ASH Fried Chicken

II. Executive Summary

Ash Fried Chickenis a new shop in the Fast Food industry. The shopisin a comfortable, familiar, town that has a strong need for more fast food options. Quick and ready to east on go dining experiences, the shop is ready to take benefit of the market need and provide better service Community in the area.

The Barking Town population is swiftly growing and more families moving to the area. It is Ash Fried Chicken plan to use the first-mover chance and set up itself as the preferred Fried Chicken shop. We believea locally-owned Fried Chicken option to serve the fast growing populationwith a fresh, and ready to east Manu opposite to an international fast food chain.

Thisbusiness plan calls for a stimulating, profitable year ahead with hope forecasted growth as we meet up the demands of the community. In all, this plandescribes a company with bright future prospects and looking forward to manage its orderly growth healthy company with good growth prospects, looking to manage its orderly growth in the near future.
III. General Company Description

Ash Fried Chicken will be retail Fried Chicken shop which will start its business in a shop in Barking High Street. The main business will be to sell Fried Chicken in an affordable price to everyone.

Now a days Fried Chicken is very popular in general public as it’s not only affordable and cheap but can be eaten on regular basis as you work in an office or you are schools going kid, you are looking for something quick to eat. Fried chicken is very popular because of KFC but due to high prices people especially school going and low income general public can not afford it on daily basis and they can not stop themselves to eat Fried Chicken. Keeping this in mind I am starting a new Fried Chicken shop with a difference.

Mission Statement:

High Quality balanced nutrition – keeping this in Mind Company will provide high quality food products and highest level of service.

Company’s Goals and Objectives:

We are sure our knowledge and understanding of Fried Chicken will give best Quality food product. Our Experience in customer’s requirements will make us on top. As working previously for last 10 years in a world renowned Fried Chicken company in different levels I have gained a vast experience of Fried Chicken business so I am sure I am able to fulfill all requirements to make Ash Fried Chicken a place for all to come and east.

Business Ownership:

As a Sole owner of Ash Fried Chicken Shop we will start business in a lease hold shop for £20,000 PAX the shop is Ground floor lock up shop providing a frontage of approximately 25ft, and with a return frontage leading onto Road of approximately 30ft. The shop has a retail area of approximately 650 sq ft and has the benefit of a 410 sq ft basement that can be used for multiple purposes. Business timing would be 10 am to midnight 7 days a week.

Growth Trends in Business:

According to government surveys, United Kingdom spending on "eating out" is continuing to increase. Spending on cooked food as a percentage of total average food-spend reached 55% in 1998. The growth in spending in the food service sector arises from a number of factors: The Fast Food industry is the fastest growing industry in United Kingdom as today’s busy and hectic life style where people working hours are increased and where time is money and both parents are working, fast food industry came as a life saver and time saver. People want quick and easily eaten food and do not want to spend time in kitchen for making meals. Fast food chains like KFC and McDonald’s gives people in United Kingdom a new trend where they can go personally or with family.

Market and Research Website Published a report on Fast Food & Home Delivery Outlets Market Report Plus 2005 and stated that The UK fast-food/takeaway and home delivery market was valued at an estimated £8.38bn in 2004 at retail selling prices (rsp), representing a sales growth of 3.9% over the previous year. The pace of growth in the market quickened in 2004 following a sales increase of just 3% in 2003.

Business Equipment:

In starting of Business we will try to use minimum equipment to not only save electricity but to see the sale volume of the shop. The minimum equipment would be 1 display cabinet, 1 fryer, 1 cold room, 1 chicken oven, 1 donor machine, 2 drink fridges, 12 covers, flour mixer, 1 chip dryer.

Targeted Market and customers:

In any Business reliability and Professionalism is the key attribute and we as an experienced Fried Chicken food store will develop a firm belief gradually in our customers. We will start our business on a minimum profit basis so the local community especially low income customers can afford our valuable services. My customers will be every one who loves Fried Chicken with chips and my plans are to make fried chicken in different tastes so every one can have their own choice available in my shop. Ash Fried Chicken offershigh quality Fried Chicken to a growing community that currently has limited availability of restaurants and no availability to delivery. At start up we will be open Monday to Sunday 10 am to 10pm. We will consider opening late and serving if there is a demand, and if forecast and financial analysis can justify the increased costs.

Business Licenses and permits:

I will take all Licenses and permits from appropriate authorities. I will take a full comprehensive insurance for my business and employees. Full Health and safety checks will be done.

Accounting and Cash Flow:

I have a basic knowledge of Accounting and I will try to attend courses to learn more so I can deal with my accounts.

ABC Accountants will be my accountants and they will deal all my tax and accounts related matters.

I have good computer knowledge and I will use SAGE as my payroll and accounting software.

I will use the accrual method of accounting as this is required by the Inland Revenue Service.

ABC Accountants will help me set up records for payments of national insurance and tax, income tax payments, payroll taxes and other stuff related to taxes.

Taxes will be paid within the right rime and bank accounts and other matters related to Banks will be checked on monthly basis.

ABC Accountants are experienced in retail business they will help me set up a internal system to controls and make sure that Ash Fried Chicken will receive all of its’ income without any waste, fraud, dishonest employees or carelessness.

There will be internal control policy which covers who will signs the checks and who will sign the good receiving and maintain the inventory and who will sign the purchase order.

Cash Flow Planning:

In any business, cash flow plays and important role. A business can not be run smoothly with profit if the business is failed to manage its cash. Every small and large businesses struggles with cash flow as if it’s not manage properly.

Start-up

Requirements

Start-up Expenses

Professional Fees (Legal, Accounting, Consulting)

£1,800

Placemats, Stationery, Business Cards

£1,100

Renovation

£8,300

Marketing

£2,500

Rent

£2,000

Expensed Equipment

£5,000

Insurance

£350

Website Development

£1,000

Misc Expense

£3,800

Total Start-up Expenses

£25,850

Start-up Assets

Cash Required

£23,100

Start-up Inventory

£6,000

Other Current Assets

£5,250

Long-term Assets

£20,300

Total Assets

£54,650

Total Requirements

£80,500

Start-up Funding

Start-up Expenses to Fund

£25,850

Start-up Assets to Fund

£54,650

Total Funding Required

£80,500

Assets

Non-cash Assets from Start-up

£31,550

Cash Requirements from Start-up

£23,100

Additional Cash Raised

£0

Cash Balance on Starting Date

£23,100

Total Assets

£54,650

Liabilities and Capital

Liabilities

Current Borrowing

£0

Long-term Liabilities

£25,000

Accounts Payable (Outstanding Bills)

£9,500

Other Current Liabilities (interest-free)

£0

Total Liabilities

£34,500

Capital

Planned Investment

Investor 1

£15,000

Owners

£30,000

Additional Investment Requirement

£1,000

Total Planned Investment

£46,000

Loss at Start-up (Start-up Expenses)

(£25,850)

Total Capital

£20,150

Total Capital and Liabilities

£54,650

Total Funding

£80,500

Cash Flow:

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Year

Cash Received

Cash from Operations

Cash Sales

£10,250

£8,750

£13,320

£15,200

£16,800

£20,640

£20,900

£26,000

£24,600

£26,000

£27106

£31,107

£240,673

Subtotal Cash from sales

£10,250

£8,750

£13,320

£15,200

£16,800

£20,640

£20,900

£26,000

£24,600

£26,000

£27106

£31,107

£240,673

Additional Cash Received

Sales Tax, VAT Received

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

New Current Borrowing

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

New Other Liabilities (interest-free)

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

New Long-term Liabilities

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

Sales of Other Current Assets

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

Sales of Long-term Assets

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

New Investment Received

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

Subtotal Cash Received

£10,250

£8,750

£13,320

£15,200

£16,800

£20,640

£20,900

£26,000

£24,600

£26,000

£27106

£31,107

£240,673

Expenditures

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Year

Expenditures from Operations

Cash Spending

£9,680

£12,800

£10,590

£11,500

£8,000

£12,750

£10,070

£7,650

£8,200

£6,320

£2,920

£5,240

£105,720

Bill Payments

£4,569

£4,600

£6,350

£7,850

£7,800

£8,832

£8,980

£10,480

£9,080

£11,432

£11,560

£13,850

£105,383

Subtotal Spent on Operations

£14,249

£17,400

£16,940

£19,350

£15,800

£21,582

£19,050

£18,130

£19,632

£17,732

£14,480

£19,090

£211,103

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

Principal Repayment of Current Borrowing

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

Other Liabilities Principal Repayment

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

Long-term Liabilities Principal Repayment

£6,000

Purchase Other Current Assets

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

Purchase Long-term Assets

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

Dividends

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

£0

Subtotal Cash Spent

£14,249

£17,400

£16,940

£19,350

£15,800

£21,582

£19,050

£18,130

£19,632

£17,732

£14,480

£19,090

£217,103

Net Cash Flow

£23,570

Cash Balance

£46,670

Financing

My requirements for start-up capital are as follows:

For expenses I will required either a start up capital or financing. Money required for items include buying supplies, getting a computer, equipment and fixtures, tooling, travel expenses and start-up operating cost. I have included these expense cash requirements in my monthly cash flow projection.

My sources of financing will be my personal capital and some financing from my friends and family. Because I am not taking any Bank loans I will depend on other sources like I will lease equipments and fixtures and I will take credit from different suppliers and mortgage companies. My accountants and friends and family relatives will be my referrals.

I will make presentations to possible lenders and my business plan will be the part of my business presentation, my personal bank statement and personal tax returns. In this presentation I will prepared the specific needs for my business and briefly how I will repay the payments. I will show possible lenders a cash flow projection showing sources of repayments.

Financial projections and Plans for future expansion

Once my business will start giving profit and I believe it will be at least 2 years when I will get my money back I will start my next plan for my business which will be my future expansion and growth plan and this expansion plan will not change my thinking of giving time to my family and friends and would prefer to take much burden on my self which I know I can not take or carry. So my plans will clear the future growth and expectations in my expansion plan. My plans are to start few new products like Pizza and other form of fast food with different beverages.

References:

* http://www.ers.usda.gov/publications/foodreview/jan1999/frjan99b.pdf

* http://www.researchandmarkets.com/reports/c25515

* http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073869162

* http://www.myownbusiness.org/plans/sample_html/all_product.html

* http://en.allexperts.com/q/Starting-Small-Business-1637/opening-new-business.htm

* http://www.paloalto.co.uk/business_plans/pizzeria_business_plan.cfm

* http://www.bplans.com/pizzeria_business_plan/executive_summary_fc.cfm

* Writing Business Plans That Get Results: A Step-by-step Guide (Paperback) by Michael O'Donnell

* 30 Minutes to Write a Business Plan (30 minutes series) (Paperback) by Brian Finch.

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