TO PLAN A SMALL BUSINESS Essay Example | Topics and Well Written Essays - 3750 words

TO PLAN A SMALL BUSINESS - Essay Example It’s a time tested fact that every business when it is founded starts on a small note and then grows with time, in order to gain sustainability and maintain competitive advantage in the marketplace. The small businesses are started by identifying and fulfilling the needs of the customer while starting with a very small seed capital. In a similar note, to fulfill the needs of the needs of the youngsters, and busy professionals, who lack the time and space to network and socialize with each other, the concept called 18 Cafe has been developed. 18 Cafe will satisfy the socializing needs of today’s youngsters and busy professionals, while providing a cool, soothing and relaxing ambience of the 18th century, but with the technological connectivity of the 21st century. Mission The mission of 18 Cafe is to provide superior line of products at affordable rates without compromising on the product as well as the service quality. The following figure illustrates the expected figur es of net sales, gross profit as well as net profit for 18 Cafe during the first two years of its operations. Figure 1: Expected position during the first two years of operation Objectives The short term objectives of 18 Cafe would be to accomplish sales of ?200,000 in its outlet in the first year and maintain a net profit margin greater than 30% of sales by the end of the year. In the long run, 18 Cafe expects to expand its outlets in UK and subsequently across Africa. Business The globalization of the planet Earth has brought with itself, various advantages to the human life. It has moved on from the era of industrialization in the early 70’s to an era of digitization which began in the late 80’s and finally transformed itself to the era of globalization in the era of late 90’s. People’s lives have increasingly becoming hectic as they try to maintain a descent lifestyle with a descent income. With the rise of middle class families all around the globe a long with the pressure of financial crisis on the Euro zone, people around the globe and mostly in the western countries are responding to the pressure on their financial needs by working extra hours or by doing or handling multiple jobs. As a result of this hectic work schedule, social lives of the people are getting hampered. Man is a social animal and the social networking media like Facebook and Twitter has to some extent helped people in connecting with each other. But, the need for physical space is very much essential in spite of the shortage of time for networking in the people’s life. Keeping the need of today’s busy individual in mind, a proper business plan is being built to develop cater to the needs of the human interaction in the real world. So the idea in this business plan is to develop a Wi-Fi cafe that will be serving the purpose of human interaction in the real as well as virtual world, while grabbing some quick bite to please their appetites. The pr oposed name of the cafe is 18 Cafe. The Cafe is intended to be set up with an initial capital of ?100,000, of which the owner would put in 25% and expected to arrange a bank loan for the remaining 75% capital