Asian Corner

- Asian Street Food Takeaway

Business Plan

Baihui Xie (9649049)

Shengjun Xi (9678001)

Weidi Shi (9668531)

Wen-Yuan Tsai (9673927)

Yifang Zhou (9637604)

2

Management summary

Asian Corner is a start-up Asian street food takeaway van located next to the

Learning Commons of the University of Manchester (UoM). The mission of

Asian Corner is to become the 1st choice of authentic Asian takeaway for UoM

students. Asian Corner offers a broad range of Asian street food and beverage,

where all the ingredients and recipes are as same as that of origin countries.

Through desk research and primary research including questionnaire, interview

and field research, it is found that there is a highly potential market of Asian street

food takeaway in the UoM. Asian Corner adopts differentiation focus corporate

strategy by targeting UoM students who are interested in Asian street food and

are in a hurry to take meals. More specifically, Asian Corner expects to obtain

the students of UoM and other consumers whose daily activities take place within

in 5-minutes’ walk to the Learning Commons of the UoM. Short queuing time,

authentic Asian street food and cheap food are the integrated unique selling point

to outperform competitors.

Asian Corner has four full-time employees, including one manager, two cooks

and one customer assistant. Asian Corner plans to borrow�10,000 from AMBS

Bank as a two-year loan, providing the bulk of the current financing required. It

is expected that Asian Corner will break even at the first quarter of the first

operation year.

3

Table of Contents

1. Introduction ...................................................................................................... 5

2. Financial & Marketing Objectives ................................................................... 5

3. Product/market background ............................................................................. 7

4. Marketing analysis ........................................................................................... 7 4.1 PEST ........................................................................................................... 7

4.1.1 Political ................................................................................................ 7 4.1.2 Economic ............................................................................................. 8 4.1.3 Social Trends ........................................................................................ 9 4.1.4 Technology ......................................................................................... 10

4.2 Key findings from primary research ......................................................... 11

5. Situation and SWOT analyses ....................................................................... 17 5.1 Internal Analysis ....................................................................................... 17 5.2 SWOT Analysis ........................................................................................ 18

5.2.1 Strengths ............................................................................................. 18 5.2.2 Weaknesses ........................................................................................ 19 5.2.3 Opportunities ...................................................................................... 19 5.2.4 Threats ................................................................................................ 20

6. Corporate Strategies ....................................................................................... 21

7. Marketing Strategies ...................................................................................... 21 7.1 Segmentation ............................................................................................ 21 7.2 Targeting ................................................................................................... 22 7.3 Positioning ................................................................................................ 22

8. Expected results ............................................................................................. 24

9. Our Marketing Strategy ................................................................................. 25 9.1 Product ...................................................................................................... 25 9.2 Price .......................................................................................................... 25 9.3 Place ......................................................................................................... 26 9.4 Promotion ................................................................................................. 27 9.5 People ....................................................................................................... 27

10. Controls and evaluations .............................................................................. 28

11. Financial implications/required budgets ...................................................... 28 11.1 Two Year Cash Flow .............................................................................. 29

4

11.2 Profit and Loss ........................................................................................ 29 11.3 Break-even Analysis ............................................................................... 29

12. Operation Considerations ............................................................................. 30 12.1 Production ............................................................................................... 30 12.2 Equipment ............................................................................................... 30 12.3 Personnel ................................................................................................ 31 12.4 Payment .................................................................................................. 31 12.5 Insurance ................................................................................................. 31 12.6 Emergency Control ................................................................................. 31

Reference ........................................................................................................... 33

Appendices ......................................................................................................... 36 Menu .......................................................................................................... 36

Cash Flow (Good) ..................................................................................... 37 Cash Flow (Bad) ........................................................................................ 38 Profit and Loss Statement(Good) .............................................................. 39 Profit and Loss Statement(Bad) ................................................................. 40

5

1. Introduction Our venture proposal is for an Asian street food takeaway named Asian Corner

located next to the Learning Commons in UoM. The report starts by illustrating

our financial and marketing objectives and a brief introduction of the market and

product background. The following session highlights marketing analysis

including PEST, customer behavior and competitors analysis. Furthermore, the

next session - SWOT analysis summarizes the external and internal factors that

can affect our business, followed by a detailed illustration of unique selling point.

Corporate strategy and marketing strategies are elaborated as well, following the

implementation of marketing programmes, inclusive of segmentation, targeting

and positioning, and marketing mix. The report ends with the expected results,

controls and evaluations, financial implications, as well as the operational

considerations.

2. Financial & Marketing Objectives 2.1 Financial Objectives

Asian Corner has the following financial objectives set for the first two years; it

will provide customers with fresh meals and fast service at a competitive price.

A monthly sales goal will be set to meet the high net margin to break even at the

first year.

Obtain a net margin of 60% within the first two years

Achieve profit growth of 10%-15% at the end of the second year

Reach the break-even point at the first year

2.2 Marketing Objectives

There are three factors involved in the marketing objectives – market share, repeat

purchase and brand awareness.

6

� Market Share

Given the field research of the ice cream van- takeaway van on campus, which is

located in front of the Manchester Museum, it is a reasonable estimation that

Asian Corner is able to sell at least 120 meals per day. However, the daily sales

amount would only account for approximately 2% of the entire market share,

(120/28 competitors x 200 meals sold), which is calculated as follows:

�200 sales/day is an average estimation based on field research of 10 in 28

competitor restaurants, which will be explained in following sections.�

By the end of the 2nd year, we expect to gain 5% of the entire market share.

Corresponding field researches will be conducted to measure it.

� Repeat Purchase

We aim to maintain a minimum repeat customer rate of 50% by the end of the

first year and reach a repeat rate of 70% by the end of the second year (see Table

1). Loyalty cards will be used for tracking and calculating customer repeat

purchases. The formula for calculation is returned loyalty cards/total *100%

equals repeat purchase rate.

� Brand Awareness

We strive to create strong brand awareness enabling 70% of UoM students to

recognize and choose Asian Corner by the end of the 2nd year. To measure the

degree of brand awareness, we will distribute surveys to students by asking them

relative questions.

daysales/ 200 x scompetitor 28CornerAsian ofday sales/ 120

7

3. Product/market background

There are many students in the University of Manchester who likes Asian food.

However, on campus, the nearest place they could go to is the Red Chili-

Chinese restaurant- which is costly and time-consuming. There is another group

of students who are time-driven and prefer to have takeaways rather than going

to restaurants. When these two segments of consumers overlap, this is gap which

is also the target market of Asian Corner. Therefore, Asian Corner will provide

diverse authentic Asian street food at a low price in a time-saving way.

4. Marketing analysis

4.1 PEST

In this section, the long-term macro environment factors which might affect on

our business model are summarized, including political, economic, social trends

and technology forces, enabling us to identify potential opportunities and threats.

4.1.1 Political

Political issues of the UK government affect our everyday lives, positively and

negatively. President Xi Jinping of the People’s Republic of China undertook a

State Visit to the UK in 2015, and a commitment between the two countries was

made to build a global comprehensive strategic partnership (GOV.UK 2015).

Both countries agree to cooperate on increasing the opportunities for young

people on education and tourism (GOV.UK 2015), witnessing a deeper political

trust, and more matured mutual beneficial exchanges (GOV.UK 2015). The

partnership between the UK and China will most likely boost the number of

Chinese students coming to Great Britain, providing a potential market for Asian

food.

Furthermore, UK has very strict regulations on food. When setting up a food

business exceeding 25% of the trade, food premises approval needs to be applied

8

(GOV.UK 2015). Additionally, the Food Standards Agency conducts rules on

food hygiene, food storage, waste management, recycling collection, and

appropriate training for staff and equipment, etc (Food Standard Agency 2015).

Inspections will be carried out by local authorities regularly or when a complaint

is made, to make sure that everything fits the legal requirements (Food Standard

Agency 2015). Asian Corner will follow the regulations carefully, since they

could cause both positive and negative effects on the business; food hygiene

rating schemes could strengthen consumer trusts, while failing to meet the rules

could cause a fine or termination of business.

4.1.2 Economic

The UK is ranked the 6th out of the OECD (the Organisation for Economic Co-

operation and Development) countries in the World Bank Ease of Doing Business

rankings, and the 8th overall in 2015 (Euromonitor International, 2015). In

addition, the UK is currently in deflation, as the consumer price has dropped 0.1%

in October 2015 (Trading Economics 2015). This was last seen in the country

half a century ago (Trading Economics 2015). From consumer’s point of view,

the decrease of prices for goods and services may seem like a positive

phenomenon, however, some shoppers may put off purchasing due to the

anticipation of lower prices to come (the Guardian 2015). Moreover, a continued

deflation could mean a less likely rise in interest rates (itv News 2015).

What is more, the UK’s street stall industry value is on the rise, along with

consumer’s expenditure on food (Euromonitor 2015). Narrowing down to

Manchester, the city faces a lower economic efficiency due to the shortage of

high-skilled individuals, resulting in a higher unemployment rate compared to the

rest of the UK (Manchester Economy 2015). This would affect the pricing tactics

adopted by Asian Corner. Overall, the city’s near-term economic outlook is

positive. Although the total GDP growth is a bit behind the rest of the country,

9

the region is projected to increase by 1.6% over 2015-2019 (Manchester

Economy 2015).

4.1.3 Social Trends

The ethnic population of the UK is getting more diverse, and has grown

considerably over the past decade, with African and Asian showing the strongest

growth (Lanschützer 2014). Moreover, people are becoming bold in their choices

of food and are willing to try different kinds of cuisines (Lanschützer 2014).

According to the Mintel report, nearly seven in ten consumers (69%) challenge

themselves to something that they have never tried before; among them, a third

believe that they like spicier food now more than they did before (Lanschützer

2014). Around 70% of British adults have eaten Chinese and Indian cuisines,

which have been deep-rooted among their life. More specifically, about 15% of

British people have Chinese and Indian cuisines fortnightly. Moreover, authentic

cooking sauce and ready meals have achieved great popularity (about 50%)

among British consumers. A 32% growth of retail value sales on world food has

been seen in the UK over 2008-2013, showing consumers’ confidence to eat out

(Lanschützer 2014). Among ethnic meals, only 17% of the customers would

choose to dine in a restaurant, while 27% (more likely to be younger generations

under-25s rather than over-35s) would favour ordering a takeaway (Lanschützer

2014).

Due to the large population eating Asian food, and consumers’ eat-on-the-way

lifestyles, Asian Corner has a relatively large potential market for an opportunity

of success.

Since the pre-recession years, the UK’s consumers’ grocery shopping habits have

changed: they have developed money-saving tactics such as purchasing fewer

items (Euromonitor International 2015). Cheaper prices from retailers such as

Lidl and Aldi let consumer acknowledge the way that money can stretchfurther;habits are built on shopping around and purchasing in smaller quantities (Euromonitor

10

International2015).AccordingtoAllegraFoodservice(2015),peoplearenotonlyeatingout

moreoften,theyalsotendtospendlessoneachmeal.EatinghabitswillaffectAsianCorner’s

marketingdecisions.

Narrowing down to Manchester, the young generation (20-29 years old) in the

city consists of 24.3% of the whole population (see Table 2). These young

students will be the main target customers, becoming a potential market for us.

(Table 2)

4.1.4 Technology

Revolution in technology changes the way business operates. Hardware and

software are launched to assist firms in targeting different customers. For

instance, adsmart technology helps customise advertisements. The growth in

technology shortens the time to access goods and services; the leading consumer

culture in the UK is becoming more and more convenience-driven (Childe 2015).

A handful of brands in the food service are launching pre-ordering or notification

apps for faster delivery. British customers even have the opportunity to pay with

their mobile phones or use apps with embedded loyalty cards. These technology

factors will impact Asian Corner as our business is not tech-savvy driven.

11

4.2 Key findings from primary research

4.2.1 Field research

This section illustrates our field research on a deep interview with the operational

manager of an ice-cream van which has similar business backgrounds as ours.

Through a deep interview with the operational manager of the ice-cream van, we

have collected detailed information for food vendors regarding operational

processes, logistics, fire precaution facilities, chef certificates, law issues, etc.

Because both the ice-cream van and the Asian Corner are operated on campus,

the success of the ice-cream van supports strongly that Asian Corner can also get

the university’s approval.

4.2.2 Consumer Analysis

This section will summarise the responses gathered and analyze the results. The

questionnaires were distributed on November 8th, 2015. By November 11th 2015,

48 (out of 53) valid replies have been received. Questions of the vital findings

will be presented in graphs with detailed analysis, and other questions will be

presented in the appendix. Three key findings are shown as follows:

• Opportunities in the target market

The second and third questions of the questionnaire are related to target

consumers’ eating habit towards takeaways. The results are shown in table 3 and

figure 1 respectively. The results show that respondents generally eat takeaways

7 times a month, i.e. 1-2 times a week, and the majority of them like Chinese,

Japanese, Korean and Thai takeaways. Therefore, it can be concluded that we

have large business opportunities in the target market. The result provides a

direction in designing our menu: to emphasize more on Chinese, Japanese,

Korean and Thai street food.

12

Question 2: How frequently do you normally eat takeaways (per month)?

Question 3: Thinking of takeaways, which of the following are you willing to try

(multiple choices)?

� Guides of Asian Corner’s menu

The forth and tenth questions are about consumer’s tastes and perceived value

towards price. From table 4 and Figure 2, it can be summarised that consumers

are quite fond of Asian street food, with Chinese bun, Pork Hamburger, Sushi,

Deuk Bog Gi and Fish Curry Noodle as the top five. Therefore, these dishes will

be the first choices on our menu. On the other hand, the ingredient costs of these

dishes will also be considered before they are placed on the menu. Moreover, the

average price of the dishes can also be estimated, which is less than £4.7 each.

The average price of our menu is based on our hybrid pricing strategies: cost-

based pricing and the competitor-based pricing, which will be further discussed.

13

Question 4: How much are you willing to pay for a takeaway (GBP)?

Question 10: If there is an Asian takeaway, which of the following will you be

interested in eating? (multiple choices)

� Location and Operational Time

14

The sixth, seventh and eighth questions (see Figures 3, 4 and 5) of the

questionnaire provide answers towards our target consumers’ preference for the

followings: when to have takeaways, maximum tolerance on queuing, desired

location for the van. It can be concluded that most of the customers prefer to have

takeaways from 9am to 3pm, and most of them are willing to wait for less than 5

minutes. What’s more, it also indicates that customers prefer having takeaways

near the Learning commons, the University Place and the Alliance Business

Building. We have decided on choosing the open space in front of the Learning

Commons as our business location considering issues such as accessibility,

convenience and university regulations.

Question 6: When do you prefer having a takeaway? (multiple choices)

Question 7: How long are you willing to wait for outdoor takeaways? (multiple

choices)

Question 8: If there is an outdoor Asian takeaway on campus, which will be

your most preferable location in the following map? (multiple choices)

15

4.3 Competitors Analysis

The lack of detailed information online indicates that it is imperative to find the

footfalls of our competitors by carrying out primary research. As a result, a week-

long on-site observation was conducted – tracking the traffic flow of our

competitors within two hours per restaurant. An approximate one-day footfall can

be estimated from the records we have tracked. This provides a sound evidence

of Asian Corner’s market share (please refer to session 3 - Marketing & Financial

Objectives for further details).

Due to the nature of Asian Corner, our competitors can be recognised from a

geographic perspective. Four roads, namely Mancunian Way, Upper Brook St,

Denmark Rd and Higher Cambridge St are used to form a closed area where all

the competitors are located, an area referred as “the competition zone”. Since we

target at a niche market, there is no direct competitor. However, there are many

indirect competitors who can be roughly divided into 5 categories:

“FoodOnCampus”, fast food chains, self-brand takeaways, Asian restaurants and

others.

16

• “FoodOnCampus”. It’s a company that operates a number of coffee shops,

cafes and restaurants in various buildings across campus. It offers hot

meals, refreshments and quick snacks with an average price of approximate

£5 per meal (including a main course and a drink). There are 18 spots

within the competition zone, e.g. “Café at The Learning Commons”

(FoodOnCampus 2015). The most significant advantage of

“FoodOnCampus” is the locations – all people on campus can easily find

a place to grab a quick meal at a comparatively low cost. However, mainly

serving “standard food” such as sandwiches, bread, coffee, cakes, etc.,

“FoodOnCampus” fails to meet diverse customer needs.

• Fast food chains. These are franchised restaurants run by international

brands who offer fast food such as burgers, chips, pizzas and so on. The

average cost for an ordinary meal is also approximate £5. Within the

competition zone there are 7 fast food chains, e.g. McDonald’s. Their main

advantage is the brand awareness, whereas the food they sell is extremely

common.

• Self-brand takeaways. Compared to fast food chains, this category refers

to the restaurants that operate under their own brands. This kind of

restaurants mostly have seats inside but are named as “takeaways” because

they mainly target people who are in a hurry and tend to buy food to take

out. Self-brand takeaways offer food similar to what fast food chains sell

with only flavours differing from one restaurant to another. The average

cost for an ordinary meal is comparatively the lowest at only about £3.5.

There are 6 self-brand takeaways inside the competition zone, e.g.

“Babylon”. Low costs represent the main advantage of this category but

there are many disadvantages such as hygiene issues and a relatively long

distance to the campus area where population is most intensive.

• Asian restaurants. These are restaurants specializing in Asian food

(especially Chinese, Japanese, Korean, etc.). Although some of them

17

provide takeaway or delivery service, most of their customers prefer to eat

inside the restaurants. The average price of an ordinary meal is about £7,

comparatively the highest. There are 4 Asian restaurants inside the

competition zone, e.g. “Red Chilli”. As indicated formerly, trying exotic

food has become a social trend. Asian restaurants’ biggest advantage is

their flavours, however, it is not enough to cover their shortcomings such

as high cost and slow service speed.

• Others. This category includes other kinds of restaurants such as self-brand

cafes and bars. They provide comparatively more diverse food with an

average price of £6 per meal. There are 12 within the competition zone,

e.g. “Kro Bar”. Their main advantage is the diversity of choice; however,

customers need to wait for a relative longer time in exchange.

Among all these competitors, the ones (28 of them) that are within a 5-minute

walk to the Learning Commons - where our van is going to be nearby – can be

regarded as Asian Corner’s main indirect competitors. The average price per meal

of them is £5.75.

5. Situation and SWOT analyses

5.1 Internal Analysis

There have been increasingly more international students who are open to trying

exotic food whilst what the university currently provides fails to meet their needs.

Another noticeable fact is that, although there are restaurants and takeaways to

satisfy students with specific preference of food and students who are in a hurry

respectively, a market blank remains as there is no one on campus to cater

especially for those who wants to save money and time while enjoy meals. Asian

Corner advents to fill in the gap by selling Asian takeaway food with a van behind

the Learning Commons.

18

The idea is believed to work because the research result shows that among all the

exotic food, Asian food is most popular and Chinese know their own food than

anyone else does. Furthermore, Asian Corner is going to provide authentic Asian

food with a student-friendly price and a comparatively fast speed. When it comes

to the staff, Asian Corner will have four full-time employees, inclusive one

manager, two cooks with a qualified a hygiene certificate and one customer

assistant. The two cooks are responsible for cooking at a shift schedule, and the

customer assistant take the role of cashiering, serving customers, keeping the van

clean and ensuring the food fresh and enough. The manager lead the whole

business, import ingredients and supervise the whole operational business.

5.2 SWOT Analysis

5.2.1 Strengths

Asian Corner’s strengths mainly come from two facets.

First of all, there is an optimal match between the social trend and the

characteristics of Asian Corner. The UK, according to the research, is a

convenience-driven country, which means people here tend to hate getting

involved in time-wasting things such as standing in queues (Childe 2015).

Correspondingly, one of Asian Corner’s unique selling points is serving tasty

food in a relatively fast way – customers could enjoy delicious meals in no more

than 5 minutes. Furthermore, nearly 25% of the residents in Manchester is

comprised by people aged between 20 and 29 (Manchester City Council, 2015),

30% of which are the students of the University of Manchester (Facts and Figures

2015), likely to become our customers.

Secondly, the characteristics of Asian Corner make the business stand out from

all the competitors. Without requiring for too much funding and specific hard-to-

gain skills, Asian Corner is comparatively easy to startup. It also has the location

advantage - the van is just around the corner near where potential customers will

19

be. More importantly, by serving diverse and authentic Asian dishes with a

relatively low price in a time-saving way, Asian Corner meets almost every major

concern that students have in terms of food consuming on campus.

5.2.2 Weaknesses

Asian Corner also has weaknesses which can be divided into three categories.

Firstly, Asian Corner can be easily influenced by external issues such as weather

conditions and opening time of the university. The weather in Manchester is

unpredictable and when it goes bad, students tend to stay indoor and have home

deliveries. Thus, the customer volume and revenue could be affected negatively.

As our target customers are the students of the University of Manchester, when

the majority of them leave campus during holidays, we may have to shorten our

operation hours.

Moreover, Asian Corner has several intrinsic limitations. Aiming to provide food

at a low price, we try to reduce cost by cutting off any unessential product

features. Therefore we offer no delivery service whilst most of our competitors

do. It is also hard to achieve balance between using authentic ingredients and

keeping cost low. There are other intrinsic weaknesses such as low brand

awareness and cash-only payment.

In addition to all shortcomings mentioned above, our strengths can sometimes

become weaknesses as well. Being easy to startup also means having a low

competitive threshold, which means Asian Corner is under a high risk of being

easily imitated by both current and potential competitors.

5.2.3 Opportunities

• Asian Population

According to the Equality and Human Rights Commission statistics (2000),

Manchester has the third largest Asian population after the West Midlands and

West Yorkshire (30 out of 1,000). Manchester City Council (2011) also indicates

20

that there are 17.1 % (see Chart 1) Asian residents in Manchester in 2011 with an

increasing momentum.

(Chart 1)

• Young Generation

In session 5.2.2 - Key findings from desk research, already indicates that there

are approximately 25% teenagers (20-29 years old) in Manchester in 2014,

providing a huge target market for our business plan.

• Sales of World Food

From 2013 to 2018, the sales of world food is predicted to increase by 23%,

showing a relatively huge developing possibility for us (LANSCHÜTZER 2014).

From a Mintel Report (2015) statistics result, 7 out of 10 people are willing to try

new authentic food that they have never tasted before, and more than 1 in 10

people complain that the ethnic food sold in supermarkets are not authentic. All

these data indicate opportunities for us, because most of the dishes in our menu

are new to the people in the UK and one of our unique selling points is being

authentic.

5.2.4 Threats

• Competitors

Nearby restaurants, such as Noodle Bar and Red Chilli provide home delivery

service. For consumers who want to save time, buying dishes from them is a better

choice compared to ours, which poses a threat to us.

• Convenient Apps

21

With the proliferation of technology tools, several convenient apps have been

launched (McNicoll 2014). Mobile loyalty apps will benefit customers with

preferable discounts, fast speed and convenience. This would be a threat as we

do not plan to launch any apps in the initial phase of our business.

• Unpredictable Weather

Manchester is called the "Rain City", which means when it rains, consumers tend

be reluctant in buying outdoors. Nevertheless, the buying behaviors of consumers

regularly studying at the Learning Commons or the Main Library will be affected

by bad weathers.

6. Corporate Strategies According to the Porter’s generic competitive strategies (Porter 1980), our

corporate strategy is differentiation focused. In the market scope dimension, we

focus on a relatively narrow market, i.e. students in UoM who are fond of Asian

food as well as time-conscious. It is obvious that cost leadership is irrelevant as

we are a small business without bargaining power towards suppliers or customers.

Our featured products are rare in the UoM market, indicating a competitive

advantage of differentiating ourselves from other rivals. Hence, our corporate

strategy is a hybrid one on the focus strategy and differentiation strategy.

7. Marketing Strategies

7.1 Segmentation

In the market for takeaway food, our target customers - the students of the

University of Manchester can be divided into different segments according to

their various preferences towards the flavors of food. More specifically, there is

a small amount of students who like British food while the majority is willing to

try foreign dishes. For the latter segment, students can be further divided into 8

sub-groups into students preferring Chinese food, Japanese food, Korean food,

22

Thai food, Indian food, Mexican food, Middle Eastern food and other food

respectively.

7.2 Targeting

According to the results of the investigation, the majority of respondents show an

overt preference toward Chinese, Japanese, Korean and Thai food. Therefore, we

are going to target these students, or more specifically, students who like Asian

food and are convenience-driven. A typical customer of ours should look like

this: he is a current student of the University of Manchester aged between 19 and

30. During an ordinary weekday, his daily activities would mainly take place in

the area within a 5-minute walk to the learning commons. He’s always tied up

with a busy schedule therefore cherishes every second. He is interested in Asian

food but is price conscious at the same time. Being energetic and open minded,

he tends to make prompt decisions, for example, following the fragrance of food

while walking down the street and try some foreign dishes he never had before.

7.3 Positioning

Four criteria, namely distance, speed, common and cost, are used to show how

we are compared to our competitors.

(Figure 6: Positioning Map)

23

� Distance

Because we are going to place the van behind the Learning Commons,

“FoodOnCampus” becomes the most threatening competitor in this case as it has

spots not only located in nearby buildings such as the main library but also inside

the Learning Commons. Then there are some fast food chains (e.g. McDonald’s),

Asian restaurants (e.g. Red Chilli) and other cafes and bars (e.g. Kro Bar). The

last competitors Asian Corner should think of in terms of distance are self-brand

takeaways as most of them locate next to the park beside Manchester

Metropolitan University – relatively far away from the van.

� Speed

Asian Corner aims to provide food with an average time of 5 minutes. Compared

to this, self-brand takeaways and “FoodOnCampus” are considered to be its main

competitors because most of their meals are semi-prepared. Then here comes the

fast food chains. It may cost other cafes and bars comparatively more time

because of the diverse options they provide and the Asian restaurants need the

longest time as they serve food with most multifarious process.

� Scarcity

Being authentic is one of Asian Corner’s unique selling points. Considering this,

what the Asian restaurants offer are also quite genuine; followed by the food

provided by other cafes and bars. “FoodOnCampus” sell standard western fast

food but with relatively various choices while most of self-brand takeaways only

serve fried chickens and chips. What comes last regarding to the degree of being

authentic is the fast food chains as, for examples, a customer may find that a cup

of milkshake in one of McDonald’s in China tastes almost the same as that in one

of McDonald’s in the UK.

� Cost

The price of the self-brand takeaways has the most competitive advantage,

24

followed by the price of the fast food chains and “FoodOnCampus”. Because of

the complex process of preparing food and comparatively fancier dinning

environment, the other cafes and bars cost more than the former categories and

the Asian restaurants are the most expensive ones. Asian Corner is able to surpass

all its competitors with respect to cost as it is also takeaway whereas has no dining

room.

To sum up, in terms of distance, from the closest to customers to the most far

away one, the order would be “FoodOnCampus”, Asian Corner, the fast food

chains, the Asian restaurants, the others, and the self-brand takeaways.

Considering the speed of serving, from the fastest to the slowest, the order would

be the self-brand takeaways, Asian Corner, “FoodOnCampus”, the fast food

chains, the others, and the Asian restaurants. Thinking of the degree of being

authentic, from the highest to the lowest, the order would be Asian Corner, the

Asian restaurants, the others, “FoodOnCampus”, the self-brand takeaways, and

the fast food chains. When it comes to cost, from the cheapest to the most

expensive one, the order would be Asian Corner, the self-brand takeaways, the

fast food chains, “FoodOnCampus”, the others, and the Asian restaurants.

Therefore, it can be concluded that Asian Corner owns an integrated competitive

advantage as compared to all of its competitors in terms of distance, speed,

common and cost, a competitive strength terms as the unique selling point. More

specifically, Asian Corner will offer diverse authentic Asian street food at a low

price in a time-saving way.

8. Expected results Please refer to 3.2 – Marketing Objectives for our expected results.

25

9. Our Marketing Strategy

This section will discuss in details how we will deliver value to our customers.

The marketing mix strategy will be applied as it encompasses most of the

elements that will influence our opportunities to maintain a prosperous grow in

the market. As our business will include services, an addition P – People will also

be discussed among the traditional 4Ps.

9.1 Product

We are aiming to introduce new products as additional choices for students of

UoM when they purchase their daily meals. Our products consist of a series of

Asian food and beverages. Given the result of our questionnaire, we will

concentrates on the top four favorable exotic takeaways –which are Chinese,

Japanese, Korean and Thai. More precisely, we will be offering 12 dishes and 5

beverages (Please refer to appendix for details). Limited seasonal meals e.g.

porridge will be offered constantly to diversify our product line. To ensure the

authentic taste and the quality of our products, we will be using ingredients

identical from the origin countries and the food will be cooked based on the

traditional recipes.

As a takeaway business, convenience will be a crucial concern because most

students are time-conscious. To minimize our customers’ queuing time, our food

will be 80% ready to eat and 15% semi-cooked to reduce preparation time.

Meanwhile, all our products will be packaged in disposable meal boxes or cups.

9.2 Price

Although our products are slightly differentiated from our competitors, it is

insufficient to compete with them for students who are price-conscious. Hence,

the overall principle of our pricing is competition-based pricing strategy. In

session 5.3 – Competitors Analysis, our competitors’ e.g. FoodOnCampus

average price is�5.75. At the same time, customers’ perceived value (i.e. which

26

is �4.70) should also be taken into consideration. We will set �5.00 as our

average price for a meal (food and beverage). Under such underlying premise,

our prices will be based on the variable costs such as ingredients and packaging.

To ensure profitability, a minimum 40% profit margin is also adopted in our

pricing. As a result, we will have a price advantage compared with Asian

restaurants. At the same time, compared with the other competitors, we have a

relatively cheaper price as well as distinctive products.

9.3 Place

Our business will be a van located nearby the Learning Commons. As

mentioned earlier, the ice cream van indicates the possibility of place a van on

campus. Our primary research shows that the Learning Commons is the most

preferable location for students. There will be two advantages in choosing this

specific spot. Firstly, we are different from our competitors on campus such as

the Cafés which only provide standard meal sets. Secondly, a large number of

students pass through this open area, which would be a business potential. Hence,

the location not only offers more exposure opportunities for us to numerous

potential customers, but also differentiated us from western style competitors.

In terms of our supply chains, the nearest Chinese supermarket, Wing Hing Long

located on Upper Brook Street will be the major supplier for a variety of exotic

and rare food materials. Moreover, to minimize our cost, the low-cost

supermarket, Worldwide on Oxford Road will be our supplier for common

vegetables e.g. cabbages. We will sign annual contracts with these two suppliers

on deliveries for goods averagely twice a week. Our storage room will be a rented

flat next to campus and equipped with a kitchen. Downstream our supply chain,

we will distribute our products directly to consumers. Without any intermediaries,

distribution fees will be saved and interactions with customers will be enhanced.

27

9.4 Promotion

Due to our limited budget and small size of business, we will emphasize on sales

promotion because it is cost-effective and straightforward. According to the

results of our questionnaire, the most preferable promotion – 10% student

discount for selected dishes will be used as a regular promotion during semesters.

Whereas during winter and summer holidays, with fewer students on campus,

more radical promotions like 3 for 2 will be deployed to increase sales.

Meanwhile, to create and maintain positive relationship with students, we will

distribute loyalty cards to motivate students to visit us more often. The loyalty

program will include five purchases for a free rice ball and ten purchases for a

free pork hamburger, etc. Moreover, other promotions such as free snacks and

new product trials will also be launched occasionally.

Without of doubt, solely depending on sales promotions will not be enough. We

will open our own pages on social media e.g. Facebook or Twitter to

communicate with our customers and send them our latest news. Social media

will be an effective platform to gain future insight about the market trend by

listening to customers’ feedback. As our business gradually evolves into maturity,

we will consider designing our own official website, or even an online Asian food

fans community for customer interactions.

9.5 People

Asian Corner plans to hire four employees including one manager with basic

cooking skills, two cooks and one customer assistant. Our manager will be

responsible for supervising operational process, our 2 cooks will take shifts and

be responsible for meal preparations, while our customer assistant will be

responsible for cashiering and other customer services. Before we launch our

business, a recruitment ad with detailed requirements will be uploaded to

mainstreamed job searching websites such as Total jobs. Interview will be carried

out to select the most qualified candidates for the role. After that, we will organise

28

internal trainings to instruct staffs with their job responsibilities. Staffs members

will be expected to interact with customers by interactively introducing products

to students and inquiring the preference and needs of students.

10. Controls and evaluations Depending on Asian Corner’s business proposition, these following items are

included in this session to illustrate how to monitor and control the business.

(Our staff members will be referred to as Manager A, Cook B, Cook C and

Customer Assistant D)

� As we only accept cash, it will be necessary to prepare enough changes

before opening hours every day.

� Manager A will financially wind up every day after 4 pm, and check sales

figures against targets every month.

� The cook on duty and Customer assistant D will take record of the

complaints/ service failure/product failure every day. During our weekly

meetings, which will be held on Mondays, these issues and general

performance over the past week will be discussed.

� Every time importing the ingredients, Cook B or cook C will be responsible

for checking the amount and quality and write down product diary.

11. Financial implications/required budgets Our financial implication will be based on observation across similar businesses

nearby the University of Manchester. The cost consists of estimation on our

equipments, rent, and other operating expenses. As a sole trader, we have set a

conservative forecast. Our top financial priorities in the first two years will be

repaying our 10,000 pounds long-term loan, paying our employees fairly,

covering our expenses on time, and generating a modest profit. We will anticipate

a profit increase of roughly 10%-15% after our second year of operation. The

29

following sections will outline important financial information.

11.1 Two Year Cash Flow

Our two-year cash flow tables for both good/bad situations are in appendices�

& �. The table shows our estimated loan principal repayment. We will be

responsible for repaying our loan with interest to MBA bank at 5% interest rate.

We will have a net cash balance of �23,212.5 in the first year and �43,492.3

in second year under good organized. But if we have business failures, we will

have a net cash balance of -�1,929.9 in first year and -�8,775.9 in second year.

11.2 Profit and Loss

Our profit and loss statement for the first two years in both good/bad situations

are in appendices� & �. We will become profitable early in the first year,

with net profits continuing to rise as sales increase if we are under good operation.

However, our net profit will remain decrease if we have less consumer than we

expect. Miscellaneous expenses include the costs of all promotions like the 10%

student discount and 3 for2. Maintenance & Repairs reflects a straight-line

depreciation of our long-term assets over a year. Moreover, the increase in

visibility cost of goods sold will allow us to reduce unnecessary food material

waste while maintaining the uniqueness of our food.

11.3 Break-even Analysis

Our break-even analysis shows that we will need to sell 16,572 meals totally to

breakeven at the first year (see Chart 2).

30

(Chart 2: Break-Even Point)

12. Operation Considerations This section will cover major materials, facilities, labours, equipment and

processes to run our business.

12.1 Production

• Preparation of food will be completed by our cooks in the company rented

suite kitchen, as ready to eat or semi-cook food can save consumers’ queuing

time.

• Quality control: customised quality testing processes to meet our material

quality, managers will train employees regularly on food quality aspects.

• Inventory control: compliance with First-in, first-out inventory food material

control concept. Fresh fruits and vegetables should comply in stock, making a

daily purchase based on sales volume of each dishes to adjust inventory.

12.2 Equipment

Things we will need to consider in the initial phrase of operation: Firstly, we need

to rent a takeaway food van during the first two years of operation. Secondly,

preparing all kinds of kitchen supplies, food packaged packaging paper or

31

biodegradable packing boxes, Consumables, Food Prep Equipment, Food raw

material storage boxes, office supplies according to the estimated sales volume at

the first year.

12.3 Personnel

We will have 3 employees (2 Cooks, 1 Customer Assistant), and 1 manager. Our

cooks will complete level 2 food hygiene trainings so that they can handle open

foods to customers. They need to have excellent cooking skills and experiences

in cooking Asian dishes. Our customer assistant will also complete level 2 food

hygiene training. Our full-time general manager with level 3 food hygiene

training, will handle inventory, daily operations, employment, food & labour

controls and oversee management controls, kitchen procedures, and food cost

controls(Ncass.org.uk 2015).

12.4 Payment

Cash is the only accepted and reliable form of payment for our business. We will

operate as "cash only" merchants because to reduce third parties intermediaries

or fees associated with other payment options (e.g. credit card, debit card).

12.5 Insurance

We are legally required to have these insurance:

• National Insurance: ensure employees are qualified for certain benefits

including the State Pension (Gov.uk 2015)

• Employer’s liability insurance: protect employees when they come across

injuries or fall ill in the course of their work (Gov.uk 2015)

• Public liability insurance: cover members of the public when they be hurt

by Asian Corner’s business (Bytestart.co.uk 2015)

12.6 Emergency Control

32

• Will have canopy in front of our van for customer to avoid getting wet in

raining days and also provide limited umbrellas (need to return) to

consumer

• Will have trash bin beside our van, and the slogan of environment-friendly

on the cover of our packages to remind our consumer.

• All employees will be trained on emergency fire safety in advance and

cover by our public liability insurance.

• Additional ingredients and food material will be prepared in our van for

extra food production.

• We will avoid business failures by asking advice from regular customer,

doing extra market research and food activities to attract consumer

attention.

• Have a copy of the University calendar for events every semester. If

activities are nearby the Learning Commons, we will inform our customers

on the notice board in front of the van a week in advance for further

operation details.

• In good weathers, consumer can enjoy all our takeaway meals at the bench

near the Learning Commons. On rainy or windy days, we will specifically

offer promotions on easy-takeaway food (Riceball, Chinese bun,

Dumplings, Popiah). Therefore, our consumer can enjoy easy-takeaway

foods inside buildings (The Main Library, Learning Commons, etc.)

33

Reference Arion McNicoll. (2014). The coolest things technology has up its sleeve in

2014, CNN, [Online]. Available from:

http://edition.cnn.com/2014/01/15/tech/innovation/the-coolest-things-

technology-2014/ [accessed: 11 November 2015]

Bethany Wall. (2014). Limited Service Restaurant (LSR) Specialty Shops -

Snacks, Beverages & Desserts, Mintel, [Online]. Available from:

http://reports.mintel.com/display/680514/ [accessed: 11 November 2015]

Bytestart.co.uk,. (2015). What is public liability insurance? – A guide for

businesses and start-ups | ByteStart. [online]. Available from:

http://www.bytestart.co.uk/what-is-public-liability-insurance.html [Accessed

December 15, 2015].

Childe, H. (2015). Login to Mintel Reports - Mintel Group Ltd.

Academic.mintel.com. [online]. Available from:

http://academic.mintel.com/display/733226/?highlight#hit1 [Accessed

December 17, 2015].

Equality and Human Rights Commission (2010). A critical review of the use of

stop and search powers in England and Wales, [Online]. Available from:

http://www.equalityhumanrights.com/sites/default/files/documents/raceinbrit

ain/ehrc_stop_and_search_report.pdf [accessed: 11 November 2015]

34

FoodOnCampus. (2015). Find Us (The University of Manchester). [Online].

Available from: http://www.foodoncampus.manchester.ac.uk/find-us/;

http://www.tastemcr.com/menus/ [accessed: 17 November 2015]

Gov.uk,. (2015). National Insurance - GOV.UK. [online]. Available from:

https://www.gov.uk/national-insurance/overview [Accessed December 15,

2015].

Gov.uk,. (2015). Employers' liability insurance - GOV.UK. [online]. Available

from: https://www.gov.uk/employers-liability-insurance [Accessed December

15, 2015].

GOV.UK, (2015). UK-China Joint Statement. Available from:

https://www.gov.uk/government/news/uk-china-joint-statement-2015 [accessed

22 October 2015]

GOV.UK, (2015). Food premises approval (England) Available from:

https://www.gov.uk/food-premises-approval [accessed 1 December 2015]

HEIDI LANSCHÜTZER. (2014). World Cuisines - UK, Mintel, [Online].

Available from:

http://academic.mintel.com/display/694299/?highlight [accessed: 11 November

2015]

Learnmarketing. (2015). PERCEPTUAL MAPPING/ POSITIONING MAP.

35

[Online]. Available from:

http://www.learnmarketing.net/perceptualmaps.htm [accessed: 19 November

2015]

Manchester City Council, [Online]. Available from:

http://www.manchester.gov.uk/info/200088/statistics_and_census/438/public_in

telligence/3 [accessed: 11 November 2015]

Ncass.org.uk,. (2015). Food hygiene training for caterers. [online]. Available

from:https://www.ncass.org.uk/training-area/online-hygiene-and-safety-

training [Accessed December 15, 2015].

Porter, M.E. (1980). Competitive strategy: Techniques for analyzing industries

and competitors. New York: The Free Press.

Trading Economics, (2015). UK Stays in Deflation for 2nd Month. Available

from:

http://www.tradingeconomics.com/united-kingdom/inflation-cpi [accessed 2

December 2015]

The Guardian, (2015) UK inflation is negative again, but what does this mean

for consumers?. Available from:

http://www.theguardian.com/money/2015/nov/17/uk-inflation-negative-

consumers-borrowers-debt [accessed 2 December 2015]

36

Appendices

Menu

� Cash Flow (Good)

Q1 Q2 Q3 Q4 Year1 Q1 Q2 Q3 Q4 Year210,000.00$ 14,875.00£ 24,465.62£ 21,642.85£ 10,000.00$ 23,212.49£ 27,256.35£ 39,974.17£ 40,290.15£ 23,212.49£

36,288.00£ 43,545.60£ 21,772.80£ 29,030.40£ 130,636.80£ 47,174.40£ 48,988.80£ 27,216.00£ 31,933.44£ 155,312.64£46,288.00$ 58,420.60£ 46,238.42£ 50,673.25£ 140,636.80$ 70,386.89£ 76,245.15£ 67,190.17£ 72,223.59£ 178,525.13£

256.03£ 256.03£ 256.03£ 256.03£ 1,024.12£ 256.03£ 256.03£ 256.03£ 256.03£ 1,024.12£1,321.33£ 1,321.33£ 1,321.33£ 1,321.33£ 5,285.33£ 1,321.33£ 1,321.33£ 1,321.33£ 1,321.33£ 5,285.33£15,336.00£ 18,403.20£ 9,201.60£ 12,268.80£ 55,209.60£ 19,936.80£ 20,703.60£ 11,502.00£ 13,495.68£ 65,638.08£

330.00£ 300.00£ 300.00£ 300.00£ 1,230.00£ 300.00£ 300.00£ 300.00£ 300.00£ 1,200.00£2,964.40£ 2,964.40£ 2,964.40£ 2,964.40£ 11,857.60£ 2,964.40£ 2,964.40£ 2,964.40£ 2,964.40£ 11,857.60£250.00£ 250.00£ 250.00£ 250.00£ 1,000.00£ 200.00£ 200.00£ 200.00£ 200.00£ 800.00£

9,432.00£ 9,432.00£ 9,432.00£ 9,432.00£ 37,728.00£ 9,432.00£ 9,432.00£ 9,432.00£ 9,432.00£ 37,728.00£-£ -£ -£ -£ -£ 7,449.29£ -£ -£ -£ 7,449.29£

642.24£ 578.02£ 520.21£ 468.19£ 2,208.66£ 770.69£ 693.62£ 624.26£ 561.83£ 2,650.40£381.00£ -£ -£ -£ 381.00£ -£ -£ -£ -£ -£500.00£ 450.00£ 350.00£ 200.00£ 1,500.00£ 500.00£ 400.00£ 300.00£ 200.00£ 1,400.00£

31,413.00£ 33,954.98£ 24,595.57£ 27,460.75£ 117,424.31£ 43,130.54£ 36,270.98£ 26,900.02£ 28,731.27£ 135,032.82£14,875.00$ 24,465.62£ 21,642.85£ 23,212.49£ 23,212.49£ 27,256.35£ 39,974.17£ 40,290.15£ 43,492.32£ 43,492.32£

5%24

10,000.00£6.70£

485

9.00% 2%75,427.20£10%120

5.60£

Payroll

Class4NationalInsuranceContributions

Taxes&Licenses**Utilities&TelephoneTotalCashOutflowsNetCashBalance

*InterestRate(MBSBank)

WorkingHours

Loans*CostofgoodssoldMiscellaneousRent/Lease

Maintenance&Repairs

StudentDiscount2016Profit

Cash Flow StatementThe Asian Corner Two year quarterly, 2016-2017 Good

BeginningCashBalance

2016 2017

PayrollTax

CashInflows(income)CashSales

TotalCashInflowsCashOutflows(Expenses)

Insurance

Supplies

WorkingDays/Week

NationalInsuranceRate

LoanTerm(Year)PaymentperyearLoanAmountMinimumWage

Employee

DailyPassengerVolume ObservationDataMeanvalue Permeal

**FoodHygieneLicenses http://www.ncasstraining.co.uk/food-hygiene-courses-2/

38

� Cash Flow (Bad)

Q1 Q2 Q3 Q4 Year1 Q1 Q2 Q3 Q4 Year210,000.00$ 7,891.00£ 9,100.82£ 2,087.65£ 10,000.00$ 1,929.91-£ 4,199.58-£ 910.17-£ 5,832.19-£ 1,929.91-£

24,192.00£ 29,030.40£ 14,515.20£ 19,353.60£ 87,091.20£ 31,449.60£ 32,659.20£ 18,144.00£ 21,288.96£ 103,541.76£34,192.00$ 36,921.40£ 23,616.02£ 21,441.25£ 97,091.20$ 29,519.69£ 28,459.62£ 17,233.83£ 15,456.77£ 101,611.85£

256.03£ 256.03£ 256.03£ 256.03£ 1,024.12£ 256.03£ 256.03£ 256.03£ 256.03£ 1,024.12£1,321.33£ 1,321.33£ 1,321.33£ 1,321.33£ 5,285.33£ 1,321.33£ 1,321.33£ 1,321.33£ 1,321.33£ 5,285.33£10,224.00£ 12,268.80£ 6,134.40£ 8,179.20£ 36,806.40£ 13,291.20£ 13,802.40£ 7,668.00£ 8,997.12£ 43,758.72£

330.00£ 300.00£ 300.00£ 300.00£ 1,230.00£ 300.00£ 300.00£ 300.00£ 300.00£ 1,200.00£2,964.40£ 2,964.40£ 2,964.40£ 2,964.40£ 11,857.60£ 2,964.40£ 2,964.40£ 2,964.40£ 2,964.40£ 11,857.60£250.00£ 250.00£ 250.00£ 250.00£ 1,000.00£ 200.00£ 200.00£ 200.00£ 200.00£ 800.00£

9,432.00£ 9,432.00£ 9,432.00£ 9,432.00£ 37,728.00£ 9,432.00£ 9,432.00£ 9,432.00£ 9,432.00£ 37,728.00£-£ -£ -£ -£ -£ 4,683.63£ -£ -£ -£ 4,683.63£

642.24£ 578.02£ 520.21£ 468.19£ 2,208.66£ 770.69£ 693.62£ 624.26£ 561.83£ 2,650.40£381.00£ -£ -£ -£ 381.00£ -£ -£ -£ -£ -£500.00£ 450.00£ 350.00£ 200.00£ 1,500.00£ 500.00£ 400.00£ 300.00£ 200.00£ 1,400.00£

26,301.00£ 27,820.58£ 21,528.37£ 23,371.15£ 99,021.11£ 33,719.28£ 29,369.78£ 23,066.02£ 24,232.71£ 110,387.79£7,891.00$ 9,100.82£ 2,087.65£ 1,929.91-£ 1,929.91-£ 4,199.58-£ 910.17-£ 5,832.19-£ 8,775.94-£ 8,775.94-£

5%24

10,000.00£6.70£

485

9.00% 2%50,284.80£10%80

5.60£

TotalCashOutflows

Insurance

Cash Flow StatementThe Asian Corner Two year quarterly, 2016-2017 Bad

2016 2017

BeginningCashBalanceCashInflows(income)

CashSalesTotalCashInflows

CashOutflows(Expenses)

PayrollPayrollTaxSupplies

Taxes&Licenses**Utilities&Telephone

Loans*CostofgoodssoldMiscellaneousRent/Lease

Maintenance&Repairs

EmployeeWorkingHours

WorkingDays/WeekNationalInsuranceRate

NetCashBalance

*InterestRate(MBSBank)LoanTerm(Year)PaymentperyearLoanAmountMinimumWage

Class4NationalInsuranceContributions2016Profit

DailyPassengerVolume ObservationDataMeanvalue Permeal

**FoodHygieneLicenses http://www.ncasstraining.co.uk/food-hygiene-courses-2/

StudentDiscount

39

� Profit and Loss Statement(Good)

ProfitandLossStatementnGood2016 2017

CashFlowfromOperatingActivitiesNetSale 130,636.80£ 155,312.64£

CostofGoodSold 55,209.60£ 65,638.08£Payroll 37,728.00£ 37,728.00£Rent 11,857.60£ 11,857.60£

Utilities&Telephone 1,500.00£ 1,400.00£Insurance 1,024.12£ 1,024.12£

Miscellaneous 1,230.00£ 1,200.00£Maintenance&Repairs 1,000.00£ 800.00£

PayrollTax -£ 7,449.29£Supplies 2,208.66£ 2,650.40£

Taxes&Licenses 381.00£TotalCashFlowfromOperatingActivities 18,497.82£ 25,565.15£

CashFlowfromInvestingActivitiesBusinessStart-upCost 10,000.00£ -£

TotalCashFlowfromInvestingActivities 10,000.00£ -£

CashFlowfromFinancingActivitiesLoans 5,285.33£ 5,285.33£

TotalCashFlowfromFinancingActivities 5,285.33-£ 5,285.33-£BeginningCashBalance -£ 23,212.49£

NetIncrease/DecreaseinCashFlow 23,212.49£ 43,492.31£

40

� Profit and Loss Statement(Bad)

ProfitandLossStatementnGood2016 2017

CashFlowfromOperatingActivitiesNetSale 130,636.80£ 155,312.64£

CostofGoodSold 55,209.60£ 65,638.08£Payroll 37,728.00£ 37,728.00£Rent 11,857.60£ 11,857.60£

Utilities&Telephone 1,500.00£ 1,400.00£Insurance 1,024.12£ 1,024.12£

Miscellaneous 1,230.00£ 1,200.00£Maintenance&Repairs 1,000.00£ 800.00£

PayrollTax -£ 7,449.29£Supplies 2,208.66£ 2,650.40£

Taxes&Licenses 381.00£TotalCashFlowfromOperatingActivities 18,497.82£ 25,565.15£

CashFlowfromInvestingActivitiesBusinessStart-upCost 10,000.00£ -£

TotalCashFlowfromInvestingActivities 10,000.00£ -£

CashFlowfromFinancingActivitiesLoans 5,285.33£ 5,285.33£

TotalCashFlowfromFinancingActivities 5,285.33-£ 5,285.33-£BeginningCashBalance -£ 23,212.49£

NetIncrease/DecreaseinCashFlow 23,212.49£ 43,492.31£