Table of Contents Executive Summary 3 B&B Furlings Boarding 4 Mission Statement 4 Vision Statement 4 Value Proposition Statement 4 Company Description 4 Industry Analysis and Trends 5 Business Goals [SMART Goals] 5 Competition 5 Marketing Plans and Strategies (Market Mix) 5 Target Market 6 Strategic Position and Risk Assessment 6 SWOT ANALYSIS 6 Strengths 6 Weaknesses 6 Opportunities 7 Threats 7 Risks: Operations 7 Risks Reduction: Operations 8 Keys to Success 8 Employee experience and trainings 8 Strategic location 9 Operations Plan 9 Technology Plan 9 Management and Organization 9 Personnel structure 9 Management structure and team 10 Community Involvement and Social Responsibility 11 Development, Milestones & Contingency/Exit Plan 11 Financials 11 Financial Objectives 11 Sales and Expense Forecast 11 Break-even Analysis 11 Financial Control 11 Financial Statements and Ratio Analysis 11 References 12
B&B Furlings Boarding is not simply a company; B&B Furlings Boarding is a family-based community. A facility with a safe and reassuring environment to provide services not only as a boarding facility but as a home away from home. Grooming, training and veterinarian services available to all customers. The primary goal of B&B Furlings Board is to put pet owners concerns and worries to rest when pets are not able to accompany them. There would either be a certified veterinarian from the local community reachable day-time business hours in addition to emergency transportation 24 hours per day, seven days a week.
B&B Furlings Boarding
The Pet Grooming and Boarding Industry has nearly doubled over the past decade due the demand from the increasing number of pet owners, improved disposable income as well as the over-all pet care preferences (IBISWorld, 2017). With no documented companies that hold a dominance share within this industry provides a great wealth of opportunities. However, the location remains a key aspect to a company’s success. Which is why I would open my boarding facility in Portland, Oregon. Portland is a perfect fit due to it being a faster pace city yet also offers suburban communities. With a population of 647,805, as of July 1, 2017, (United Census Bureau, 2016) with 64% of all Oregon households surveyed own a pet (Balas, 2013).
The primary goal of B&B Furlings Board is to put pet owners concerns and worries to rest when pets are not able to accompany them. Providing a safe and happy place to be considered as a home away from home for pets while owners are away, is the most important aspect of the boarding.
The love we hold for our FurBabies is indescribable, however their care must be describable in great detail. That is why we are here to provide the warmest and loving safe space for your fur-babies, from eyelashes to toenails to tail tips.
The official Cuddlers and Fur-tastic “know is all’s”.
My staff would be not only knowledgeable, and real-life experience in addition to a requirement to be and maintain the state approved Species-Specific certification/s. The employees would be those of whom have prior study in animal related fields such as veterinary technician, Animal behavior, or Animal science. Recruitment efforts would also target individuals with real-life experience such as pet sitters, dog walkers, and those who volunteer with animal shelters. There would either be a certified veterinarian from the local community reachable day-time business hours in addition to emergency transportation 24 hours per day, seven days a week. Obedience trainers would also be available as well as a partnership with the AKC Star Citizen program.
There are many options and opportunities to venture into within this industry. Personally, my interest for this venture was because I am a Fur-parent and I know what I want and expect when my “Fur-Babies” are in another’s care. This is something that I have a great passion for, and I believe that this company would be my passion materialized. My passion is not specific to me, this type of care is shared by many and is consistently increasing expediently.
We would provide a variety of services, that can be catered to best fit each individual customer’s needs.
· Daycare/Overnight care
· Basic grooming maintenance for multi-day stay care (as appropriate per customer’s needs)
· Daily Brushing
· Ear, Eye, and Teeth cleaning
· Nail Clipping
· Large fenced in backyard – daily yard maintenance for safety and cleanliness
· Detailed eating plan as per customer’s specification to fit each “Fur-Babies” needs
According to FranchiseHelp.com as of 2015 65% of United States households own a single pet or more on all levels of economic levels, however 60% of the total spending is by high-income households.
In regards to the trends within the Pet services industry there are a number of trends supporting strong Industry growth, with no indications of slowing its momentum. Humanization is a driving force within the industry trends which is a term that means pets are treated more like people. Pet owners are increasingly purchasing higher quality foods, toys and expensive medical treatments, to include high-tech therapies and medicines. Humanization style of purchases leading to a trend of Premiumization such as luxury spa services beyond groomers like Petco and pet smart grooming services. Health insurances for pets are becoming increasing common for pet owners. Which is explained with the scientific research conducted by the Human Animal Bond Research Initiative Foundation (HABRI) pertaining to the bonds between pet owners and their pets.
The business goals for B&B Furlings Boarding are to provide relevant and safe accommodations for pets of pet owners when pet owners must travel without their pets.
B&B Furlings Boarding’s number one priority is to create a facility that provides pets a safe and spacious environment with the goal of lessening stress for both owners and pets alike.
B&B Furlings Boarding will provide services from space to run and play as well as optional training and socialization under the close watch by certified trainers. When necessary grooming services are available such as nail clipping, sanitary grooming, ear and teeth cleaning to name a few.
The pet care services industry is an up and coming industry that is rapidly growing each year (IBPSA, 2018). This is a highly competitive industry however, there are no companies with a dominant market share in this industry (IBIS World, 2017).
As a product the market for pet services the market is segmented into pet food, veterinary care, supplies to include over the counter medications, live animal purchases, grooming and boarding services as well (Grand View Research, Inc., 2018).
Marketing will be conducted by the way of flyers, and business cards being provided within veterinarian faculties and animal hospitals. This strategy would prove to be beneficial for two reasons; 1) Pet owners often ask their veterinarian for recommendations of pet-related service providers, and 2) Veterinarians are more apt to recommend a boarding facility that would also reciprocate the recommendations. In addition to inserting a company representative into community fairs for local businesses. These events would provide a visual and palatable presence within the community.
Moreover, at B&B Furlings’ Boarding we believe in a satisfied customer as a voluntary marketing agent. When our customers are satisfied with the services we offer to their pets, we are convinced of increased sales. Even then, we are convinced that with the increased conversations with friends and other associates who are optimistic about our services and are keenly anxious to use our services.
Our considerable market research has pointed a lot of potential that we seek to exploit to maximize our revenues. However, our profit maximization objective entirely depends on how well we intend to meet the market needs and preferences. Our target focuses on markets that require our services the most. Principally, the focus of B&B Furlings Boarding will be services we offer. Our commitment is inherent in the messages we develop, communication strategy and a continuous improvement of our services.
The company targets pet owners, who may have one or more pets in their households. The households may include corporate organizations such as security agencies, dog breeders, corporate executives who own pets, government departments with pets. The target market will constitute busy persons who will prefer convenience and quality service for which our services are tailored to meet.
The strength of B&B Furlings Boarding is premised on competent team who strive to meet the daily needs of our customers. Our team constitute experts in the industry with elaborate knowledge and experience handling pets. The qualifications span to include veterinary services where we have top notch personnel. The skilled staff promises an assurance of competence with no additional training costs. Objectively, we anticipate that customers will receive maximum satisfaction from our services.
B&B Furlings Boarding is strategically placed in the market where there are no competitors, and where the market is large enough and with the right demographic characteristics. Many people in the neighborhood suburban in Portland own pets. As such, we expect that we will receive load of customers upon opening operations. Other strengths that we have are low overheads in the operations, which complements with the passion that we have primed at B&B Furling Boarding.
The weakness that may implicate the success of the B&B Furlings Boarding is contingent on the barrenness of the market. The company will have to take some time before it breaks even into the market and gain a considerable acceptance. Adoption of the services offered by the company is anticipated to be slow especially among the wealthy clients living in Portland City. This could be the company’s greatest impediment to quick break even. Perhaps, the growth of the company could be limited by inability to expand create awareness about our service given inadequate financial resource to undertake advertising and publicity of our services to the market.
As a new company, we believe it will take time for our brand to recognized in the market despite facing unsubstantial competition. Nonetheless, as a company we will implement aggressive advertising and clever marketing in a bid to enhance recognition of our brand. Moreover, our humble beginning also implies that we do not have viable business links in the market despite have competent personnel in the industry. We will endeavor to partner with other pet suppliers and service providers located outside our market to ensure our services meet the industry standards as well as promoting adequate supply to our clients.
The Pet Grooming and Boarding Industry has a greater potential in Portland. The massive number of people, corporate agencies who own pets, and who may also wish to leave them at such facilities points to the available potential of the market. Further, the number of clients who would wish to seek veterinary services for their pets adds to the market potential. Besides, selling pet supplies to the local suburban population is another opportunity that s exploitable. B&B Furlings Boarding is keen to pursue any opportunity that could generate profit in the industry. Fundamentally, our operations are viable to expand upon break even. In the future, upon ascertaining our growth prospects, we will commit to franchising with an objective of expanding our brand recognition as well as creating a conducive environment for other smaller pet groomers an opportunity to share the market.
Threats are inherent in every business undertaking. As such, threats are key determinants of success at the company regardless of the stage of growth the company has attained. Business threats are usually internally or externally agitated. At B&B Furling Boarding, we anticipate a number of threats that would limit our operations. Some of these threats that may implicate our operations in the United States of America may include unfavorable government policies such as increased taxation and service indices. Still, the arrival of competitors into the market will have a devastating effect on the growth of the company. The uncertain global economic downturns, which usually affect the purchasing power of households has a direct impact on the company. Such issues threaten the stability of the company because no substantial strategy can be undertaken as a safeguard. As a company, we are optimistic that the operating environment will be favorable to ensure we witness a growing customer base and revenue index.
Other threats to the operation of B&B Furling Boarding could include increasing overhead costs such as utilities which entirely depend on our growth prospects. Besides, costs of equipment could inevitably affect our operations in future since they are prone to tear and wear.
No business is isolated from operational and market risks. As such, B&B Furling Boarding is in no exemption. The operation of the company is influenced by both the internal and external forces. While internal risks are likely to be controlled by the management, it is usually hard to pacify the external risks. Some of the key market risks include competition, deteriorating customer service, unclear boarding conditions, and changing insurance conditions
Competition is a major risk in the industry especially in the coming years. As more people continue to raise pets in the household due to increased humanization, so are more companies likely to come. Still, well established companies in the US like Petco could contemplate entering the Portland market which as of now is unentered. Such services such as veterinary services, training and grooming could be taken over by even smaller service providers. Even with the introduction of the business in the suburban Portland, it is likely to face competition from the conventional pet sitters, who are usually left with the pets as their owners go to their daily engagements. Building trust with the target market that our services best suits their pets is another risk that is keenly attached to competition. As a company, competition is our greatest threat.
Deterioration of customer service is a contingent factor associated with organizational growth. As the company grows in both customer base and revenue, it is likely that diminishing returns on customer satisfaction sets in. Employees may become more reluctant to serve customers to their satisfaction because of the belief that we are the only providers of the service. Other risks are uncertainty in the industry as pertains employee experience in the future where change in leadership could contribute to declining employee conditions.
In order to check the effects of mentioned risks on the company in future, we have contemplated a viable policy upon which to contain the situation. These encompass continuous training of personnel to ensure they meet the industry standards at all times. The company will undertake the policy on all the personnel. Fundamentally, the policy will ensure consumers attitudes and perception of quality at B&B Furling Boarding is at apex. As such, the policy will effectively address declining returns on consumer satisfaction.
Another policy the company will pursue to ensure consumers agree to the terms of the pet boarding services that the company offers. The contracts will highlight our terms and policies and will guide our standards at all times. Additionally, the company aims to attain a robust insurance scheme where health and safety of the pets are our main interest. Other risk management policies may include partnering the Pet Federation which is key in influencing professionalism in pet grooming industry. However, it is essential that the success of these policies is dependent on properly contemplated risk management plan within the organization for which B&B Furling Boarding is keen to implement.
While this is a new business, our interest in maintaining a long-lasting relationship with our clients is our key priority. As such, at B&B Furling Boarding we aim to provide a safe haven for pets when their owners are away. Our mission points us to the appreciation that customer satisfaction is our key priority. We believe that a satisfied customer is an objective of our success. Our services seek to create a lasting impression among our clients. Our conducive environment and experienced personnel are the key success factors we are proud to unveil to our clients.
Our team consists of distinguished experts in the Pet Grooming and Boarding industry. The excellent qualifications and experiences of our staff in handling pets related activities such as pet walking and veterinary care demonstrates our preparedness to colonize the market effectively. The synergy of professionals in the company not only assures quality service but also provide timely health care to the pets under our care. Additionally, the employees are well motivated both intrinsically and extrinsically to ensure they provide the best at all times. Trainings and better remunerations are essential practice that the management is keen to address. The approach also ensures that they are more at ease building the company than contemplating switching from the company.
Another success factor for our business is its location in the heart of suburban population of Portland. Objectively, the location has the right demographic characteristic that promises long term market for our services. Both millennials and baby boomers who have a long-lasting taste for pets live in Portland. Besides, many residents of Portland own pets. Based on such, we believe, our operations are likely to soar further.
At B&B Furling Boarding, we will maintain the latest of the technological devices. Some of the devices we will have include a computer system running on the latest Windows with internet capabilities including email. These technologies will be essential in fostering communication between the company and our clients. Critical functions the technology will enable us realize include addressing customer questions more efficiently, making online purchases. Additionally, customers will also be able to make reservations from the convenience of their locations. The company will run a website from where all the services we provide will be posted, besides giving comprehensive information about the available pet facilities and personnel experience. Besides the company will run Facebook pages, Twitter and Messenger accounts from where we aim to meet our customer concerns amicably. Otherwise, with the technology, we purpose to create awareness about our facilities through increased absorption of technology.
B&B Furling Boarding aims to adopt a creative and highly innovative management expertise that is geared towards assuring customer satisfaction. As a company, we will endeavor to create a conducive environment that favors development of personnel and employee satisfaction. We look to creating a team-oriented company of personnel who share a common goal and objective as that of the company. Essentially, each personnel will be identified by their job description. This will ensure proper allocation of roles bearing in mind the diverse skills exhibited by each staff. The personnel will be well compensated for their time, proper health and vacation benefits for all in the company.
The company management will comprise the following and their respective annual remunerations:
i. One manager in responsible for all the activities in the company. Their academic qualification will be complemented with their past hands on experience especially in the industry. The manager will be responsible for all logistical, and administrative functions in the company. However, the company will endeavor to get a professional with a background experience working in a pet service company. Where need be, the proprietor will be in-charge during vacations. The manager in collaboration with the proprietor will undertake costing and ordering of supplies which include feeds and drugs. Remunerations of the staff will be processed through the office of the manager, for which the manager will be in-charge of payroll. However, these roles will be disintegrated when the company has reached its break-even point.
ii. Two receptionists who will receive customers and payments for services/products. The reception team will plan appointments with clients, respond to customer concerns, and distribute supplies. Additionally, they will man the registry and any other tasks allocated by the manager. The receptionist will be holders of bachelor in Business administration with experience in Pet grooming and Boarding industry.
iii. Three ground supervisors in-charge of feeding and watering the pets, cleaning the environment, collect pets at check-outs. To check costs, one will be full time and the rest will be on part time terms with changes likely adjusted in the subsequent years. The supervisors will be highly experienced in handling pets. Past experience mandatory and verifiable. As the company grows, there are chances that more ground supervisors will be required to meet the rising needs of the clients.
iv. Other personnel in the company include one pet groomer and one behavioral trainer. Both personnel will be contracted from established Pet service providers located outside Portland. Their skills will be proven before they are acquired. At B&B Furling Boarding we consider experience as a key driver of service delivery. Moreover, the experience is important in ensuring that our services go beyond customer expectation.
However, for the company to successfully pick up, the first year of operation the personnel will include the manager one receptionist, Two ground supervisors. The supervisors will be highly experienced in handling pets. Past experience mandatory and verifiable. Appendix 1 illustrates the remunerations of the employees for the first three years.
The company is owned and operated by Lindsey Marie Pounder, the investor. As the sole owner, all management and sales reports shall be compiled to their office weekly. Such reports will form basis of decision making in the company. Since B&B Furling Boarding is located in the community, there will be an annual meeting of all stakeholders during which the company will assess its impact in the neighborhood. Moreover, it will create opportunity to enhance their mandate of social inclusivity in the administration of the company. The approach aims at improving goodwill and eventually points to viable policies that if adopted will enhance service delivery. All further recruitments will be dependent on the decisions of the manager and the proprietor. The following are the members of the management team:
Lyndsey P.: Owner and Managing director
Lyndsey is a Bachelor of Science in Veterinary Sciences from the University of Chicago. He has a Masters in Entrepreneurship and management science. He has been working with the Sbingdon Square Veterinary Clinic as a marketing officer for the veterinary services since 1998. Lyndsey is passionate about pets and has worked as part time as a pet veterinary officer for the volunteer community program based in Portland. Among his many roles in the community volunteer program, Lindsey has delivered three successful pet operations in New York. As a company aspiring to attract clients faster, we will crown Lyndsey with the leadership of the company. Among important decisions to make will include sales projections of feeds as well as advanced care for the pets under critical conditions.
Patrick Collen: Operations manager
Patrick Collen will serve as the manager of the company. has worked there since 2009 when he graduated with Bachelors in Diploma in business administration from the MIT. In 2008. He holds a bachelor degree in Communication sciences. On the other hand, Collen is a long serving call center manager of a zoo based in New York. Collen is self-driven with strong passion for pets. He owns and cares for his three pets in his yard.
B&B Furling Boarding aims to enhance community involvement by forming partnerships with the local clubs and business operators in Portland. As an animal conservationist, we believe in the power of safeguarding the environment. As such, B&B furling Boarding will engage the society in implementing a ‘go green initiative’ which will see the community engaged in planting trees and flower in their yards. The company purposes to conduct an annual social event to undertake such a program. We are optimistic that all the players will facilitate the event in the future.
The growth process of a company constitutes four basic parts which include the introduction, growth, maturity and the decline phases. As we look to introduce our products into the market, we are passionate that our personnel and service are needed in the market. Based on our value proposition theme of “know is all’s” our rigorous planning and the marketing approaches aims to offer our customer adequate satisfaction. Our objective is to expand our operations within one year of operation. Significantly, our operations are premised on appreciating the role of both existing and new customers in the growth process of the company. In a bid to expand our operations, we anticipate that in future we will open up more pet boarding locations for the rural populations. B&B Furling will commit to franchising as a way of increasing its brand recognition in the market. Moreover, we hope that we will fully automate our services especially reception so that we can serve our customers more efficiently.
Income statement: Annual
Income statement: Three-year projection
Cash-Flow Projection: Monthly
Cash-flow projection: One-year
Balance sheet: Annual
Balance sheet: One-year Projection
List and Sources of Funds
For this section, please come up with reasonable costing and revenues for the business.
Use the values to generate the statement please.
I have 24hrs for this!
References AT&T. (2018, July). AT&T Phone. Retrieved from AT&T: https://www.att.com/smallbusiness/explore/uversephone.html AT&T. (2018, July). Build It For Me: Need a hand? Retrieved from AT&T Small Business: https://www.att.com/shop/hostingtechservices/smb/builditformebasic.html?customer_type=smallbusiness&product_suite=buildItForMe&success_token=UR_REFERRAL#!/ Balas, M. (2013, Jan 16). New AVMA report ranks Oregon fourth-highest for pet ownership. Retrieved from Oregonlive The Oregonian: https://www.oregonlive.com/pets/index.ssf/2013/01/new_avma_report_ranks_oregon_f.html Grand View Research, Inc. (2018, Mar). Grand View Research. Retrieved from Pet Care Market Size, Share & Trends Analysis Report By Pet Type (Dog, Cat, Fish, Bird), By Products, Competitive Landscape, And Segment Forecasts, 2018 – 2025: https://www.grandviewresearch.com/industry-analysis/pet-care-market IBIS World. (2017, Dec). Pet Grooming & Boarding – US Market Research Report. Retrieved from https://www.ibisworld.com/industry-trends/market-research-reports/other-services-except-public-administration/personal-laundry/pet-grooming-boarding.html IBISWorld. (2017, Dec). IBIS World. Retrieved from Pet Grooming & Boarding – US Market Research Report: https://www.ibisworld.com/industry-trends/market-research-reports/other-services-except-public-administration/personal-laundry/pet-grooming-boarding.html IBPSA. (2018). IBPSA About. Retrieved from IBPSA: https://www.ibpsa.com/about/ United Census Bureau. (2016, July 1). QuickFacts Portland city, Oregon. Retrieved from United States Census Bureau: https://www.census.gov/quickfacts/fact/table/portlandcityoregon/PST045216
My Notes and Reminders – Please Pay no mind to this nor view it for grading or project purposes
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Running head: COULEURS DU MONDE 1
COULEURS DU MONDE 2
MONROE COLLEGE King Graduate School of Business Management MG Strategic Management BY TO Dr. Roberta Harris
Table of Contents
Couleurs du Monde 4 Mission 4 Vision Statement 4 Company Objectives 5 Target Market 5 Hiring and Training 5 Profits 5 Company Description 6 Restaurant, Bar and Lounge 6 Industry Analysis and Trends 7 Restaurant, Bar and Night Club Industry 7 Full-Service/Fast Food Industry 7 Bars and Nightclubs 8 Target Market 10 Demographics and Customer Profile 11 The Competition 11 Maite Restaurant 12 Briskettown- 12 Kristophe- 12 Samurai Mama 12 Brooklyn Bowl 12 Strategic Position and Risk Assessment 13 Variable Operating Costs 13 Dependence on Consumer Spending 14 Flat Alcoholic Beverage Consumption 14 Critical Issue 14 Marketing Plan and Strategies 15 Upselling 15 Promotional Specials 15 Advertising and Promotion 16 Websites and Mobile Applications 16 Social Media Advertising 16 Word of Mouth Advertising 17 Radio Advertising 17 Brochures and Banners 17 Blast Emailing 18 Celebrity Advertising 18 Keys to Success 18 Customer Loyalty Programs/ Specials 19 Employee Training Programs 19 Operations Plan 19 Venue Space/ Rentals 21 Pricing Strategy 21 Technology Plan 22 Management and Organization 22 Garret Ganesh 22 Ezra Bailey 23 Jennie Bodden 23 Managerial Responsibilities 24 Community Involvement and Social Responsibility 24 Development, Milestones and Contingency/Exit Plan 24 The Financials 25 Summary and Overview 25 Sources and Use of Funds 25 Assumptions 26 Startup Expenses 26 Summary Projections 26 Annual Growth Rate Percentage 26 Weekly Sales Variance- 26 Seasonal Sales Variance- 27 Income Statement 27 Expenses 27 Income 27 Balance Sheet 29 Cash Flow Projection 31 Breakeven Analysis 32
Couleurs du Monde” or as we may say “Colors of the World” is an exotic restaurant, bar and lounge that seeks to combine the many colors of the world. We are in the heart of where the nightlife strikes; Williamsburg, New York. The merging of Caribbean, African and Asian culture is strong in the background of this vibrant place.
Couleurs du Monde management team, is dedicated to operating this restaurant, bar and lounge at its full capacity. Our team comprises of well-educated and experienced entrepreneurs who are experts in their professed field.
“Couleurs du Monde” goal is to capture the hearts of New York’s food, beverage and nightlife patrons. We want to spread the word about our excellent food and beverage, along with our outstanding service and exotic lounge. We believe that the popularity of fine dining and nightlife, with the highlight of our exotic dancers and live entertainment space will elevate “Couleurs du Monde” to being the ideal exotic, trendy and unique hot spot.
We see “Couleurs du Monde” as becoming a very popular hotspot for celebrities, high profile partygoers and persons who want to host special events and splurge in the “Colors of the World”.
“Couleurs du Monde” is an upcoming business in the food and beverage/entertainment industry. We will be situated in Williamsburg, a place that is becoming popular for food, leisure and nightlife. Therefore, our objectives are as follows;
Increase and expand our market to young professionals over age 21 by implementing effective marketing strategies Furthermore, we aim to execute simple but effective food and beverage menu options in order capture the taste and preferences of consumers. Additionally, we are committed towards providing a safe zone policy into our business in order to ensure that consumers are comfortable and relaxed in the environment that they are enjoying their time and spending their money.
We want our consumers to have an exotic experience when they are at “Couleurs du Monde” therefore, we are committed to hiring and training the right staff in order to execute and exceed our consumers’ expectations. We want this business to be not just a thrill of exotic culture, but a mind-blowing occurrence that will create a stir in this market, and trigger a rippling effect that will distinguish our products and services from our competitors. Through our marketing and promotional strategies, we expect to capture at least 20 percent of the market share, and trigger our food and beverage sales.
We also are seeking to make our venue a hot spot for special events such as private parties, wedding receptions, birthday parties, product launches, and also the provision of catering services, in order to maximize our profit margins in the near future. Moreover, our exotic dancers are one of our unique attributes, therefore their highly skilled dance techniques will promote “Couleurs du Monde” through word of mouth thus drawing new and regular consumers to see these talented acts, and as such increasing our profit margins.
This combined entity captures the infusion of the cultural background of its three business partners. The restaurant and lounge is ideal for showcasing cultural genres and caters to the guest’s needs of relaxation, fun and expression in various forms. “Couleurs du Monde” a vibrant and high class chill spot, will be the next new place to have a wonderful time with family, friends and loved ones.
Our restaurant menu combines selective traditional Afro-Caribbean, Asian, and American food and our Executive Chef, ensures that our guests are overly satisfied and will keep on coming back for more. Additionally, our bar and lounge is the new hype place to be. The interior incorporates some of the many vibrant but classic architectural designs from many countries across the globe. Our bar menu serves some of the top alcoholic and non-alcoholic beverages executed by some of the very best and famous mixologists in the world.
Our sassy, exotic bar and lounge, will be operated by its Food and Beverage Director in order to maintain the smooth and upscale running of the bar and lounge area. Furthermore, our Events and Entertainment Director will focus on marketing and promoting our brand to our target market to ensure that we keep our customers satisfied with the product and service we offer. The General Manager oversees the full operations and financial operations of this business in order to maximize our overall goal. From exotic dancers to live entertainment, to celebrity hosting, you name it, we are ready to indulge you in the wonders of our colorful world.
Food Service Industry
Euromonitor International and Nation’s Restaurant News report that the global food services industry, including restaurants, generates close to $2.6 trillion in annual revenue. Most industry growth is expected to be generated in the Asian/Pacific region and Latin America. Furthermore, slower growth is projected for North America, due to intense competition in a saturated market. The U.S. restaurant, bars, and food services industry include more than 600,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $520 billion (Hoovers, 2015).
The foodservice industry is nearly equal in size to food retailing: For instance, the food marketing system, including food service and food retailing, supplied about $1.24 trillion worth of food in 2010, of this total, $594 billion was supplied by foodservice facilities. Commercial foodservice establishments accounted for the bulk of food away from home expenditures in 2010. Moreover, some food service establishments are located within facilities that are not predominantly engaged in dispensing meals and snacks, such as lodging places, recreational facilities, and retail stores. Conversely, schools and nursing homes are types of non-commercial foodservice establishments. Such establishments are often called institutional foodservice facilities.
The full-service and fast food industry, is the second largest segments of the commercial foodservice market. A full-service establishment includes a wait staff, and other amenities such as ceramic dishware, non-disposable utensils, and alcohol service. On the other hand, fast food restaurants use convenience as a selling point; they have no wait staff, menus tend to be limited, and dining amenities are usually scarce.
Over the past few decades, the market for fast food has grown more rapidly than that for food in full-service restaurants. As part of their growth strategy, fast food companies built more outlets closer to consumers’ homes and work places to make it more convenient for consumers to purchase meals and snacks. Many restaurant companies opened outlets in nontraditional locations such as department stores.
The state of the economy and alcohol-related trends drive the Bars, Nightclub and Drinking Establishment industry. Ideally, companies in this industry sell alcoholic beverages for on-premises consumption and most likely offer limited food service. These companies are usually local or regional since various state liquor laws make things harder for them to form large chains.
In the U. S. economy, revenues incorporate beer, which represents nearly 35 percent of sales, distilled spirits or hard liquor also 35 percent of sales, food and nonalcoholic beverages that is 15 percent of sales and wine which is 10 percent of sales. In this industry, the main customers are between the age group of 21 and 35, therefore most companies evaluate their target market based on interest with biker bars, sports bars, single bars and dance clubs which attract a variety of groups. With regards to sales, this can be determined on a seasonal basis with the summertime being the peak period (Hoovers, 2015).
Laws and regulations surrounding liquor vary from country to country. For example, the legal drinking age for beer and wine in Germany is 16. While drinking laws are less strict in some countries compared to those in the US, laws are stricter in other places. Many Islamic countries, for example, forbid the consumption of alcohol by Muslims. But some such countries allow hotels to sell alcohol in order to accommodate non-Muslim tourists. The U.S. bar and nightclub industry’s drinking establishments primarily engaged in the retail sale of alcoholic drinks number around 70,000, according to IBIS World, which generated approximately $24 billion in combined annual sales revenue, with the average establishment accounting for about $200,000. The industry has high product turnaround, but low profit margins that make it susceptible to any adverse changes in demand (including any recessionary declines).
States, representing the majority of drinking places were: Wisconsin with 4,489; California with 4,449; Texas with 4,388; New York with 4,283; Illinois with 3,634; Pennsylvania with 3,572; Florida with 3,191; and Ohio with 3,201. Other significant states included Michigan, New Jersey, Louisiana, Indiana, Iowa, Minnesota, and Washington. Worldwide, there are 61 nightlife markets. The top countries are Japan, China, India, Russia, Canada, Mexico, Brazil, Argentina, UK, France, Germany, Italy and U.S. No major companies dominate; varying state liquor laws complicate the ability to form large chains. The industry is highly fragmented: the 50 largest companies hold just over 5 percent of sales. Taverns were the largest sector within the industry, with 19,660 drinking places. Combined, they shared more than 32 percent of the market. Bars and lounges represented 19.8 percent edging out drinking places share of about 19.5 percent of the market. Cocktail lounges held 11.5 percent and night clubs had 8.6 percent. Per the U.S. Census Bureau’s Statistics of U.S. Businesses, there were about 351,912 people employed within the industry with nearly $4.1 billion in annual payroll in 2005.
Our potential location, Williamsburg, is situated in the borough of Brooklyn. This area has developed into one of New York City’s most culturally vibrant enclaves. According to a 2013 census conducted, there are over 1,629,159 inhabitants in Manhattan consisting of African Americans, Italians, Jews, Puerto Ricans, and Dominicans. Manhattanites are fleeing the already claustrophobic island they call home, Williamsburg welcomes this redevelopment with massive renovation and sky-high property making Brooklyn the new Manhattan as it continues to grow and evolve. Based on three zip codes in Williamsburg Brooklyn, there are approximately 97,764 males and 100,246 females residing in and around the 11206, 11211 and 11237 Williamsburg zip code. Of these individuals 12,824 are white collar workers employed in the area and 5,611 are blue collar workers. The household income and average income for persons under (25 is over $31,376), (25 to 44 – $53,067), (45 to 64 -$38,734) and (those over 65 is $22,667). This income reflects those persons who have been living in Williamsburg most of their lives and not the Manhattanites who are relocating to Williamsburg.
“Couleurs du Monde” seeks to capture a broad market. Through market research, we have recognized that people love to eat, drink and socialize. We are willing and ready to fulfill our guests’ desires with the product and services we have to offer. This is what differentiates us from our competitors. It is all about the ability to mix, mingle and be free in a place that is within your comfort zone. “Couleurs du Monde” is ready to capture the various markets that are focused on having an experience of their lifetime. We are aiming to capture the preferences of the following markets; Age 18 years and older (must be age 21 and over to enter the bar and lounge), singles, couples, families, food and beverage lovers, music lovers, night life lovers, special event planners, promoters, musicians, artistes, celebrities, tourists, middle to high income individuals and exotic dance lovers.
Williamsburg is located in the borough of Brooklyn community district 1, bordering Greenpoint to the north; Bedford–Stuyvesant to the south; Bushwick, East Williamsburg, and Ridgewood, Queens to the east; and Fort Greene and the East River to the west. Its water front offers a spectacular view of Manhattan and the East side river. Williamsburg is one of Brooklyn’s most popular and exciting districts connecting the old and the new; Young and old can experience the creative energy and young vibes in this area. The trendy Williamsburg scene showcases a backdrop of old industrial buildings, expansive waterfront high rises and a prehistoric community of Hasidim. To put in simple terms, Williamsburg is a mishmash of culture and panoramas, a wonderful blend and reflection of what “Couleurs du Monde” signifies.
The restaurant industry is highly competitive with respect to price, value and promotions, service, location, and food quality. There are a substantial number of restaurant operations that compete with us for customer traffic, some of which have significantly greater resources to aggressively market to consumers, which could result in our concepts losing market share. Consumers are highly focused on value and if other restaurants are able to promote and deliver a higher degree of value, our guest traffic levels may suffer, impacting revenues. In addition, with improving product offerings at quick-service restaurants and grocery stores, coupled with the present state of the economy, consumers may choose to trade down to these alternatives, which could also negatively affect revenues.
Personal income and entertainment preferences push demand. The profitability of specific and individual companies depends on its ability to drive traffic and develop a loyal clientele. Furthermore, small companies can compete effectively by catering to the local market, offering unique products and entertainment or exceeding customers’ expectations. Additionally, bars and nightclubs compete with other venues that offer alcoholic beverages or entertainment, these include restaurants hotels and casinos. These businesses also compete with alcohol consumption at home.
Williamsburg is home to an incredible array of the borough’s most creative restaurants, music venues, bars, lounges, taverns and nightclubs. Its competitive landscape is composed of more than 50 establishments, which offer variety of foods and environment styles. The competition comes in several forms, and there are several establishments that offer one or more than two services at their location. Some of our primary competitors in Williamsburg area are:
Brooklyn Bowl-is a cavernous and a bowling alley with live shows displayed on the screens above the lanes, with a music venue inside. It offers good food, an enormous bar with an impressive selection of craft beers.
To just name a few places, other restaurants with diverse culinary culture, such as American, Canadian, Caribbean, French, South African, Korean and Italian styles are also well established in Williamsburg district. Most of the establishments are small or medium sized; and are family owned and operated
Since the demand within the industry is driven by consumers’ tastes and incomes, there are no restaurants, bars or lounges with a dominant market share in Williamsburg. The financial viability of our industry depends on efficient operations, food quality, and effective marketing. Due to the homogeneous nature of the products and services offered in the industry, the main point of differentiation is therefore in the superior and customized customer services, unique and quality foods/cocktails products, and technology integration in service delivery.
In addition, Williamsburg’s foods and drinks establishments differentiate themselves by the diversity of cross-cultural atmosphere and decors. Therefore, our Restaurant/Bar/Lounge which offers a completely different environment (fusion of Caribbean, Asian and African cultures), will focus on customer service, quality and value as these are the top attributes consumers look for when choosing a restaurant or a place to hang out. Customers are looking for food quality, value and speed of service when picking where to dine. Pricing remains also a key element to have a competitive advantage and has the power to retain customers; therefore we will adjust our products’ prices in regards to our direct competitors.
Essentially, the food services industry is subject to fluctuations in various operating costs. Major cost areas include labor and insurance; opening, closing, relocating, and remodeling restaurants; advertising, marketing, and promotion; and ingredients, equipment, and utilities. Additionally, food prices can vary as a result of supply changes, which may be linked to severe weather such as droughts, heavy rains, and late freezes. If a business raises prices in response to increased costs, it could negatively impact sales.
Additionally, because restaurant meals are flexible purchases, demand is vulnerable to shifts in consumer confidence and spending patterns. For instance, when the recession occurred during the late 2000’s, industry employment fell as consumer spending decreased. Slower traffic and smaller tickets during tough economic times can put pressure on profits.
With regards to bars and nightclubs, increasing sales can be difficult due to flat alcoholic beverage consumption. The World Health Organization states that per-capita consumption of alcohol in the U.S. has been moderately constant in recent years, at about 2.5 gallons of pure alcohol per person annually. Also, the fall in demand for beer (the majority of the market) balances consumption gains for wine and hard liquor. However, sales of alcoholic beverages at U.S. bars and nightclubs are growing modestly as rising consumer spending has allowed some operators to increase drink prices, as stated by Technomic.
To start a business in an already saturated industry, we are aware that “Couleurs du Monde” is in its early stages and as such, face issues critical to its long term success. These critical issues include; establishing itself as a prime nightlife location, pursuing controlled growth that minimize the possibility of experiencing debt or bankruptcy. Furthermore, constantly monitoring customer satisfaction and ensuring that our growth strategy will never compromise service, product and satisfaction levels.
Couleurs du Monde sales and marketing strategy will emphasize the strengths of our company, our products and services. We will position ourselves as an aggressive, innovative company that supplies the market with high-quality food, beverages, entertainment and services.
Food and Beverage staff at Couleurs du Monde, will be taught the skill of upselling. For example, a waiter who knows his menu items and prices can increase a guest check by several dollars while improving the overall dining experience by simply suggesting additional items on the menu to go with their meal. Suggestive selling is very important to boost food and beverage sales at Couleurs du Monde.
One of the most effective forms of restaurant marketing is the promotional special. Labeling anything coveted by customers with the phrase “limited time only” is a strategy we will be implementing at Couleurs du Monde to fill the dining room. Whether it’s a temporary price reduction or a seasonal menu item, if customers think it won’t be available long, they take advantage while they can. For instance, we can implement specials on steak every Thursday. If the restaurant has a slow period between lunch and dinner, an “early bird” menu that’s only available between 2 p.m. and 4 p.m. will be a great strategy to fill any empty seats. For the bar and lounge, we can implement the ladies free before 12am promotions, happy hour appetizers and drinks specials as an effective strategy after a predetermined number of visits for our loyal consumers.
Regular guests are the most valuable resource for any established business. They will also help to market our restaurant, bar and lounge through word of mouth. To get the most profits, we will need to increase the number of repeat customers. Therefore, loyalty programs offer incentives such as small discounts, free menu items, birthday specials, and so on. This strategy will allow us to better market our target audience, and build relationships by showing how much we value our best customers.
Our focus and marketing message will be the services offered. We will develop our message, communicate it, and fulfill our commitment to excellence.
Many restaurants and bars have created their own website and mobile applications. Though this is not a requirement for all restaurants and bar establishments, but it is definitely something to consider if a large portion of our target market uses smart phones and computers. We will therefore customize our restaurant, bar and lounge mobile application and website. Consumers will easily find all important information, such as hours, location the menu options, upcoming events and they will be able to make reservations, view the entertainment night acts or just relax and sip on some of our popular cocktail and wine beverages while being entertained by our exotic dancers.
The first advertising scheme that, will be implemented is to create Facebook, Twitter, Instagram and Myspace accounts, and a personalized website. More and more, technology is affecting where customers choose to dine and have a good time. Social media represents a big part of technology. Accounts on social media sites are free, and we can use Twitter, Facebook, Myspace and other social media outlets to advertise events, have giveaways or otherwise keep customers and followers up-to-date on restaurant and lounge activities and events.
In a recent survey, 93 percent of people older than 21 year olds have a Facebook, Twitter or Instagram account. And the positive outcome with those social medium is the “word of mouth” effect that they bring. Through the word of mouth effect, we will be able to create a positive buzz about our restaurant, which provides tasty food, beverages and an enjoyable customer experience, so people will tell and invite their friends.
We will be using radio advertising to capture our audience. According to a survey on menucoverman.com, radio advertising reaches 80 percent of more than 21 year olds daily. For special promotions, at the lounge, radio advertising will be used for special events hosted on specific nights. We will not be looking to use radio advertising in the long run of the business due to its high costs, but it is important to us to spread the grand opening news through as many avenues as possible.
As mentioned above, brochures and banners will be part of our marketing strategy. The brochures will be printed to be handed out through the streets of Williamsburg. They will contain all the important features that will entice consumers to check out “Couleurs du Monde”. Furthermore, t-shirts, pens, mugs, coasters, hats, just to name a few, are all part of our promotional strategy specifically for night life activities.
Email marketing is traditionally used primarily to send out coupons, groupons, but our establishment can also use email to inform consumers who sign up about special events or new menu items. We will be also sending customers a special Happy Birthday email and also on holidays such as Labor Day, Christmas Day, etc. to show that we care and providing them with small gift specials. For the promotion of special events, email blasts are ideal in keeping customers aware of what is happening on special events nights and giving them options to experience the exotic nightlife we offer.
And lastly, hosting events is the way to make “Couleurs du Monde” the best place to be. We will have live music shows, stand-up comedy, celebrity appearances and other events in the lounge. This will help us to attract new customers and give our regular customers a reason to keep coming back. Events are fun for both the staff and consumers. Also, the longer the event lasts, the more likely consumers are to spend more money. This is extremely essential for boosting our sales margin.
Our keys to success is to provide a product and service that meets market demand and satisfaction. Once these keys are achieved, “Couleurs du Monde” will become a profitable and sustainable business. “Couleurs du Monde” will provide exceptional service that leaves a lasting impression with our main clientele. We will provide an unswerving atmosphere of food, beverage, entertainment and product quality, while managing all internal finances and cash flow to ensure an increase in profit growth. To ensure that “Couleurs du Monde” experience rising growth in investment, there will be firm control of all cost without any exemption.
At “Couleurs du Monde”, we want to increase and expand our market to young professionals over age 21 by implementing happy hour specials, drink specials, gift cards, free event tickets, private dancing specials and live Friday and Saturday night entertainment for our consumers. Furthermore, we aim to execute simple and affordable food and beverage menu options to capture the taste and preferences of our guests which will stimulate customer loyalty. Additionally, we are committed towards providing a safe zone policy into our business in order to ensure that guests are safe, comfortable and relaxed in the environment that they are enjoying their time and spending their money.
We want our guests to have an exotic experience when they are at “Couleurs du Monde” therefore, we are committed to hiring and training the right staff to execute and exceed our consumers’ expectations. We want this business to be not just a thrill of exotic culture, but a mind-blowing event that will create a stir in the Williamsburg market, and trigger a rippling effect that will distinguish our products and services from our competitors. Through our marketing and promotional strategies, we anticipate at least 20 percent of the market share in the first year, and trigger our food and beverage sales to either make a reasonable profit or break even in the first year of operation.
Couleurs du Monde operations strategy is to purchase food from the Williamsburg farmers market because the cost is less than what it would cost if we had to purchase food from major distributors such as Sysco or Baldor. This will do two things for the company; First it will help keep the local vendors in business and show that we want to do business with them. Secondly, our accounts payable will not be costly because we have eliminated the middleman.
Another strategy we have devised is that in the slow seasons, which are the months of (January-April) when income is not coming in as frequently as the others months, which are our typically busiest months (May-October), we will participate in trade shows. This opportunity will allow us to promote “Couleurs du Monde” as well as entering the business in restaurant week and doing weekly contests, which a lucky guest win and enjoy a free lunch/dinner when they sign up for our customer loyalty program. The purpose of this operations strategy is to make sure that our accounts payable is lower than our accounts receivable and by us following this plan, we will notice that we may generate more revenue in our slow seasons thus, minimizing our food cost. Therefore, we intend to break even faster than what we originally anticipate. To properly manage the restaurant, and part of Couleurs du Monde along with the bar, we will hire approximately 15-20 employees. They will serve many purposes and will all be cross trained in the event of a call out or sickness. Also, Couleurs du Monde will need employees to manage the entrance and exit which includes 2 hostesses to check the VIP list along with collecting the cover fee. Security will ensure no underage patrons can enter, and they will also enforce dress code. The bar will need employees to bartend, along with bottle waitresses and someone to clean and monitor the bar. As time prevails and business starts increasing, we will be able to hire additional staff to cover the needs of Couleurs du Monde. This include bathroom attendants, coat check staff, additional bartenders, food servers, bottle waitresses and eventually a bar manager so the owners will be able to focus their abilities on improving other facets of the business.
We also are seeking to make our venue a hot spot for special events such as private parties, wedding receptions, birthday parties, product launches, and also the provision of catering services, to maximize our profit margins in the near future. Moreover, our exotic dancers are one of our uncommon attributes, therefore their highly skilled dance techniques will promote “Couleurs du Monde” through word of mouth thus, drawing new and regular consumers to see these talented acts.
“Couleurs Du Monde” has a price range and percentage for three areas of the company. The first area is the food and labor cost which is calculated as a percentage of the total volume of sales. If “Couleurs Du Monde” generates approximately $20,000 per week in sales, the total cost of food and beverage is $7,000 for that week, or 35 percent. The labor cost will be almost $5,000 for the week, or 25 percent. Our appetizers range from $9-$15, the entrée range from $18-$34, depending on the fish of the day and the special we will be promoting. Our dessert menu will range from $5-$10.
Couleurs Du Monde food menu will be semi-a la carte providing guests with a variety of options. We purchase food items from the farmers market rather than a distributor, therefore our food cost is less expensive. We are aiming at a 5 percent markup on the price of food. For example, Couleurs Du Monde offers an appetizer “grill chicken wonton taco with a crunchy slaw”, the cost to purchase the items which include the chicken, the wonton wraps and cabbage is $2.00+$1.00 “labor”=$3.00. We will then add a 5 percent markup which totals to $1.50. Two wonton tacos are $4.50 but we offer four wontons for an appetizer. Hence, $4.50+$4.50=$9.00.
Secondly, our beverage prices will range at $10-$20 depending on the top shelf liquor chosen. The bottle prices will also come in packages, but average price per bottle will be $200.
Couleurs Du Monde third price range is for the “Couleurs” dancers. The estimated price charges per guest for an exotic dance are: $15 for five minutes, $20 for ten minutes, and $25 for fifteen minutes and $35 for twenty minutes. Guests will have the option of choosing the exotic package they desire.
Couleurs du Monde will be incorporating the basic technological systems used in the restaurant industry today. Some of the technology to be incorporated at Couleurs du Monde is a Website, Mobile Applications, Flat screen TV installations, Surround Sound System, Hi-tech DJ turntables, PA System, Wi-Fi, Telephone/mobile communication System, Industrial Kitchen Equipment, Breadcrumb Point of Sale System and a Safety and Security/CCTV System.
The company will be operated by three business partners; namely, Garret Ganesh, Ezra Bailey, and Jennie Bodden. Each partner delivers a different facet to make the business diverse and unique.
Garret Ganesh has a 15 year work experience with Fortune 500 companies such as Walgreens and Verizon. He is well versed in customer service, managerial skills, operations, and sales. He has worked in management positions within the Walgreens Pharmacy Company and managed 20 employees. He has also worked for AAA in which he gained knowledge of customer service skills within a call center. Garret has worked for Verizon Wireless within many different positions gaining valuable knowledge of sales, operations, inventory, and merchandising. He holds a Bachelors of Business Administration in Business Management from Monroe College. Garret is pursuing a Master of Business Administration in Entrepreneurship also from Monroe College.
Ezra Bailey, is from the twin island Republic of Trinidad and Tobago. Ezra has 10 years of experience working in the hospitality industry. She worked as a Food and Beverage Service staff supervisor (under Johny Kanor Quality Services) at various hotels such as the Hyatt Regency, Hilton otHhohotels, and events such as the well-known “Carnival festival” in Trinidad and Tobago. Ezra also has 2 years’ experience working as a Front Desk Coordinator at The School of Hospitality Management and The Culinary Arts at Monroe College where she coordinates daily administrative duties in this office. She also works as an Entertainment Agent for The Dining Lab restaurant, sourcing talented students to perform on entertainment nights. Furthermore she, has worked for 1 year with iAdonia LLC a special events company that caters to celebrity event’s needs. She holds a Bachelors of Business Administration degree in Hospitality Management and pursuing a Masters of Business Administration degree, in Entrepreneurship both from Monroe College.
Jennie Bodden has 14 years’ work experience in the food and beverage department. She worked as the executive chef at the W hotel located in Manhattan. She obtained her Associates of Science degree in Culinary Arts and her Bachelors of Business Administration in Hospitality Management, and she is currently pursuing a Masters of Business Administration degree, in Entrepreneurship all from Monroe College.
Each partner will be 33 percent owner of the business. The management team will work with employees on how to train and develop the skills which will be required of them. Each employee will fully understand what is required and expected of them on a daily basis. Management will coach and mentor employees along the learning process to develop a total work environment. Jennie will be dealing with the menu and costs of food due to her extensive background. Ezra will be working on marketing the business along with customer service skills to retain business. Garret will ensure operationally everything is sound from day to day operations to financial operations. Management will recruit employees by word of mouth along with using the internet.
Our community involvement strategy is to form partnerships with the local businesses vendors and markets within the Williamsburg/Brooklyn community to support them in their development and growth. Couleurs du Monde also wants to initiate a go green program that can bring awareness to consumers on recycling, the benefits of going green and the initiatives that should be used to preserve the environment.
Although Couleurs du Monde is operating in a competitive market, with rigorous planning and marketing strategies Couleurs du Monde will attract and retain new and loyal customers while building brand recognition and sustaining the business reputation. In the future, we plan to grow and expand this business to the different boroughs of New York City (Manhattan, Bronx, Harlem etc.). Furthermore, we plan to offer new services such as catering and venue rental to increase our profits especially in slower seasons. We also plan to increase menu selections as the business grows to offer increased variety. We have no plans to exit the industry. Couleurs du Monde, is a brand that is here to stay.
The three partners of Couleurs du Monde, Ezra Bailey, Jennie Bodden, and Garret Ganesh will be seeking various avenues apart from personal investments to finance the restaurant, bar and lounge. Each partner will invest $1.3million into the business, bringing personal investment to $43.9 million. The funds will be used to develop a two story leased commercial space with a parking lot for complimentary valet parking. The property approximate size is 10,000sqft and is estimated to be leased for $50 per square foot.
The financial need in order for Couleurs du Monde to begin operation, will be approximately $6million. Along with personal savings from the partners, we are looking for an additional $1.7million in the terms of loans with consultation and assistance from the Small Business Association, Empire State Development, and Start-Up NY. These funds will allow Couleurs du Monde to invest in renovations, furniture, kitchen equipment, liquor license, food & restaurant provisions, legal fees, working capital, marketing and personnel. There will be a bank account setup with $100, 000 for any additional expense in the first year.
Couleurs du Monde will use the capital requested, for renovation of property, purchasing equipment, insurance fees for business and facility, legal and counselling fees associated with the operation of the restaurant, bar and lounge. The funding will also cover marketing and advertising initiatives for Couleurs du Monde, working capital to cover wages for employees, operating capital to cover expenditures associated with the running of the establishment and acquiescence with local, state, and federal laws.
|Repair and Maintenance Expense||$803,600|
Annual Growth Rate Percentage– We forecast moderate growth over the coming years, with 0.37 percent in the second year, 0.87 percent in the third year, these slow increases are due to stiff competition from the other well established businesses offering same or similar products and services.
Both the weekly percentage and the seasonal percentages are generated based on years of experience each partner have in the restaurant business, as well as survey, observations and research conducted during each season and on various days of the weeks.
Weekly Sales Variance-Friday and Saturday are projected to be the highest days in sales, Monday through Thursday are represented as a percentage comparative to Saturday. Therefore, the weekly sales will vary as follows:
|Monday: 50%||Thursday: 90%|
|Tuesday: 60%||Friday: 95%|
|Wednesday: 70%||Saturday: 100%|
Seasonal Sales Variance–In New York, April through mid-November, is the most productive sales period, summer months are usually the busiest period for the month. This forecast is reflected in a seasonal variance as follows:
|January: 50%||May: 80%||September: 95%|
|February: 55%||June: 80%||October: 90%|
|March: 65%||July: 100%||November: 90%|
|April: 75%||August: 100%||December: 80%|
As a startup business, for the first year of operation, Couleurs du Monde will generate the majority of its expenses due to operating activities such as renovations, advertisement, wages, utilities and miscellaneous which includes permits and other requirements. Repair and Maintenance will be significantly high due to renovations made on the building. Furthermore, advertising costs will fluctuate due to the use of mainstream celebrities to encourage patronage during slow periods.
The majority of income generated by Couleurs du Monde, will be accrued from alcohol and spirit sales; the use of free appetizers will be used to attract patrons into purchasing alcohol. Other measures of the business such as the entertainment, and exotic dancers will assist in boosting the income level of the business. Based on the projected income statement, there is a 2 percent increase in sales revenue in year 2 compared to year 1, and a 0.14 percent increase in year 3 as compared to year 2. Consider the following income statement overleaf for Couleurs du Monde, for the period 2015 to 2017.
Although the property is leased, the space needs to be expanded to accommodate the design size and features of the restaurant, bar and lounge, this entity will undergo a two year construction process, Couleurs du Monde has no plans of paying dividends in the near future. Consider the following balance sheet below for Couleurs du Monde, for the period 2015 to 2017.
The projected cash flow states that the business will be performing well between the years 2015 to 2018, stating a projected net cash increase of $712, 510.70 in year 2 and $2,785,084.10 in year 3. Consider the following cash flow below for Couleurs du Monde, for the period 2015 to 2017.
|Couleurs Du Monde|
|Statement of Cash Flow|
|Period 2015 to 2017|
|Cash Flow from Operating Activities||Year 2015||Year 2016||Year 2017|
|Adjustments to reconcile net income to net cash provided by operating activities|
|Depreciation Equipment Expense||50,000.00||50,000.00||50,000.00|
|Increase in Cash||3,092,000.00||(2,480,000.00)||(1,320,000.00)|
|Increase in Account Receivable||1,320,000.00||(230,000.00)||(50,000.00)|
|Increase in Inventory||1,500,000.00||(350,000.00)||(50,000.00)|
|Increase in Supplies||200,000.00||(10,000.00)||(15,000.00)|
|Decrease/Increase in Advertising Expense||13,200.00||4,400.00||(1,100.00)|
|Decrease/Increase in Maintenance Expense||803,600.00||788,400.00||(4,367.00)|
|Decrease in Miscellaneous expense||57,000.00||(18,000.00)||(12,000.00)|
|Net cash provided by operating activities||8,444,760.00||1,587,510.70||2,981,584.10|
|Cash Flow from Investing Activities|
|Renovation of Building||2,100,000.00||(875,000.00)||(196,500.00)|
|Net cash used by investing activities||2,100,000.00||(875,000.00)||(196,500.00)|
|Cash Flow from Financing Activities|
|Net cash by financing activities||1,685,000.00||1,685,000.00||1,685,000.00|
|Net cash Increase||12,229,760.00||2,397,510.70||4,470,084.10|
The assumption can be drawn that in the first year of operations, Couleurs du Monde is not looking to make a profit, but rather to break –even. In order to break –even, we must achieve sales of $1,727,726 calculated through using the contribution margin statement.
|Net Sales||$ 3,738,400|
|Interest Revenue||$ 647,000|
|Total Revenue Collected||$ 4,385,400|
|COGS (Cost of Goods Sold)||$ 800,000|
|Wages and Salaries Expense||$ 399,000|
|Total Variable Cost||$ 1,199,000|
|Contribution Margin||$ 3,186,400|
|Advertising Expense||$ 13,200|
|Utilities Expense||$ 65,000|
|Insurance Expense||$ 50,000|
|Depreciation Equipment Expense||$ 50,000|
|Miscellaneous Expense||$ 57,000|
|Repair and maintenance Expense||$ 803,600|
|Interest Expense||$ 134,800|
|Total Fixed Cost||$ 1,173,600|
|Profit Margin||$ 2,012,800|
|Taxes (30%)||$ 603,840|