Sample Business Plan

(Sample)

BUSINESS PLAN

Of

Jennifer Mayo Trading as

‘Burger Queen’

May 2008

ContentsSection 1 - INTRODUCTION

1.1 Background

1.2 Personal Details and Responsibilities

1.3 Physical Legal & Financial Factor

Section 2 - MARKET RESEARCH2.1 Customer Profile

2.2 Competition Analysis

2.3 Suppliers

Section 3 - SWOT AnalysisSection 4 - MARKETING

4.1 The Product / Service

4.2 Pricing

4.3 Location/Place

4.4 Promotion

Section 5 - SALES TARGETSSection 6 - FINANCIAL ANALYSIS

6.1 Projected Cash-flow

6.2 Projected Profit & Loss

6.3 Break-Even Analysis

5.1 Balance Sheet

5.2 Notes to the Cash-Flow

Section 7 - FUTURE DEVELOPMENTSSection 8 - CONTACT DETAILSSection 9 - APPENDICES

e.g. Photographic IDProof of AddressCV QualificationsLetter of intentMap of areaPrice listInsurance QuotePlant, Fitting, Machinery quotesLegal requirements (licences etc)Advertising/Marketing QuotesExamples of Promotional Material/StationeryHealth & Safety Guidelines

Section 1 - INTRODUCTION

My name is Jennifer Mayo, I am 25 years old and having worked in the mobile fast

food business for the past three years as an employee I believe that I have enough

experience and confidence that I could successfully become self-employed running

Jennifer Mayo t/a Burger Queen 2

my own business. The principle activity of my business would be the provision of hot

and cold food via a mobile food van. I will operate as a Sole Trader from my home

address of 7 Wimpy Road, Buntown, Glasgow G28 7AB and will trade under the

name of ‘Burger Queen’.

Having previously worked on a snack van I have seen the potential for a well-run

van, pitched at the right location, offering quality food at an affordable price. I have

also noticed that there are no existing snack vans around Sesame Street, the

busiest, most central area of Buntown and I have decided to pursue the possibility of

trading from a pitch in this area.

I would like to become self-employed for the following reasons:

• To re-enter employment having been unemployed for a period of time

• To obtain financial security, both present and future for myself and my family

• To be in control of and have full responsibility for my own business affairs

• To utilise previously gained skills and experience in a business environment

To date by way of preparation I have performed the following:

• Attended a series of one-to-one advisory sessions with a business advisor at

Glasgow West Regeneration Agency, formerly Opportunities in Drumchapel.

• Identified and priced a few mobile snack vans that would be suitable

• Priced the required equipment for the vehicle, including safety equipment

• Sourced quality, value for money suppliers for all food and drink stock

• Considered my competition in the surrounding area

• Sourced insurance quotations

• Obtained a hygiene certificate

• Applied for a street traders licence and paid the fee of £55 (award pending)

• Opened a business bank account

Projected sales for the first 12 months of trading are £66,870 and I aim to commence

trading on the 1st July 2007. I will register for VAT in May 2008.

1.1 Personal Details and ResponsibilitiesQualificationsI have an HND in Catering that I gained 2 years ago at Buntown College. I feel that I

am suitably experienced and have a professional methodical approach towards

everything I do. I am aware of the planning required to commence in business


effectively and realise the level of commitment required to ensure that the business

trades effectively.

Practical ExperienceI am 25 years old and have to date worked in a number of positions relating to food

preparation and catering. Previous experience included two years working in various

roles at McDaniel’s restaurant in Glasgow city centre and a year working as an

assistant on Sam & Ella’s snack van in Greenock. During this time I gained

invaluable experience in terms of the following:

• Food preparation

• Hygiene issues

• Stocking

• Staff management

• Public relations

I also hold an HNC in Deep Frying and 2 modules in ‘Toastie Making’ and ‘Using

Mayonnaise Creatively’.

I have the full support of my friends and family in particular from my husband,

Coleman, he has been of vital assistance in my initial market research. He has also

pledged to work in the van should staffing problems occur. There are three others

(as detailed below) that will work in the van on a regular basis and these individuals

will be adequately qualified and licensed from the outset.

I will be responsible for all aspects of the day to day running of the operation. In

particular:

• Transportation of the snack bar to and from storage.

• Stocking the bar

• Daily banking duties

• Cooking and serving

• Managing staff and scheduling rota

• Sandwich and pre-packing meals preparation

Two staff members will be in the snack bar at any one time, one cooking and the

other serving. Coleman will assist me each morning prior to trading in any food

preparation duties i.e. sandwiches and pasta.


Licensed staff (i.e. each holding their own street traders licence) prior to trading will

include:

• Jennifer Mayo

• Coleman Mayo

• Dixon Pickle

• Jan Teabrekk

• Eva von Bratwurst

Mr Pickle and Ms Teabrekk will work mornings and afternoons respectively, Monday

to Friday while Mrs. Bratwurst will be part time, working Saturdays only. Mrs

Bratwurst will be available at short notice to fill in where necessary as will Coleman

Mayo. Assistants will be paid a standard rate of £5.80 per hour.

Should I be unable to fulfil my daily duties for whatever reason, Coleman will be

available to take over my duties in the short term.

My sister, Senga Bacon, is a qualified bookkeeper and will produce all books and

records necessary to satisfy our accountant and ultimately HM Revenue & Customs.

We will not initially register for VAT however will continue to review the £68,000

turnover registration threshold on a month to month basis.

Professional support is offered by:

Glasgow Central Enterprise Agency

The Info Institute

Grant Crescent

Glasgow

Tel: 0141 655 2000

Sloe, Sloer & Stoppe

Solicitors

13 Olde Rope Avenue

Glasgow

Tel:0141 335 7753

Richard Bore

Chartered Accountant

7 Penny Lane

Glasgow G25 419

Tel: 0141 336 6666

Floyds ASB Bank

52 Sesame Street

Buntown

Glasgow G15 5FC

Tel. 0141 944 4444

1.3 Physical, Legal & Financial Factors


As already stated I will be the sole proprietor of the company and will operate in the

Sesame Street/Cholesterol Crescent area of Buntown. (See map of area in

appendices)

I have considered all environmental health implications arising and the relevant

department at Glasgow City Council have made an initial inspection of my snack bar

and as the vehicle is in pristine condition, no delays are expected. Myself and all staff

involved in the food preparation currently hold Hygiene Certificates obtained at

Buntown College.

The council has granted permission for my desired pitch on Cholesterol Crescent

(see appendices) and will ensure that all four individuals have street trader’s licences

to serve customers from the bar (as detailed in section 1.2).

InsuranceHaving joined The National Federation of Mobile Food Vans, they will provide me

with a competitive quote for combined insurance. This policy will cover for public

liability (£2 million), employer’s liability (£10 million), business interruption and

product liability. The annual premium will be £280 which I will pay by d/d over 12

months.

My personal vehicle, which will be used to tow the snack van, has been insured for

business use.

My personal contribution to the business is as follows:

• Personal Vehicle £ 950

• Street Traders Licence £ 75

• Cooking equipment £ 145

• PC and Printer £ 450

Total £ 1,620

I will require the following to commence trading effectively:Vehicle Required:

• Phoenix MKII Trailer Snack Bar £ 4,100

Equipment/ Stock required

• Sharp Microwave Oven £ 60


• Fridge/Freezer £ 800

• Cooker/conventional over (2nd Hard) £ 300

• Cooking utensils £ 100

• Shelving £ 40

• Frying Pans £ 125

• Fryer £ 30

• Worktop grill £ 320

• Cash Register £ 125

StockFood (see appendices) £ 250

Gas £ 50

Packaging £ 30

Advertising 4 weeks Advert in local paper £80

Sign £250

Flyers £10

Licences

5 x street traders licences £375

Total £ 7,045

While I am able to make a personal contribution of £1,620 towards my business in

the form of equipment and a car, and £2,000 cash, I still require a level of funding to

buy and equip the van effectively and cover my additional start-up expenses.

Start up costs can be summarised as follows:Vehicle £4,100

Equipment £1,900

Stock £ 330


Licences £ 375

Advertising £ 340

Total £ 7,045

This would be funded with the following:Own cash £2,000

Launchpad Grant £ 200

GCRA Start-up Grant £ 500

PSYBT Grant £ 1,000

PSYBT Loan @ 4% £ 3,700

Total £ 7,400

The excess of funding will be utilised as additional working capital should trading

results demand it.

Section 2 - MARKET RESEARCH2.1 Customer ProfileBroadly speaking, my customers will be derived from the general public living,

working and passing through the Buntown area of Glasgow. In particular I see the

following as being the focus of my marketing:

• Working in the nearby Buntown Shopping Centre.

• Office staff and workers from adjacent Cheepinleeky Business Park

• Schoolchildren travelling to and from two local primary schools and Buntown High

School

• Taxi drivers

• Freight drivers delivering to business sites

• Construction workers working in two nearby building sites

• Any individuals looking for fast, convenient service unwilling to buy from

competitors from reason detailed in competitor analysis

In 2004 there were approximately 8,400 snack vans in the U.K. In 2007 this figure

had increased to 13,500*. This is clearly a growing market.

* Which burger Van – May 2007 issue


2.2 Competition Analysis

Competitor Comp. Price*

BQ price Comment

Dicky Tumm’s Burger Bar

2.60 2.20 10 minute walk from centre. More expensive

The Wokked Dog Chinese Restaurant

3.20 2.20 Time consuming orders. Expensive. Emphasis on sit in meals.

Fat Frank’s World of Batter

3.90 2.20 Chip shop. Unhealthy food.

The Stab Inn 3.40 2.20 Bad reputation. Sit down bar meals only. Smelly atmosphere.

McDaniel’s 3.30 2.20 Burger Restaurant. Long queues. More expensive. No parking.

Grogg’s Bakery 2.80 2.20 Slow staff, long queues. No hot food.

• Price based on average lunchtime meals consisting of sandwich equivalent and a drink.

2.3 SuppliersWm Cleaver & Sons (Buntown) – Butcher-meat.

The Halfinch Cash & Carry (Halfinch) – Drinks, Crisps, Confectionery.

The Poke Company (Glasgow) – Containers and paper packaging.

The Buntown Bakery (Buntown) – Bread, rolls scones etc.

MICRO cash & carry (Glasgow) – sundry supplies.

Having sampled the produce from a number of local butchers and bakers, the above

were chosen as they offered good quality at value for money prices as well as having

suitable opening hours and delivery services for my business.

All goods will be paid for at time of purchase.

Section 3 – SWOT Analysis

STRENGTHS

• Previous experience gained

• Relevant qualifications

• Personal commitment and personality

• Planned approach

• Professional support via Glasgow West Regeneration Agency


• Good team of staff

WEAKNESSES

• Lots of competition in city areas

• Never ran a business before

• Breaking into existing market

• Burger van image (unhealthy, unhygienic)

OPPORTUNITIES

• May introduce a second van depending on demand

• Excellent location and opportunity to develop the existing market

• Large number of potential customers - no one major customer

• Customer loyalty towards convenience/quality

• Develop the healthy options on offer

THREATS

• Being undercut price wise

• Lots of substitute products from customers

• Easy access to market (low start-up cost for new competition)

• Customer tendency to switch loyalty

Section 4 - MARKETING4.1 The Product / ServiceAs already stated it is my intention to sell convenience hot and cold food from a

mobile snack van situated in a designated pitch just off Sesame Street in Buntown.

While Burger Queen will offer many of the traditional types of food available from

similar snack bars such as Hamburgers, fried food and chips, a number of healthier

options will be available such as low fat sandwiches, fruit and pasta. Historically

many mobile snack bars have suffered poor reputations owing to unhygienic facilities

or poor quality produce. It is vital, therefore, that I gain a sound reputation from the

start as offering a convenient, friendly service with good quality food prepared under

pristine conditions.

All food will be prepared in the bar and in most cases orders will be prepared freshly

as the customer waits. There will be, however, a range of pre-packed sandwiches,


pasta and salads, which will be prepared each morning prior to opening. The bar will

be fitted with a two-hob cooker, a microwave oven, refrigeration facilities, storage

compartments and a display cabinet.

Burger Queen will be open Monday – Saturday, from 8am to 10am; 12 noon to 2pm;

4pm to 6pm i.e. operating for 6 hours per day.

A more detailed list of available consumables is as follows:

Hot Food - Rolls with Hamburger, Vegi-burger, Sausage, Egg or Bacon

All Day Breakfast

Fries / Chips

Hot Dog

Soup

Individual Steak and Scotch Pies

Cold Food - Assorted Sandwiches (Fresh & Pre Packed)

Scones

Fruit

Pasta (Packaged for Eating Cold & Reheating)

Beverages - Coffee

Tea

Hot Chocolate

Mineral Water

Canned Drinks e.g. Coke, Irn Bru, Fanta

Others - Crisps

Confectionery

A full menu is enclosed in the appendices to this plan.

4.2 PricingIn comparison with other snack bar competitors, Burger Queen will be slightly more

competitively priced. I am aware though that cheap prices can sometimes create an

image of poor quality therefore I am conscious of not undercutting the competition

substantially.


Due to my low overheads in comparison with many of my premise-based

competitors, I can easily offer a cheaper alternative to the various fast food outlets in

Buntown.

Pricing Examples:

Selling Price (£) Cost Price (£)

Cheese Burger 1.80 0.50

Ham Salad S/wich 1.50 0.45

Pasta Takeaway 1.90 0.35

Can of Coke 0.60 0.25

Steak Pie 1.20 0.40

Based on the price list, it is anticipated that the average sale will be £2.20 based on

the customer purchasing a main food item plus a drink.

In line with businesses of similar size and activity, an average gross profit of about

70% will be assumed for cash flow purposes.

4.3 LocationWhile my administration base will be my home address I will trade from an allocated

pitch adjacent to Main Street, Buntown. The pitch on Cholesteral Crescent is

positioned directly outside the entrance to the Cheepinleekky Business Park.

This pitch was chosen for the following reasons:

Offers suitable car parking off the main thoroughfare

Close at hand for the 57 businesses residing in the business park

Conveniently positioned for school children routes to local schools

Convenient to main shops and offices on Sesame Street, Buntown

More centrally located than competitor snack van

Situated on main pedestrian flow

The snack bar will be stored overnight at a secure lock up off Largefrize Road. I am

renting this space for £100 per month.

4.4 Promotion


I will use a range of promotional methods to promote my business. These will include

flyers, posters, local newspaper advertising and business cards. Distributed to the

local business premises of Cholesterol Crescent.

The most important type of promotion available to me will be word of mouth

recommendation.

In more detail:

Initial Signage £250

Buntown News £80 per month

Flyers £10 per month

Section 5 - SALES TARGETSIt is anticipated that it will take time to break into the market hence the cash flow will

demonstrate a gradual build up of customers. This will be due to word of mouth

reputation and leaflet dropping taking some time to spread throughout the area.

December will be a particularly busy month with a substantial number if high street

shoppers passing by whilst doing their Christmas shopping. Typically, January will be

a quieter month with poorer weather conditions and less money in circulation.

Historically, June and July would have been quieter months due to holiday

commitments however trends have changed and people now tend to holiday all year

round therefore the summer months should continue the growth in sales values.

Customers will pay at point of sale. No credit will be given.

Monthly sales for the first 12 months of trading are projected as follows:

Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunDays open 26 27 25 27 26 22 25 25 26 26 27 25


Customers per day

60 75 80 90 80 75 55 60 65 70 80 80

Sales per day @ £3 per sale

180 225 240 270 240 225 165 180 195 210 240 240

Total Sales 4680 6075 6000 7290 6240 4950 4125 4500 5070 5460 6480 6000

Total sales £66,870

As the annual sales do not exceed the VAT threshold of £68,000 it will not be

necessary to register for VAT. As such no VAT implications are incorporated into the

cashflow projection.

Section 6 - FINANCIAL ANALYSIS6.1 Projected Cash Flow6.2 Projected Profit & Loss6.3 Break Even Analysis6.4 Projected Balance Sheet6.5 Notes to the Cash Flow

Notes to the Cash Flow:1. Material costs relate to Stock, including Food (£250); Gas (£50); Packaging (£30). Ongoing costs are 30% of

total sales.

2. Other Direct costs (£55) relate to the cost of a Street Traders licence

3. Wages are as outlined Below

4. Rent relates to £100 per month for a lock-up on Largefrize Road

5. Insurance P/L (Public Liability) and E/L (Employers Liability) is supplied as a package at £43 per month

6. Advertising (£340) relates to signage at £250; Newspaper advertising at £80/mth and £10/mth avg. for flyers

7. Equipment (£2,550) relates to the equipment brought into the business at £650 and the new equipment required

at £1,900

8. Vehicle costs (£3,050) relate to the vehicle brought into the business at £950 and the Trailer van required at

£2,100

9. Wages

Mr. Pickle & Ms. Teabrekk

6hrs per day @ £5.80/hr

Monday – Friday

£5.80 x 6hrs x 5 days x 2 = £348/wk

(£348 x 52) / 12 = £1,508/mth

Mrs. Bratwurst

6hrs Saturday only @ £5.80/hr

£35/wk

(£35 x 52) / 12 = £151


Total Wage Bill = £ 1,659 / mth

10. Funding

As I am younger than 26 and I have been out of work for more than six months I qualify for he Princes Scottish Youth

Business Trust (PSYBT) funding as follows:

• PSYBT Grant £1,000 (must have been out of work for more than 6mths)

• PSYBT Loan £3,700 @ 4% over three years – premium: £125/mth

(NB: Other localised funding dependent on postcode)

VAT ProvisionNo provision has been made in view of the level sales projections


INCOME Start up Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun TOTALSales 4680 6075 6000 7290 6240 4950 4125 4500 5070 5460 6480 6000 66870GCRA Grant 500 500PSYBT Grant 1000 1000Leaf GrantLaunchpad Grant 200 200Loans 3700 3700Personal Investment 3620 3620TOTAL CASH IN 9020 4680 6075 6000 7290 6240 4950 4125 4500 5070 5460 6480 6000 75890

EXPENDITUREMaterial Costs 330 1404 1822 1800 2187 1872 1485 1238 1350 1521 1638 1944 1800 20391Other Direct Costs 0Wages 1659 1659 1659 1659 1659 1659 1659 1659 1659 1659 1659 1659 19908Fuel 90 90 90 90 90 90 90 90 90 90 90 90 1080Rent 100 100 100 100 100 100 100 100 100 100 100 100 1200Gas 50 50 50 50 50 50 50 50 50 50 50 50 600Telephone/ Mobile 15 15 15 15 15 15 15 15 15 15 15 15 180 Insurance P/L 43 43 43 43 43 43 43 43 43 43 43 43 516Licences 450 450Advertising/Marketing 340 90 90 90 90 90 90 90 90 90 90 90 90 1420Stationary/ Postage 10 10 10 10 10 10 10 10 10 10 10 10 120Capital Expenditure 2495 2495 Vehicle 5050 5050Road Tax 120 120Vehicle Insurance 28 28 28 28 28 28 28 28 28 28 28 28 336Vehicle Maint. 120 120 120 120 480Loan Capital 103 103 103 103 103 103 103 103 103 103 103 103 1236Loan Interest 12 12 12 12 12 12 12 12 12 12 12 12 144Sundries 30 30 30 30 30 30 30 30 30 30 30 30 360Drawings 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000Class 2 - N.I. 0TOTAL CASH OUT 8665 4634 5052 5150 5417 5102 4835 4468 4700 4871 4868 5174 5150 68086

NET CASH FLOW 355 46 1023 850 1873 1138 115 -343 -200 199 592 1306 850 7804OPENING BALANCE 0 355 401 1424 2274 4147 5285 5400 5057 4857 5056 5648 6954CLOSING BALANCE 355 401 1424 2274 4147 5285 5400 5057 4857 5056 5648 6954 7804


Projected Profit & Loss Account for the year ended 30th June 2009-11-09

Sales 66870Cost of Sales 20391

46479Add Other Income

Grants 1700

Gross Income 48179

EXPENDITUREWages 19908Fuel 1080Rent 1200Gas 600Telephone/ Mobile 180 Insurance P/L 516Licences 450Advertising/Marketing 1420Stationary/ Postage 120Road Tax 120Vehicle Insurance 336Vehicle Maint. 480Loan Interest 144Sundries 360Depreciation 1886

Total 28800

Net Profit 19379

Projected Balance Sheet As At 30th June 2009

Fixed Assets Value Depn N.B.V Total

Fixed Assets 2495 624 1871Vehicle 5050 1262.5 3787.5 5659

Current AssetsDebtorsBank 7804

Total Assets 13463

Less LiabilitiesLoan Balance 2464Creditors 10999

Financed By

Capital Introduced 3620Net Profit 19379Less Drawings 12000Class 2 - N.I. 0 10999


Section 7 - FUTURE PLANSIn the short term, probably after the first year of trading I shall introduce a minimal

delivery service.

Ultimately though my future prospects for the business are to put further snack bars

on the road on well researched, viable pitches. I also plan to take up pitches at well-

attended public events e.g. sporting events, pop concerts etc. I anticipate that these

developments will not occur in the first year of trading.

Ultimately I hope to move into premises and open my own fast-food restaurant.

These ventures will clearly involve further employment, which can only be desirable

for the local economy.

Section 8 - CONTACT DETAILS

Jennifer MayoTrading as: Burger Queen

Home Address:7 Wimpy Road

Buntown

Glasgow

G28 7AB

Business Address:Sesame Street

Cholesterol Crescent area of Buntown

Tel: 0141-333-8465

Mob: 07767-633-658

DoB: 18/07/1982

NI No. NW 54 12 89 B


Section 9 - APPENDICESPrice list

CV

Qualifications

Letter of intent

Map of area

Photographic ID

Proof of Address

Insurance Quote

Plant, Fitting, Machinery quotes

Legal requirements (licences etc)

Advertising/Marketing Quotes

Examples of Promotional Material/Stationery

Health & Safety Guidelines


BURGER QUEENHOT FILLED ROLLS

Sausage £ 1.10 Bacon £ 1.20 Egg £ 1.00 Black Pudding / haggis £ 1.20 Hamburger £ 1.50 Cheeseburger £ 1.80 Chicken Burger £ 1.90

ASSORTED HOT FOODS King Breakfast £ 3.50 Queen Breakfast £

2.50 Pasta (hot) £ 2.10 Pasta (cold) £ 1.90 Soup of the Day £

0.75 Chips £ 0.75 Individual Streak Pie £ 1.20 Individual Scotch Pie £ 1.00

SANDWICHES / FILLED ROLLS BLT £ 1.70 Chicken Salad £ 1.40 Ham Salad £ 1.50 Cheese Savoury £ 1.20 Corned Beef Salad £ 1.30 Filled Rolls (Ham, Chicken, Corned Beef, Tuna Cheese) £ 1.30

DRINKS Cans £ 0.60 Coffee £ 0.60 Tea £

0.50 Hot Chocolate £ 0.70 Mineral Water £ 0.50


CONFECTIONARY Crisps £ 0.35 Cakes £ 0.40 Biscuits £ 0.25

BURGER QUEEN – OUR HANDS ARE QUITE CLEAN!


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