business plan(zhihao ye)

BUSINESS PLAN

PURU LI WENXIAN WANG

WENZHE CAI XUELING WANG

ZHIHAO YE

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CONTENT

EXECUTIVE SUMMARY ......................................................................................................................1 OBJECTIVES .......................................................................................................................................................1

MISSION ............................................................................................................................................................1

KEY TO SUCCESS ...............................................................................................................................................1

COMPANY SUMMARY .........................................................................................................................2 UNIQUE SELLING POINT ...................................................................................................................................2

COMPANY OWNERSHIP ....................................................................................................................................2

COMPANY LOCATION .......................................................................................................................................2

MARKET ANALYSIS ..............................................................................................................................3 INDUSTRY ANALYSIS .........................................................................................................................................3

PEST ANALYSIS ..................................................................................................................................................4

SWOT ANALYSIS ................................................................................................................................................5

FIVE FORCES......................................................................................................................................................6

MARKET SEGMENTATION .................................................................................................................................7

COMPETITION AND BUYING PATTERNS ...........................................................................................................7

MAIN COMPETITORS ........................................................................................................................................7

STRATEGY AND IMPLEMENTATION .........................................................................................9 BUSINESS STRATEGY .........................................................................................................................................9

BRANDING AND POSITIONING STRATEGY ..................................................................................................... 10

PRODUCTS ..................................................................................................................................................... 10

PROMOTION STRATEGY ................................................................................................................................ 11

PRICING STATEGY .......................................................................................................................................... 12

SALES FORECAST ............................................................................................................................................ 13

OPERATION MANAGEMENT .........................................................................................................14 CAPABILITY PLANNING .................................................................................................................................. 14

SERVICE PROCESS .......................................................................................................................................... 15

SUPPLY CHAIN ............................................................................................................................................... 15

HUMAN RESOURCE MANAGEMENT .......................................................................................17 EXECUTIVE TEAM ........................................................................................................................................... 17

CHEF ............................................................................................................................................................... 17

CLERK ............................................................................................................................................................. 17

EMPLOYEE TRAINNING .................................................................................................................................. 18

EMPLOYEE MANAGEMENT ............................................................................................................................ 18

EMPLOYEE BENEFIT ....................................................................................................................................... 18

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FINANCIAL PLAN ..................................................................................................................................19 IMPORTANT ASSUMPTION ............................................................................................................................ 19

KEY FINANCIAL NOTE ..................................................................................................................................... 19

BREAK-EVEN ANNUAL ANALYSIS ................................................................................................................... 20

BREAK-EVEN MONTHLY ANALYSIS (EXCEPT THE FIRST YEAR) ....................................................................... 20

COST OF SALE ................................................................................................................................................ 20

PROJECT PROFIT AND LOSS ........................................................................................................................... 21

PROJECT CASH FLOW ..................................................................................................................................... 22

BALANCE SHEET ............................................................................................................................................. 23

BUSINESS RATIO ............................................................................................................................................ 24

DIVIDEND ....................................................................................................................................................... 24

CONTINGENCY PLAN .........................................................................................................................25 SUPPY CHAIN ISSUE ....................................................................................................................................... 25

DEMAND ISSUE .............................................................................................................................................. 25

OPERATIONAL ISSUE ...................................................................................................................................... 26

ENVIRONMENTAL ISSUE ................................................................................................................................ 26

REFERENCE ...............................................................................................................................................27 APPENDIXES .............................................................................................................................................28

FINANCIAL DETAIL OF FRUITY HOUSE IN 5 YEARS ......................................................................................... 28

GRAPHS OF PRIMARY DATA .......................................................................................................................... 44

MENU OF FRUITY HOUSE.............................................................................................................................. 49

QUESTIONNAIRE ............................................................................................................................................ 51

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EXECUTIVE SUMMARY

Fruity House Limited is a dessert restaurant, mainly serving different kinds of Hong Kong style healthy dessert, which use a variety of fresh fruits as theme, is a combination of western and orient flavours. It’s healthy, fresh and tasty concept strongly in line with the new lifestyle in current society.

Fruity House is a dessert restaurant, mainly serving different kinds of sweet soups as the base in addition to wide range of fresh fruits, nuts and low-calories ice creams as topping, combining together to create the concept of healthy, fresh and tasty which perfectly in line with the new lifestyle in current society.

Sweet soups has been popular for many years, starting from Hong Kong and south of China and soon spread out around Asia. Made of Chinese herbal jelly, Chinese tapioca balls and western smoothies, the sweet soups in Fruity House completely distinct from other desserts in the UK. Furthermore, this kind of desserts not only meets the demand of low-sugar, low-calories and fat-free desserts, but also improves the health level with some nutritional elements in the herbs and fruits.

Therefore, Fruity House successfully fills the gap of the dessert market and will finally achieve the objectives by following the trend of pursuing healthy life.

OBJECTIVES Open a dessert shop in City Centre in 2015.

Maintain 10% growth in sales every year.

Open the second shop in Wales before 2017.

Spread out the brand around the UK after 2018.

Being the top ten dessert brands in the UK.

MISSION Offering the most healthy and fresh dessert to customers, Spreading out the concept of healthy dessert to everyone.

KEY TO SUCCESS

Gap

The proportion of overweight and obesity has increased to 25% in the UK, which is warning British people to eat healthier (Public Health England).

However, in terms of the current dessert market, eating healthier means eating less favourite.

Asian people are not able to taste the home desserts in a foreign country.

Fill the Gap

Fruity House provide customers wide range of tasty ingredients with healthy elements.

Fruity House will be the first company of its kind in Cardiff.

The business will allocate in the place with high flow of target customers.

Fruity House also offer customers a high-end environment to enjoy the dessert.

Fruity House help Asian people ease the homesick with the Asian type of desserts.

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COMPANY SUMMARY

UNIQUE SELLING POINT Different concept of dessert indicating healthy life.

Exceeding healthy ingredients such as Chinese herbal jelly, Chinese tapioca balls and smoothies, with organic and fresh fruits and other health-beneficial toppings like nuts and low-calories ice creams.

Tasty desserts that are low in sugar and calories and fat free.

COMPANY OWNERSHIP Fruity House will be owned by five executives, namely, PURU LI, WENZHE CAI, WENXIAN WANG, XUELING WANG and ZHIHAO YE. In addition, the main chef has 5% of shares in the company.

PURU LI is the finance and accounting manager.

WENZHE CAI is the operation manager.

WENXIAN WANG is the human resource manager.

XUELING WANG is the planning and development manager.

ZHIHAO YE is the marketing manager.

COMPANY LOCATION

Fruity House is located in St Mary Street, which is one of the main streets in Cardiff City Centre. Importantly, this perfect high traffic location is easy to access, due to the connection with each entrance and exit of the historic arcades. In addition, Fruity House is the shop facing to this street, the number of people must be significantly higher than the minimum, 4,000 customers within a four-block radius (or five minutes’ walk time). The pedestrian traffic also must be adequate and the vast majority of customers must be keen on having tasty and healthy dessert. This type of site also Provide customers with both convenience and quiet place to enjoy the dessert is another excellent.

The demographic report of St Mary Street indicated that 89% of people are managerial, administrative or professional positions, mainly at the age of 20-45 years old, with 94% of people living a healthy life (StreetCheck).

Therefore, the vast majority of residents living in St Mary Street are the target customers of Fruity House.

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MARKET ANALYSIS

INDUSTRY ANALYSIS

Market size

Figure 1 Source: Based on IRI/Mintel

Dessert industry is professionally predicted to grow by 2.1% and the market size will become £1.53 billion over the next 5 years.

Food trends

Source: Innova Market Insights

Fruity House meets two trends in the “top five trends for 2015”, which are “From clean to clear label” and “Convenience for foodies”.

In addition, Fruity House significantly follows four trends in the “top 10 trends for 2014”, especially meet the most important trend that health is more holistic.

Top 5 Food Trends for 2015

From clean to clear label

Convenience for foodies

Marketing to millennials

Snacks rise to the occasion

Good fats, good carbs

Top 10 Food Trends for 2014

Waste not want not: cutting food waste

You can trust us still: improving consumer trust

Simpler pleasures: back to basic trends towards simpler food

Look out for the small guy: small-scale innovators rise to the challenge

Health is more holistic: a more holistic approach in providing nutritious food and beverage solutions to consumers

‘New’ superfoods

Rise of the hybrid

The Protein Horizon

New stealth strategies

Alternative alternatives

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PEST ANALYSIS

Political perspective

The stable political environment and Neoliberalism that requires limited government intervention in market ensure more freedom as well as confidence for new entrepreneur.

Stringent food safety regulation requires food suppliers pay more attention to food safety and

standardize food production process. For example, the enforcement of Food Information Regulations

2014 forces food businesses to provide information on the presence of 14 allergens such as milk and

cereals (Department for Environment Food & Rural Affairs).

A sugar tax may be introduced to curb obesity rates supported by many exporters, organizations, including Royal College of Paediatrics and Child Health (BBC NEWS). It increases the cost for producing high-sugar food, especially tradition desserts, which in turn is an opportunity for us as our products do not demand many sugar.

Economic perspective

Country coming out of recession, consumers’ buying power is reviving. In 2014, Big-picture data has been positive, GDP is growing faster than expected. The number of people who describe their financial situation as healthy increase by 4.2% from Feb 09 to Sep 14.

The revival in financial wellbeing has lost momentum. Average wage increases in the year to August 2014 were 0.7%, compared to consumer price inflation of 1.2%. It means wage increase lagged behind the price increase, so the spending power has been slightly eroded. Therefore, people are spending on smaller luxuries such as food or eating out, as opposed to expensive holidays.

Social & cultural perspective

The trend of health awareness allows more people to choose low-sugar desserts. According to the report in 2014, Weight gain and tiredness/fatigue are the top two health concerns, with 38% of people concerned about each. Also, those concerns are more obvious within women and middle ages.

In the globalized world, people are now willing to try new things, not just traditional food. Based on our primary survey, 71% of respondents are willing to try Hong Kong style sweet soup dessert.

More and more Asian population coming to the UK, especially Chinese students, indicates there is a huge potential market. The ethnic minority population, as measured by non-white residents, increased between 1991 and 2011 by 31,800 in Cardiff. The 2011 Census shows 6,182 Chinese in Cardiff, increasing by 105% from 2001.

Faster pace of life and higher pressure of employment mean there is a greater demand for convenience. According to statistics, 39% of out-of-home hot drink purchasers buy hot drinks out of home for a break/coffee break.

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Technological perspective Rapid advancement of ecommerce and online payment require us to build our own website

and sell products online as well to increase sales, which is a big challenge for us in terms of delivery service, web development etc.

New technology in automatic machinery shifts the dessert industry from labour intensity to capital intensity, which makes labour more effective, but also requires us to fund more in machinery update.

SWOT ANALYSIS

Strengths New market niche: offer healthy low-sugar Hong Kong style dessert enable British people to

taste the healthier dessert, indulge without guilty of eating too much sweet food and provide Chinese students the taste of home, the familiar taste for them could be our confidential selling point .

Prices are relatively cheaper compared to traditional Cafés and dessert shops, according to our group survey, products in conventional Cafés and dessert shops, will take one pound more than our products.

Customization and authentic: satisfying the need of customer is our long-term pursuit. Customer can DIY their preferable products, allow the client to choose different bases and sizes, and we must guarantee the quality of our product, no pre-frozen ingredients.

Convenience: standardized ordering process saves the clients’ waiting time and enhances good feeling of the customer experience.

Weakness Lack of reputation and familiarity increase the difficulty of promotion, in terms of our

questionnaires, which can obviously illustrate that native people are inclined to have a try about our Hong Kong style dessert, however, we should clearly have an idea that our product market is totally new, this is the opportunity but meanwhile, it is the challenge.

Lack of experience: we are at a disadvantage in operation process and business negotiation, as investors, this new products are risky to invest, the making process must be authentic and on behalf of Hong Kong original style, so, it is necessary to hire premium chef who has high skill to make sweet desert, this process will spend lots of money to proceed because we must make sure the loyalty of the main chef.

Narrow range of products in comparison to big competitors. Our products are made on the basis of different kinds of fruit, which are seasonal, just to provide healthier sweet food for customers. Unlike our competitors, take BubbleTea as an example, their products are out of limitation of season, and their making process is easier than ours.

Limited revenue until we have an established customer base. To promote our brand and products, it is essential for us to push advertisements and leaflets at the beginning of our business, there is no doubt this promotion will increase our fixed overheads, thus may lead to a negative acceptable contribution.

Opportunities The trend of improving health consciousness, especially within middle ages (38% of people

concern about weight in 2014) Generally speaking, healthy, lower fat and fresh is our topic of this new kind of product, nowadays, more and more people pay attention to their own build and image, it is the perfect chance for them to provide novel kind of sweet dessert.

Increasing willingness to try new things in the UK, according to the data collection from our questionnaire, almost 71% of respondents show positive attitude that they are willing to experience their curious stuff, especially the novel stuff from Hong Kong.

Growing Asian population, especially Chinese students (6,182 Chinese in Cardiff, increasing by 105% from 2001). With the growth of Chinese students even Asian people, authentic Chinese product will generate the feeling of hometown, giving them very comfortable and familiarized environment.

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The economy recovers and strengthens enable clients to afford more premium products (The number of people who describe their financial situation as healthy increase by 4.2% from Feb 2009 to Sept 2014.).

Few similar products and stores in UK market. It is lucky enough to run this new and fresh business, which will attract more people to taste, we can interview people at the live, and get more accurate information feedback regarding our product, the pre-condition is that we must guarantee our product quality is the best.

Threats

Low entry barrier: further competitor may move into market because of the low-skilled requirement, many competitors could imitate the simple and easy making process.

Chef’s turnover risk: if the chef decides to quit, the competence and the flavour of our products would be greatly affected.

Financial risk: if an unforeseen problem arises, the limited funds are insufficient to support the daily operation.

Fruits are seasonal: we must provide fresh fruit to make sure the quality of our products and maintain our brand reputation, but fresh fruits are limited by different seasons.

The leakage of secret making process, even though it is simple, we still have unique method to make original Chinese style dessert.

FIVE FORCES

Threat of New Entrants: Medium Pressure The skill requirements of dessert industry are relatively low, and there is no need for huge initial investment, but the unique flavour is the core of this business, which is in the possession of dessert Chef, and the formula is hard to copy. So the pressure of new competitor is moderate.

Threat of Substitute Products: Medium Pressure There are now no similar dessert shops and products in Cardiff, so we literally occupy a new, uncontested marketplace. However, the traditional British desserts could be our potential substitutes such as Eton Mess, Trifle, High tea, etc. A Certain number of clients prefer traditional products according to our marketing research. Therefore, substitutes pose a medium pressure on us.

The Bargaining Power of Buyers: Low Pressure Customer group has low negotiating leverage in our business because we have a large consumer base (more and more Chinese students and willingness of young British with/without job to try new things) and our products are different as well as unique in Cardiff.

The Bargaining Power of Suppliers: High Pressure As a newly established small dessert shop, our ordering quantity is hard to meet wholesalers’ discount requirement, we have limited choice of choosing suppliers. In addition, we depend heavily on a particular supplier and the switching costs are quite high in changing supplier (because we have to restart negotiation), so our bargaining power in this area is very low.

Rivalry among Existing Competitors: Medium Pressure In the healthy dessert market segment, we have first-mover advantage, and can gain control of large market share that followers may not be able to match, but we still have to arouse and enhance clients’ heath awareness. In addition, in the existing dessert market, there are many contenders, some of which are very large, with great power in this industry. So take all the factors into consideration, the existing rivalry is moderate.

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MARKET SEGMENTATION The primary data (i.e. the questionnaires) indicates that

Purchase Frequency

23% of local teenagers (16~22 years old) never purchase dessert, 9% will purchase more than 3 times a week.

6% of local employed people (22~50 years old) never purchase dessert, 12% will purchase more than 3 times a week.

10% of pensioners (over 50 years old) never purchase dessert, 30% will purchase more than 3 times a week.

5% of males never purchase dessert, 28% purchase dessert more than 3 times a week.

19% of females never purchase dessert, 26% will purchase more than 3 times a week.

Target Market Segment Strategy

According to the result of the question of purchase frequency, Fruity House is targeting the customers who are employed males and females, heath-concerned pensioners.

Furthermore, the products in Fruity House meet the demand of Asian people whose population is considerably increasing currently. Therefore, Asian people, especially Chinese people are another target customers of Fruity House.

In addition, in terms of the way to have desserts, traditional way and other ways based on preferences are similar, with 44% and 56% respectively. In order to target these two kinds of customers, prepared product of dessert can be purchased as well as all the ingredient can be mixed and matched based on preferences.

COMPETITION AND BUYING PATTERNS The sweet soup business is completely new to people in Cardiff. Competitors in this area are few and Fruity House is the pioneer in the healthy sweet soup dessert market and will be successful to grab a noticeable market share. The competitors in a similar market mainly are Fuel Juice Bar, Bubble base, bb’s coffee & muffins and Chain Coffee Shop (e.g. Starbucks, Costa and Nero).In addition, there are potential competitors like supermarkets (e.g. M&S, Tesco, Sainsbury’s).

MAIN COMPETITORS

Bubble base

Website: http://www.bubblebase.co.uk/

Product: Bubble tea, frozen yogurt

Type: take away beverage

Location: Saint David’s shopping mall

Sale number: around 150 cups a day

Saturday peak time 40 cups per hour

Price range: £3-£6

Strengths: The main strength of Bubble base is that the brand has good location in St. David’s shopping mall. In addition, the business provides some healthy desserts like frozen yogurts and some of the products are healthy innovated beverage.

Weaknesses: The obvious weaknesses of Bubble base are the small establishment of the brand and inability of offering seats.

http://www.bubblebase.co.uk/

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Fuel Juice Bar

Website: http://fueljuicebars.com/

Product: fruit smoothies, squeezed juice

Type: take away beverage

Location: Saint David’s shopping mall

Sales number: average 150cups weekdays

300cups weekend

Price: around: £3.55 - £4.00

Strengths: The main strength of Fuel Juice Bar is that the brand has good location in St. David’s shopping mall with impressive reputation, focusing on healthy fruit smoothies and fresh juices.

Weaknesses: The primary weaknesses of the business are limited products range with no seats provided.

bb’s coffee & muffins

Website: http://bbscoffeeandmuffins.com

Product: coffee, muffins

Type: stay in & take away

Location: all around the UK, Saint David’s shopping mall in Cardiff.

Strengths: The noticeable strengths of bb’s coffee & muffins are the attractive location with many franchises, good reputation of fresh and unique muffin, with ride range of traditional British food.

Weaknesses: However, the weaknesses are extremely obvious, which are high-sugar and unhealthy products and the higher cost facing this brand due to the potential threat of sugar tax.

Chain Coffee shop (Starbucks, Costa, Nero)

Product: beverage, bakery, dessert

Type: take away, in store

Location: all round Cardiff

Price range: £3~5

Strengths: The similar strengths of each chain coffee shop are diverse products with reputation and strategic distribution.

Weaknesses: There are also some weaknesses existing which are the inconvenience due to long queuing line in peak times and the rapid growth of putting consumer satisfaction on the backburner.

Supermarket (M&S, Tesco, Sainsbury’s, etc.)

Product: ready-to-eat fruit salad pack, dessert cup.

Type: supermarkets

Location: all round Cardiff

Price range: £1.5-£3.

Strengths: The main competitive perspectives of supermarkets are the wide range of ready-to-eat dessert and fruit packs with relatively low price.

Weaknesses: However the weaknesses are high overheads of the supermarkets, position as a supermarket instead of a dessert shop and the non-exquisite products.

http://fueljuicebars.com/

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STRATEGY AND IMPLEMENTATION

BUSINESS STRATEGY Based on the internal and external analysis, we choose differentiation as our generic strategy so as to maintain competitive advantage. Basically, keep extending and reinventing our healthy dessert product line, and building unique brand image, which will appeal to Chinese students, British teenagers and the middle ages. Via serving different kinds of Hong Kong style healthy dessert, its healthy, fresh and tasty concept strongly in line with the new lifestyle in current society. Therefore, we can differentiate ourselves from traditional UK competitors as well as potential new entrants. In the light of future development of “Fruity House”, our initial plan as follows:

YEAR 1

Renting the store, proceeding interior design.

Purchasing and installing the corresponding equipment.

Promoting our products online and distributing leaflets at store.

Running regularly.

Training new employees.

Researching new products to adapt different kinds of people`s taste.

Collecting customers` feedback to make progress and improve our skill of making sweet dessert.

YEAR 2

Training staff and provide additional commission for workers who have good performance.

Keep Applying new style and kind of products.

Maintaining the old customers and push ads to attract new customer.

YEAR 3 During our third year we are forecasting to have been making profit and positive cash flow, so we believe this will be the correct time to grow the business. We intend to open another store in Cardiff city centre with larger retail space and more frequent exposure, which provide us with the opportunity to gain much more market share in Cardiff dessert market.

YEAR 4 We will also be looking to open new premises and have a potential location in Bristol city centre. Bristol is England’s 6th and the UK’s 8th most popular city, famous for splendid culture, history and artworks (Banksy’s painting, No Evil, etc.), which attracts tons of tourists especially young people crowding to Bristol. We believe open a new outlet there will help build our reputation very fast that is good for branding, and begin to improve us with economies of scale with our supplier’s through bulk purchasing, reducing our costs and increasing our profit margin.

YEAR 5 After 5 years running, we project that we will have enough cumulative assets and budgets to open chain store all around UK. London, Edinburg, Cambridge, etc. these all could be our target cities, but we will shift some old employees to new store to make sure the quality, diary operation. Meanwhile, establishing strong R&D team to revitalize/ invent new products to keep us in top and preserve core competence.

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BRANDING AND POSITIONING STRATEGY

Brand Name Fruity House is the name of the brand. According the brand name, customers can easily perceive it as a

healthy brand with product containing variety of fruits.

Brand LOGO In terms of the brand logo, which mainly consist of green, orange and a mango shape with two phases,

“Fruity House” and “Healthy Dessert”. This logo reinforces the intended brand positioning, which is healthy

dessert targeting to Asian people and local employed people, and is consistent with the intended brand

associations, dessert with huge range of fruits.

Brand Attribute The dessert in Fruity House mainly attributes to Hong Kong healthy dessert, containing fruit and Chinese

herb sweet soups. In addition, the brand also considers the satisfaction of western customers to add some

western healthy elements into the menu, like smoothies. Due to Hong Kong is a well-known city in the world

and result indicates that 33% of people have heard about Hong Kong healthy dessert. Although 67% of

people do not know Hong Kong healthy dessert, 94% of the participants are willing to try this type of

desserts.

Positioning Strategy Medium-to-premium healthy dessert with low-sugar, low-calories and organic ingredients, focus on

customization and convenience.

PRODUCTS

Product Description The main dessert in Fruity House containing Chinese traditional herb sweet soups as well as a wide range of

fresh fruits is originally from Hong Kong, adding the western smoothies to meet the taste of the local people.

This type of fruity dessert, which is tasty but low sugar and low calories, is different from the British dessert.

It follows the trend of healthy life and meets the increasing demand of homemade style dessert.

Two ways to satisfy different customers One of them is offering customers five excellent desserts recommended by the main chef,

which is called “Amazing Five”. This way is mainly suitable for new customers and a type of customers looking for convenience. The first “Amazing Five” will mainly focus on mango elements.

The other offer is more customizational, which provides customers with all elements in order to mix and match depending on different preferences, and is called “Fruity Mix”.

Natural ingredient and sustainable packaging completely keeps up with the trend of economically friendly

living style.

Future Products Amazing Five

The members in “Amazing Five” will change to different kinds of fruits. The changes will depends on the

relevant sales, therefore, the members in “Amazing Five” will be changed to meet the demand and

preference.

Fruity Mix

In order to maintain the product life, some appealing and healthy toppings like seasonal fruits and new

flavours of low-calories ice cream will be added to the menu as well as some limited offer will be available

during the period of big events.

The detail of the product can be seen in the appendix.

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PROMOTION STRATEGY

Social media (digital marketing) 1. Cardiff University Chinese Student BBS 2. Facebook 3. Twitter 4. Instagram 5. Wechat 6. Redscaft (A website mainly offers the Chinese people information about shopping and eating

in Britain) 7. Post some budget set of dessert on Groupon

Advertising 1. Leaflet (create awareness, educate the market) 2. Other advertising

Spread out the appealing package to 50% of the rubbish bins in city central.

Hire five people, including students, Asian people, and local people, to carry the most eye-attracting product from Fruity House and separately walk around the city central.

Hire five people to cosplay five main fruits in Fruity House and walk around the city central as a model team.

A one-day function in Julian Hodge to display the dessert and provide some free sample and discount coupon. (£100~200)

Direct mail 1. Mail the leaflet including healthy information about different kinds of fruits and the benefit

of Chinese herb sweet soups.

Sales promotion 1. Provide customers with the discount coupon during the function in Julian Hodge, in the direct

mails and leaflets to engage customers buy desserts in Fruity House. 2. In order to penetrate into the market, the discount will retain until the objective market share

is grabbed.

Creative appeals 1. Product orientated appeals

While doing the advertising and sales promotion, Hong Kong dessert in Fruity House will compare to the local British dessert and emphasize the healthy ingredients in the dessert.

2. Customer orientated appeals

In addition, during the advertising and promotion, customers will be informed that they are not only enjoying a high-end dessert in a convenient way, but also building up their healthy life with the healthy elements in the desserts.

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PRICING STATEGY

PRICE OF PRODUCT Base of the dessert Medium: £3.70 Large: £4.20 Extra Large: £5.00

Topping of the dessert £0.70 for each

Amazing Five £5.75 for each Table 1

PRICE ANALYSIS

Figure 2 Figure 3 Figure 4

According to the questionnaires conducted in the ideal location of Fruity House, the customers in that area main purchase dessert for £3 to £5 (approximately 70%-80%). Because of the premium perception strategy, the price for each combination of product will be average £5.75, which is slightly higher than the mainstream. However, the cheapest price of the base is £3.70 and each of the topping only costs £0.70, hence, customers can mix and match their own dessert for the preferable price.

Penetration pricing This kind of dessert in Hong Kong and South of China are considered as premium dessert, however in order to penetrate into the British dessert market and grab at least 3% of the market share in Cardiff In the first year, the price will be discounted to be more affordable for the target customers who are mainly students and young employed people.

Premium pricing As long as the market share grabbed, this brand will become a type of premium dessert and the price will grow up slightly.

Charm pricing The price is significantly flexible for every customer, due to every customer can choose different size of the base and decide the number of toppings.

Psychological pricing Price of the dessert mostly are decided to be magical number, for example, the five stars dessert will cost £5.75 instead of £6.00 to attract people who are price-sensitive.

Medium to premium pricing strategies Including relatively affordable price with high communication expenditure can encourages perceptions of quality as well as new healthy concept.

18%

70%

12%0%

Price for dessert (Young employed people)

Less than £3

£3 to £5

£5.01 to £7

Over £7

9%

73%

18%0%

Price for dessert (Teenagers)

Less than £3

£3 to £5

£5.01 to £7

Over £7

20%

80%

0%0%

Price for dessert (Pensioners)

Less than £3

£3 to £5

£5.01 to £7

Over £7

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SALES FORECAST

Figure 5 Figure 6

Year 1 Because Fruity House is the first sweet soup dessert shop in Cardiff, the sales volume would be low. In

addition, in order to penetrate into the market, Fruity House employs price penetration strategy, which is

provide customers with discounted price. Therefore, revenue will not be very high at the beginning.

Year 2 Base on the strong and effective marketing strategy, the volume and revenue both will increase significantly,

especially, the price will slightly grow by reducing the discount. It is a considerable growth in the second

year.

Year 3-5 Regular change of product, creative promotion and successful development of brand proposition contribute

to the enhancement of sales which meet the objective of 10% growth in every year.

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OPERATION MANAGEMENT

CAPABILITY PLANNING

Figure 7

Employees per dessert shop: 3 people. (1 full time chef + 2 part-time waiter and clerk)

The five initial founders, can work without salary in first 2 years, replaced by equity to make the maximum is reached wherever possible.

Open time: 12:00---19:00, Monday to Sunday.

Maximum capacity per shop: 25 people. (18 seats in-store and 7 seats outdoors).

Layout of the first shop.

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SERVICE PROCESS

Customer Clerk Chef

Come into the shop

Take a seat or take it away

Come to front desk

Look the

menue

Chat wtith

customer

Choose

the base

and size

Wait for customer

Choose

the tops

and size

Write down and chek the order with

custoemr

Pay the

biil

Receive and chek the payment

Pass order to Chef

wait

Review the order and start

cooking

package

Hand it to Clerk

Bring the dessert to

customer

Receive

the dessert

Figure 8

SUPPLY CHAIN Fruit: we purchase fresh fruit from local wholesaler generally every 3 days, and stock them into

fridge and freezer to keep fresh.

Sweet soup’s ingredients: normally purchase from Chinese supermarkets/retailers in UK monthly.

Other ingredients (nuts, ice cream etc.): purchase weekly at Lidl.

Package: we buy disposal cups and spoons from manufactures in China, approximately half a year with 13000 pieces each time, assuming the lead time is a month.

Supplier information.

BUSINESS PLAN

16 | P a g e

Facility Suppliers

http://www.alliancenational.co.uk/

http://comcatengineering.co.uk/

Ingredient Suppliers

https://www.smartfoodservice.com/

Countisbury-Fruitsupply http://www.countisbury-fruitsupply.co.uk/

http://www.chefschoicecatering.co.uk/home

http://www.lidl.co.uk/en/

http://www.alliancenational.co.uk/

http://comcatengineering.co.uk/

https://www.smartfoodservice.com/

http://www.countisbury-fruitsupply.co.uk/

http://www.chefschoicecatering.co.uk/home

http://www.lidl.co.uk/en/

BUSINESS PLAN

17 | P a g e

HUMAN RESOURCE MANAGEMENT

EXECUTIVE TEAM Fruity House has five main shareholders. ZHIHAO YE will be the CEO of Fruity House as well as marketing manager who takes control of the whole running process of the business. PURU LI will serve as the financial manager. WENZHE CAI will take charge of the operation part. WENXIAN WANG will serve as human resource manager while XUELING WANG will take the responsibility of planning and development.

The five main shareholders will work without salary at all in the first two years because of the low profits at the beginning stage of business and then they will receive equity instead to make the maximum is reached whatever possible.

CHEF Our human resource management Plan begins at hiring a full time experienced and professional

Hong Kong dessert cook, initially served as the only dessert chef of Fruity House.

Our skill requirement is that the chef should be a graduate of professional cooking institute with

working experience in Hong Kong style restaurants in UK.

We expect to have the chef to work 8 hours per day for 6 days per week with £7 per hour wage

which is above minimum wage.

Chef has responsibility of cooking dessert as well as developing new products and training clerk.

In addition, in order to attract and maintain the chef, Fruity House plan to offer 5% share to the chef,

because chef’s skill can either uphold or destroy the asset, it is critical to maintain his support.

Furthermore, chef can be more self-motivated and take more initiative.

Chef owns a share of the business whilst ever he works for it, however if he leaves he will not take

any shareholding with him.

CLERK College and university students will be hired to work at Fruity House, mainly to do the counter and

the serving jobs. Main skills waiters required are sales, customer service as well as help chef prepare

dessert. Clerks will need to take charge of front counter, stock control.

Our employees will have good communicating ability with special talent for learning menu items and

describing them appropriately.

Our employees will share hours during the week because we expect to have a paid part employee

work an average of 4 hours per day for 7 days per week. We will pay wages at £6.5 per hour to

remain employees.

BUSINESS PLAN

18 | P a g e

EMPLOYEE TRAINNING

Our training strategy is developing a program of orientation and training which all Fruity House

employees must pass before starting work. All Fruity House employees will be trained to understand

our service process as well as purchasing supply chain. Customer service, quality control, and

cleanliness training will be conducted too. Waiters will be trained by chef to cook dessert as well. We

know exactly what is expected from employees in Fruity House.

The most distinguish part about our training plan is Fruity House not only plan to focus on ability

and skill training but also devote to convey our healthy life style conception to our employees and

enhance their healthy awareness and their working loyalty and enthusiasm.

EMPLOYEE MANAGEMENT Fruity House has a comprehensive vertical system to develop the employees. Due to the training strategy, all clerks will be familiar with the operation of Fruity House. The clerks will be promoted base on their performance and ability.

The process in the system will be clerks, team leaders, management trainees, manager assistants and managers.

Therefore, Fruity House will provide clerks an excellent opportunity of promotion and it is a perfect starting career for graduates.

Furthermore, instead of hiring a professional store manager for other shops in the future, Fruity House prefer to allocate the new and motive managers trained by the company.

Basically, the main idea of HRM of Fruity House approach will be to have a family atmosphere within the company. It means trust, stability, respectful relationship, empowering personnel with a possibility to exchange ideas on company’s development. We are going to enhance employees’ team spirit by team building activities including volleyball matches, tea parties etc.

EMPLOYEE BENEFIT All the employees will be invited to participate in an outing every year, and the best employees will award bonus.

Fruity House manage to provide employees with measures of job security, a good work life balance, health care.

Last but not least, Fruity House can ensure is that every employee will get national insurance to guarantee employees’ benefits.

BUSINESS PLAN

19 | P a g e

FINANCIAL PLAN

Fruity house expect to raise £50,000 of its own capital, due to the positive prediction of sale, we expect that the sale will grow steadily. Additionally, since we have sufficient generated cash flow, we do not have plan to raise money from bank loan currently, and we expected that the second shop of Fruit House will be opened in the near future (might be in the third year), since prediction of relatively high net cash flow. (This financial plan depends on the assumption of opening only one shop.)

IMPORTANT ASSUMPTION Monthly sales are the largest indicator for this business. There are some seasonal variations

with the month of June to September being the highest sale month.

There is no serious recession in the following five year.

The growth of inflation rate in UK is steadily in the following five-years

The positive growth for healthy food will continue.

KEY FINANCIAL NOTE At the end of our first year our estimated net worth will be £25,273 with a projected net loss of

£24,727.Our net cash flow will start in April 2015 from £50000 reduced to £17908 by Mar 2016. The net profit margin for the first year is -24.41% due to a certain amount of initiate set up cost.

At the end of our second year our estimated net worth will be £32,453 with a projected

accumulated net loss of £7,179. Our net cash flow will start in April 2016 from £17,908 and will

reach £26,412 by Mar 2017.The net profit margin for the second year will become positive to 5.22%

At the end of our third year our estimated net worth will be £52,226 with a projected

accumulated net profit of £19,773. Our net cash flow will start in April 2016 from £26,412 and

will reach £47,231 by Mar 2018.the net profit margin for the third year will continue to increase to 12.65%.

As for the fourth year and the fifth year prediction, we expect that the sale will to be steady and

to be saturated for one shop. The net worth will keep rise and achieve to £10200 at the end of

fifth year, with a projected accumulated net profit of £52000. Our net cash flow will reach to

£97750.73. And the increase of net profit margin will steadily increase to 15.72% ultimately.

The gross profit margin will be approximately 70.82% that the payback period will be approximately 2.89 years, which is slightly earlier than the benchmark in UK (3yrs).

Figure 9 Figure 10

£101,282.50

£137,445.00

£156,365.00

£168,080.00£178,117.50

£17,908.10£26,412.46

£47,230.81

£64,568.78

£83,930.88

-£24,726.51

£7,179.36£19,773.00 £21,962.27

£28,003.42

-£50,000.00

£0.00

£50,000.00

£100,000.00

£150,000.00

£200,000.00


sales net cash flow net profit

year1 year2 year3 year4 year5

-30000

-10000

10000

30000

50000

70000

90000

110000

130000

50000

70000

90000

110000

130000

150000

170000

Po

un

ds

(3)

Po

un

ds

(£)

Graph of Sales, Gross Profit and Net Profit: Year 1-5

Total Sales Gross Profit Net profit:

BUSINESS PLAN

20 | P a g e

BREAK-EVEN ANNUAL ANALYSIS Fruity House’s Break-even Analysis is based on the average of each year figures for total sales by units, and by operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed cost. These conservative assumptions make for a more accurate estimate of real risk. As the certain amount of staring up cost, there is no break-even in the first year. The average break-even sale will be around from £130,000 to £132,000 each year.

BREAK-EVEN

year1 year2 year3 year4 year5

REVENUE £101,282.50 £137,445.00 £156,365.00 £168,080.00 £178,117.50

BREAK-EVEN REVENUE

£139,602.93 £130,489.94 £131,101.71 £132,027.45 £132,027.45

BREAK-EVEN UNIT 25382.35 23725.44421 23836.67395 24004.99 24004.99

Table 2

BREAK-EVEN MONTHLY ANALYSIS (EXCEPT THE FIRST YEAR) Monthly Unit Break-even 960 units Monthly Revenue Break-even £5280 Assumptions: Average per-Unit Revenue £ 5.5 Average Per-Unit Variable Cost £ 1.7 Estimated Monthly Fixed Cost (except first year) £ 3650

COST OF SALE We estimate cost of sale depend on the national wholesale price report from UK government and price offer by supplier.

Since there is a wide range of raw materials (main: fruits) which price flow frequently according to seasonal

change, as well as our products are not totally fixed as we also provide individual choice for customer，it is impossible that calculator the exact cost of sale for each product we sale. By aiming to this, we adopt a conservative method, using the standard one, which base on the most common used and its maximum.

Besides, we also consider the problem of wasting, since the main raw materials are fruits, which required being fresh enough. Therefore, we also add 7% of wasting rate into cost of sale

The calculation of cost of sale is as follow:

Type £ per product Fresh fruits: 1.00 Base sweet soup: 0.30 Package: 0.25 Waste (7%) 0.11

Total cost of sales: 1.70

BUSINESS PLAN

21 | P a g e

PROJECT PROFIT AND LOSS As the profit and loss table shows, Fruit House expect to continue its steady growth in profitability over the next five years of operations. Our growth rate based on industry average, factoring in local condition.

We expect a satisfactory gross profit margin; this is due to relatively low direct cost of sales.

Meanwhile, even though the main operation cost such as staff salaries, marketing cost, rent for the premium and council tax depress profit, ultimately, this will contribute to higher earnings and profits.

Table 3

Pro

Fo

rma

Pro

fit

an

d L

os

sye

ar1

ye

ar2

ye

ar3

ye

ar4

ye

ar5

note

Total Sales

101283

137445

156365

168080

178,118

Cost of Sale

29556

40109

45630

49049

51,978

1fruit，packing（including approximately 7 %

waste）

Gross Profit

71726

97336

110735

119031

126140

Gross Margin %

70.82%

70.82%

70.82%

70.82%

70.82%

Exp

en

ses:

wages and Salaries

full time

18,760

20,496

20,440

20,440

20,440

2full time £7 per hour,8hr per day

part time

17,420

20,592

21,346

21,372

21,372

3part time £6.5 per hour,around 8 hr per day

Total wage

36,180

41,088

41,786

41,812

41,812

Oth

er

Ov

erh

ea

ds

Marketing

3,840

3,390

3,390

4,000

4,000

4flyer，social network, discount,one day function

in school,groupon,personnel promotion

Rent

20,004

20,004

20,004

20,004

20,004

5premises

Utilities

6,600

7,200

7,200

7,200

7,200

6electricity，

water，

waste

insurance

1,032

1,032

1,032

1,032

1,032

7employer's liability insurance

national insurance

5,011

5,691

5,787

5,791

5,791

8national insurance rate 13.8%

Stationery

330

360

360

360

360

9printing consumables

council tax

10,000

10,000

10,000

10,000

10,000

10

pay to local government

opening consult

2,000

11

dessert consult

Uniform

180

12

smart shirt ,apron * 6

Refurbishment

10,000

13

including

Depreciation:

sundries(knife,mask, chopping

block,glove...)

44

48

48

48

48

1of1 yrs

straight line over 1 years,with no scrap value

stainless steel sink

55

60

48

48

48

1of5 yrs

straight line over 7 years,with 60 scrap value

commercial tap

33

36

36

36

36

1of5 yrs


salad prep counter

528

576

408

408

408

1of5 yrs


commercial use blender

88

96

72

72

72

1of5 yrs


multifunctional cooker

33

36

24

24

24

1of5 yrs


ice machine

55

60

36

36

36

1of5 yrs

straight line over 7 years,with40 scrap value

furniture

374

408

300

300

300

1of5 yrs


casher machine

11

12

12

12

12

1of5 yrs


refrigerator

55

60

36

36

36

1of5 yrs


Total overheads

60,273

49,069

48,793

49,407

49,407

Total Expenses

96,453

90,157

90,579

91,219

91,219

Profit before Interest and Taxes:

-24,727

7,179

20,155

27,812

34,921

Taxation

00

382

5,850

6,917

Net profit:

-24,727

7,179

19,773

21,962

28,003

Net profit margin

-24.41%

5.22%

12.65%

13.07%

15.72%

accumulate net profit

-24,727

-17,547

2,226

24,188

52,192

pay back period

2.89

BUSINESS PLAN

22 | P a g e

PROJECT CASH FLOW The cash flow projection shows that provision for ongoing experience are adequate to meet Fruity House’s need, as the relatively low inventory required and the business generate cash flow sufficient to support operations.

Table 4

Pro Forma Cash Flow

year1

year2

year3

year4

year5

Note

capital introduced

50000

17908

26412

47231

64569

1start up capital

Product Sales

101283

137445

156365

168080

178118

2sale

Total

151283

155353

182777

215311

242686

Cash outflows

Purchases

30401

40128

45557

49645

51591

3fruit，

packing（

including approximately 7 % waste）

Rent

20004

20004

20004

20004

20004

4premises

Utilities

6600

7200

7200

7200

7200

6electricity，

water，

waste

License

00

00

07

regeister in local government

Stationery

330

360

360

360

360

8printing consumables

sale & Marketing

3840

3390

3390

4000

4000

9flyer，

free taste，

Insurance

1032

1032

1032

1032

1032

10liability insurance

national insurance

5011

5691

5787

5791

5791

11national insurance rate 13.8%

Wages（

full time）

18760

20496

20440

20440

20440

12full time £7 per hour

Wages（

part time）

17420

20592

21346

21372

21372

13part time £6.5 per hour

council tax

10000

10000

10000

10000

10000

14

Uniform

180

--

--

15smart shirt apron * 6

Refurbishment

10000

--

--

16including table chair

sundries(knife,mask

, chopping

44

48

48

4848

17for daily operating use

stainless steel sink

360

--

--

18facility

commercial tap

170

--

--

19facility

salad prep counter

3589

--

--

20displays for preparing tops（

fruit，

nuts）

with

refrigerator

commercial use blender

600

--

--

21*2 use for making base sweet soup

multifunctional cooker

200

--

--


ice machine

320

--

--


furniture

2100

--

--

24*4 set facility

casher machine

80-

--

-25

*1 use for operation

refrigerator

334

--

--

26*1 for inventory use

Total

133374

128941

135547

139892

141838

dividend pay

5,000

10000

Total outflow

133,374

128,941

135,547

134,892

131,838

Total inflow

151282.50

155353.10

182777.46

215310.81

242686.28

Total outflow

133374.41

128940.64

135546.65

134892.06

131838.21

Net inflow/outflow

17908.10

26412.46

47230.81

64568.78

83930.88

BUSINESS PLAN

23 | P a g e

BALANCE SHEET The following is a projected balance sheet for Fruity House. We expect solid growth in the net worth year by year.

Table 5

Pro Forma Balance Sheet AT 31.03.16 AT 31.03.17 AT 31.03.18 AT 31.03.19 AT 31.03.20Fixed assetsEquipment 7796.50 6568.50 5224.50 4252.50 3280.50

less depreciation 1276.00 1392.00 1020.00 1020.00 1020.00

total non-current asset 6520.50 5176.50 4204.50 3232.50 2260.50

Current Assets

cash in bank 17908.10 26412.46 47230.81 64568.78 83930.88

Inventory 844.90 863.90 790.55 1386.85 1000.18

Total current Assets 18753.00 27276.36 48021.36 65955.63 84931.05

Total Assets 25273.50 32452.86 52225.86 69188.13 87191.55

Current liabilities

Trade Payables 0.00 0.00 0.00 0.00 0.00

Rates and Utilities 0.00 0.00 0.00 0.00 0.00

Corporation Tax 0.00 0.00 0.00 0.00 0.00

Loan Interest 0.00 0.00 0.00 0.00 0.00

total Liabilities 0.00 0.00 0.00 0.00 0.00

Share Capital 50000.00 50000.00 50000.00 50000.00 50000.00

retained profit 0.00 -24726.51 -17547.14 2225.86 19188.13

Current Year Profits -24726.51 7179.36 19773.00 21962.27 28003.42

dividend pay -5000.00 -10000.00

Total Equity 25273.50 32452.86 52225.86 69188.13 87191.55

Total Equity & Liabilities 25273.50 32452.86 52225.86 69188.13 87191.55

BUSINESS PLAN

24 | P a g e

BUSINESS RATIO Even though the operating gearing are relatively high due to the high fixed cost incurred, we expect that our net profit margin, gross margin, and return on assets will increase steadily over the five-year period. Return on capital employ will decrease since the third year, this is because the lower equity needs and higher cash inflow. Net working capital generated by the business will increase steadily each year; assume that we still do not plan to raise money from bank loan.

By comparing to the benchmark, there are some significant data, due to the unique nature of the business. But overall, the ratio of fruity house are showed satisfactorily.

The following table represents key ratios that compare to the industry benchmark.

Table 6

DIVIDEND

Figure 11

Each of five shareholders will give 1% of share to the chef respectively; this is means that there will be 6 shareholders for fruit house, and the chef will got 5% of share, the rest of shareholder will hold 24% share respectively.

We plan to pay the dividend at end of four year, the dividend will be around 20% of retained profit, since we will have sufficient cash flow to generate the business, and it is enough for the planning of opening the second shop.

RATIO ANALYSIS

year1 year2 year3 year4 year5 INDUSTRY PROFILE

GROSS PROFIT MARGIN 70.82% 70.82% 70.82% 70.82% 70.82% 60.50%

net profit margin -24.41% 5.22% 12.65% 13.07% 15.72% 0.70%

OVERHEAD EXPENSES 76.54% 69.21% 66.50% 65.03% 63.70% 39.80%

MARKETING EXPENSES 3.98% 3.76% 3.74% 4.39% 4.39% 3.20%

ROCE -49.45% 40.09% 74.86% 46.50% 43.37% N/A

sale growth 0.00% 35.70% 13.77% 7.49% 5.97% 7.60%

opearting gearing 76.54% 69.21% 66.50% 65.03% 63.70% N/A

NET WORKING CAPITAL 25,273 32,453 52,226 69,188 87,192 0.076

QUICK RATIO 0.00% 0.00% 0.00% 0.00% 0.00% 0.65

CURRENT RATIO 0.00% 0.00% 0.00% 0.00% 0.00% 0.98

DIVIDENT PAY OUT 0.00% 0.00% 0.00% 20.67% 19.16% N/A

pay back period(yr) 3

ASSET & LIABILITIES

year1 year2 year3 year4 year5 INDUSTRY PROFILE

CURRENT ASSET 74.20% 84.05% 91.95% 95.33% 97.41% 43.70%

LONG TERM ASSERT 25.80% 15.95% 8.05% 4.67% 2.59% 56.30%

CURRENT LIABILITIES 0.00% 0.00% 0.00% 0.00% 0.00% 32.70%

LONG-TERM LIABILITIES 0.00% 0.00% 0.00% 0.00% 0.00% 28.50%

2.89

£0 £0 £0

£5,000

£10,000

£0

£5,000

£10,000

£15,000


DIVIDENT PAY OUT

DIVIDENT PAY OUT

BUSINESS PLAN

25 | P a g e

CONTINGENCY PLAN

SUPPY CHAIN ISSUE 1. Suppliers’ overwhelming bargain power:

Pro-active: maintain good relationship with existing supplier, and build brand reputation as soon as possible to strengthen power.

Reactive: seek alternative suppliers.

2. Supplier delays: supplier fails to deliver on time (e.g. Chinese suppliers), increasing our stock-out risk.

Pro-active: regular order and deliver scheme, build systematic inventory management system to maintain enough buffer.

Reactive: purchase from local dealer.

3. Damaged goods in transit:

Pro-active: sign disclaimer previously

Reactive: return broken items and claim for replacement.

4. Supplier Bankruptcy: supplier unable to supply, facing financial issues.

Pro-active: take care of suppliers’ financial stability, multi-sourcing.

DEMAND ISSUE 1. Demand fluctuation: sudden peaks or overestimation in consumer demand.

Pro-active: make appropriate marketing strategy, regular scanning of market environment, and keep reinventing products.

Reactive: stock more goods; persuade employee to work overtime; or intensify marketing.

2. Substitution: competitors’ alternative offerings.

Pro-active: highlight our products’ health benefits and unique flavour to differentiate us from other offerings; occupy this niche market quickly, build brand reputation and loyalty, achieve scale economies.

Reactive: lower price.

3. Customer complaints: resulting from service problem, goods’ quality etc.

Pro-active: regular staff training.

Reactive: offer refunds/ alternative desserts and record complains.

4. Changing habits: different preference for taking away or eating in-store.

Reactive: record and observe consumers’ preference to decide which area of service should be improved (e.g. in-store decoration, packaging).

BUSINESS PLAN

26 | P a g e

OPERATIONAL ISSUE 1. Employee turnover: particularly chef turnover.

Pre-active: sign confidential agreement to make sure chef wouldn’t leak formula to competitors if he/she leaves; allocate a part of equity to retain chef; ask chef teaches and trains another employee.

2. Machine failures: water, electricity, fridge failures.

Pro-active: ensure regular fridge and machinery maintenance and cleaning.

Reactive: call technicians immediately.

ENVIRONMENTAL ISSUE 1. Legislation: rigorous food safety restrictions.

Pro-active: keep good relationship with local authorities, and keep up with updated laws.

Reactive: improve control of food safety control. 2. Price increases: unpredicted increase in overhead costs.

Pro-active: monitor industry papers etc. to spot potential cost increases early and adjust prices accordingly.

Reactive: try any possible measures to save cost. 3. Inflation

Reactive: increase price moderately.

BUSINESS PLAN

27 | P a g e

REFERENCE

BBC NEWS. 2014. Sugar Tax May Be Necessary, England’s Chief Medical Officer Says [Online]. Available at:

http://www.bbc.co.uk/news/health-26442420 [Accessed: 09 Feb. 2015].

Department for Environment Food & Rural Affairs. 2012. The Food Information Regulations 2013 Guide to compliance. Public Health England. Trends in Obesity Prevalence [Online]. Available at:

http://www.noo.org.uk/NOO_about_obesity/trends [Accessed: 07 Feb. 2015].

StreetCheck. Area Information for St Mary Street, Cardiff, Wales, CF10 1PL [Online]. Available at:

https://www.streetcheck.co.uk/postcode/cf101pl [Accessed: 07 Feb. 2015].

http://www.bbc.co.uk/news/health-26442420

http://www.noo.org.uk/NOO_about_obesity/trends

https://www.streetcheck.co.uk/postcode/cf101pl

BUSINESS PLAN

28 | P a g e

APPENDIXES

FINANCIAL DETAIL OF FRUITY HOUSE IN 5 YEARS

Sales

YEA

R 1

Ap

rM

ayJu

nJu

lA

ug

Sep

Oct

No

vD

ecJa

nFe

bM

arTO

TAL

IN Y

EAR

PR

EDIC

T SA

LE/D

AY

5030

3550

6565

6560

6560

6060

5

DA

YS/m

on

th30

3130

3131

3031

3031

3128

3136

5

TOTA

L P

RED

ICT

SA

LE15

5090

010

8515

5019

5020

1519

5018

6020

1516

8018

6018

415

SALE

/HR

7.14

4.29

5.00

7.14

9.29

9.29

9.29

8.57

9.29

8.57

8.57

YEA

R 2

Ap

rM

ayJu

nJu

lA

ug

Sep

Oct

No

vD

ecJa

nFe

bM

arTO

TAL

IN Y

EAR

PR

EDIC

T SA

LE/D

AY

6055

8570

7090

7065

6565

6560

820

DA

YS/m

on

th30

3130

3131

3031

3031

3129

3136

6

TOTA

L P

RED

ICT

SA

LE18

0021

7024

0021

7021

7027

0024

8021

0021

7018

6017

4018

6025

620

SALE

/HR

8.57

10.0

011

.43

10.0

010

.00

12.8

611

.43

10.0

010

.00

8.57

8.57

8.57

YEA

R 3

Ap

rM

ayJu

nJu

lA

ug

Sep

Oct

No

vD

ecJa

nFe

bM

arTO

TAL

IN Y

EAR

PR

EDIC

T SA

LE/D

AY

7570

8580

8095

8575

7075

7570

935

DA

YS/m

on

th30

3130

3131

3031

3031

3128

3136

5

TOTA

L P

RED

ICT

SA

LE22

5021

7025

5024

8024

8028

5026

3522

5021

7023

2521

0021

7028

430

SALE

/HR

10.7

110

.00

12.1

411

.43

11.4

313

.57

12.1

410

.71

10.0

010

.71

10.7

110

.00

YEA

R 4

Ap

r to

Ju

nJu

l-Se

pO

ct-D

ecJa

n-M

arTO

TAL

SALE

PR

EDIC

T SA

LE/D

AY

8075

9090

DA

YS/q

uar

ter

9192

9290

365

TOTA

L P

RED

ICT

SA

LE72

8069

0082

8081

0030

560

SALE

/HR

11.4

310

.71

12.8

612

.86

YEA

R 5

Ap

r to

Ju

nJu

l-Se

pO

ct-D

ecJa

n-M

arTO

TAL

SALE

PR

EDIC

T SA

LE/D

AY

8580

9595

DA

YS/q

uar

ter

9192

9290

365

TOTA

L P

RED

ICT

SA

LE77

3573

6087

4085

5032

385

SALE

/HR

12.1

411

.43

13.5

713

.57

BUSINESS PLAN

29 | P a g e

Cash flow

cash flow forecast for the year ending 31st May 2016

cash inflows Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total Note

capital introduced 50000 50000 1 start up capital

Product Sales 8525 4950 5967.5 8525 10725 11082.5 10725 10230 11082.5 9240 10230 101283 2 average 5.5 pround/unit

Total 50000 8525 4950 5967.5 8525 10725 11082.5 10725 10230 11082.5 9240 10230 151283

Cash outflows Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total

Purchases 650 2,651 1,303 1,711 2,659 3,104 3,133 3,682 2,868 3,157 2,588 2,892 30401 3 fruit，package（including approximately 7 % waste）

Rent 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20004 4 premises

Utilities - 600 600 600 600 600 600 600 600 600 600 600 6600 6 electricity，water，waste

License 0 0 0 0 0 0 0 0 0 0 0 0 0 7 regeister in local government

Stationery - 30 30 30 30 30 30 30 30 30 30 30 330 8 printing consumables

sale & Marketing - 900 260 300 260 560 260 260 260 260 260 260 3840 9

Insurance 86 86 86 86 86 86 86 86 86 86 86 86 1032 10 employer's liability insurance

national

insurance 464 449 464 464 449 464 449 464 464 419 464 5011 national insurance rate 13.8%

Wages（full

time） - 1,736 1,680 1,736 1,736 1,680 1,736 1,680 1,736 1,736 1,568 1,736 18760 11 full time £7 per hour,8hr per day

Wages（part

time） - 1,612 1,560 1,612 1,612 1,560 1,612 1,560 1,612 1,612 1,456 1,612 17420 12 part time £6.5 per hour,around 8 hr per day

opening consult 2,000 - - - - - - - - - - - 2000 13 dessert consult

council tax 10,000 - - - - - - - - - - - 10000 14

Uniform 180 - - - - - - - - - - - 180 15 smart shirt apron * 6

Refurbishment 10,000 - - - - - - - - - - - 10000 16sundries(knife,m

ask, chopping

block,glove...) 44 - - - - - - - - - - - 44 17 for daily operating use

stainless steel

sink 360 - - - - - - - - - - - 360 18 facility

commercial tap 170 - - - - - - - - - - - 170 19 facility

salad prep

counter 3,589 - - - - - - - - - - - 3589 20

commercial use

blender 600 - - - - - - - - - - - 600 21 *2 use for making base sweet soup

multifunctional

cooker 200 - - - - - - - - - - - 200 22 *2 use for making base sweet soup

ice machine 320 - - - - - - - - - - - 320 23 *1 use for making base sweet soup

furniture 2,100 - - - - - - - - - - - 2100 24 10 set of table

casher machine 80 - - - - - - - - - - - 80 25 *1 use for operation

refrigerator 334 - - - - - - - - - - - 334 26 *1 for inventory use

taxation 0 0 0 0 0 0 0 0 0 0 0 0 0

Total 32,380 9,746 7,635 8,206 9,114 9,736 9,588 10,014 9,323 9,612 8,674 9,347 133374

Total inflow 50000 8525 4950 5967.5 8525 10725 11082.5 10725 10230 11082.5 9240 10230 151283

Total outflow 32,380 9,746 7,635 8,206 9,114 9,736 9,588 10,014 9,323 9,612 8,674 9,347 133374

Net inflow/outflow 17,621 -1220.698 -2,685 -2,238 -589 989 1,494 711 907 1,470 566 883 17908

flyer，social network,

discount,one day

function in

displays for preparing

tops（fruit，nuts）

with refrigerator

BUSINESS PLAN

30 | P a g e

cash flow forecast for the year ending 31st MAR 2017

cash inflows Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total cross checksNote

capital introduced 17,908 17908 1 start up capital

Product Sales 9900 9377.5 14025 11935 11935 14850 11935 10725 11082.5 11082.5 10367.5 10230 137445 2 average 5.5 pround/unit

Total 27808.095 9377.5 14025 11935 11935 14850 11935 10725 11082.5 11082.5 10367.5 10230 155353


Purchases 2,799 3,254 4,117 3,302 3,374 4,295 3,263 3,651 3,126 3,141 2,938 2,868 40128 3 fruit，package（including approximately 7 % waste）

Rent 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20004 4 premises

Utilities 600 600 600 600 600 600 600 600 600 600 600 600 7200 6 electricity，water，waste


Stationery 30 30 30 30 30 30 30 30 30 30 30 30 360 8 printing consumables

sale & Marketing - - 500 480 260 800 660 100 330 - - 260 3390 9


national

insurance 449 464 557 464 464 557 464 449 464 464 434 464 5691 national insurance rate 13.8%

Wages（full

time） 1,680 1,736 1,680 1,736 1,736 1,680 1,736 1,680 1,736 1,736 1,624 1,736 20496 11 full time £7 per hour,8hr per day

Wages（part

time） 1,560 1,612 2,340 1,612 1,612 2,340 1,612 1,560 1,612 1,612 1,508 1,612 20592 12 part time £6.5 per hour,around 8 hr per day

council tax 10,000 - - - - - - - - - - - 10000 13

Uniform - - - - - - - - - - - - 0 14 smart shirt apron * 6

Refurbishment - - - - - - - - - - - - 0 15 including table chairsundries(knife,m

ask, chopping


stainless steel

sink - - - - - - - - - - - - 0 17 facility

commercial tap - - - - - - - - - - - - 0 18 facility

salad prep

counter - - - - - - - - - - - - 0 19

commercial use

blender - - - - - - - - - - - - 0 20 *2 use for making base sweet soup

multifunctional

cooker - - - - - - - - - - - - 0 21 *2 use for making base sweet soup

ice machine - - - - - - - - - - - - 0 22 *1 use for making base sweet soup

furniture

casher machine - - - - - - - - - - - - 0 23 *1 use for operation

refrigerator - - - - - - - - - - - - 0 24 *1 for inventory use

Total 18,919 9,449 11,577 9,977 9,829 12,055 10,117 9,822 9,650 9,336 8,887 9,323 128941

68221

Total inflow 27808.095 9377.5 14025 11935 11935 14850 11935 10725 11082.5 11082.5 10367.5 10230 155353

Total outflow 18,919 9,449 11,577 9,977 9,829 12,055 10,117 9,822 9,650 9,336 8,887 9,323 128941

Net inflow/outflow 8,889 -71.148 2,448 1,958 2,106 2,795 1,818 903 1,432 1,747 1,480 907 26412

flyer，social

network,

discount,one day



with refrigerator

BUSINESS PLAN

31 | P a g e


cash inflows Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total cross checksNote


Product Sales 12375 11935 14025 13640 13640 15675 14492.5 12375 11935 12787.5 11550 11935 156365 2 average 5.5 pround/unit

Total 38787.457 11935 14025 13640 13640 15675 14492.5 12375 11935 12787.5 11550 11935 182777


Purchases 3,571 4,000 4,037 3,832 3,856 4,504 4,049 4,101 3,350 3,639 3,266 3,350 45557 3 fruit，packing（including approximately 7 % waste）

Rent 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20004 4 premises

Utilities 600 600 600 600 600 600 600 600 600 600 600 600 7200 6 electricity，water，waste


Stationery 30 30 30 30 30 30 30 30 30 30 30 30 360 8 printing consumables

sale & Marketing - - 500 480 260 800 660 100 330 - - 260 3390 9


national

insurance 449 464 557 464 464 557 575 449 464 464 419 464 5787 national insurance rate 13.8%

Wages（full

time） 1,680 1,736 1,680 1,736 1,736 1,680 1,736 1,680 1,736 1,736 1,568 1,736 20440 11 full time £7 per hour,8hr per day

Wages（part

time） 1,560 1,612 2,340 1,612 1,612 2,340 2,418 1,560 1,612 1,612 1,456 1,612 21346 12 part time £6.5 per hour,around 8 hr per day

council tax 10,000 - - - - - - - - - - - 10000 13

Uniform - - - - - - - - - - - - 0 14 smart shirt apron * 6

Refurbishment - - - - - - - - - - - - 0 15 including table chairsundries(knife,m

ask, chopping


stainless steel

sink - - - - - - - - - - - - 0 17 facility

commercial tap - - - - - - - - - - - - 0 18 facility

salad prep

counter - - - - - - - - - - - - 0 19

commercial use

blender - - - - - - - - - - - - 0 20 *2 use for making base sweet soup

multifunctional

cooker - - - - - - - - - - - - 0 21 *2 use for making base sweet soup

ice machine - - - - - - - - - - - - 0 22 *1 use for making base sweet soup

furniture 0 23 facility

casher machine - - - - - - - - - - - - 0 24 *1 use for operation

refrigerator - - - - - - - - - - - - 0 25 *1 for inventory use

Operating cash

outflow 19,691 10,195 11,497 10,507 10,311 12,264 11,822 10,272 9,875 9,834 9,091 9,805 135164

taxation 0 0 0 0 0 0 0 0 0 0 0 382 382

Total 19,691 10,195 11,497 10,507 10,311 12,264 11,822 10,272 9,875 9,834 9,091 10,187 135547

Total inflow 38787.457 11935 14025 13640 13640 15675 14492.5 12375 11935 12787.5 11550 11935 182777

Total outflow 19,691 10,195 11,497 10,507 10,311 12,264 11,822 10,272 9,875 9,834 9,091 10,187 135547

Net inflow/outflow 19,097 1740.027 2,528 3,133 3,329 3,411 2,671 2,103 2,060 2,953 2,459 1,748 47231

flyer，social

network,

discount,one day



with refrigerator

BUSINESS PLAN

32 | P a g e

cash inflows Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total cross checksNote


Product Sales 40040 37950 45540 44550 168080 2 average 5.5 pround/unit

Total 87270.806 37950 45540 44550 215311

Cash outflows Apr Jul Oct Jan-Mar Total

Purchases 12,097 11,355 12,948 13,246 49645 3 fruit，packing（including approximately 7 % waste）

Rent 5,001 5,001 5,001 5,001 20004 4 premises

Utilities 1,800 1,800 1,800 1,800 7200 6 electricity，water，waste

License 0 0 0 0 0 7 regeister in local government

Stationery 90 90 90 90 360 8 printing consumables

sale & Marketing 1,200 800 1,200 800 4000 9

Insurance 258 258 258 258 1032 10 employer's liability insurance

national insurance 1,361 1,376 1,707 1,346 5791 national insurance rate 13.8%

Wages（full time） 5,096 5,152 5,152 5,040 20440 11 full time £7 per hour,8hr per day

Wages（part time） 4,732 4,784 7,176 4,680 21372 12 part time £6.5 per hour,around 8 hr per day

council tax 10,000 - - - 10000 13

Uniform - - - - 0 14 smart shirt apron * 6

Refurbishment - - - - 0 15 including table chairsundries(knife,mask,

chopping block,glove...) 48 - - - 48 16 for daily operating use

stainless steel sink - - - - 0 17 facility

commercial tap - - - - 0 18 facility

salad prep counter - - - - 0 19

commercial use blender - - - - 0 20 *2 use for making base sweet soup

multifunctional cooker - - - - 0 21 *2 use for making base sweet soup

ice machine - - - - 0 22 *1 use for making base sweet soup


casher machine - - - - 0 24 *1 use for operation

refrigerator - - - - 0 25 *1 for inventory use

Operating cash outflow 41,683 30,617 35,332 32,261 139892

taxation 0 1,472 1,922 2,456 5850

dividend pay 5,000 5000

Total 41,683 32,088 37,254 39,717 150742

Total inflow 87270.806 37950 45540 44550 215311

Total outflow 41,683 32,088 37,254 39,717 150742

Net inflow/outflow 45,588 5,862 8,286 4,833 64569

flyer，social

network,




BUSINESS PLAN

33 | P a g e

cash inflows Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total cross checksNote


Product Sales 42542.5 40480 48070 47025 178118 2 average 5.5 pround/unit

Total 107111.28 40480 48070 47025 242686

Cash outflows Apr Jul Oct Jan-Mar Total

Purchases 11,912 12,071 13,663 13,945 51591 3 fruit，packing（including approximately 7 % waste）

Rent 5,001 5,001 5,001 5,001 20004 4 premises

Utilities 1,800 1,800 1,800 1,800 7200 6 electricity，water，waste

License 0 0 0 0 0 7 regeister in local government

Stationery 90 90 90 90 360 8 printing consumables

sale & Marketing 1,200 800 1,200 800 4000 9

Insurance 258 258 258 258 1032 10 employer's liability insurance

national insurance 1,361 1,376 1,707 1,346 5791 national insurance rate 13.8%

Wages（full time） 5,096 5,152 5,152 5,040 20440 11 full time £7 per hour,8hr per day

Wages（part time） 4,732 4,784 7,176 4,680 21372 12 part time £6.5 per hour,around 8 hr per day

council tax 10,000 - - - 10000 13

Uniform - - - - 0 14 smart shirt apron * 6

Refurbishment - - - - 0 15 including table chairsundries(knife,mask,

chopping block,glove...) 48 - - - 48 16 for daily operating use

stainless steel sink - - - - 0 17 facility

commercial tap - - - - 0 18 facility

salad prep counter - - - - 0 19

commercial use blender - - - - 0 20 *2 use for making base sweet soup

multifunctional cooker - - - - 0 21 *2 use for making base sweet soup

ice machine - - - - 0 22 *1 use for making base sweet soup


casher machine - - - - 0 24 *1 use for operation

refrigerator - - - - 0 25 *1 for inventory use

Operating cash outflow 41,499 31,332 36,047 32,960 141838

taxation 0 1,830 2,281 2,806 6917

Total 41,499 33,162 38,328 35,767 148755

dividend pay 10000 10000

Total outflow 41,499 33,162 38,328 45,767 158755

Total inflow 107111.28 40480 48070 47025 242686

Total outflow 41,499 33,162 38,328 45,767 158755

Net inflow/outflow 65,613 7,318 9,742 1,258 83931

flyer，social

network,




BUSINESS PLAN

34 | P a g e

Income Statement

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total

Total Sales 0 8,525 4,950 5,968 8,525 10,725 11,083 10,725 10,230 11,083 9,240 10,230 101,283

Cost of Sale

Opening inventory - 650 813 672 642 813 788 687 1,240 1,123 1,046 938 9,412

Total purchases 650 2,651 1,303 1,711 2,659 3,104 3,133 3,682 2,868 3,157 2,588 2,892 30,401

Closing inventory 650 813 672 642 813 788 687 1,240 1,123 1,046 938 845 10,257

Cost of Sale 0 2,488 1,445 1,741 2,488 3,130 3,234 3,130 2,985 3,234 2,696 2,985 29,556

Gross Profit 0 6,037 3,506 4,226 6,037 7,595 7,848 7,595 7,245 7,848 6,544 7,245 71,726

wages and

Salaries

full time - 1,736 1,680 1,736 1,736 1,680 1,736 1,680 1,736 1,736 1,568 1,736 18,760

part time - 1,612 1,560 1,612 1,612 1,560 1,612 1,560 1,612 1,612 1,456 1,612 17,420

Total wage 3,348 3,240 3,348 3,348 3,240 3,348 3,240 3,348 3,348 3,024 3,348 36,180

Other Overheads

Marketing - 900 260 300 260 560 260 260 260 260 260 260 3,840

Rent 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,004

Utilities - 600 600 600 600 600 600 600 600 600 600 600 6,600

insurance 86 86 86 86 86 86 86 86 86 86 86 86 1,032

national insurance 0 464 449 464 464 449 464 449 464 464 419 464 5,011

Stationery - 30 30 30 30 30 30 30 30 30 30 30 330

opening consult 2,000 - - - - - - - - - - - 2,000

council tax 10,000 - - - - - - - - - - - 10,000

Uniform 180 - - - - - - - - - - - 180

Refurbishment 10,000 - - - - - - - - - - - 10,000

Depreciation:sundries(knife,mas

k, chopping - 4 4 4 4 4 4 4 4 4 4 4 44

stainless steel sink - 5 5 5 5 5 5 5 5 5 5 5 55

commercial tap - 3 3 3 3 3 3 3 3 3 3 3 33

salad prep counter - 48 48 48 48 48 48 48 48 48 48 48 528commercial use

blender - 8 8 8 8 8 8 8 8 8 8 8 88multifunctional

cooker - 3 3 3 3 3 3 3 3 3 3 3 33

ice machine - 5 5 5 5 5 5 5 5 5 5 5 55

furniture - 34 34 34 34 34 34 34 34 34 34 34 374

casher machine - 1 1 1 1 1 1 1 1 1 1 1 11

refrigerator - 5 5 5 5 5 5 5 5 5 5 5 55

Total overheads 23,933 3,863 3,208 3,263 3,223 3,508 3,223 3,208 3,223 3,223 3,178 3,223 60,273

Net profit -23,933 -1,173 -2,942 -2,385 -533 848 1,278 1,148 674 1,278 342 674 -24,727

taxation(20%) 0 0 0 0 0 0 0 0 0 0 0 0 0

Profit after tax -23,933 -1,173 -2,942 -2,385 -533 848 1,278 1,148 674 1,278 342 674 -24,727

Income statement Year to 31 MAR 2016

BUSINESS PLAN

35 | P a g e


Total Sales 9,900 9,378 14,025 11,935 11,935 14,850 11,935 10,725 11,083 11,083 10,368 10,230 137,445

Cost of Sale

Opening inventory 845 755 1,272 1,297 1,116 1,008 969 749 1,269 1,161 1,068 981 12,489

Total purchases 2,799 3,254 4,117 3,302 3,374 4,295 3,263 3,651 3,126 3,141 2,938 2,868 40,128

Closing inventory 755 1,272 1,297 1,116 1,008 969 749 1,269 1,161 1,068 981 864 12,508

Cost of Sale 2,889 2,737 4,093 3,483 3,483 4,334 3,483 3,130 3,234 3,234 3,025 2,985 40,109

Gross Profit 7,011 6,641 9,932 8,452 8,452 10,517 8,452 7,595 7,848 7,848 7,342 7,245 97,336

wages and Salaries

full time 1,680 1,736 1,680 1,736 1,736 1,680 1,736 1,680 1,736 1,736 1,624 1,736 20,496

part time 1,560 1,612 2,340 1,612 1,612 2,340 1,612 1,560 1,612 1,612 1,508 1,612 20,592

Total 3,240 3,348 4,020 3,348 3,348 4,020 3,348 3,240 3,348 3,348 3,132 3,348 41,088

Other Overheads

Marketing - - 500 480 260 800 660 100 330 - - 260 3,390

Rent 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,004

Utilities 600 600 600 600 600 600 600 600 600 600 600 600 7,200

insurance 86 86 86 86 86 86 86 86 86 86 86 86 1,032


Stationery 30 30 30 30 30 30 30 30 30 30 30 30 360

council tax 10,000 - - - - - - - - - - - 10,000

Depreciation:sundries(knife,mask,

chopping block,glove...) 4 4 4 4 4 4 4 4 4 4 4 4 48

stainless steel sink 5 5 5 5 5 5 5 5 5 5 5 5 60

commercial tap 3 3 3 3 3 3 3 3 3 3 3 3 36

salad prep counter 48 48 48 48 48 48 48 48 48 48 48 48 576

commercial use blender 8 8 8 8 8 8 8 8 8 8 8 8 96

multifunctional cooker 3 3 3 3 3 3 3 3 3 3 3 3 36

ice machine 5 5 5 5 5 5 5 5 5 5 5 5 60

furniture 34 34 34 34 34 34 34 34 34 34 34 34 408

casher machine 1 1 1 1 1 1 1 1 1 1 1 1 12

refrigerator 5 5 5 5 5 5 5 5 5 5 5 5 60

Total overheads 12,948 2,963 3,556 3,443 3,223 3,856 3,623 3,048 3,293 2,963 2,933 3,223 49,069

Net profit -9,177 330 2,356 1,661 1,881 2,641 1,481 1,308 1,208 1,538 1,277 674 7,179

taxation(20%) 0 0 0 0 0 0 0 0 0 0 0 0 0

Profit after tax -9,177 330 2,356 1,661 1,881 2,641 1,481 1,308 1,208 1,538 1,277 674 7,179


BUSINESS PLAN

36 | P a g e


Total Sales 12,375 11,935 14,025 13,640 13,640 15,675 14,493 12,375 11,935 12,788 11,550 11,935 156,365

Cost of Sale

Opening inventory 864 824 1,341 1,286 1,138 1,014 943 764 1,253 1,120 1,028 923 12,497

Total purchases 3,571 4,000 4,037 3,832 3,856 4,504 4,049 4,101 3,350 3,639 3,266 3,350 45,557

Closing inventory 824 1,341 1,286 1,138 1,014 943 764 1,253 1,120 1,028 923 791 12,424

Cost of Sale 3,611 3,483 4,093 3,980 3,980 4,574 4,229 3,611 3,483 3,732 3,371 3,483 45,630

Gross Profit 8,764 8,452 9,932 9,660 9,660 11,101 10,263 8,764 8,452 9,056 8,180 8,452 110,735

wages and

Salaries

full time 1,680 1,736 1,680 1,736 1,736 1,680 1,736 1,680 1,736 1,736 1,568 1,736 20,440

part time 1,560 1,612 2,340 1,612 1,612 2,340 2,418 1,560 1,612 1,612 1,456 1,612 21,346

Total 3,240 3,348 4,020 3,348 3,348 4,020 4,154 3,240 3,348 3,348 3,024 3,348 41,786

Other Overheads

Marketing - - 500 480 260 800 660 100 330 - - 260 3,390

Rent 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,004

Utilities 600 600 600 600 600 600 600 600 600 600 600 600 7,200

insurance 86 86 86 86 86 86 86 86 86 86 86 86 1,032


Stationery 30 30 30 30 30 30 30 30 30 30 30 30 360

council tax 10,000 - - - - - - - - - - - 10,000

Depreciation: 0sundries(knife,mas

k, chopping 4 4 4 4 4 4 4 4 4 4 4 4 48

stainless steel sink 4 4 4 4 4 4 4 4 4 4 4 4 48

commercial tap 3 3 3 3 3 3 3 3 3 3 3 3 36

salad prep counter 34 34 34 34 34 34 34 34 34 34 34 34 408commercial use

blender 6 6 6 6 6 6 6 6 6 6 6 6 72multifunctional

cooker 2 2 2 2 2 2 2 2 2 2 2 2 24

ice machine 3 3 3 3 3 3 3 3 3 3 3 3 36

furniture 25 25 25 25 25 25 25 25 25 25 25 25 300

casher machine 1 1 1 1 1 1 1 1 1 1 1 1 12

refrigerator 3 3 3 3 3 3 3 3 3 3 3 3 36

Total overheads 12,917 2,932 3,525 3,412 3,192 3,825 3,703 3,017 3,262 2,932 2,887 3,192 48,793

Net profit -7,393 2,172 2,387 2,900 3,120 3,256 2,406 2,507 1,842 2,776 2,269 1,912 20,155

taxation (20%) 0 0 0 0 0 0 0 0 0 0 0 382 382

Profit after tax -7,393 2,172 2,387 2,900 3,120 3,256 2,406 2,507 1,842 2,776 2,269 1,530 19,773


BUSINESS PLAN

37 | P a g e

Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total

Total Sales 40,040 37,950 45,540 44,550 168,080

Cost of Sale

Opening inventory 791 1,203 1,484 1,142 4,619

Total purchases 12,097 11,355 12,948 13,246 49,645

Closing inventory 1,203 1,484 1,142 1,387 5,215

Cost of Sale 11,684 11,075 13,289 13,001 49,049

Gross Profit 28,356 26,876 32,251 31,550 119,031

wages and Salaries

full time 5,096 5,152 5,152 5,040 20,440

part time 4,732 4,784 7,176 4,680 21,372

Total 9,828 9,936 12,328 9,720 41,812

Other Overheads

Marketing 1,200 800 1,200 800 4,000

Rent 5,001 5,001 5,001 5,001 20,004

Utilities 1,800 1,800 1,800 1,800 7,200

insurance 258 258 258 258 1,032

national insurance 1,361 1,376 1,707 1,346 5,791

Stationery 90 90 90 90 360

council tax 10,000 - - - 10,000

Depreciation: 0sundries(knife,mask,

chopping block,glove...) 12 12 12 12 48

stainless steel sink 12 12 12 12 48

commercial tap 9 9 9 9 36

salad prep counter 102 102 102 102 408

commercial use blender 18 18 18 18 72

multifunctional cooker 6 6 6 6 24

ice machine 9 9 9 9 36

furniture 75 75 75 75 300

casher machine 3 3 3 3 12

refrigerator 9 9 9 9 36

Total overheads 19,965 9,580 10,311 9,550 49,407

Net profit -1,438 7,359 9,611 12,279 27,812

taxation (20%) 0 1,472 1,922 2,456 5,850

Profit after tax -1,438 5,887 7,689 9,823 21,962


BUSINESS PLAN

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Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total

Total Sales 42,543 40,480 48,070 47,025 178,118

Cost of Sale

Opening inventory 1,387 885 1,142 778 4,192

Total purchases 11,912 12,071 13,663 13,945 51,591

Closing inventory 885 1,142 778 1,000 3,805

Cost of Sale 12,415 11,813 14,028 13,723 51,978

Gross Profit 30,128 28,667 34,042 33,302 126,140

wages and Salaries

full time 5,096 5,152 5,152 5,040 20,440

part time 4,732 4,784 7,176 4,680 21,372

Total 9,828 9,936 12,328 9,720 41,812

Other Overheads

Marketing 1,200 800 1,200 800 4,000

Rent 5,001 5,001 5,001 5,001 20,004

Utilities 1,800 1,800 1,800 1,800 7,200

insurance 258 258 258 258 1,032

national insurance 1,361 1,376 1,707 1,346 5,791

Stationery 90 90 90 90 360

council tax 10,000 - - - 10,000

Depreciation: 0sundries(knife,mask,

chopping block,glove...) 12 12 12 12 48

stainless steel sink 12 12 12 12 48

commercial tap 9 9 9 9 36

salad prep counter 102 102 102 102 408

commercial use blender 18 18 18 18 72

multifunctional cooker 6 6 6 6 24

ice machine 9 9 9 9 36

furniture 75 75 75 75 300

casher machine 3 3 3 3 12

refrigerator 9 9 9 9 36

Total overheads 19,965 9,580 10,311 9,550 49,407

Net profit 335 9,151 11,403 14,032 34,921

taxation (20%) 0 1,830 2,281 2,806 6,917

Profit after tax 335 7,321 9,122 11,226 28,003


BUSINESS PLAN

39 | P a g e

Balance Sheet

Fixed assets Cost Depn. Net.

sundries(knife,mask, chopping block,glove...) 44.00 44.00 0.00

stainless steel sink 360.00 55.00 305.00

commercial tap 170.00 33.00 137.00

salad prep counter 3,589.00 528.00 3,061.00

commercial use blender 600.00 88.00 512.00

multifunctional cooker 200.00 33.00 167.00

ice machine 320.00 55.00 265.00

furniture 2,100.00 374.00 1,726.00

casher machine 80.00 11.00 69.00

refrigerator 333.50 55.00 278.50

Total 7,796.50 1,276.00 6,520.50

Current Assets

cash in bank 17,908.10

Inventory 844.90

Total Assets 25,273.50

Current liabilities

Trade Payables 0.00

Rates and Utilities 0.00

Corporation Tax 0.00

Loan Interest 0.00

total Liabilities 0.00

Share Capital 50,000.00

retained profit 0.00

Current Year Profits -24,726.51

Total Equity 25,273.50

Total Equity & Liabilities 25,273.50

Pro Forma Balance Sheet for the year end of 31 MAR 2016

BUSINESS PLAN

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commercial tap 137.00 36.00 101.00




ice machine 265.00 60.00 205.00

furniture 1,726.00 408.00 1,318.00


refrigerator 278.50 60.00 218.50

Total 6,568.50 1,392.00 5,176.50

Current Assets


Inventory 863.90


Current liabilities

Trade Payables 0.00



Loan Interest 0.00



retained profit -24,726.51

Current Year Profits 7,179.36




BUSINESS PLAN

41 | P a g e




commercial tap 101.00 36.00 65.00




ice machine 205.00 36.00 169.00

furniture 1,318.00 300.00 1,018.00


refrigerator 218.50 36.00 182.50

total： 5,224.50 1,020.00 4,204.50

Current Assets


Inventory 790.55


Current liabilities

Trade Payables 0.00



Loan Interest 0.00



retained profit -17,547.14





BUSINESS PLAN

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commercial tap 65.00 36.00 29.00




ice machine 169.00 36.00 133.00

furniture 1,018.00 300.00 718.00


refrigerator 182.50 36.00 146.50

total： 4,252.50 1,020.00 3,232.50

Current Assets


Inventory 1,386.85


Current liabilities

Trade Payables 0.00



Loan Interest 0.00



retained profit 2,225.86

dividend pay -5,000.00





BUSINESS PLAN

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commercial tap 29.00 36.00 -7.00




ice machine 133.00 36.00 97.00

furniture 718.00 300.00 418.00


refrigerator 146.50 36.00 110.50

total： 3,280.50 1,020.00 2,260.50

Current Assets


Inventory 1,000.18


Current liabilities

Trade Payables 0.00



Loan Interest 0.00



retained profit 19,188.13

dividend pay -10,000.00





BUSINESS PLAN

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GRAPHS OF PRIMARY DATA

Purchase Frequency

23%

68%

0%9%

Purchase Frequency of Teenager

Never

Less than threetimes a week

Three to fivetimes a week

More than fivetimes a week

5%

67%

11%

17%

Purchase Frequency of Male

Never




6%

76%

12%6%

Purchase Frequency of Employed

Never




19%

71%

3%7%

Purchase Frequency of Female

Never




10%

60%

10%

20%

Purchase Frequency of Pensioner

Never




15%

68%

6%11%

Purchase Frequency of Participant

Never




BUSINESS PLAN

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Price range

9%

73%

18%

0%

Price Range of Teenager

less than £3.00

£3.00 to £5.00

£5.01 to £7.00

more than £7.00

22%

67%

11%

0%

Price Prange of Male

less than £3.00

£3.00 to £5.00

£5.01 to £7.00

more than £7.00

18%

70%

12%

0%

Price Prange of Eployed

less than £3.00

£3.00 to £5.00

£5.01 to £7.00

more than £7.00

10%

77%

13%

0%

Price Prange of Female

less than £3.00

£3.00 to £5.00

£5.01 to £7.00

more than £7.00

20%

80%

0% 0%

Price Prange of Eployed

less than £3.00

£3.00 to £5.00

£5.01 to £7.00

more than £7.00

13%

76%

11%

0%

Price Prange of Participant

less than £3.00

£3.00 to £5.00

£5.01 to £7.00

more than £7.00

BUSINESS PLAN

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Buying Style

Consumers’ Willingness of Purchase

Flavour of Sweet Soup (Base)

44%

5%14%

37%

Buying Style of Participant

Traditional Style

DIY Style

Buffet Style

Homemade

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Teenager Employed Pensioner Male Female Participant

Consumers' Willingness of Purchase

YES NO

0

5

10

15

20

25

30

35

Coconut Chocolate Almond Mango Sesame Smoothies


BUSINESS PLAN

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Flavour of Ingredients (Topping)

Take Away or In Store

Care About Healthy when Choosing Dessert


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Take Away or In Store

Take Away In Store

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Carefulness of Purchase

Care Not Care

BUSINESS PLAN

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Effect of Factors

Teenager Very Important Important Not The Main Factor Don't Care

Price 4 16 3 0

Flavour 18 4 0 0

Types 5 11 6 0

Service 8 5 9 0

Employed Very Important Important Not The Main Factor Don't Care

Price 5 10 1 1

Flavour 15 1 0 0

Types 3 9 5 0

Service 6 5 5 0

Pensioner Very Important Important Not The Main Factor Don't Care

Price 2 3 5 0

Flavour 6 4 0 0

Types 5 4 1 0

Service 4 3 3 0

Male Very Important Important Not The Main Factor Don't Care

Price 3 8 6 1

Flavour 14 4 0 0

Types 7 7 4 0

Service 7 5 5 0

Female Very Important Important Not The Main Factor Don't Care

Price 8 21 3 0

Flavour 25 5 0 0

Types 6 17 8 0

Service 11 8 12 0

All Participants Very Important Important Not The Main Factor Don't Care

Price 13 31 10 1

Flavour 42 11 0 0

Types 15 27 12 0

Service 19 15 19 0

BUSINESS PLAN

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MENU OF FRUITY HOUSE

BUSINESS PLAN

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BUSINESS PLAN

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QUESTIONNAIRE

business plan(zhihao ye)

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