LS Business School Page 3
In this report the importance of financial resourcing on a newly started business isanalysed. The researcher has chosen the service industry and the usage of appraisal methodsin managing financial sources. With a roughly estimated capital amount invested from thefunders, a pro forma balance sheet, profit and loss, and cash flow is tabulated. The productsavailable for the business and it operational process is also described. The performance of the business is assessed using different methods and analysis is done for identifying variousmarketing strategies suitable for the business. It is also important to understand the impact of competitors in the economy and how it affects the business in both ways. In order tounderstand how the financial process of a business is managed we took the example of launching a new restaurant in this report.
Overview of the Business:
The industry chosen for the research is hospitality industry and the business is arestaurant and the name of the restaurant is Fine Diners. Since this is a small scale industryand it falls under private sector which is classified into 3 which are sole trader, partnershipand limited liability. The restaurant falls under the sole trader category where there is onlysingle owner and the entire investment for the business is provided by a single owner. The business operations in the restaurant are based on Law of 2005 and with standard regulations.This type of business is one of the finest choices made on looking at the revenue it is producing.
Aim & Objectives:
The ultimate aim of any business in general will be making profit, apparently inhospitality industry the main aim is to provide a first grade service to its customer and if itachieved rest all follows including profit, fame etc. For the long run of the business, it isimportant to maintain some of the main parameters like quality, health and hygiene, etc.Various business strategies are implemented to attract more customers which includeintroducing promotional offers and other deals. The hospitality in the modern world is toocompetitive and for the survival in such situation it is important for the business to show the projection in financial performance.
The highest level of the performance is produced by the restaurant when the staffs andmanagement are having a clear vision of their business.To become the finest restaurants in UK Developing a brand value for the restaurantProviding quality food by maintaining health & hygieneSatisfying the customers is the most important vision of this restaurant.