Assessment 1: Parts B
Identify a new or franchise enterprise in Australia which you might wish to establish as your own small
business.
Task
Word limit: 2000 words Part B of Assignment 1 is the ground work for the business plan you will undertake in
Assignment 2, your major assessment task. Before beginning Part B, you should read through the instructions
for Assignment 2 including the notes business plans.
Identify a new or franchise enterprise in Australia (if you choose a franchise the franchise cannot exist in
the location you are starting your business in) which you might wish to establish as your own small
business.
You should:
? Describe the nature of the business Restaurant
Identify your start-up mode (new or franchise business). New business. Why did you choose this mode?
Identify the ownership structure you would use. Pty Ltd Company Why did you choose this structure? What are
the personal risks associated with this structure?
Market research plan Prepare a detailed market research plan to establish the potential viability of your
enterprise choice (how you intend to conduct your market research);
Budget preparation Outline your preliminary budgets with respect to key assumptions including sales mix and
finance requirements (you must include an initial 12 month cash flow forecast and monthly sales mix).
(The amount of cash you have available for the venture from personal assets, including assistance from
friends and family is AUD$75,000. You may of course seek additional debt or equity funding from other
sources.)
You will also need to discuss the following:
Location City of Ballarat A specific site need not be selected yet but the general location, i.e. the city
or specific rural area, should be known.
Market positioning Broad approach. Casual Dining, see here. The food is better than most casual dining
restaurants though, for example, organic meats, locally sourced produced etc.
Are you expecting to aim at exclusive elements of the market or will your approach be broader? Market
research may change your perspective on the optimal positioning for your business.
? Competition The design of your market strategy will be dependent upon the expected number and type of
competitors. You are not expected to know the number or type of competitors in detail until an analysis of
the market is completed. However, you probably have some idea of the competition you anticipate. Do not
ignore competitors in associated fields. An operator of an indoor ice skating facility, for example, must
consider any leisure time activity provider as a competitor … not just other skating facilities.
Promotional ideas Newspapers, radio, television, trade journals, brochures … keep your promotional concepts
cost effective.
Primary data instrument (a summary of your market research plan) Interviews, questionnaires, observation …
how might you expect to collect first hand information about your potential market and about the
requirements of this type of business?
Secondary data sources (a summary of your market research plan) Where do you expect to be able to obtain
most of your secondary statistics?
Equity sources Will your own resources, combined with family and friends, be sufficient or will you need to
seek equity from somewhere else? If you will need a further infusion of equity capital what are the sources
you are likely to consider?
Debt sources It is unlikely that your businesses can be started entirely with the funds available from your
personal savings, family and friends. What sources of debt might be available and how will you determine if
it would be available in your circumstances
Employees Will the operation of this business require help from another individual? If so, how many will be
required and what skills and training will be required?
Management structure Experienced Restaurant Manager, Executive Chef etc to be appointed. How do you intend
to organise your operations? If the entrepreneur will be running the business alone what time will be
devoted to various key activities?
Information systems required These may be formal or informal. They may be expected to change over time as
the business develops. At this stage you should have some idea of the major areas in which information will
be required.
Timing of business goals and objectives While the timing of objectives may not be known this early in your
research into the feasibility of your project, you should have some idea of the primary objectives to be
reached.
Students must restrict their efforts in this assignment to the specific topics listed above, and not include
material which belongs in Assignment 2.