Take-Out Pizza, Inc. Business Plan
Executive Summary
The business plan idea focuses on the Take-Out Pizza, Inc. venture providing standard Pizza to the residents of Preston, the United Kingdom, in a way that engenders justifiable revenue for the present and upcoming shareholders, and supreme value to the clients. It specializes in developing and providing several delicious pizzas. Due to the explosive population growth in Preston, the Take-Out Pizza will over delivery services to the residents. The company unique selling preposition, including the provision of standard Pizza at a reasonable price, as well as delivery of hot and unique-package refrigerated Pizza to the client’s doors. The Preston residents lack access to affordable and high-quality Pizza despite the growing number of residents. The reasons for the business setting up the business and having faith in its success depends on the venture factors, like experienced staff, better locality, offering faster service, high-quality Pizza, and affordable prices. The primary products offered include Pizza, fruit juices, sauces, sodas, and desserts.
Take-Out Pizza, Inc. will be a private limited company, with the majority share owned by my brother and myself. The advantages of the private limited entity offer uninterrupted existence, free and easy transferability of shares, tax-efficient income, better borrowing capacity avenue, as well as mutual dual relationship. Despite that, the venture form’s noticeable disadvantages include the lack of shares selling at the public stock exchange. The primary financial sources will come from personal savings, bank loans, family contributions, and private equity through angel investors. The business plan will receive advice from the legal teams and the bank financial counselors to ensure success. The start-up cost funding of the business is $131,500, and the company will break-even in the third month after implementation. The firm capital will be $ 101,500, and the projected net profit is $61,698.
The primary aim of the Take-Out Pizza, Inc. business is to provide high-quality Pizza at a reasonable price at the Preston residents, in the UK. The primary objectives include:
- To attract a minimum of 70 consistent clients per day for pizza take-out and delivery within the first year of operation.
- To engender unequivocal cash flow from operations, at least 10 percent net profits in sales within the first year.
- We offer our clients standard pizza services, at a reasonable price, and provide outstanding client experience, calculated by a minimum of 5% from annual sales growth, and client complaints not exceeding 1%.
Take-Out Pizza’s vision is to become the first choice of Pizza in the Preston area, and an integrity firm is measured by our clients, workers, shareholders, and the society we live in. The company’s mission is to offer the Preston area residents the excellent services in the region. It is committed to standard services and unique values expected by our clients. The mission gives the firms direction and realization of why the company exists. The company management and workers will use it at ensuring delivery of standard Pizza at a reasonable price as expected by the customers.
Business Environment
PESTEL Analysis
The venture performance in the global market field depends on political factors, mainly resulting from the drafted policies that manage investments. The UK unitary state for a more extended time mesmerized harmonious political stability. The parliamentary legislature and monarchial state have reduced power struggle challenges integrated into the multiparty framework, thus escalated calmness ambiance in the country (O’Brien. 2019, n.p.). The reduction in corruption cases and industrial reform drafting has elevated venture thrive and productivity in the nation. Strick security implementation ensures that the business operates without theft breakages, labor absence, and declined sales. The UK has escalated economic prowess in industries, like retail service industries, reducing the unemployment rate to 2.4 percent (Bronnmann et al. 2016, p.237). It has enhanced people’s wellbeing, thus the high purchasing power of clients. The annual GDP annual average of 6.7 percent and reduction of inflation rates from 2.2 percent to 1.6 percent has improved the country’s business attractiveness for productivity (O’Brien, 2019, n.p.). Excellent funding of the local industries improves their loan acquisition.
On the social factor, the data reports showcase that the UK populace accords to 0.87 % of the total international people (O’Brien. 2019, n.p.). The UK 0.6% annual growth rate leads to elevation of demand and supply of items amongst the residents (Bronnmann et al. 2016, p.237). Therefore, Take-Out Pizza will increase its sales and product manufacturing to sustain an increased populace. Besides, the people’s wellbeing has improved due to the lower unemployment rate at 2.4% (O’Brien. 2019, n.p.). The technological factors incorporation in the UK, like food production machines, transaction processing, scheduled work digitalization, attract venture thrive, and productivity in the nation. Therefore, the business benefits from minimal working costs hence increased revenue and profit collection. Also, internet utilization in the country has relieved conveyance among clients, suppliers, and other service providers, thus escalating product delivery and distribution. Therefore, Take-Out Pizza will compete favorably with other business rivals. The Uk has established vital environmental factors, mainly on waste disposal management (Bronnmann et al. 2016, p.237). Thus, the Take-Out Pizza will compete effectively with prominent rivals due to decreased control pollution finances. The adoption of green principles ensures proper recycling, enabling the use of contaminated water by the Take-Out Pizza company to perform other operations. Finally, on the legal issues, the feasible jurisdiction has resulted in the minimization of the Value-Added tax resulting in the business attraction, like Take-Out Pizza, Inc.
SWOT Analysis
Take-Out Pizza has potential strengths from the UK environment. The locality proximation of the business, that is, Preston, ensures that the people visibly detect the Take-Out Pizza from a distance. The availability of modern equipment and innovative technology leads to the production of high-quality (state-of-the art) Pizza for clients (Gürel et al. 2017, n.p.). It also makes the delivery of the product the resident doors within minimum time. The availability of the increased literacy level in the country offers improved management experience for the running of the business. The significant weaknesses include the escalated maintenance/ cost factor for the technological appliances used for food production. The data showcases that the population managed by local companies is under-sized (Gürel et al. 2017, n.p.). Therefore, being a new venture in Preston that the Take-Out Pizza, Inc. will spend a lot on its marketing, mainly for a company applying standard and reasonable places. Besides, rampant strick policies for the new business enable the Take-Out Pizza to have rapid expenditure in obtaining business permits, despite getting finance from bank loans and borrowings. Therefore, it limits the operational capacity, mainly during the peak sales period of the year.
On the opportunities, the UK growth rate by 0.6 percent yearly guarantees that the elevated populace in the Preston will ensure that residents will have a high demand for the products offered by Take-Out Pizza (Gürel et al. 2017, n.p.). The Preston area in the UK has no competitors offering the unique Pizza from the Take-Out Pizza. It ensures that it will act under a monopoly market segment, and the reasonable prices will favor higher purchases from the escalated low and middle groups in the region. The UK’s economic downturn promotes a change in consumer behavior (Gürel et al. 2017, n.p.). Therefore, people will prefer to purchase low-priced Pizza rather than hiked meals. The potential threats include a shift in the venture environment that reduces the Take-Out Pizza. It is necessary to undertake a feasibility study on a financial appraisal to detect future sales in the market. Also, the current COVID-19 pandemic crisis recovery process may threaten our business. Take-Out management needs to adopt online sales of the product to keep gaining profits. Due to the leasing of the apartment, the company should focus on saving to purchase its place for operation.
Marketing
The market research will be contacted through online, mail, and in-person surveys to receive the data from the stipulated business area. The primary market segments involve retail clients contributing to the ninety percent of the Take-Out Pizza sales. Secondly, it includes industry clients who purchase a vast quantity of Pizzas for their workers and venture wants (Eastman et al. 2015, n.p.). Therefore, the company will focus on the residents, since they contribute highly to the Presto populace. The Take-Out Pizza marketing mix comprises of price, product place, and promotion. The price strategy by the company will value the retail and corporate customers. The price will not be the least in the region despite the pizza offering at a reasonable price. Also, Take-out Pizza will develop price incentives, like discounts and allowances as well as price reduction in non-peak periods of selling for loss minimization, eliminate customer idle capacity, and operational usage increment (Keegan. 2017, n.p.). The company will implement freight-out costs for both delivery and on-counter pizza sale prices. One pie pizza goes for $19, four pies for $64, eight pies for $123, and twelve pies for $178 in all delivery pizzas inclusive of shipping costs (Eastman et al. 2015, n.p.).
The Take-Out Pizza is situated a highly visible, elevated travelers flow, and escalated traffic for the restaurant visit. The situation of the restaurant only two miles from Preston town ensures accessibility as well as the provision of entertainment, shopping, and dining services for clients. The centric place offers easy proximity to recreational facilities, ample parking space, and a shorter commute for Preston (Eastman et al. 2015, n.p.). Therefore, the highlighted site features rhymes with the objective of the delivery of Pizza to the customer doors. The best mode of distribution will, therefore, be retailer and wholesaler distribution. On the promotion, due to the escalated advertising cost challenges, especially for the new businesses, we will incorporate strategies, like word of mouth, grand opening, direct mailing, and business shows and exhibitions (Keegan. 2017, n.p.). Also, Take-Out Pizza will integrate the use of radio and newspaper for the original message positioning reach-out. Besides, the sales literature deployment, like the flyer and catalog printing distribution through giveaways, manual handouts, exhibitions, and business card distribution, enhances venture promotion. The essential products offered include Pizza, desserts, fruit juices, sodas, and sauces. The Pizza has a thin, broad, and foldable slices feature, making it easy for the customers to eat (Keegan. 2017, n.p.). The Pizza offers energy to the customers since it has high-gluten bread flour. The significant unique selling prepositions include the provision of standard Pizzas at a reasonable price and customer door delivery of hot and unique-package preserved Pizza.
Finance
The start-up cost funding of the business is $131,500, and the firm’s capital will be $ 101,500, and the projected net profit is $61,698 (Eastman et al. 2015, n.p.). My brother and I, as the co-owners will provide a total amounting to $72, 000 for the venture start-up, that is, $36000 individual contribution. Therefore, the deficit amount of $5900, the angel investors will contribute $29500, while the remaining $30000 will come from the bank loan financing.
Table: Start-up cost
Retrieved from https://www.barclays.co.uk/
Breaking-even analysis
The Take-Out Pizza assumes $16874 monthly costs inclusive of fixed costs, utilities, rent, and insurance. Therefore, a total of $35155 monthly by selling of 1996 pizza results in Take-Out Pizza breaking-even. Due to the operating monthly sales capacity of $122400 and estimated sales regularly is $72000, the company can break-even quickly and maintain profitability, mainly in the third month after venture launching (Eastman et al. 2015, n.p.).
Table: break-even
Retrieved from https://www.barclays.co.uk/
Break-even analysis
Retrieved from https://www.barclays.co.uk/
Estimated profit and losses
Take-Out Pizza, Inc. projects to records earnings with the first year period.
Retrieved from https://www.barclays.co.uk/
Projected Cash Flow
The Take-Out Pizza projects to have positive cash flows and cash reserves to cater for the unexpected cash needs
Retrieved from https://www.barclays.co.uk/
Conclusion
The business plan idea focuses on the Take-Out Pizza, Inc. venture providing standard Pizza to the residents of Preston, the United Kingdom, in a way that engenders justifiable revenue for the present and upcoming shareholders, and supreme value to the clients. The company focuses on PESTEL and SWOT analysis for its thriving in the market. The research uses surveys. The essential products offered include Pizza, desserts, fruit juices, sodas, and sauces. The product is at a reasonable price, allowances, and discounts. The promotion will be through local media, and sales literature, while price distribution channeling is via retailing and wholesaling. The start-up cost funding of the business is $131,500, and the industry will break-even in the third month after implementation. The firm capital will be $ 101,500, and the projected net profit is $61,698.
Reference List
Bronnmann, J., and Asche, F., 2016. The value of product attributes, brands, and private labels: An analysis of frozen seafood in Germany. Journal of Agricultural Economics, 67(1), pp.231-244.
Eastman, J.K., Eastman, K.L., Gleim, M.R., Lawson, S.J., Robinson, S.G., Huang, L., Moore, R.L., Moore, M.L., Shanahan, K.J., Horky, A. and Mack, B., 2015. Marketing management
Gürel, E., and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International Social Research, 10(51).
O’Brien, J., 2019. Marketing a new route: Norwegian flies London–Singapore. SAGE Publications: SAGE Business Cases Originals.
Keegan, W.J., 2017. Global marketing management. Pearson India.
.