Business Plan

Healthy Kitchen
Geneva, Switzerland

This is a virtual kitchen on a web-site, which delivers food and drinks to offices and homes. In todays busy world people dont have much time to prepare healthy dishes at home. We know that in these days people will not be happy just to find something to eat they want to eat healthy.

Starting new business Lunch or Dinner on Internet

. The idea - to create a new website which offers many options for its customers for their lunch or dinner. This site is focused on people who are at home or at work. When a customer wants to order its food, he has to fill an easy registration form which gives his username and password. After that the customer has a several options:
y y y to make his choice from the menu for tomorrow (normal delivery) the delivery will be in the next day to make his choice from the menu for today the delivery will be at the same day (express delivery). Of course, the prices are bigger. to make his choice from a special menu which the site has generated itself.

The amount due should be paid when the order is received by the customer. . Financial plan this idea has a specific way of financing because the initial costs are significant (especially marketing costs), but after that the total costs are smaller than what a typical restaurant requires. Initial costs (1) company registering 1000 EUR (2) domain registering 500 EUR (3) staff hiring at first time we need approx.10 people chefs, manager, people for delivering. We will use informal methods for staff and also may publish free advertisement so we make our best to do this absolutely free. (4) website popularization 2000 EUR If you want to make money, you have to be well known. Thats why website popularization is very important and we have to make higher cost in it. (5) equipment costs 50 000 EUR Permanent costs per month (1) wages and insurances 5000 EUR (2) rent payment 1000 EUR (3) operative costs preparing the different menus in depends of the number of different menus. For one dish it will be approx. 3 EUR The initial cost should be returned after 2 3 years. The profit has to be about 30%.

The initial costs are needed to start the business, so they are as capital. So as our calculation has shown at the beginning we need approx. 53 500 EUR. It is good to have some cash reserve for unforeseen costs, so the sum is good to be min 55 000 EUR. If we do not have this sum we have two alternatives for landing capital: To invite partners who will receive shares of the property and profit in front of their capital To take a bank loan

The initial cost should be returned after 3 years which is 18 333 EUR annual. Also we have permanent cost as wages and insurances and rent. They are total 6 000 EUR monthly, or 72 000 EUR per year. The operative costs depend of the sales but for one dish they are 3 EUR average and the average price for dish is 4 EUR. So to cover the annual costs of 72 000 plus the part of initial cost 18 333 EUR (total 90 333 EUR) we have to sell 90 333 dishes per year (90 333/ profit from one dish 2 EUR). We want to make profit of about 30 % before taxes which means additional incomes for the sum of 27 099 EUR or selling 13 550 dishes more. Total we have to sell 72 266 dishes per year or 198 dishes per day if we work 7 days in the week. Realistically it will be very difficult to face that result in the first year. The web-site needs a couple of months to increase its popularity and more people to be attracted by the services it provides. So, the total amount of the incomes for the first year will be covered by 50 000 dishes. For the second year, the increase in the sales will be about 50% and for the third year 30%. Obviously the second years calculations shows that the profit after the third year cant cover the initial costs of 55 000. Also, the companys brand is more popular compare to the beginning of the first year. So, the managers take the decision to increase the price from 4 EUR to 4.50 EUR per dish. If we make the calculation according to the above circumstances and tax of the profit 10 % the cash flow will look as follows:

Year
Balance in the beginning of the year Incomes Initial costs Permanent costs Operative cost Balance at the end of the year

1st year
0

2nd year
(77 000)

3rd year
(74 000)

200 000 55 000 72 000 150 000 (77 000)

300 000 0 72 000 225 000 (74 000)

438 750 0 72 000 292 500 74 250

before taxes Taxes Balance after taxes Profit before taxes Profit after taxes 0 (77 000) -38.50% -38.50% 0 (74 000) -24.67% -24.67% 7 425 66 825 16.92% 15.23%

III. Analyze the competitors for this business sector in Geneva The real competitors for the company are all restaurants, websites and fast food places which offer food delivery for home and office. Most of them emphasize on a la minutes like pizza, Chinese food, sandwiches and other junk food. Unlike the other competitors, my company is focused on cooking of healthy dishes which are traditionally home-made. The main strategy is to attract people who dont have a time to cook but are strict to the healthy way of life. This strategy will be very successful and profitable because the healthy food tendency is gaining more and more supporters. The companys distribution policy will also use the power of supermarkets which have cooked dishes stands. In this way the company can reach these parts of consumers who dont have the habit to use Internet for this kind of service. This will also be a way to popularize the companys brand within a bigger audience. The competitors are often situated in places where they maintain not only a kitchen but many other things, which are required for a typical restaurant, such as saloon with tables for sitting, waiters, bartenders and furniture. My restaurant is not obliged to own these things, so the cost of service will be lower in this case. This fact will allow the company to supply at lower price which is a very important competitive advantage.

V. Organization plan An organizational plan is basically a to do list for the organization. It lists out the plan of work, programs, and organizational growth over a period of time. They can be pretty simple to create and use. Writing a plan can just mean getting a clear list of the types of work that need to be done, the tasks involved, who is responsible for them, and when theyll be done. The steps for creating an organizational plan are:
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Set priorities for the work Make sure tasks get done on time

y y y y y

Focus on one thing at a time Share work among staff, board members and volunteers Make your goals clear to funders Get a handle on big projects by breaking them down into smaller tasks See the big picture of what your organization is doing

The first and may be the most important things are to create an organization structure and making a financial plan. The company will define the employees needed and the proper capital structure (to take a loan from the bank or to find investors). The managers should take the decision whether the staff will be chosen by direct ad or by HR agency. Meanwhile the company has to start a procedure of signing a contract with website design company which will create the public vision for the restaurant. Also an important task is to rent a place for kitchen and for office. After that a deep research of the consumers behavior should be done to set the menu properly so much clients to be attracted. Very important step is to determine a useful distribution policy and to select the most proper distribution channels. There is no company without self assessment system. In this connection the choice of accounting policy and software is also an important thing to be done. The future financial health of the company requires setting and calculating many financial indicators. Also creating and future maintaining of correct cash flow balance should be a high priority task.