Loading...

Developing a Small Business

Business Plan: German Pub

Seminar Paper 2005 24 Pages

Business economics - Company formation, Business Plans

Excerpt

Table of Contents:

1 Executive Summary

2 management

3 Legal and tax Issues
3.1 Legal
3.2 License/Regulations
3.3 Employment Regulations
3.4 Business Taxation

4 Produkt or service

5 Sales proposal (Promotional mix)
5.1 Marketing Strategy
5.1.1 Stage 1 (Pre-Launch)
5.1.2 Stage 2 (Introductory Phase)
5.1.3 Stage 3 (Launch Phase)
5.2 Sales Objectives
5.3 Promotion Budget

6 Financial Proposal
6.1 Cash Flow Statement year 1
6.2 Cash Flow Statement year 2
6.3 Cash Flow Interpretation
6.3.1 Income
6.3.1 Expenditure
6.4 Break-Even Analysis

7 Conclusion

8 Bibliography

9 Appendix

1 Executive Summary

The launch of the business of Stammtisch in June2005 will be an absolutely new concept and is missing within London. The business will be the first traditional German-pub in Central-London. Stammtisch’s first-mover advantage will combine a traditional German-pub and Sport-entertainment; located in ‘Central-West-London’[1].

The strategy is manly based on serving the pub niche market for the German-community (80,000 Germans are living in Greater-London[2]).

Markus Kutscha (native German) is the founder of Stammtisch; it will be a Limited Company. Andreas Kutscha, who is my brother, will support me in management (secretary) in the first 2 years.

This business plan is a proposal to raise finances from the bank to complement the initial investment of £200,000. It requires a flexible bank loan of £125,000, re-payable in 5 years, to aid the successful business implementation. £50,000 will be employed immediately to finance the set-up costs; the remaining will be used throughout year1 to support the cash needs. The founder and his family will invest a total of £25,000 and £50,000 respectively to cover operating expenses.

According to the cash flow projection, the business will break even in its 22nd month of operations.

2 management

Name: Markus Kutscha Position: Business Manager

Key Activities:

- Financial Management
- Purchasing
- Advertising/Marketing
- Personal Management
- Supporting in service area (bar keeping)

Requirements:

- Entrepreneurial- and Leadership Skills
- Team-oriented
- Organisational Skills
- Communication- and Interpersonal Skills

Qualifications:

- Degree in Business Management
- 2 years of customer service experience gained in a café-bar

With the business opening, the team will consist of 3 full-time barkeepers (including myself) and 2 part-time barkeepers.

Once the business starts to grow, I will recruit additional staff to meet the demand.

Management Support Team:

- Andreas Kutscha; (Brother) (office administrator) – experience with business start-up and recruitment issues. He agreed to assist in the management as my secretary for the first two years.
- Peter Krieg; (Friend) (tax consultant) – 15 years of accounting/bookkeeping experience. He will be able to offer advice and verification of bookkeeping.
- Julia Schneider; (Family Member) (graphic designer). She will design a logo and promotional leaflets/flyers/posters.

3 Legal and tax Issues

3.1 Legal

‘Stammtisch’ will be operating as a public limited company [3] with Markus Kutscha owning 100% of the business.

Advantage of this company form:
- In the event of bankruptcy the members’ liabilities are limited to the amount of capital which they have contributed in company’s assets
- It is simple to admit more members
- There is a wider range of allowances and tax-deductible costs that can be offset against a company’s profits

The above reasons outweigh the benefits of other operating options. A Sole Trader, for example, would have it harder to raise finance, to sell shares, to raise capital, and is even unlimited liable.

Relevant law:
- Companies Regulations 1985
- All Companies Act 1989

The process involves registering the company with Companies House, which will cost £15[4] through electronic filing service. A Memorandum and Articles of Association is produced as a legal requirement.

3.2 License/Regulations

‘Stammtisch’ needs to register with the local Environmental Health Department to comply with the Food-Safety Act 1990 and General Food-Hygiene Regulations 1995 (no registration fees).[5]

3.3 Employment Regulations

- National Minimum Wage Act 1998[6] (Rates applicable in October2005)
- Main/adult rate for workers aged 22+: £5.05/h
- Development rate for workers aged 18-22: £4.25/h
- Equal Opportunity Act

3.4 Business Taxation

As business owner I am self-employed and therefore responsible to the Self-Assessment scheme and National Insurance payments.

- Self-Assessment Tax[7]
- Income tax is paid on annual income, less allowance (personal tax code) and expenses
- National Insurance
- Owner: Inland Revenue Office
- Employees: Receive wages and are taxed through PAYE
- VAT[8]

Note: No VAT or tax payments will be considered in cash flow statement.

4 Produkt or service

Stammtisch will be providing a combination of a traditional German-pub (ambience, atmosphere and the offering of German beer and simple food) and Sport entertainment (especially German-football).[9]

The furnishing of the room will have the charm of a typical German ‘Kneipe’[10]. The pub has a space of 150m2.

The USP will be based on originality, specialization and affiliation with the target community. It will be the first German-pub in London and the first supplier of German sports-TV as well. Prior market research has shown that the business addresses a potential niche (with no primary competitors) in the target market. Thus it will stimulate firstly the target clientele and later marketing campaigns trying to address other groups to generate customers from a larger part of the population.

5 Sales proposal (Promotional mix)

To introduce the new business concept to the target market a variety of above the line and below the line promotion will be required, with the main objective to produce high awareness and interest and build up a consumer demand.

This will be attempted through developing a marketing strategy (p.8), through appropriate media, to build confidence and inspire consumer attraction. In order to maximize the outcome of the many marketing tools available and to reach our target audience most effectively, I am going to divide the introductory campaign into two key phases - each employing a specific promotional mix that corresponds with particular communication objectives, running at different time periods.

The total promotion budget for year 1&2 is estimated about £ 4,402 (p.15). All necessary activities and expenses are included in the following.

[...]


[1] See Assignment.1

[2] www.auswaertiges-amt.de

[3] www.companieshouse.gov.uk

[4] www.companieshouse.gov.uk

[5] www.food.gov.uk

[6] www.dti.gov.uk

[7] www.inlandrevenue.gov.uk

[8] www.here4business.co.uk

[9] See Assignment.1 for additional information

[10] pub

Details

Pages
24
Year
2005
ISBN (eBook)
9783638618250
ISBN (Book)
9783638674492
File size
489 KB
Language
English
Catalog Number
v70644
Institution / College
University of Westminster – University of Westminster (London)
Grade
A (71%)
Tags
Developing Small Business

Author

Share

Previous

Title: Developing a Small Business