainty” (McGrath, Gunther & MacMillan 2000, 9-10). They take advantage of and
4
make money on uncertainty rather than evading it. They simplify problems, where others
can perceive the same things as really complicated. They make use of the knowledge that
descends from undertaking calculated risks. They notice when there is a temporary
chance to gain something, and realize that it could cost more in case if they are not fast
enough to take action, rather than not right. As a result, they will make decisions that are
nearly right, instead of spending and wasting much more time on finding a right solution.
(McGrath, Gunther & MacMillan 2000, 9-10.)
Habitual entrepreneurs share several traits with each other:
1. They enthusiastically look for new possibilities. Habitual entrepreneurs are always
ready, continually searching for the opportunity to benefit from change and interruption in the way business is carried on. Their most noteworthy influence takes
place when they make totally new business models. New business models alter
how incomes are earned, expenses are acquired, or operations are directed, occasionally all through the whole industry. One cause, that the rise of the Internet as
another medium of business has been joined by confoundingly high organization
valuations, is that investors see its capability to productively change virtually every
part of economic life.
2. They seek after opportunities with immense discipline. Habitual entrepreneurs are
not only always ready for noticing favourable opportunities, but also ascertain that
they follow up on them. They ascertain that they return to their stock of ideas regularly, however they begin to work only when it is needed. They put up money for
something only if the competitive field is alluring and the opportunity is ripe to be
seized.
3. They approach only the best opportunities. They seek after only the absolutely
best possibilities and abstain from depleting themselves and their enterprises by
pursuing each alternative. Despite the fact that a lot of habitual entrepreneurs are
rich, the ones that achieved much success, stay harshly disciplined about constraining the quantity of tasks they seek after. They pursue a strictly controlled file
of opportunities in diverse phases of growth. They strictly connect their strategy
with their selection of tasks and projects, instead of dissolving their endeavors too
widely. (McGrath, Gunther & MacMillan 2000, 9-10.)
4. They concentrate on execution - particularly, adaptive execution. Both terms are
essential. Individuals with an entrepreneurial attitude execute, in other words, they
make progress in it. They are as well adaptive - can change courses and path as
the true occasion, and the most ideal approach to utilize it, advances.
5
5. They draw in the energies of everybody in their realm. Habitual entrepreneurs attract a lot of individuals - both inside and outside the company - in the seeking after the opportunity. They make and maintain networks of connections, instead of
doing it by themselves only; taking advantage of the mental and other various assets people can have and helping those individuals to accomplish their aims also.
(McGrath, Gunther & MacMillan 2000, 10-11.)
2.2
Functions of an entrepreneur
A businessman may have a great number of capacities and roles to be accomplished in
the meantime, however a portion of the vital capacities is refered to beneath:

Production of ideas and filtering out the best and appropriate. An entrepreneur
should be creative and able to come up with the various ideas, that can be applied
to the new company establishment. He or she should have a critical mindset in order to exclude the options that are not going to be successful, and pay attention to
the ones that are viable.

Definition of the business objectives. The company founder should set the objectives clearly and precisely, in order to stick to their implementation as the company
set up begins. It makes the process of organizing the business start-up smoother
and less stressful, when the exact objectives are described.

Analysis of the product. When studying the new company formation possibility, the
future entrepreneur should make a thorough analysis of the product he or she
would like to offer to potential customers, evaluate its strengths and weaknesses,
the potential demand, whether similar products exist already in the market, and
how to make this product unique and different from the existing ones.

Market and business survey and research. This item is closely related to the previous one. The businessman should make a research of the currently existing competitors in the market. How many are there and what kind of products they offer?
Are they similar to the ones, which are going to be created by this new company?
Or how are they different? Possible location area research.

Determination of the form of organization. The form of the organization, under
which the company will operate, should be selected. It needs to be according to
the types of operations of the company, and in regards to the type, which will be
more suitable and advantageous for the new company to have.

Fulfillment of special and promotional procedures. Promotional procedures, such
as for instance, marketing campaigns, should be taken care of in advance, in order
6
to get potential consumers familiar with the new company and its products, get
customers attracted by some offers, for instance, or the discount.

Raising of required capital. The funding should be carefully thought of: whether the
loan from a bank should be taken, the capital should be applied from investors, or
probably the entrepreneur has his or her own savings.

Human asset improvement. The application of new trainings should be always implemented: could be courses, where employees will have an opportunity to gain
more knowledge regarding working issues. It will facilitate the working process and
bring more profits to the company.

Getting ready for equipment and material acquisition. Find out what kind of equipment, machinery and tools will be required in order to maintain the business work
in an effective and efficient manner.

Taking the business functions upon oneself. It will make a company benefit if every
employee is responsible, assumes obligations, can be relied on in every situation.
(Srivastav 2007, 10.)
2.3
Characteristics of an entrepreneurship
Peter Drucker states that, "Entrepreneurship is neither a science nor an art. It is a
practice. It has a knowledge base. Knowledge in entrepreneurship is a means to an end.
Indeed what constitutes knowledge in practice is largely defined by the ends, that is, by
the practice" (Rai & Desai 2008, 7).
Setting up a business is much less venturesome, in case if the entrepreneur acts systematically and orderly, and does not break primary and common rules. Therefore, entrepreneurship and innovation are essential for the community in the same way as for the economy, for public-service associations the same way as for the enterprise. It is entirely due
to the reason that entrepreneurship and innovation are approached in the way “the more
haste, the less speed”:
"a product here, a policy there, a public service yonder; because they are focused on this
opportunity and that need; because they are tentative and will disappear if they do not
produce the expected and needed results; because, in other words, they are pragmatic
and modest and that they promise to keep any society, economy, industry, public service
or business flexible and self-renewing". Hence, entrepreneurship is a composite occurrence. "Some think of entrepreneurs primarily as innovators, some chiefly as managers of
enterprises, some as bearers of risks and others place a major emphasis on their function
as mobilisers and allocators of capital" (Rai & Desai 2008, 7.)
The main features of entrepreneurship can be grouped and defined as follows:
7
 Economic – includes the set up and involves the creation and management of a
company.
 Inventive: contains innovation procedure.
 Determined: is a purposeful activity in search of receiving a profit.
 Taking risk: is a typical and integral part of entrepreneurship.
 Organization: embraces company formating capabilities.
 Human Relations: capability to cooperate with other co-workers and signing duties
is a path to prosperity and success.
 Adaptability: is the indication of a forehanded businessman.
 Invention: business and entrepreneurship are progressive functions.
 Abilities and qualifications: this feature stands for certain competences to deal with
the situation as it develops.
 Values: it is an endeavor to make value acknowledgment of business chances to
convey a plan to realization. Therefore, entrepreneurship is a multi-dimensional
notion. It is a craftsmanship and additionally a science. (Rai & Desai 2008, 7-8.)
8
3
Business planning
In order to evade confronting a defection, every company's work must be carefully designed. A great amount of enterprises collapse because of the absence of careful planning. From time to time, it is considered that one is going to familiarize themselves with all
the new steps while moving ahead along the business path. But it turns out to be that the
complications only get amassed if are not cleared up within the right period. In order to
skip failures and not to go bankrupt, a businessman must phrase the business appropriately before starting on.
A business plan is an outline, with a well written description of what is going to be done,
when, in what way and what goals should be reached. As well, the accessibility of resources should be taken into account and what aims should be attained. One author suggests that a plan is similar to a highway map for managing any enterprise and the other
one mentions that it is like a road map for operating business and evaluating the development, measuring the progress on the road. Another ones parallel it with a sketch for
establishing business on a strong base and ascertain that it stands the test of complicated
times just as starting time of construction. In order to create a profitable business, an entrepreneur must focus on the subsequent aspects (Srivastav 2007, 24.):
1. "Market scope of the product
2. Scope of customers
3. Competitors
4. Promotional strategy
5. Economic feasibility
6. Workmanship
7. Managerial control
8. Carry forward of business
9. Future prospects (long term future planning)
10. Short term future planning
11. Need for revision/modification/innovation etc.
12. Financial help needed
13. Nature of business
14. Market potential". (Srivastav 2007, 24.)
All of the mentioned above aspects must be taken into account prior to starting a business. The plan will detail the company's targets and give a time-table structure for reaching the ultimate aims. Commonly, an entrepreneur may ask oneself a question that what
the purpose to create a business plan is. It is time-consuming to compile a sufficient business plan. Despite that, every time the business plan must be made, without exceptions,
9
regardless whether the big or small company is going to be established, as it is the crucial
part of setting up a business. (Srivastav 2007, 25.)
3.1
Why do you need a business plan?
It will be advantageous for every company if the business plan is put in a written form and
made properly. Two most important pros can be mentioned here:

To be used as a manual for your business.
The most significant purpose behind making a business plan is to create a manual that
you will stick to throughout the existence of your business. An outline of your business is
the strategy for success and will give you more instruments to evaluate and carry out alterations that will bring more profit to your business. It will supply you with data on all parts
of your organization's past and present operations, and in addition its projections for the
following couple of years. Obviously, new entrepreneurs do not have any history and will
base the data in their arrangements on assumptions made on the basis of present investigation of the industry. To be of quality, your arrangement must be maintained according to
the present-day events. While arrangements exhibited to moneylenders must be bound,
you may decide to have your working duplicate in a free leaf folio. At that point you may
include present financial statements, renewed rate sheets, late marketing data, and other
information as it gets accessible.

As a documentation for funding.
A business plan is a necessity in the event if you are going to look for financing. In case if
you are looking for capital, the business plan specifies how the hoped-for investment or
credit will push ahead the organization's objectives and expand its benefits. Every creditor
needs to know how you will keep up your income and reimburse the credit (with interest)
on a well-timed basis. Each depositor needs to know how his or her money will enhance
the general total assets of the organization and help him or her to accomplish the planned
return on investment. You will need to explain how the cash will be utilized and support
your figures with strong data, for example, forecasts, industry standards, rate sheets, and
so on. Creditors and depositors are allowed for admittance to statistical data that is
viewed as typical for different businesses and industries, so make sure that your
projections are sensible. (Pinson 11/2004, 2.)
10
3.2
Importance of planning
Usually, people make decisions to get into the business, as they become concerned about
the concept. They do not want to focus on the thoughts with a perspective to financial
practicality, time expected to acquire benefit, get back the initial investment point and
things to be made/sold. This typically is the case when someone is so into the concept of
the business, that they do not pay attention to sufficient reflection of all the elements of
business, or ignore these aspects. Every idea must be in the end settled with a practical
test of budgetary feasibility, practical approach and attainability. One ought to ascertain
that the identical errors are not recurring and must embrace with altering situations and
conditions. One time or two times failure in business is bearable for quite a while. Though,
at the same time, it is an exceptionally unfavourable moment for a businessman.
A well-done research and planning shall diminish the amount of work to a great extent. In
this regard, the market research is really indispensable. Only solicit opinions from friends
and partners, who wish only good, should be considered and taken into account. Keep in
mind that a well and sensible field test of one's thoughts should be done, before
experiencing all the difficulties of starting up a business, which entails a lot of exertion,
time, work and cash assets. One should not make any decisions impulsively in regards to
business. The measure of time and work required for a plan, depends on the size or type
of business, which needs to be considered. There may be two formats for this reason, one
basic and the other extensive. Basic format can deal with everyday issues, when the extensive one shall be on long-run arranging. (Srivastav, 2007, 25.)
3.3
Benefits of a major business plan
When creating a business plan, one might give thought to the question of what the actual
benefits of a major, well-prepared, detailed business plan are. There are some of them
listed below, but not limited to:
1. It can be utilized by the company as a device to take after the advancement of the
firm, as well, an opportunity to evaluate the situation.
A business plan enables an entrepreneur to always keep a track on how the business is
developing: if it is a success, or on the path of the failure. As well, we should always keep
in mind that as the time passes, people tend to forget what has been planned initially, and
which assumptions have been made, for instance, regarding the financial side of the enterprise. Therefore, it gives a chance to easily check if the business is following the initial
11
plan or not, and change the development angle, if required.
2. It assists in looking for fiscal help for external application.
If a founder would need to apply for a financial help from investors or bank, then the fact
of having a precise, well-structured, major business plan in a written form will definitely
have a positive influence on the decision of the moneylenders. They will understand that
the company, going to be established, is not some dubious business, but a carefully
planned work.
3. It obliges one to be precise about the coming business patterns, and assists in
persuading another people.
As the plan is being made, the entrepreneur has to describe all the details accurately. Its
creation is a matter of a great significance, as the plan gives an exact and thorough description of the current and future condition of the company. Likewise, the plan includes
the information about financial side of the business, where it is possible to see if the business is going to be viable or not, which will bring assurance in success.
4. It aids in determining whether the business idea should be endorsed and
implemented, and helps explaining one's thoughts and suggestions.
While writing a business plan, a future entrepreneur realizes whether the idea, which he or
she has, is worth-trying or not. A methodical work should help to embody a theoretical
plan into a definite real-life working scheme. Appropriate argumentation for the ideas and
projects can prove that the business will be profitable and successful.
5. Study and review of ideas in black and white on a sheet of paper.
Before starting any business, one must give adequate time to discovering the attainability
of the venture, business sector review, characteristics of item in demand and deficiency.
All of these things need to put in a written form, as it will be much easier to rectify errors if
they occur. Distinguishing the proof of an absence of benefit, while calculating the
presumptive sales and expenses, is obviously better than acknowledging it after the
beginning of the business. All this should assist in persuading others.
6. Make a SWOT analysis.
If a Strength-Weaknesses-Opportunities-Threads analysis is made, then an entrepreneur
will immediately notice all the advantages and disadvantages of the future business.
Therefore, it will be quite simple to make a choice of whether this business idea should be
implemented or not.
12
7. Plan and evolve a reliable and consecutive strategy.
The execution of a business relies on upon the clients' image one wants to depict and the
way he or she will handle the business in the future. Having a plan in a written form helps
to see the related segments and acretain whether they match well or not. The strategy
has to be contemplated and examined with other participants of the business process
establishment, verified and revised before starting the business.
8. Attain to one's dedication.
Concernment and responsibility are extremely indispensable for an effective business
entreprise. They serve as means for evaluating one's concernment prior to starting the
business. A properly arranged business shows how much devotion/activity has been
included in the plan offered. A lof of ideas stay at the same level just because of absence
of commitment. A well-wrought plan helps not to waste time and make appropriate steps
to avoid failures and money loss. (Srivastav 2007, 25-26.)
3.4
Business model and its types
Various kinds of business models match to various kinds of business companies. A
business model is the means by the use of which the enterprise carries its goods to
consumers. It depicts in what way a business designs, conveys and catches value. A
business model determines in which way the business will convey the value to
consumers, makes them pay for this value, and transforms these payings to increment. It
is possible to enumerate four main kinds of business models, to which any commercial
enterprise can be related:
 Manufacturer. A manufacturer takes crude materials and makes a product, or
collects premade segments into an item (eg auto makers). A manufacturer may
offer its items straightforwardly to its clients, or he or she may as well outsource
deals to another organization.
 Distributor. A distributor can be any company that buys items straightforwardly
from a maker in order to sell one more time either to retail stores, or straightly to
the customers. For instance, an auto dealership would buy carriers straightly from
the maker and offer them to the population.
13
 Retailer. A retail dealer buys an item from a distributor or wholesaler dealer, and
after that offers those items to the population. A retail dealer normally has a real
location, however likewise might be an online retail dealer, for example, like
Amazon.
 Franchise. A franchise may be a manufacturer, distributor or retailer, which is
determined by the type of franchise you buy. At this point, the franchisee takes
over the business model of that franchise. (Job, 25 February 2013.)
In regards to our project, we will be classified as a manufacturer, because the goal of our
business is to make pancakes and crepes by ourselves, using the raw ingredients. The
product will be offered straightly to costumers in our premises; no any other outsourced
company will be used for distribution.
14
4
Business plan structure and development
During the preparation of the business plan, a lot of literature regarding the business plan
structure and development has been reviewed. David H. Bangs; Richard F. Gerson and
Nancy Shortwell; Robert Brown, Alan Gutterman and Jeffrey Edmund Curry; Graham
Friend and Stefan Zehle; Heather Smith; Dearborn Financial Publishing Staff and Don
Schreiber; Linda Pinson and Jerry Jinnett; Charles L. Martin and Michael G. Crisp; James
Burk and Richard Lehman. All of the mentioned above authors provide various versions of
how to make a business plan. Most of the plans described have much in common, and
differ from one another only in some chapters. Having revised many books, and as well
counting on the knowledge gained during the studies in Haaga-Helia University of Applied
Sciences, in the course Business Start-Up held by Juuso Kokko, a future entrepreneur
has made a decision to follow the structure, which was introduced during the lectures in
the University by our teacher, as it seems to cumulate all the most crucial parts, which
should be included in the business plan's framework.
In the beginning, the overview of the company will be given, explaining what kind of business is going to be established, briefly telling what the business idea is about. It will be
followed by the description of the business entity, limited company formation package
parts (additional supporting documents, licenses) and the company information chapter,
where the current CEO and owner information will be provided. The next chapter will consider the industry outlook and environmental analysis, which will be followed by business
objectives and business idea section. Further, we will have a look at products and services, service operations and manufacturing sections, marketing, management and manpower sections. Last but not least, financial plans will be reported. At the end of the business plan, we would make a conclusion, summarizing whether the objectives have been
made and explaining the viability of the business idea.
4.1
Company formation package and additional supporting documents
This part is going to focus primarily on the documents needed to start-up a business. It will
contain an information about the required licences and other essential papers, with the
absence of which establishment of the new enterprise will not be possible: memorandum
of association; articles of association model B; start-up notification for limited liability companies; appendix to start-up notification; the lease of the business premises; curriculum
vitae Larisa Morozova; the menu example; income statement; cash budget; sales fore-
15
cast; equipment cost calculation; portion cost and menu prices calculation, and food usage and costs calculation (daily/weekly/monthly/yearly).
4.2
Company Information
This is the most critical and most complicated piece of the business plan. The target of
this part is to give an unmistakable expression of the following:
- What the business is or going to be, How are you planning to carry it on, Why do you
assume it is going to prosper
- What products/services you plan to offer
- What markets you expect to serve, the capacity of those markets and your prospective
allotment
- In which way you can service those business sectors better than your rivals;
- Why you have picked up your specific area/site
- What administration and other work force are accessible and needed for the work process
- Why (if suitable) debt money or one's equity investment is going to bring more benefits
your business.
These seven announcements are essential. Jointly they will shape the written policy of
your company. Arrangement sets up a path and gives steadiness to your company.
(Bangs 2002, 13.)
Your whole arranging exertion rests on your impression of what kind of business you are
in. Choosing what your business is— and what it is going to be in five years— is the most
imperative single choice you need to make. The Description of Business segment replies
to these seven principal inquiries:
1. What business would you say you are in? What kind of business is it? Is your
business basically to promote, manufacture, or serve? What are your services/products? Who are your clients? Where is your industry on the business life
cycle?
2. What is the stage the business is in: A start-up? A development of an existing concern? A takeover of an already operating business? A division of a bigger business?
16
3. What is the business structure: sole proprietorship, partnership, corporation? Your
lawyer's and bookkeeper's recommendation is fundamental in case if you are starting up a business.
4. Why is your business going to be beneficial (or keep on growing and developing)?
5. At which point will your business start to operate/has started to operate?
6. How many hours per day and on which days of the week will you be/are you
open?
7. Does business operation depend on the seasonality factor? In case if it does, or if
the working hours will be settled according to the specific season requirements,
describe it while answering the 5th and 6th questions. (Bangs 2002, 14.)
4.3
Industry outlook and environmental analysis
The following step is to look at your rivals, both direct (companies alike yours) and indirect. There are three occasions when you should be concerned about the rivalry:
1.
When you are going to establish or purchase a business, or come to a market that
is new, either in general or particularly for you. Business is naturally rival, and
since there is almost no area that is new in business, most advantageous markets
have already been worked by someone else. Indeed, in the event that you think
you've discovered a fresh out of the box new undiscovered business sector, think
thoroughly before entering it. In case if there are no rivals, it is presumably due to
the fact that the market can't uphold a business.
2. At the point when another competitor appears. When you concentrate on the rivalry under these conditions, you presumably won't have the adaptability you had before. New rivalry can originate from direct rivals (old competitors and additionally
new ones). Yet, it can likewise originate from outside your course of business.
3. Constantly. This continuous observing of the rivalry is an economical type of preventive upkeep, and your best method for defending your client base. While preventing rivalry and safeguarding your survival is essential, being in a position to
perceive and exploit new open doors is even more imperative. Continuous observance of the market will let you leave your rivals, new or old, behind. (Bangs
2002, 43.)
17
4.3.1
Industry Overview
The principal assignment is to gather some fundamental information about the division
you plan to work in. A business plan has to show the knowledge of the more extensive
industry, the dangers from new contestants and substitutes, and the rival environment. A
comprehension of the strong and weak sides of your rivals will allow you to characterize
your enterprise's strategic alternatives. At the minimum, your business plan needs to include all the appropriate figures, for instance, total industry sales value and volumes for
the span of the industry and the pattern, and also a rundown of rivals and their market
share. (Friend & Zehle 2004, 55, 64.)
4.3.2
Sources of competitor information
It is not complicated to look for data about rivals, as they need to interact with potential
clients to sell to the market. It is decent to begin from the Internet, empowering you to accumulate leaflets, value records, organization reports, press cuttings, notices etc. As a
rule, it is possible to find a lot of data. Most of the companies will need to create at the
minimum some accounts, which will be accessible from the appropriate institution. For
bigger organizations, yearly reports and accounts and by and large more itemized data,
for example, investigation briefings are accessible on depositor relations Internet pages.
(Friend & Zehle 2004, 62.)
4.3.3
Analysing competitors
Competition among companies is the focal power deciding a business' rival position. It is
thus important to analyze rivals in a comparable manner to how you would analyze your
own particular business. The possible components of a rival analysis are: current method
of positioning; strong sides; weak sides; opportunities; threats; probable modifications in
strategy; response to modifications in your company's course; financial power; operational
advantage. Obviously, the analysis of rivals will be much less itemized compared to your
own business's one, however a comprehension of the rivalry must be shown. Regardless
of the fact that you are not yet in business, this investigation helps you and your financial
specialists to comprehend future rivals. Investigation of direct rivals ought to begin with a
rundown of contending firms and their share of market. This likewise gives an understanding of what rate of firms serve what rate of the market. Your methodology and approach
will vary contingent upon whether the industry is fragmented or has a few major participants. (Friend & Zehle 2004, 60.)
18
In order to analyze the rivalry, look at and get use of these questions:
-
Who are your five closest rivals and what can be considered as their strong sides?
-
At what state their business is — stable, growing, or declining?
-
What do you have in common and how do you differ in regards to the operations?
-
What have you found out from observing their work?
-
What suits and is good for them; what does not?
-
In which way will your company be more profitable and attractive than theirs?
(Bangs 2002, 44.)
According to Gerson R.F., the market attractiveness can be measured with the help of
certain criteria: business sector size; market development potential; customer accessibility
and potential; payment possibilities; entry/exit potential; rivalry; referral potential; service/product knowledge; acknowledgment; service/product need. (Gerson 1991, 15.)
To build up a solid strategic plan for a current or new business, it is important to apprehend the field in which the business will work and the rival strengths inside this field. The
following issues should be taken into account:
- the size and the significant patterns in the field;
- what strategy to follow in order to comply with the changes in the business field.
This section presents distinctive ideas and systems for industry and rival examination.
These can be utilized at a various degree of details. The business field overview describes the environment for the ones, who study the business plan. The business field life
cycle investigation allows us to comprehend the level of development of the business.
Basic investigation ought to incorporate no less than a brief review of suppliers, purchasers and the threat from new contestants and substitution, and also a description of rivals,
their strong and weak sides. Finally, the major rivals ought to be investigated more precisely utilizing a key achievement component positioning. (Friend & Zehle 2004, 54.)
4.4
Business objectives and business idea
This stage in the arranging procedure includes replying an apparently clear question:
What kind of business am I going to be in? At this point you presumably have an idea
what kind of business you're arranging, however it is useful to distinctly depict what you
imagine your business is or is definitely not. At the best, attempt to characterize your
19
business on the premise of the clients you are going to serve and kind of products and
services you are going to offer.
4.4.1
Define the business
Any company will not be profit, if it cannot fulfill clients’ needs. However, it is generally a
company's products and services that differentiate it from rivals and offers ascend to purchaser decision, so an item measurement is as well significant. At the point when characterizing your business, consider these key questions:
1. WHO is the client? Allude to the client image you created while making the situation investigation. In the event that rivals are ingrained, it might be clever to distinguish market niches the rivalry has neglected.
2.
WHAT needs of the clients will be fulfilled by the business? Necessities may be
extensively sorted as essential (necessity for water, warmth, and so on) or optional
(necessity for knowledge, accomplishment, social association, and so on). Appropriately built and situated, most items are fit for fulfilling a few needs at the same
time.
3. By what method will the business fulfill client needs? What products and/or services? What innovations? What forms? At the point when characterizing the business, consider not to be excessively tight or excessively expansive. Excessively
tight a focus may disregard implicit possibilities (and rivals), when excessively expansive a focus might fall short, making it impossible to give guidance.
Note that probable responses to the "who," "what," and "how" questions postured above
can run from rather certain to exceptionally wide. (Martin 1992, 26.)
4.4.2
Identify your business objectives
Companies do not get to be effective coincidentally. The businessman must build up goals
for the company. Objectives ought to be quantifiable and achievable standards for goals.
Objectives are normally communicated in regards to durability, development, profitability
or incomes. For instance, a goal can be "to amplify profitability," while the relating target/objective might be "to achieve a 12% return on total net assets amid the introductory
year of operation." This kind of objective is sufficiently particular that a businessman can
constantly assess the business advancement and improve something if needed. It is totally inappropriate for the company not to have objectives and not to control the development
20
of the company. It would likewise be difficult to realize what alterations are needed. The
formulating and goals of a business might stay genuinely constant during a lot of time.
The business' targets yet are liable to alter representing modifications in environment and
modifications in the business' rival impact.
They have a tendency to be:

Quantitative. The majority of them are communicated in exact numerical terms, albeit a few are unpreventably qualitative.

Time-outline particular. To indicate a time span for an objective is to consider
yourself responsible.

Flexible. On the chance that the business environment alters drastically, you
shouldn't be hesitant to change the level of your targets or the timeline for their
achievement.

Understandable. On the chance that they're not distinct for you (and your workers),
you will experience difficulty accomplishing them.

Realistic. Be fair with yourself (and with any potential depositors), or some problems might arise then.

Consistent. Stay away from multiple goals and objectives, as it could be discrepant. (Martin 1992, 27.)
Your objectives and goals figure out where you need to go. As you consolidate your own
sight into your business plan, your objectives turn into the main impetus in your organization. They characterize all the administration capacities and focus your requirements for
individuals, machinery, and cash flow. Key administration, then, is the procedure of adjusting the greater part of the organization's assets to perform the target by fusing the strategic plan into your corporate culture. Every choice you and your administration group make
amid the day requires to be tried against the organization's strategic objectives and target.
There is an inconspicuous distinction between an organization's main goal and an organization's objective. A mission is worldwide and depicted as the organization's general aim
and course. On the contrary, an objective is particular and typically has a time limit, (for
example, one year or three years) or a specific numerical goal (for example, raising sales
by 20 percent). (Schreiber 2001,117.)
The objectives you choose generally cause a chain response all over your company. In
case if one of your objectives is to have your sales increased, it will presumably set a requirement for more workers. In case if you are aiming at increasing profit, you might be
required to decrease the amount of employees. If your objective is to expand, you will
21
require more money to purchase more machinery or recruit more workers. Here are a few
rules for the objective setting procedure: keep objectives definite, easy to comprehend,
and direct. A typical reason that objectives are not fulfilled is that they're excessively dubious. Keep the objective digitally quantifiable (if it is possible), for example, "have ten more
new customers per month," or "build up resources under administration by $5 million a
year," etc. With a quantifiable objective, workers recognize what direction they're moving
toward in the working process, as well as they can measure their advancement along the
way. Communicate the targets to all workers. A yearly meeting is a way in which the organization's directors or managers describe objectives for the impending year. This meeting is made at the beginning of January for all workers in order to enable them to comprehend which target every unit is supposed to achieve. Make sure that all the employees
can participate. This is one of the most critical gatherings of the year, as it gives an opportunity to everyone in the company to understand the situation the company is in and the
company's current position. Ascertain that the objectives turn into a group exertion and
team-work. Unless all the employees comprehend what the goals are, acknowledge them,
and focus on accomplishing them, they have poor chances to succeed. (Schreiber 2001,
118.)
4.5
Products and services
The business plan ought to incorporate a detailed explanation of your organization's essential products. The description of the products should be made in the way that it gives
an absolutely vast, exact and precise image for the reader of the business plan. It ought to
incorporate an investigation of your organization's major strong sides that will make the
development, creation and sales of those items a valuable and beneficial business for
future possible investors. For instance, the description ought to show any new approaches
and features that may serve as a ground for a specific major favorable position. Thus, it
might need an investigation of:

Revenue, expense and implicit markets for the items/services,

Distribution lines for the items, and

Resources and assets of the organization required (currently and in the future) in
order to uphold and maintain the items later on. (Brown & Gutterman 2003, 66.)
In case if there are any weak sides in your organization's items portfolio, for example,
troubles in item improvement for utilization in a specific business sector, you ought to inscribe a description as an aspect of the "risk factors" in the business plan. In the event
that a strategy has been produced to cure such weak sides, clarify it. The business plan
22
ought to precisely survey your organization's major item improvement activities, including
concerned progress reports and risks. The business plan ought to take a farsighted approach, stressing on the following:
-
New items that the organization expects growing because of altering market
needs;
-
Techniques and methods that the organization is going to take to undergo rival difficulties;
-
The present status of every item that your organization has being worked on ought
to be portrayed as a component of the business plan;
-
In case if the product has been created and is ready to be introduced to the marketplace, the organization most likely has already arranged a marketing plan,
which needs to be included in the business plan as well. (Brown & Gutterman
2003, 67.)
4.6
Service operations and manufacturing
Manufacturing includes a wide assortment of activities devoted to the creation of the organization's products in amounts and at rates compatible with their demand. Manufacturing will denote a considerable cost to the organization, and each exertion ought to be
made to decrease manufacturing expenses, so that the organization can acquire a pricing
supremacy over contenders. Below there are some of the actions typical for the manufacturing phase:
o
The design of production equipment and concerned instrumentation,
o
The outline and execution of quality control methods,
o
The improvement of a production distribution structure (for instance, delivery and
storage procedures),
o
The production of client assistance programmes, and contracting for obtainment of
raw materials and other things needed for manufacturing process. (Brown & Gutterman 2003, 73.)
A service supplier will be confronted with a substantial amount of the similar issues as a
producer. The essential refinement will be the concentration on the strategy of services
rather than the production of items. An service supplier will probably need training resources, training strategies, support for development of services and quality control, a
production distribution structure, client service project and methods for providing the materials important to bolster the procurement of the services. It is common that a service
purveyor, as well, offers products along with the services, whereas production matters will
23
likewise have a great role then. The organization that is portrayed in this business, will
produce and offer its items for sale concurrently.
Business plan disclosure issues
The business plan ought to portray how the organization is planning to produce its products or set up its service technique, and in which way it will distribute its items to its clients
or into suitable distribution channels. The accompanying matters ought to be taken into
consideration:
-
Will the organization hold its production of items or technique of services inside the
company or is it going to subcontract with other organizations for the whole or part
of the procedure? In case if the organization is planning to be subcontracting, is it
going to create the production unit of its own later on?
-
What is the organization's present production capacity? Is it enough to meet the
needs of the organization later on?
-
What are the most important parts in the production process? How are these parts
or segments obtained or determined? What number of suppliers does the organization have?
-
How much time is needed to receive the parts or to teach service purveyors? How
can this postponement affect the ability of the organization to keep up with the
growth in demand? (Brown Gutterman 2003, 73-74.)
Manufacturing decisions include the procedures by which physical items are produced
and immaterial services are granted. The mentioned above decisions are matters of great
significance in the general business strategy on the grounds that the item quality, income,
control, expenses, and progression of supply are all influenced by the manufacturing options chosen. A few manufacturing decisions ought to be pondered preceding the business start-up. For instance:
1. Will physical items be made or bought? It is enticing to consider that producing
items on your own will save your company's money, but it is not always true. Think
of the technical knowledge, quality and constancy different producers possess.
Likewise, think over the incipient fixed costs that are needed. A pragmatic option
may be to first buy from other producers; and later on (maybe) manufacture the
products by your own company. Alternatively, think of obtaining significant segment parts from another companies and making the concluding part of production
process by yourself.
24
2. What is the capacity level you would like to have? What is the amount of products
you would like to manufacture? This choice will affect the size of work space required, how many workers and quality of machinery and instrumentation needed.
3. What raw materials, machinery and stock will be required in the production procedure? Are they easily accessible at a moderate cost? Should the machinery be
rented or acquired?
4. What activities are needed in the manufacturing procedure? In which order should
they be implemented and what amount of time will be required for each of them,
and can they be merged, ignored, quickened or subcontracted? These contemplations will affect the format, the space required, how many workers and what kind of
skills are required, and the planning of manufacturing runs.
5. What amount of space will be required? As well, it is essential to arrange required
space to store raw materials, stock, instruments, ingredient parts and ready products. Extra space for toilets, staff room, worker/guest parking and an office likewise need to be taken into account.
6. What kind of quality level is the company aiming at? In what way is it going to be
evaluated? By what means the steadiness of quality level will be kept up? Who will
be in charge of it? Entrepreneurs usually suppose that keeping work of high quality
level is and that clients will be averse to pay for it. These ideas might sometimes
be proved, but still, for the future, it is frequently more costly to give up quality. Insufficient quality generates disappointed clients, who might opt for some other
company services/products, and, as a result, it will be very expensive to find new
customers instead of the ones that were lost. (Martin 1992, 47-48.)
4.7
Marketing
You have to get your prospective clients to purchase your services/products. It will be
achieved by marketing your company. We discussed the significance of market research,
which lets us realize who belongs to our market, and who could be our contenders; what
kind of business milieu will our company be involved into, and how our services/products
will be taken in. We will create a marketing campaign; discuss the significance of building
up your business' image and setting up base of off-line and on-line advertising activities.
Of course, it is not possible to use each and every part of advertising and marketing strategies, however the point is to provide a decent plan of what points ought to be considered
in order to let the business entity develop and become a success. (Smith 2012, 79.)
25
Marketing strategy
Prior to getting into marketing the company, one has to examine all parts of marketing.
The parts of marketing that are ought to be looked at comprise the 5 Ps:
Product. What kind of brand name will be chosen? In what way will the product be introduced to the customer when ordered?
Price. What price approach will be selected? The demand for products will be influenced
by the cost (price elasticity). In case if you have the opportunity to create your own particular prices, study how the contenders price their products, talk with some specialist in
this area, and get the business sector tried in order to find out the ideal price elasticity of
your products. Accustom your clients to the worth instead of the cost to guarantee you
amplify benefits. Think through whether you are going to provide cheap or sumptuous
goods, when you make the pricing.
Place. How the goods will be supplied and sold? Will any distribution channels be employed?
Promotion. By what means will you let prospective clients learn about your goods? How
will you advertise and what kind of actions will you take?
Positioning. In what way will consumers descry you within the industry? (Smith 2012, 8081.) The concrete approaches are clarified further in this work, please, refer to the business plan part, marketing section.
4.8
Management and manpower
Indeed, even the best goods or the most capable gathering of item designers will not
achieve their goal and prosper without great organization management and a proper
company structure. Regardless the fact whether the business plan is created for entirely
internal use of the organization members, distinguishing the team and management participants is vital. They ought to have an experience and a good reputation in this particular
business field. Management and manpower subjects are exigent for all business entities
and ought to be investigated and examined circumstantially, when making a business
plan.
In case if you are making a plan for giving it to investors' consideration/bank, it needs to
explain who the organization's owners and managers will be: Manager(s), Executive(s),
Owner(s) name(s), their experiences, skills. The plan ought to include the names of the
supervisors so that surname and name can be recognized without effort, also gender
markers ought to be applied. Further, explain what the skills and experience of the man-
26
agers and how they are identified with their position and responsibilities in the organization. Money lenders need to know whether administrators' experiences are appropriate to
the organization's objectives. In order to assess, they must comprehend the individual's
career past. If the business is established in the form of Limited Liability Company, which
is the most common form type of business association nowadays, obligation regarding
administration oversight will be controlled by the board of directors or a similar one. They
as well need to be mentioned in the plan. Unquestionably, when making a business plan
for future money lenders, make sure that it incorporates data on the present proprietors of
the organization. Clearly, the proprietorship structure of the organization is critical in arranging and agreeing upon the conditions of new investment. (Brown & Gutterman 2003,
88-89.)
Organizational Structure
Company's structure may be an intricate matter. This implies that the best unique system
that ought to be utilized to sort out an organization's different numerous functions and its
work, does not exist. In addition, it is possible that the ideal company's structure will
change in some time, as the organization develops, produces new goods and as alterations start to happen at the senior administration level. In any case, the business plan
ought to depict how the workers are organized and in what way the obligations and duties
are allocated. The following points are important in regards to the business plan:
-
Depict reporting duties;
-
Show how objectives and targets will be established;
-
Point out how execution will be observed and controlled;
-
Make recommendations on how clients, purveyors and distributors will cooperate
with the organization;
-
Clarifies how the organization's financial plan structure will be built in order to enable managers follow and check the assignment and use of finances for a specific
task. (Brown & Gutterman 2003, 90-91.)
4.9
Financial plans
One of the most widely recognized sorts of financing your newly established business is a
bank loan. To achieve a goal of lending money for your business from a bank, you will
need to present a business plan. The benefit of looking for a bank loan could be that you
or some of your family members has a prior history with a bank that eases the procedure.
27
In all the cases, a bank will concentrate on a few things while going through your request.
To begin with, they will need to see your business plan in order to get the idea what kind
of business is going to be set up, the amount of money you require, and how you are going to expend it. Just as imperative is showing to the bank how your business plans to pay
the requested credit back and what the timeframe is. Financial projections appear to be
most useful at that point. Banks are in the matter of crediting cash - that is one of their
primary benefit focuses. Your undertaking is to show them that you are reliable and that
the incomes from your organization are liable to pay back the credit in time. In case if you
have a background of maintaining a beneficial business, a chronicled budgetary explanation accompanied with the money related projection could carry it. Unless you have generous resources in your organization and solid yearly incomes, banks are prone to look to
the reliability of the proprietors of the business. As such, you and your accomplices' financial records will be checked and you may be obliged to present an individual asset report.
Remember that it is an offence to provide false data to a bank— report it by saying a simple truth without superfluous adornment. In case if a new company is going to be established, a lot of banks will lay down the condition that each of the organizers (and potentially their companions) should guarantee the credit. In case if you need to sign an individual
guarantee, check whether the bank will consent to withdraw it after some sensible period
of time. (Burk & Lehman 2004, 64.)
Banks take their interest for the money they lend, which is deductible as a cost of doing
business to the borrower. Interest rates differ from one bank to another and can be
affected by the sort of loan taken and the apparent credit risk of the debtor. You ought to
investigate the different sorts of bank credits accessible to your business to see what is
the best option. An installment loan is normally for a particular amount that will be paid
back in installments of the debt itself and interest. Numerous business credits have a
drifting interest rate that alters with modifications in a standard indicator, for example, the
prime rate. A few banks may oblige you to give the guarantee for any business credit. In
case if your company does not possess machinery or receivables, the bank may oblige
you to set up your house and other individual property to secure the credit. In case if that
is insufficient, you and your companions, chiefs, and perhaps essential shareholders will
need to sign on the credits to give a guarantee, as stated above. You will likely experience
difficulty getting a credit as a start-up in the event that you can't exhibit a capacity to
reimburse the credit from incomes. You ought to presumably obtain the help of your
bookkeeper to make sure that you describe your plan in credible numbers. It will also be
rather useful to have significant number of customers/requests, waiting their turn, in order
to exhibit impending incomes. It likewise is beneficial if you have put your own savings
28
into the business, because then it shows your dedication to the business and its
prosperity. (Burk & Lehman 2004, 65.)
4.9.1
Cash Flow Statement
“The Cash Flow Statement is the financial document that projects what your business plan
means in terms of money”. It is the same as a financial plan. It is a planned statement
utilized for inner arranging; it gauges the amount of cash that will stream into and out of a
business amid an assigned time interval, normally the next tax year. Your benefit toward
the end of the year will rely upon the appropriate equilibrium between money inflow and
outflow. The Cash Flow Statement recognizes when money is supposed to be gotten and
when it has to be expended to settle debts. It as well enables the supervisor to recognize
where the essential money will originate from. This statement copes just with current
money bargains and deals, and not with depreciation and amortization of intangible
assests or other noncash cost things. Costs are expended from money available, assests
selling, interest from deposits, incomes received from sales, cash obtained from a
creditor, and inflow of funds in place of equity in the organization. (Pinson & Jinnett 2006,
167.)
4.9.2
Sales Forecast
“The sales forecast is one of the primary inputs into the business planning process"
(Reider 2008, 138). It is essential not just to realize what will be sold, to whom and what
the price and profit margin will be, yet additionally to comprehend what the organization is
going to offer later on. The company will utilize the future sales forecast to build up its
arranged benefit plan. "This becomes the sales budget on which it plans its production
budget of goods and services— taking into account what already exists in inventory— and
with accurate and realistic costs, its profit plan and cash budget" (Reider 2008, 138). The
more prominent the quantity of genuine client orders in the business sales budget, the
more exact the benefit plan is going to be. With mistakes and estimates made while taking
into account former year's erroneous sales forecasts in the present sales forecast, the
company will create or buy more for stock than for clients, which is going to thus lead to
inability to follow its profit plan and an negative cash position. Entrepreneurs, managers
and sales specialists must take a vital part in assisting to produce precise sales forecasts,
whereupon to build up controls to screen and assess against. (Reider 2008, 138.)
29
4.9.3
Income statement
“The income statement deals with the operating activities of a company and is intended to
provide a report on its performance during the year. The statement gives details of a
company’s income and expenditure for the year. Where sales revenue is greater than
costs a profit is produced; where the reverse occurs a loss results – hence profit and loss
account” (Vause 2005, 61.)
The Budgeted Statement of Income consolidates components from a few distinct
calendars. "More particularly, the Income Statement draws from the Unit Sales Budget,
Headcount Budget, and the Operating Expenses Budget" (Delegate 2004, 76). Duplicating
the sales and expense of products sold projections into the Income Statement worksheet
is the initial phase in creating the Budgeted Statement of Income. The counting
demonstrates the area of the Income Statement, underlining the sales and cost of
products sold projections in a supplement to the resultant gross benefit projections. Keep
in mind that gross benefit is figured as sales expense of products sold. It allows to see a
perspective of the area of the Income Statement in which the values and formulas
accounting for the sales, cost of products sold, and gross margin estimations are all
uncovered and obvious. Replicating the salary compensations projections into the Income
Statement worksheet is the following part in creating the Budgeted Statement of Income.
The compensations estimations stream out of the Headcount Cost worksheet that has
been created in the management and manpower part of the business plan. The following
phase in creating the Income Statement is to duplicate the remaining components of the
Operating Expenses Budget (other than compensations; taxes and depreciation, which
will be mentioned further), and insert these extra other working expense issues into the
Income Statement. Also a line called "income from operations" can be found in the
Income Statement, which is computed as gross benefit working costs, which are the
expenses needed to operate a company. (Delegate 2004, 76-80.)
Pay attention to the fact that the depreciation point does not have any value yet. It is a
working cost that is gotten from the Capital Expenditures Budget. Interest cost denotes
the costs connected with borrowed money. In case if a company takes a loan, it is
frequently needed to pay occasional interest on these obtained capital. Interest cost
shows these costs. As well the Income Statement is demonstrated with the supplement of
a counting for a term named "taxable income." It can get it by deducting the interest cost
from the income from operations. Deciding the intermittent assessment cost speaks to the
last count on the Income Statement. While calculating taxes might lool like a basic activity
- multiplying the taxable income by a tax rate— in fact it is a quite difficult activity. Income
taxes might be demonstrated by utilizing the accompanying recipe: expense tax = taxable
income multiplied by tax rate. This is an exceptionally shortsighted way to deal this kind of
30
calculation, that does not address the truth confronting enterprises today. In the event
that, for example, you anticipate negative taxable income for a particular timframe in your
own financial plan, you ought to alter this counting to demonstrate a tax expense of zero
instead of a negative tax cost. Our company's taxable income is shown as positive over all
periods displayed in the financial scheme. The following stage is to count the
organization's net income, which is characterized as taxable income minus tax expense.
Thus, we have the Income Statement, which is ready and furthermore incorporates the
cost for renovation and repair works and interest cost. (Proctor 2004, 83-87.)
31
5
Business plan for “Pancakes and Crepes Café”
5.1
Overview
The purpose of this business plan is to provide guidance on how to create a
business such as “Pancakes and Crepes Café”, give the idea of what are the
main stages of the business entity formation, how the financial planning should
be done, in general, create a business plan. The parts of the business plan that
have been made by the author for one of the courses in Haaga-Helia UAS, have
been used as a template, but the new information has been added and the business plan has been updated with a great amount of new data. "Pancakes and
Crepes Café" is created to provide quick and quality services to customers, with
maximum attention to them, and offer the best quality products, which are not
different from the home-made pancakes. Nowadays, people are shortened of
time, and most probably have less chance to make pancakes and crepes with a
broad assortment of stuffings.
Many of us remember with sadness in the heart pancakes, which were cooked for us by
our grandmothers and mothers. The café being established gives a chance to reverse to
the recollections with a cup of tea, espresso or other beverage of your choice together
with our wonderful pancakes. The assortment that will be offered is very wide, but the new
dishes will be added to the existing menu from time to time. All dishes are prepared only
from natural and fresh ingredients. On working days, the main visitors of the cafe will be
young couples, families, students, families with kids, anyone, who wants to feel like at
home. The estimation is that there as well will be many customers in the lunch time. On
weekends and holidays, the café is perfect for family holidays. The cute design, amicable
workers and tasty food will make a memorable experience, and you will wish to come to
our café often. Also in our cafe you can celebrate memorable holiday for you and your
friends and guests. The goal of this project is to provide the population with a good, quality
and always fresh pastry.
5.2
Limited Company Formation Package and additional supporting documents
Please find Limited Company Formation Package and additional supporting documents printed out and enclosed to the thesis (Appendices 1-12):
-
memorandum of association;
32
-
start-up notification for limited liability companies Y1;
-
personal data form (for authority use);
-
appendix to start-up notification;
-
the lease of the business premises;
All the templates are downloaded from the official website for the entrepreneurs. Some of
the templates are represented only in Finnish language, as the English translation was not
available. Most of the papers have to be filled in in Finnish language, regardless of the
language used in the template itself.
As well, the new company will need to make agreements with the public utilities providers,
such as for instance the agreement for the energy supply, water supply, The National
Supervisory Authority for Welfare and Health Valvira, insurance companies (for instance,
IF), bank procedures agreements (OP, Danske, Nordea, Aktia etc.) and some other.
5.3
Company information
The form of the organization, under which the company will operate, will be selected as a
Limited Liability Company. According to the types of operations of the new company, it will
be more suitable and advantageous for it to have this kind of the organization type chosen. Pancakes and Crepes Café – a cozy home restaurant, designed as an apartment in
which people lived, live and will live. Cute interior decorations awaken nostalgic feelings in
every guest. There are vases with bagels, cakes and vanilla biscuits - on lace napkins
here. In the morning you can feel a smell of fresh-made pancakes in our restaurant. At
lunchtime and in the evening every guest will have a good and cordial time and try a plate
of our most delicious pancakes and crepes. Musical accompaniment from the first minutes
will create an atmosphere of nostalgic memories. Of course, in order to fully understand
the beauty of the house, you should at any time have a look at the soft light in our window
and visit us.
The key factor of the success of the business is going to be the emphasis on the
healthy-made products and the home-like atmosphere, as well as not a very
common business type in Helsinki Metropolitan Area. The products, which will be
offered, are pancakes and crepes with a customer’s choice of the toppings and
fillings. The menu will be represented by a great variety of options. The choice of
drinks will include only non-alcoholic items, such as coffee, tea and milkshakes,
33
as the concept of our café does not match with the alcoholic beverage selling.
The main purpose of the business is the manufacturing of the fresh food, and
then selling it to the customers.
The market we are going to serve is rather widely-defined. The customers can be
anyone from the teenagers to the elderly people. The idea of the café suits basically to customers of all ages. As the owner and CEO comes from Russia, she
has a good understanding of what kind of food the pancakes and crepes are,
how they should be made and thus it gives an advantage for the entrepreneur,
though, the new café will not position itself as a Russian café, but an international
one. The author of the business plan will simply take advantage of the fact that
she has grown in the country where the pancakes and crepes are truly popular
among the population, and she can use her knowledge of the production process
for the benefit of the company.
For the normal function of the company, other employees are also needed. That
is why, the organization structure has been made and the responsibilities and the
needed amount of staff have been measured. As the business is only being established, the CEO and owner will also work as a hostess. It will be beneficial for
a start-up in a way that the money can be saved in the beginning, as it is always
tough at the beginning of the operations. Later on, as the business will develop,
the new hostess will be recruited. The bank loan will be applied for as the main
type of financing the business start-up. The closest five years will be the most
difficult ones for the new company. The loan will need to be paid for, the salaries,
the taxes. The company type chosen will be a Limited Liability Company, as in
our point of view, it is the most suitable structure for the business type discussed
in this business plan. It will take 3-6 months before the opening to prepare and
organize everything prior to the grand opening. The opening hours will be from
10.30 a.m. till 21.00 p.m. Monday-Saturday, on Sundays the café will be closed.
The business operation will depend on the lunch customers and to some extent
on the seasonality issue. We suppose that the summer we will be considered as
a high season for our enterprise, so that May-August will be the busiest months.
It is believed that the typical time for the pancakes and crepes sales is an early
morning, starting from 07.00 a.m., as at that time a lot of businessmen go to their
34
work places and they will likely prefer to buy their breakfast on their way to work.
As well, there are a lot people living nearby, who also probably would like to purchase our products. In the future, we plan to expand our working hours in such a
way, that our café will be open already from 07.00 a.m., but at the moment, starting from the opening, the café will open at 10.30 a.m. Later on, we will monitor
the profits acquisition and the customer needs, and will adjust our working hours
accordingly.
5.4
Industry outlook and environmental analysis
As indicated by Statistics Finland, turnover in service industries increased by 5.0
percent in the period from December 2014 to February 2015 compared to the
same time in the previous year. One year prior to that, turnover increased by 1.8
percent. Services are here inspected barring of commerce (Official Statistics of
Finland 2015). This proves that the food and beverage industry is continuing to
grow. New cafes and restaurants are being opened, as there is a demand for it.
Currently in the market there are many cafes that provide similar services, however, there are not many companies offering such products as pancake or
crepes. According to Visit Helsinki, the main competitors are Lasipalatsi, Savoy,
Bellevue, Troikka, Saslik, and Kosmos (Visit Helsinki, 2015). These are the restaurants that have pancakes or crepes in their menu, some of them are oriented
on the Russian cuisine only. The price range is the following: for instance in the
Restaurant Bellevue the cheapest pancakes portion with mushrooms is priced
15.70 euros per portion, which is considered as an expensive one in the food and
beverage sector for the pancakes portion. Our pricing policy will be much more
customer-friendly. The biggest competitor is supposed to be Ravintola Blinit,
which has the very similar concept to our business plan. Blinit has two premises:
in Vantaa (which has been opened in the summer 2014) and near Linnanmaki.
Our business entity is going to be situated in Kamppi area. It is fair to assume
that, for instance, Lasipalatsi Ravintola (and the other restaurants mentioned
above) will not then be the main competitor for our café (despite of its location),
as the prices are rather higher there, but our café will offer more reasonable prices, which is the big advantage in the current time of economy crisis. As well, we
can assume that such kind of dishes as pancakes and crepes are popular among
35
customers, as other cafes and restaurants are offering them in their menus,
which proves that this is in demand, and the market can uphold the business.
The main disadvantage of goods and services of competitors is the high price
and not always high quality products. So our main competitors can be cafes, pizzerias, Picnic or similar kinds of cafes. In the recent time, there were so-called
"pancake kioskit" opened, especially in summertime. But their number is very
small, in other words, there aren’t many companies of the same kind to compete
with our business.
Currently, consumers have become very picky. And on this aspect we will put an emphasis, when opening "Pancakes and Crepes Café". Cost for our food items in the menu will
be quite cheap: starting from six and the most expensive of nine euros for each portion,
and as far as beverages are concerned, from one to four euros. Our café will have very
convenient working hours, from 10 – 21, with a Sunday – non-working day. Working hours
are built in such a way that from 10 am you will already be able to eat our pancakes and
have a cup or more of hot coffee or tea. Pancakes and crepes produced in our cafe
should be quite popular among consumers, since the huge number of various cafes,
snack bars and other establishments of this kind, do not have pancakes or crepes represented in their menus.
In order to understand the strong and weak sides of our café, the SWOT-analysis
should be implemented.
Strengths:
-
Location in the centre of Helsinki, in the Kamppi area, which has a great
trafficability: a lot of locals, tourists, workers who have lunch, other people
who are in transit via Kamppi to other cities or suburbs.
-
Pricing policy, which is customer-friendly, with the prices ranging from 6 to
9 euros for the food portion and from 1 to 4 euros for the beverage.
-
All the products will be of a great quality and fresh, home-made.
Weaknesses:
-
A new business, not yet familiar for the customers.
-
A lot of food providers in Kamppi, who also offer low prices for their
products.
-
Lack of experience in business set up.
36
Opportunities:
-
Opening new premises in other places of the city, in case if the business
being established is going to bring enough profits.
-
Adding new items on the menu.
Threats:
-
Economy crisis, which makes people save money and opt for homecooking.
-
A lot new entrants/competitors appearing.
In comparison to our business, the weaknesses of the competitors businesses’
can be that they have higher prices, and the menu that the customer could be
bored with already. The strengths can be the good-quality products, that these
restaurants offer and the dining experience, as they are a higher class restaurants, than the one being created. The opportunities can be new menus creation,
and therefore, surprising and attracting more customers. Last but not least,
threats can be described as also the crisis in the economy, a tough competition:
new businesses are being established all the time, new concepts appear.
5.5
Business objectives and business idea
“Pancakes and Crepes Café” - is a type of café, the main product of which are
pancakes and crepes. Pancakes and crepes – are unique, substantial and nourishing products, cooking of which doesn’t require a lot of time. Savoury or sweet
it is equally good for breakfast, lunch or dinner. Pancakes and crepes match well
with hot tea or coffee. The most popular varieties of tea and coffee are waiting for
you in our café: classic and fruity, with herbs and flowers and coffees with great
flavours.
37
Mission and Values
Our mission - to build the most modern, successful chain of cafes, offering an
affordable and natural food, uncompromisingly adhering to our principles:
- "I can" - the main principle of the winner. Enthusiasm, positive attitude, determination help us achieve our goals.
- We are positive about the changes, as an integral part of modern life.
- Creation and offer of natural, fresh, healthy foods – is the result of high-quality,
professional work at all work stages.
- Focus on people (guests, partners, colleagues). Dignity and respect for everyone.
- Responsibility in the face of each person, society and nature. Ability to take responsibility for our actions. Understand and accept the consequences of our actions and decisions.
- Continuous improvement, move forward and find new, innovative solutions to
increase the profitability and success of each of our employees.
- Our success depends on our ability to work together as a team, to achieve our
goals and expectations. Share our knowledge, skills, and experience with colleagues and partners, increasing our overall capacity.
5.6
Products and services
The company produces pancakes and crepes and related products and sells
them. Products are always of a high quality and fresh. Range and volumes of the
manufacturing is going to be relatively significant for this size of cafe. Later on,
when the cafe will have its own market share, we are intending to expand and
create our own chain with several premises in different parts of the metropolitan
area. As the production will develop, such type of service as ordering products
through the Internet, the delivery of products to your home or office will also develop and become available.
38
"Pancakes and Crepes Café" is planning to provide the following services:
1) production and sales of pancakes and crepes;
2) providing a takeaway service;
3) the assortment of drink included will be wide: hot drinks, such as a variety of
coffees, hot chocolate, different kinds of tea, and cold drinks such as milkshakes;
4) banquets, anniversaries, celebrations (if someone wants to have it in our café).
It is also planned to provide such services as delivery of goods at home and in
offices.
We produce the items that are offered in the menu from barm and non-barm
paste. Our customers can easily define that our pancakes are of a very high quality. In the manufacture of pancakes and related products we will not use preservatives or concentrates. The following essential characteristics explain the concept
of our café well:
• excellent quality
• traditional recipe
• natural raw materials
• great flavour
• reasonable cost for the customer
The menu of our café can be found in the appendices section. It includes a wide
range of pancakes and crepes with various kinds of fillings and toppings. Some
of them are already suggested of what ingredients should be included in the portion, but customers can always choose, if they want to add any toppings or mix
them. There are savoury and sweet kinds of pancakes and crepes represented in
our menu. There are additionally numerous sorts of non-alcoholic drinks represented in the menu, such as various types of espressos, different tea types and
milkshakes. The unique thing is a hot chocolate, which is very rare to be found in
Helsinki’s restaurants or cafes. As well, there will be milkshakes in the menu. As
well, we will apply a technique used by the Starbucks, where we will write the
name of the customer on a plastic cup. It creates an extra value for the customer,
and does not cost anything to the company.
39
We have as well checked the food expenditure and the expenses to that. They
will be depicted beneath regarding everyday use, week by week use, month to
month use and in the end per year. Here it is needed to consider the seasonality
factor, the high and low seasons and a possible seat-turnover. We have estimated that the high season will be from May-August. The price for one kg has been
checked in the real-providers pages. The most challenging part has been to estimate what types of dishes will be more popular, and what kind of daily usage we
will have. Based on that, we have calculated the weekly usage and cost, monthly
usage and cost, and yearly usage and cost. The table can be found in the appendices. We have also counted, using a recipe costing form, what will be a portion cost and price in the menu that we will have. Gross profit for food items is 65
%. Portion cost includes VAT as well. We have marked the cost difference in % in
the table. The cost of the portion has been calculated in the way that how much it
will cost for us to prepare a certain dish, and then the margin and VAT has been
added to count the price in the menu.
Based on the research done, we can also estimate that there won’t be many
competitors with same services, so we can suppose that it will be a success. As it
has already been mentioned, we would like to open new premises, supporting
the same idea. When customers get to know our products and are already familiar with it, we will create a chain of “Pancakes and Crepes Cafes” then. We also
realize that different kind of locations, compared to what we are planning to have
now, could probably be even more attractive for customers (for instance,
Hakaniemi), and therefore we will bear this fact in mind, when opening new units.
5.7
Service operations and manufacturing
Description of the business entity
As there is currently an extensive number of rivals in the restaurant field, the
location of the premises has to be well-thought through. Our location should be
convenient for customers, for instance, in the centre, in Kamppi area, as planned.
The premises should be located on the street level. As it is possible to see in the
figure 1, the idea is that it should consist of street level area (150 m2), terrace
and basement (70 m2), in total 220 m2. The renovation of heating, ventilation
40
and electrical equipment should be done already before our renting agreement
will be signed. There will be a terrace area for summer season, and in general
there will be a street level area, which all in all will have 96 seats (48+48).
We also attach a plan of premises:
Figure 1. The plan of the premises
The furniture and equipment will need to be purchased. We have counted the
equipment costs, using real prices of the Finnish providers of equipment, such
as, for instance, Metos, which is well-known in Finland. The real-time prices have
been taken into account, and depending on the required amount of items essential for the production process, the price per unit has been multiplied by the quantity. All the detailed information can be found in the appendices section.
As far as design and furniture are concerned, there are vases with bagels, cakes
and vanilla biscuits - on lace napkins here, which are used as a decoration. The
style is made in such a way that customers will get an impression of a cozy home
restaurant, designed as an apartment in which people lived, live and will live.
Cute interior decorations awaken nostalgic feelings in every guest. Windowsills
will be covered with herbs, as well there will be artificial butterflies on the lighting
items, jars of milk, blossoming plants, all of them in order to make a feeling as if
you are somewhere in the countryside.
41
The production process of pancakes and crepes consists of the following stages:
1) order
2) dough production process
3) quality control
4) production of pancakes
5) execution and delivery of order
Preparation of pancakes will consume approximately from three to five minutes of
our time, contingent upon the sort and amount requested by the customer, as the
of sorts of items we provide to customers is vast and in this way it is somewhat
hard to envision a common plan of manufacturing procedure.
Production Technology
Barm preparation for manufacturing of our pancakes is produced by the utilization of mixers, and if there should be an occurrence of the increment of manufacturing volumes, then we are going to use the blending machine equipment.
Suppliers and Subcontractors
In our business, we are going to use different kinds of subcontractors. They will
be connected to: Food and Beverage, such as Heinon Tukku, from which we can
offer ingredients; the ones from where we order our furniture and machinery and
tableware; the ones we use for repairworks; accounting, bookkeeping and
auditing services; bank services; we could also use HR-House for hiring
employees to substitute currents ones if they are sick, for instance; electricity and
water and also security services.
Production plan and the calculation of output
Product costs
The aggregate expense of manufacturing and item expenses can alter because
of the following:
- the volume and capacity of manufacture and its frame;
42
- degree of variable expenses per item of yield;
- the measure of settled expenses.
Variable expenses inscribe:
- salaries of employees;
- raw material expenses;
- operations.
Settled expenses comprise of:
- amortization;
- rent;
- time staged compensation for employees.
Based on the above, we calculated the cost of our products.
On the one hand, we certainly want to get the maximum profit, on the other hand
we do not want to attract other competitors to our market segment and lose our
customers. Our goal is to maximize profits, with bearing in mind that the price of
the product is acceptable to our customers, and they would not opt for our competitors. Therefore, taking into account that task, we will determine the price by
"average cost plus profit", but will also not forget about the actual prices.
Sticking to the common strategy for computing the costs, when defining the price
we will follow this scheme:
1) set the task of price formation;
2) identifying the demand;
3) the forecast of costs;
4) the analysis of competitors' prices and products;
5) selection the method of pricing;
6) the establishment of the final price.
5.8
Marketing
The history of many companies shows that marketing is one of the important
factors in the way the company reaches success. Many firms had products really
43
attractive for consumers, but have failed due to improper marketing or even the
absence of it. Therefore, in assessing the business plan we will be paid great
attention to this section. We are going to use 8000 euros for marketing. The
campaign will be made for 6 months: approximately one month before the
opening and 5 months after the opening. The expenses for marketing are going
to be covered by the production process profits.
Talking about the marketing strategy, it is considered essential to set a 5P’s
analysis, including price, product, promotion, place, positioning. The price range
is going to be between six to nine euros per portion of the pancakes or crepes
with the customer’s choice of topping/filling. The beverage menu prices will vary
from one to three euros per cup. The customers should be ready to pay this
amount of money as it is considered to be quite low in comparison to other
competitors, and the quality and price ratio is quite good. The products are the
pancakes and crepes with a great variety of toppins and fillings, sweet and
savoury, ice-cream desserts; tea, coffee and a lot of milkshakes options. The
place is chosen in the consideration of the customer trafficability and the chosen
location possible competitors’ concentration. The location chosen is beneficial for
the business as it is in the central area of Helsinki, and it gives an opportunity to
have estimated high profits due to the big amount of prospective customers. The
people part is devoted to the staff of the company, as the consumers get their
impression of the business from the service they get when visiting a cafe. The
staff will be carefully chosen and well-trained, in order to meet high requirements
of modern consumers. Last but not least, promotion part should be considered.
Various promotional strategies should be developed in order to produce the
company awareness among the potential customers.
The strategy of market penetration and selling
The principle objective of the organization is anticipated business entrance and
ensuing development in this field. The primary method of the organization ought
to be a complete technique to offer excellent quality goods with cheaper costs,
and in addition extending the assortment of items offered. Appropriately, the
marketing policy selected is the method of growing demand by invigorating sales,
price formation and other elements of rivalry, and therefore, creating a positive
image of the cafe. Based on the objectives and marketing strategies, as well as
the elasticity of demand, pricing will be implemented by a "cost plus profit"
44
strategy, given the anticipated demand and the behavior of competitors. Prices
for pancake products will be calculated based on the level of demand and costs,
and profit target. (Caouette, Altman & Narayanan 1998, 252.)
Products, which we make, we plan to distribute only in our cafe. With an increase
in volume of sales of products we plan to establish possible delivery at home or
work place. Our products will not be available through other shops or cafes.We
are planning to make advertisement campaign through transportation, on the
radio, and by distributing brochures about our café. We have a pretty affordable
price, which will also contribute to promote the product to market. In the first week
after opening, we plan to sell products on a "1 +1" basis: ordering one serving of
pancakes , you get a second one for free. As well, we will use electronic social
media resources, such as Facebook, Twitter and Foursquare to attract more customers. We can also improve advertising company by usage of unusual methods
of marketing: we provide each visitor the opportunity of 5% discount on our pancakes for 2 days from the date of the last purchase. (UK Essays, November
2013.) So we can make a conclusion that the perspectives of our company entering the market are quite promising.
5.9
Management and manpower
Group details, skills, resources and organization
There is one member in the organization at the moment:
1) Larisa Morozova – CEO and the owner. As well, she will work as hostess in
the café. She has experience from working in the hospitality industry, in F&B, in
hotel house-keeping and in travel and tourism and event industries in Sales and
Marketing department.
The basic functioning of the organization; organization chart / structure has been
created and can be found in the figure 2:
CEO
Chefs (2 full-time,
Waiters (2 full-time,
1 part-time)
1 part-time)
45
Figure 2. Organization structure
CEO will be the head of the company. She will control Chefs and Waiters. Chefs will also
be monitoring the work of waiters.
Estimating Labour Costs
Staff scheduling plan, based on a typical day and a typical week
Figure 3. Labour costs estimation, staff scheduling plan
As can be understood from the figure 3, the work schedule has been prepared
accoring to the work force needed and taking into the account the opening hours,
business oft he certain time of the day, and the working hours per week and
month. The salary offered tot he employees is the legally allowed minimum. Later
on, after the business is stable in development, the salary raises will be
considered, based on the employees‘ experience and performance. The labour
costs are counted as well per month and per year, to see the general picture of
the expenses needed fort he business functioning.
The responsibilities have been also distributed among the workers as described
below:
46
CEO's duties will be as follows, but not limited to:
• arranges the whole operation of the organization;
• is completely in charge of the staff and company's status;
• speak to the organization in all the establishments and associations;
• governs the business estate;
• searching for the suppliers of needed stock and equiment;
• looking for clients;
• bringing new items that can be added to what the business offers to customers
now;
• the presentation of the most recent accomplishments of science and innovation;
• optimization of the manufacture procedures;
• make the timetables for employees and so forth.
Chefs:
• in charge of planning and creating menus;
• cooking and hygiene control and etc.
Waiters:
• quality customer service;
• hygiene issues observance and etc.
The use of collective responsibility leads to a significant reduction in the useless
waste of the working time and fluctuation of personnel. Compensation of our
workers will be up to the profits also. With increasing profits we are going to give
rewards for our employees. The average age of our employees is 30 years.We
will train our employees and also they will be trained by the staff, that already
works in the company. The job advertisements will be placed on mol.fi, and also
we will recruit employees through HR-House and Staff Plus.
5.10 Financial plans
The financial calculation procedure explanation has been given in the chapter 4.9
of this thesis. As per financial planning part, first of all, we would like to introduce
our income statement. Here we have counted the approximate amount of customers we are going to have during low season and high season per month. We
have estimated that the high season will be from May till August, and all the other
47
months will be the low season months. We can make a conclusion from the figures presented that we have good sales, and profits, and we can breakeven.
Cash budget enables us to see what is going to happen with our business in every month of both high and low season. Next, as shown in the figure 4, we have
calculated what amount of money we need to start our business and make it
work. We have counted that we need a bank loan of 200 000 euros. We estimated that we will take the loan for 7 years with the fixed interest rate and that we
will have payments for our loan two times per year. All the other tables with the
results can be found in the appendices section.
Calculating the total capital needed
Pancakes and Crepes Café
Estimation of bank loan needed
Rent (2 months)
Payroll (2 months)
Renovations
Tableware and machinery
Furniture
Machinery
Marketing
Licences
Float
Stock (food)
Stock (beverages)
PA system
Total
18 060,00 €
36 315,60 €
36 000,00 €
9 120,00 €
20 000,00 €
60 000,00 €
8 000,00 €
2 500,00 €
3 000,00 €
4 500,00 €
1 500,00 €
600,00 €
199 595,60 €
Loan needed
200 000,00 €
Figure 4. Total capital and estimation of bank loan needed calculation
Taking into consideration that the needed loan amount is quite high, the author of the
business plan together with her husband are going to pawn their relate estate (apartment,
which has an approximately estimated value of the same amount of money as needed for
the loan) on the security of the loan.
In the lections of Pekka Heikkila in Haaga-Helia University of Applied Sciences, the author
of the business plan has received a thorough instructions of how the income statement,
cash budget, loan repayment plan should be calculated.
48
In the appendix 7 there is an income statement represented. The author had to assume
the approximate estimated amount of customers in low and high seasons daily, as it is
quite hard to calculate it, as well as the amount of dishes and beverages sold. The author
supposed that the months from May to August will be very busy, and all the other months
will be low season ones. The amount of customers per weekend has been calculated,
using the formula 1,3*amount of customer per day. Then the amount per week has been
got by adding the weekdays number to the weekend number of customers, for both low
season and high season. In the same way the monthly usage and yearly usage were calculated. Sales of food number is the estimated amount of dishes sold multiplied by the
average price per dish (calculated per day/week/month of high and low season, and per
year). Sales of beverages number is the estimated amount of beverages sold multiplied
by the average price per beverage (calculated per day/week/month of high and low season, and per year). Total sales number is the sales of beverages plus the sales of food
(calculated per day/week/month of high and low season and per year). Food cost (25%
average) is calculated by multiplying sales of food with 0,25 (per day/week/month of high
and low season, and per year). The same goes regarding the beverages, but in this case
the sales of beverages number is multiplied by 0,41 (41%). Total cost of sales figure is the
sum of food cost and beverage cost. Gross profit is got by deducting total cost of sales
from total sales figure. Total operating expenses is the sum of payroll, rent, insurance,
renovation and repair work costs, machinery and tableware, and electricity and water.
Operating income figure is the result of deduction of gross total operating expenses from
the gross profit. Income before taxes is received when deducting interest from operating
income. Income tax is calculated by multiplying the income before taxes by 26% typical for
Finland. Net income is the result of deduction of income tax from income before taxes
figure.
The cash budget we use the total sales figure for low season and peak season months,
putting it the sales line. Then it is possible to get the total receipts figure, by adding the
loan needed from the bank amount to the sales per each month (low and high season).
Next, the total payments figure is counted: it is the sum of payroll, rent, insurance, renovation and repair work costs, tableware, furniture, food and beverage stock, bank loan payment, PA-system and interest paid. It is counted for all the months per year, bearing in
mind that insurance, renovation and repair work costs, tableware and furniture expenses
occur only once in the first month. Interest and bank loan payment are paid twice a year,
every half a year. Rent is paid every month. Net cashflow is computed per every month,
by deducting total payments from total receipts. Closing bank figure is the sum of net
cashflow and opening bank figure of the same month, whereas the opening bank figure is
equal to the previous month’s closing figure.
49
6
Discussion
Entrepreneurship is a type of mentality which can go for risks however only for acceptable
ones; a real businessman is the one who can see potential outcomes in a given
circumstance, where others do not see any, and is patient enough to work out the thought
into a plan, to which budgetary support can be given. It is one of the reactant exercises
encouraging activity, advancing and maintaining economic actions for the production and
dissemination of affluence. The incitement of entrepreneurship is a component of both
inner and outer variables. There is no shortage of thoughts; however there is a genuine
lack of men with the correct mix of vision and viable sense to get to be forehanded entrepreneurs in the developing countries. The target is to recognize such individuals and
furnish them with the help required, in order to make them progress and prosper. In that
case, they get to be real-life examples, an instance to the society; and when the right
atmosphere is produced, entrepreneurship turns into a lifestyle. (Rai & Desai 2008, 22.)
The aim of the project was a business a business plan creation and justification of the
feasibility of the establishment of “Pancakes and Crepes Café” in Helsinki. The main objectives and goals of the project, such as, the concept development, the business idea
creation, description of services and products offered for the customers, financial planning
part clarification, have been met. The objectives and goals have been reached thanks to
the entrepreneurial approach used and the literature overviewed and applied to the project
writing. The author of the business plan has realized what the main difficulties of the project implementation can be and what strong and weak sides the project has. As well, the
detailed structure of actions, that should be taken when establishing new business, created during the business plan writing, is going to be a helpful tool when starting up “Pancakes and Crepes Café”.
The business plan is built in such a way, that it can be used as a template for establishment of other restaurants or similar business types. It can be augmented, altered or updated in regards to the current situation and adjusted to the business that is being set up.
On the one hand, the process of the exact real starting point in the company establishment can still seem unclear. On the other hand, all the required financial plans have been
made for the future entrepreneur to see how the financial side of the enterprise is planned
and how much capital is needed. The author of the business plan assumes that the project has been successfully carried out and the main task of it has been accomplished.
50
References
Bangs, D. H. 2002. Business Planning Guide : Creating a Winning Plan for Success. Chicago, IL, USA: Dearborn Trade, A Kaplan Professional Company.
Brown, R. & Gutterman, A. 2003. A Short Course in International Business Plans. Novato,
CA, USA: World Trade Press.
Burk, J., & Lehman, R. 2004. Financing Your Small Business. Naperville, IL, USA: Sphinx
Publishing, an Imprint of Sourcebooks, Inc.
Caouette, J.B., Altman E.I., & Narayanan P. 1998. Managing Credit Risk: The Next Great
Financial Challenge. Frontiers in Finance Series. John Wiley & Sons.
Cole, A. H. 1959. Business Enterprise in Its Social Setting. Cambridge, MA: Harvard University Press.
Coopey, R. 2005. “Venture Capital and Enterprise,” in Youssef Cassis and I.P. Minoglou
(eds.), Entrepreneurship in Theory and History. London: Palgrave.
Dalley, J., & Hamilton B. April-June 2000. "Knowledge, Context, and Learning in the Small
Business." International Small Business Journal.
Finnish Patent and Registration Office. URL:
https://www.prh.fi/en/kaupparekisteri/yrityksen_perustaminen/forms_of_business.html
Accessed: 17 May 2015.
Friend, G., & Zehle, S. 2004. Guide to Business Planning. London, GBR: Profile Books.
Gerson, R. F. 1991. Writing and Implementing a Marketing Plan : A Guide for Small Business Owners. Boston, MA, USA: Course Technology / Cengage Learning, 1991.
Havinal, V. 2009. Management and Entrepreneurship. New Age International. Daryaganj.
Delhi.
51
Infopankki. 2015. URL: http://www.infopankki.fi/en/living-in-finland/work-andenterprise/obligations-of-the-entrepreneur Accessed: 20 May 2015.
Job A. 25th February 2013. Entrepreneur Journal. Starting a Business. Types of Business
Models.
Kokko, J. HAAGA-HELIA 2013. Juuso Kokko lectures and print-out materials. Accessed:
17 May 2015.
Ma, H. Tan, J. 2005. Key Components and The Implications of Entrepreneurship. A 4-P
Framework. Journal of Business Studies.
Martin, C. L. 1992. Starting Your New Business : A Guide for Entrepreneurs. Menlo Park,
CA, USA: Course Technology / Cengage Learning.
McClelland, D. C. 1961. The Achieving Society. Princeton, NJ: Van Nostrand.
McGrath, Gunther R., & MacMillan I. 2000. The Entrepreneurial Mindset. Harvard Business School Press.
Merriam-Webster Dictionary. URL: http://www.merriamwebster.com/dictionary/entrepreneur Accessed: 17 May 2015.
Ministry of Employment and the Economy.
URL: http://www.yrityssuomi.fi/en/perustamistoimet Accessed: 20 May 2015.
Official Statistics of Finland (OSF): Turnover of service industries [e-publication].
ISSN=1799-0998. February 2015. Helsinki: Statistics Finland. URL:
http://www.stat.fi/til/plv/2015/02/plv_2015_02_2015-05-13_tie_001_en.html
Accessed: 20 May 2015.
Pinson, L. 11/2004. Anatomy of a Business Plan : A Step-by-Step Guide to Building a
Business and Securing Your Company's Future. 6th ed. USA: Dearborn Trade, A Kaplan
Professional Company. Chicago. IL.
52
Pinson, L., & Jinnett, J. 2006. Steps to Small Business Start-Up : Everything You Need to
Know to Turn Your Idea Into a Successful Business. Chicago, IL, USA: Dearborn Trade, A
Kaplan Professional Company.
Proctor, K. S. 2004. Building Financial Models with Microsoft Excel : A Guide for Business
Professionals. Hoboken, NJ, USA: Wiley.
Rai, U. & Desai, V. 2008. Entrepreneurship Development and Business Communication.
Himalaya Publishing House. Mumbai.
Reider, R. 2008. Effective Operations and Controls for the Small Privately Held Business.
Hoboken, NJ, USA: Wiley.
Saroj, U. & Mehndiratta, V. 2009. Entrepreneurship Development and Management. Abhisek Publications. Chandigarh.
Schreiber, D. & Deaborn Financial Publishing Staff. 2001. Building a World-Class Financial Services Business : How to Transform Your Practice into a Company Worth Millions.
Chicago, IL, USA: Dearborn Trade, A Kaplan Professional Company.
Smith, H. 2012. Learn Small Business Startup in 7 Days. Milton, QLD, AUS: John Wiley &
Sons.
Srivastav R.P. 2007. Entrepreneurship Development and Production Management.
Himalaya Publishing House. Mumbai.
The National Supervisory Authority for Welfare and Health. URL:
http://www.valvira.fi/en/valvira Accessed: 20 May 2015.
Vause, B. 2005. Guide to Analysing Companies. London, GBR: Profile Books.
Visit Helsinki. 2015, URL: http://www.visithelsinki.fi/en/stay-and-enjoy/eat/january-season
blinis Accessed: 20 May 2015.
UK Essays. November 2013. The Advertising And Promotions Effectiveness Marketing
Essay. URL: http://www.ukessays.com/essays/marketing/the-advertising-and-promotionseffectiveness-marketing-essay.php?cref=1 Accessed: 17 May 2015.
53
Appendices
Appendix 1. Memorandum of Association
54
55
56
Appendix 2. Start-up Notification for Limited Liability Companies Y1
57
58
59
60
Appendix 3. Personal data form (for authority use)
61
62
Appendix 4. The lease of the business premises
63
64
Appendix 5. Curriculum Vitae Larisa Morozova
Europass Curriculum Vitae
Personal information
Surname(s) / First name(s) Larisa A. Morozova
Mobile 0466405487
E-mail(s) [email protected]
Nationality Russian
Date of birth 16 October 1987
Gender Female
Work experience
Dates
October 2013 - present
Occupation or position held
Receptionist (trainee)
Main activities and
responsibilities
Name and address of
employer




Check in / Check out of the guests;
Cashiering and billing,
Customer services, and related tasks.
Opera system training.
Hotelli Seurahuone Helsinki, Kansainväliset Restel Hotellit.
Kaivokatu 12, 00100, Helsinki, Finland. (http://www.restel.fi)
Dates
March 2012 – July 2012
Occupation or position held
Sales Manager/ VIP-Hospitality Services, Internship
Main activities and
responsibilities
Name and address of
employer


Sales and Marketing of Savonlinna Opera Festival VIP-packages;
Participation in production of another VIP - events of the company (Sting concert
VIP-lounge, ZZ-Top).
Eastway Sound and Lighting Oy (http://www.eastway.fi/eastway)
Sinimäentie 8, 02630 Espoo, Finland
Assisted in advertising campaign for Russian customers, which resulted in broad marketing of the
65
company among Russian clients and business companies.
Dates
December 2011-April 2012
Occupation or position held
Waitress (Breakfast and Conference Departments).
Main activities and
responsibilities
- Providing excellent customer service during the hotel breakfast;
Name and address of
employer
Dates
Occupation or position held
- Serving business clients during the business meetings in private dining rooms.
Hotel Seurahuone Helsinki, Restel Ltd, Kaivokatu 12, 00100, Helsinki, Finland
(http://www.restel.fi)
August 2011 – present
House-Keeping Department – Room-Attendant (Hotel Seurahuone Helsinki and Crowne Plaza
Helsinki), and Shift Manager (Hotel Seurahuone Helsinki)
- Managing work of the house-keeping department during the shift;
Main activities and
responsibilities
- Keeping hotel premises in top condition.
Name and address of
employer
Hotel Seurahuone Helsinki, Restel Ltd, Kaivokatu 12, 00100, Helsinki, Finland
(http://www.restel.fi), Crowne Plaza, Restel Ltd, Mannerheimintie 50, 00260, Helsinki,
Finland.
Dates
August 2009 - August 2011
Occupation or position held
Sales Manager/Travel Consultant
Main activities and
responsibilities
- Manage relationships with customers and various kinds of service providers: tour
operators, travel agencies, hotels, car rental companies and etc.;
- Organize different kinds of events for tourists;
- Provide any kind of customer service, including delivery of travel documents, visa
obtaining;
- Make customer agreements, work with any kinds of documents with partners and
customers; make accounting payments;
- Provide excellent customer service and experience by handling sales requests face to face,
as well as received by e-mail, phone or via fax;
- Answer any queries from customers, such as reservations, change of bookings,
cancellations if they would like to make any and etc., and handle them efficiently, so that
customers’ needs and expectations are always met;
- Handle customers’ complaints in an effective way, and ensure that all the needed actions
are taken and the company is represented in a professional manner;
66
- Contact service providers if necessary to ensure that all the guests interests are met;
- Teach trainees;
- Substitute the Director of the company when he is out of the office and perform his
functions.
Name and address of employer
Constanta Travel Agency (http://www.constanta-tour.ru)
Gorkiy street 25 office 323, 185000 Petrozavodsk (Russia)
Raised the clients’ base significantly; raised the sales of the company in 50-70%, depending on the season; raised customers’ satisfaction ratings.
Education and training
February 2014 – March 2014
Dates
Name of educational institution European Bartender School, Helsinki, 4 week International Bartending Course
Dates
2011 - 2014
Title of qualification awarded
Degree Programme in Hotel, Restaurant and Tourism Management, Bachelor of
Hospitality Management
Name and type of organisation Haaga-Helia University of Applied Sciences (Helsinki, Finland), Member of the
providing education and organization The Leading Hotel Schools Of The World.
training
Dates
2004 – 2009
Title of qualification
awarded
Specialist Degree in Pedagogy and Methodology Of Teaching, Linguistics;
Name and type of
organisation providing
education and training
Karelian State Pedagogical University, Petrozavodsk, Russia
Personal skills and
competences
Mother tongue(s) Russian
Other language(s)
Self-assessment
Understanding
Listening
European level (*)
Proficient
user
Reading
Speaking
Spoken interaction
Proficient
C1
user
Proficient
user
Writing
Spoken production
Proficient
user
English
C1
Finnish
A1 Elementary A1
Basic
User
A1 Elementary
A1
Elementary A1
Basic User
German
A1 Basic User A1
Basic
User
A1 Basic User
A1
Basic User A1
Basic User
C1
C1
C1
Proficient user
Social skills and competences Excellent oral and written communication skills and excellent customer care skills gained
67
during my work with customers as a sales manager.
Team player, flexible and adaptable to change as I worked in a constantly changing
environment.
Positive, self-motivated and enthusiastic about providing great customer service.
Organisational skills and Approachable and able to build effective relationships at all levels, organized, proactive, as
competences I worked with many partners as a sales manager and in different segments in hotel business.
Able to work without supervision and solve problems as am extremely responsible and
during my work had to cover a lot of tasks by my own.
Computer skills and Good command of Microsoft Office tools, Knowledge of Opera system.
competences
Hobbies
Additional information
Culinary, Writing, Strong desire to travel




Hygieniapassi, anniskelupassi.
CAE (Cambridge Certificate in Advanced English), Level C1, June, 2007.
Visitor of MITT travel fair in 2010, Moscow, March. MATKA travel fair 2012,
Helsinki, January.
Took part in a fam-trip, Spain, April 2010; Dominican Republic, February 2010.

Took part in the International congress of physical and health education teachers,
worked as an interpreter, Petrozavodsk, June, 2008.

Participant of workshops, organized by the tour operators in Russia: Coral Travel,
Pegas Touristik, Sunmar, Mostravel.

Helsinki University Language courses participant.
References are available on request.
68
Appendix 6. The menu example
Strawberry berries and strawberry sauce, topped with whipped cream
Maple Syrup and butter
Nutella
Peanut Butter
Strawberry Jam
Honey & Nuts
Apple & Cinnamon
Banana & Chocolate Sauce, topped with whipped cream
Cherry berries and cherry sauce, topped with whipped cream
Almonds & white or milk chocolate sauce
Banana and toffee sauce, topped with whipped cream
Chocolate sauce or toffee sauce, topped with whipped cream
Blueberry berries and blueberry sauce, topped with whipped sauce
As a dessert we can offer an ice cream with different tastes
Cheese
Cheese and tomato
Salted salmon and cream cheese
Cheese & ham or bacon & mushrooms
Ham or Bacon, tomato, onion & cheese
Smoked beef, cheese sauce, mozzarella cheese
Salami, cheese sauce, mozzarella cheese
Cheese, tomato, mushrooms, onion & pesto
Minced beef, bolognaise sauce, cheese sauce, mozzarella cheese
Sautéed chicken, sautéed champignon mushroom, cheese sauce, mozzarella cheese
Our entire menu is available on gluten and wheat free pancakes at no extra cost
69
Hot Drinks
Cappucino
Caffe Latte
Americano
Espresso
Double espresso
Macchiato
Hot Chocolate with/without Marshmallow
Hot Chocolate with Hazelnut
Cold drinks
Mango milkshake
Vanilla milkshake
Chocolate milkshake
Strawberry milkshake
Peach milkshake
Mocca milkshake
Cappucino milkshake
Hazelnut milkshake
Banana milkshake
Tea
Selection of Hot Tea
Earl grey, English breakfast, Green Tea, Chamomile/Fruit tastes
70
Appendix 7. Income statement
Pancakes and Crepes
Café
In high season
in high
season
in high
season
In high
season
In low
season
in low season
In low
season
In low
season
Weekdays
Weekend
days
Weekly
Monthly
Weekdays
Weekend
days
Weekly
Monthly
Yearly (1st
year)
%
Expected amount of
customers
250
325
1725
7245
181
160
1023
4296,6
63352,8
Estimated amount of
dishes sold
232
255
1461
6136
162
211
1118
4695
62103
Estimated amount of
beverages sold
221
287
1525
6405
160
160
960
4032
57874
Average price per dish
8,00 €
8,00 €
8,00 €
8,00 €
8,00 €
8,00 €
8,00 €
8,00 €
8,00 €
Average price per
beverages
4,00 €
4,00 €
4,00 €
4,00 €
4,00 €
4,00 €
4,00 €
4,00 €
4,00 €
1 856,00 €
2 040,00 €
11 688,00 €
49 089,60 €
1 296,00 €
1 684,80 €
8 942,40 € 37 558,08 € 496 823,04 €
68,2%
884,00 €
1 149,20 €
6 099,60 €
25 618,32 €
640,00 €
640,00 €
3 840,00 € 16 128,00 € 231 497,28 €
31,8%
2 740,00 €
3 189,20 €
17 787,60 €
74 707,92 €
1 936,00 €
2 324,80 €
12 782,40 € 53 686,08 € 728 320,32 €
100,0%
Food cost 25% (average)
464,00 €
510,00 €
2 922,00 €
12 272,40 €
324,00 €
421,20 €
2 235,60 €
9 389,52 € 124 205,76 €
17,1%
Beverage cost 41%
(average)
362,44 €
471,17 €
2 500,84 €
10 503,51 €
262,40 €
262,40 €
1 574,40 €
6 612,48 €
94 913,88 €
13,0%
Total cost of sales
826,44 €
981,17 €
5 422,84 €
22 775,91 €
586,40 €
683,60 €
3 810,00 € 16 002,00 € 219 119,64 €
30,1%
1 913,56 €
2 208,03 €
12 364,76 €
51 932,01 €
1 349,60 €
1 641,20 €
8 972,40 € 37 684,08 € 509 200,68 €
69,9%
Income statement
Sales of food
Sales of beverages
Total Sales
Gross profit
71
Payroll
Rent
Insurance
18 157,80 €
18 157,80 € 217 893,60 €
29,9%
9 030,00 €
9 030,00 € 108 360,00 €
14,9%
429,17 €
5 150,00 €
0,7%
Renovation and repair
works
4 000,00 €
0,5%
Machinery and
tableware
9 120,00 €
1,3%
25 200,00 €
3,5%
Electricity and water
2 100,00 €
429,17 €
2 100,00 €
Total operating
expenses
29 716,97 €
29 716,97 € 369 723,60 €
50,8%
Operating income
22 215,04 €
7 967,11 € 139 477,08 €
19,2%
19 285,70 €
2,6%
120 191,38 €
16,5%
Income tax
31 249,76 €
4,3%
Net income
88 941,62 €
12,2%
Interest
Income before taxes
Break even point
503 997,66 €
72
Appendix 8. Cash budget
Pancakes
and Crepes
Café
Cash
budget
Feb
March
April
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Receipts
Sales
53 686,08 € 53 686,08 € 53 686,08 € 74 707,92 € 74 707,92 € 74 707,92 € 74 707,92 € 53 686,08 € 53 686,08 € 53 686,08 € 53 686,08 € 53 686,08 €
New bank
loan
200 000,00
€
Total
receipts
253 686,08 53 686,08 53 686,08 74 707,92 74 707,92 74 707,92 74 707,92 53 686,08
53 686,08 € 53 686,08 € 53 686,08 € 53 686,08 €
€
€
€
€
€
€
€
€
Payments:
Payroll
18 157,80 18 157,80 18 157,80 18 157,80 18 157,80 18 157,80 18 157,80 18 157,80 18 157,80 18 157,80 18 157,80 18 157,80
€
€
€
€
€
€
€
€
€
€
€
€
Rent
9 030,00 € 9 030,00 € 9 030,00 € 9 030,00 € 9 030,00 € 9 030,00 € 9 030,00 € 9 030,00 €
Insurance
5 150,00 €
Renovation
and repair
works
4 000,00 €
Furniture
20 000,00
€
Tableware
9 120,00 €
73
9 030 €
9 030 €
9 030 €
9 030 €
Food stock
4 498,78 € 4 498,78 € 4 498,78 €
6 386,23 €
6 386,23 €
6 386,23 €
6 386,23 € 4 498,78 € 4 498,78 € 4 498,78 € 4 498,78 € 4 498,78 €
Beverage
stock
1 465,00 € 1 465,00 € 1 465,00 € 1 465,00 €
3 569,26 €
3 569,26 €
3 569,26 € 1 465,00 €
1 465 €
1 465 €
1 465 €
1 465 €
PA-system
600,00 €
Bank loan
payment
14 286,00
€
14 286,00 €
Interest
paid
10 000,00
€
9 285,70 €
Total
payments
96 307,58 33 151,58 33 151,58 35 039,03 37 143,29 37 143,29 37 143,29 33 151,58 33 151,58 33 151,58 33 151,58 33 151,58
€
€
€
€
€
€
€
€
€
€
€
€
Net
cashflow
157 378,50 20 534,50 20 534,50 39 668,89 37 564,63 37 564,63 37 564,63 20 534,50 20 534,50 20 534,50 20 534,50 20 534,50
€
€
€
€
€
€
€
€
€
€
€
€
Opening
Bank
Closing
Bank
0,00 €
157 378,50 177 913,00 198 447,50 238 116,39 275 681,02 313 245,65 350 810,28 371 344,78 391 879,28 412 413,78 432 948,28
€
€
€
€
€
€
€
€
€
€
€
157 378,50 177 913,00 198 447,50 238 116,39 275 681,02 313 245,65 350 810,28 371 344,78 391 879,28 412 413,78 432 948,28 453 482,78
€
€
€
€
€
€
€
€
€
€
€
€
74
Appendix 9. Equipment cost calculation
Item
Price (incl alv)
Furniture for our cafe
Amount
Total
20000
1
20000
Pancake maker
534
1
534
Cashier table and cashier
332
1
332
Scales
178
2
356
87
3
261
2040
1
2040
169
1
169
53
10
530
Mixer for the preparation of the batter
598
1
598
Counter for kitchen units/utensils
108
1
108
Shelf for long storage
492
2
984
Slicer with rubbing
101
6
606
Flour sifter
434
1
434
Cupboard
1380
1
1380
Slicer
484
1
484
Plate warmer
395
1
395
Frying pans or frying surface
302
1
302
2476
1
2476
Electric oven with two burners
255
1
255
Refrigerated counter to store ingredients
685
1
685
92
1
92
436
1
436
Holder
42
1
42
Freezer
1045
1
1045
Sinks, desks, shelves
1120
2
2240
Rack for electromechanical equipment
240
1
240
Kitchen working table (5 boxes)
895
1
895
89
2
178
114
2
228
Stand for electric boiler
86
1
86
Kitchen table
94
1
94
171
2
342
84
1
84
Three production tables with different sized decks
Fridge
Half-open shelf without doors
Cutting boards
Table fridge with 5 boxes
Shelf
Electric boiler with continuous work
Kitchen sink for processing raw materials
Table scales
Washstand console with lever water supply
Shelf for cutting boards
75
Three-section kitchen sink
253
1
253
Table for refrigerated shop-window
446
1
446
1120
2
2240
101
3
303
9120
1
9120
Two-section kitchen sink
159
1
159
Cooker hood
605
1
605
Shelf for cutting boards
84
1
84
Shelf for keeping spices
87
6
522
Microwave ovens
229
2
458
Chopping machine
512
1
512
Lockers for staff
497
1
497
Table for setting up the pancake making stove
426
1
426
2952
1
2952
323
3
969
Coffee machine and boiler for brewing tea
Open-dryer for plates
Kitchen & cafeteria cutlery
Fast cooler
Trolley
TOTAL
58477
76
Appendix 10. Portion cost and menu prices calculation
Item
Sweet Pancakes/Crepes
Strawberry berries and strawberry
sauce, topped with whipped cream
185g
Maple Syrup and butter 170g
Nutella 166 g
Peanut Butter 176 g
Strawberry Jam 190g
Honey&Nuts 156 g
Apple&Cinnamon 230 g
Banana & Chocolate Sauce, topped
with whipped cream 266 g
Cherry berries and cherry sauce,
topped with whipped cream 180g
Almonds & white or milk chocolate
sauce 170g
Banana and toffee sauce, topped
with whipped cream 236 g
Chocolate sauce or toffee sauce,
topped with whipped cream 210g
Blueberry berries and blueberry
sauce, topped with whipped cream
210g
Ice cream with different tastes 100g
SavouryPancakes/Crepes
Cheese 156 g
Cheese & tomato 182 g
Salted salmon and cream cheese
180 g
Cheese & ham or bacon & mushrooms 266 g
Ham or Bacon, tomato, onion &
cheese 250 g
Smoked beef, cheese sauce, mozzarella cheese 196 g
Salami, cheese sauce, mozzarella
cheese 160g
Cheese, tomato, mushrooms, onion
& pesto 220 g
Minced beef, bolognaise sauce,
cheese sauce, mozzarella cheese
210 g
Sautéed chicken, sautéed champi-
Portion cost (incl. Price in the
VAT 14% and mar- menu
gin 65%)
Cost difference %
3,94
7,5
47,5%
3,16
3,3
3,04
3,73
3,68
3,63
4,23
7
7
7
7
7
7
8
54,9%
52,9%
56,6%
46,7%
47,4%
48,1%
47,1%
4,45
9
50,6%
3,93
8
50,9%
4,08
8
49,0%
3,11
7
55,6%
4,71
9
47,7%
0,2
3
93,3%
3,04
3,65
4,56
6
7
9
49,3%
47,9%
49,3%
4,07
8
49,1%
3,41
7
51,3%
4,07
8
49,1%
3,98
8
50,3%
3,99
8
50,1%
3,23
7
53,9%
3,69
7,5
50,8%
77
gnon mushroom, cheese sauce,
mozzarella cheese 251 g
Drinks
Hot drinks
Cappucino210 g
CaffeLatte280 g
Americano100 g
Espresso50 g
Doubleespresso50 g
Macchiato70 g
Hot Chocolate with/without
Marshmallow 300 g
Hot Chocolate with Hazelnut 300 g
Cold drinks
Mango milkshake 390 g
Vanilla milkshake 390 g
Chocolatemilkshake 385 g
Strawberry milkshake 370 g
Peach milkshake 390 g
Banana milkshake 445 g
Mocca milkshake 305 g
Cappucino milkshake 298g
Hazelnutmilkshake390 g
Tea
Selection of Hot Tea (Earl grey, English Breakfast, Green Tea, Chamomile/Fruit tastes) 250 g
TOTAL
0,02
0,03
0,02
0,02
0,03
0,02
0,8
3
3,5
2,5
2,5
2,5
2,5
4
99,3%
99,1%
99,2%
99,2%
98,8%
99,2%
80,0%
0,8
4
80,0%
1,01
0,98
0,91
1,05
1,02
0,93
0,97
0,98
0,96
4
4
4
4
4
4
4
4
4
74,8%
75,5%
77,3%
73,8%
74,5%
76,8%
75,8%
75,5%
76,0%
0,035
1
96,5%
97,465
238,5
59,1%
78
Appendix 11. Food usage and costs calculation (daily/weekly/monthly/yearly)
Daily
Price
usage Daily
euro/kg kg
cost
Weekly
usage Weekly
kg
cost
Monthly
usage Monthly
kg
cost
Yearly
usage Yearly cost
MEAT
Chicken fillets
3
3,2
9,6
9,6
28,8
41,28
2064
6192
12,4
2,1
26,04
6,3
78,12
27,09
335,916 1354,5
16795,8
6,7
2,3
15,41
6,9
46,23
29,67
198,789 1483,5
9939,45
Ham
12,4
1,6
19,84
4,8
59,52
20,64
255,936
1032
12796,8
Bacon
7,9
1,6
12,64
4,8
37,92
20,64
163,056
1032
8152,8
23,5 0,88
20,68
2,64
62,04
11,352
266,772 567,6
13338,6
11,8
1,3
15,34
3,9
46,02
16,77
197,886 838,5
9894,3
3
4,3
12,9
12,9
38,7
55,47
166,41 2773,5
8320,5
green salad
7,1
2,4
17,04
7,2
51,12
30,96
219,816
1548
10990,8
white onion
0,7
1,2
0,84
3,6
2,52
15,48
10,836
774
541,8
garlic
0,8
0,9
0,72
2,7
2,16
11,61
9,288 580,5
464,4
mushrooms
13
2
26
6
78
25,8
335,4
1290
16770
peaches
3,8
1,9
7,22
5,7
21,66
24,51
93,138 1225,5
4656,9
apples
1,5
2,9
4,35
8,7
13,05
37,41
56,115 1870,5
2805,75
mangos
4,2
2,5
10,5
7,5
31,5
32,25
135,45 1612,5
6772,5
lemons
3,8
1
3,8
3
11,4
12,9
49,02
645
2451
2
3,2
6,4
9,6
19,2
41,28
82,56
2064
4128
cherry berries
14
1
14
3
42
12,9
180,6
645
9030
strawberry berries
6,5
1,8
11,7
5,4
35,1
23,22
150,93
1161
7546,5
9
1
9
3
27
12,9
116,1
645
5805
3
1
3
3
9
12,9
38,7
645
1935
butter
3,1
1,3
4,03
3,9
12,09
16,77
51,987 838,5
2599,35
crème fraiche
2,1
0,9
1,89
2,7
5,67
11,61
24,381 580,5
1219,05
chocolate ice cream
and with other tastes
2,8
1,5
4,2
4,5
12,6
19,35
54,18 967,5
2709
vanilla ice cream
2,2
1
2,2
3
6,6
12,9
28,38
645
1419
whipped cream
3,5
2
7
6
21
25,8
90,3
1290
4515
cream
1,9
2
3,8
6
11,4
25,8
49,02
1290
2451
milk
1,5
8
12
24
36
103,2
154,8
5160
7740
Salami
Minced meat/beef
Smoked beef
123,84
FISH
Salted salmon
VEGETABLES
tomatoes
FRUITS and BERRIES
bananas
blueberry berries
DAIRY PRODUCTS
margarine
FLOURS
79
white flour
1
10
10
30
30
129
129
6450
6450
3,9
1
3,9
3
11,7
12,9
50,31
645
2515,5
10,7
0,2
2,14
0,6
6,42
2,58
27,606
129
1380,3
baking flour
0,5
1
0,5
3
1,5
12,9
6,45
645
322,5
potato flour
1,4
1
1,4
3
4,2
12,9
18,06
645
903
rye flour
1,2
1
1,2
3
3,6
12,9
15,48
645
774
salt
3,5
0,2
0,7
0,6
2,1
2,58
9,03
129
451,5
sugar
1,7
4
6,8
12
20,4
51,6
87,72
2580
4386
soda
1,6
0,1
0,16
0,3
0,48
1,29
2,064
64,5
103,2
spice kit
100
0,2
20
0,6
60
2,58
258
129
12900
mustard
3,5
0,3
1,05
0,9
3,15
3,87
13,545 193,5
677,25
vinegar
1,2 0,08
0,096
0,24
0,288
1,032
corn flour
baking powder
SPICES & SWEET
1,2384
51,6
61,92
honey
7
0,5
3,5
1,5
10,5
6,45
45,15 322,5
2257,5
vegetable oil
3
1,5
4,5
4,5
13,5
19,35
58,05 967,5
2902,5
4,5
0,6
2,7
1,8
8,1
7,74
34,83
387
1741,5
cacao powder
5
0,6
3
1,8
9
7,74
38,7
387
1935
marshmallow
9,7
0,8
7,76
2,4
23,28
10,32
100,104
516
5005,2
12,5
0,6
7,5
1,8
22,5
7,74
96,75
387
4837,5
7,1 0,15
1,065
0,45
3,195
1,935
13,7385 96,75
686,925
6 0,15
0,9
0,45
2,7
1,935
11,61 96,75
580,5
olive oil
white chocolate
cinnamon
vanilla
milk chocolate
10
1,5
15
4,5
45
19,35
193,5 967,5
9675
dark chocolate
12
0,5
6
1,5
18
6,45
77,4 322,5
3870
1,9
10
19
30
57
129
nuts
4,5
0,7
3,15
2,1
9,45
almonds
6,3
0,9
5,67
2,7
hazelnuts
7,6
0,6
4,56
toffee sauce
9
0,7
maple syrup
11
EGGS
eggs
245,1
6450
12255
9,03
40,635 451,5
2031,75
17,01
11,61
73,143 580,5
3657,15
1,8
13,68
7,74
6,3
2,1
18,9
0,5
5,5
1,5
11,5
0,2
2,3
strawberry sauce
7
1
blueberry sauce
8
nutella
NUTS
58,824
387
2941,2
9,03
81,27 451,5
4063,5
16,5
6,45
70,95 322,5
3547,5
0,6
6,9
2,58
29,67
129
1483,5
7
3
21
12,9
90,3
645
4515
0,8
6,4
2,4
19,2
10,32
82,56
516
4128
15
0,5
7,5
1,5
22,5
6,45
96,75 322,5
4837,5
honey
5,9
0,7
4,13
2,1
12,39
9,03
53,277 451,5
2663,85
peanut butter
9,6
0,7
6,72
2,1
20,16
9,03
86,688 451,5
4334,4
SWEET
SAUCES/SYRUPS/JAMS
white chocolate sauce
80
strawberry jam
6
1,4
8,4
4,2
25,2
18,06
chocolate sauce/milk
chocolate sauce
7
0,9
6,3
2,7
18,9
cherry sauce
8
0,3
2,4
0,9
4
0,1
0,4
3,6 0,15
108,36
903
5418
11,61
81,27 580,5
4063,5
7,2
3,87
30,96 193,5
1548
0,3
1,2
1,29
0,54
0,45
1,62
HERBS
parsley
dill
5,16
64,5
258
1,935
6,966 96,75
348,3
mint
6
0,3
1,8
0,9
5,4
3,87
23,22 193,5
1161
rosemary
8 0,09
0,72
0,27
2,16
1,161
9,288 58,05
464,4
67,08
258
3354
105,651 580,5
5282,55
herb mix
13
0,4
5,2
1,2
15,6
5,16
cream cheese
9,1
0,9
8,19
2,7
24,57
11,61
Pesto
10
0,1
1
0,3
3
1,29
Cheese sauce
8
0,9
7,2
2,7
21,6
Bolognaise sauce
6
0,5
3
1,5
mozzarella cheese
5
0,8
4
5,4
3
Assortment of teas
7,5
Coffee
5,3
CHEESE and SAVOURY
SAUCES
Cheese Edam
12,9
64,5
645
11,61
92,88 580,5
4644
9
6,45
38,7 322,5
1935
2,4
12
10,32
51,6
516
2580
16,2
9
48,6
38,7
208,98
1935
10449
5
37,5
15
112,5
64,5
483,75
3225
24187,5
5
26,5
15
79,5
64,5
341,85
3225
17092,5
TEAS AND COFFEES
TOTAL
412,541
1237,623
81
5321,7789
266088,945
Appendix 12. Appendix to start-up notification
82
83
84