Introduction

There are so many forms of business that different entrepreneurs could be interested in venturing to. These forms of business include; sole propriety, partnerships and limited companies. However, it is essential for business starters to have a clear picture of what is required in each of the business types mentioned thereof. This calls for extensive research by the business starters in order to realize what is required to make the business a success.

This report will try to outline a proposed research on how to start a sole trader. This is a form of business which is started by only one entrepreneur who has the same entity with the business. In this report, the sole business will be involved in selling food and drinks in a small restaurant(Abrams, 2004). The process will involve determining a business name, sources of finances, location, and target group among other considerations. It is also important to note that the report will also outline several research methods that the sole trader will have to use to come up with an effective sole business. A good business plan is very vital tool in making major business decisions since one can easily spot potential weaknesses, threats and opportunities at hand.

Business overview

This is a first step in making an appropriate business plan. This is a stage whereby the entrepreneur makes major decisions on what his /her business should entail. It is at this juncture that the entrepreneur should design a business name, the type of business ownership and the convenient location on which the business is located as well as the mission and vision statement of the business. The capital investment and the sources should also be included at this point.

Business name

The proposed business name for this sole trader will be ‘’NEW DEL MINI RESTAURANT’’ that is expected to offer healthy, nutritious and fast food in the capital city. Choice of a business name is a very vital step in making a successful business plan. Extensive research is required to make a pleasant name that will be very attractive to potential consumers. The business name should in one way or another suggest the products offered by the business in question.It is also important to ensure that the business name is protected to ensure that it is only used by the business alone(Butler, 2000).

Start up financing

To start and sustain a business requires enough capital that will enable smooth running of the business. There are several sources of finance from which entrepreneurs can get finances to run and sustain a sole proprietorship. For instance in this case, the sole trader should use her personal savings to start the business. Another proposed source of finance should be guaranteeing a soft loan from financial institutions with personal items as collateral. It could also be proposed that the sole trader secure an interest free loan from willing family members and should be cleared within a period of one year. The choice of financing options should be handled with care. This is because a sole proprietor is unlimited liability and thus failure to do that may result to the business owner suffering huge financial loss.

Location and facilities

New Del Mini Restaurant will be a high profile restaurant located in the central business district. This is because the area is densely populated thus offering a huge consumer base. It is also proposed that the restaurant will have adequate facilities that will help in smooth running of its operations. For instance, it is proposed that the restaurant will have a sitting capacity of 50 patrons in a single sitting. It will also have a modern counter in the front area and backroom where essential facilities such refrigerators, commercial stoves and power backups will be located. The restaurant will also have well maintained washrooms that will be strictly used by the patrons.

Market analysis

Before venturing in any business, it is always important to conduct a thorough research to ensure that the business is viable. The first research should be in regard of the potential consumers of the services offered by the sole trader. A decent research should be carried out to understand the segment of both local and international consumers of the products. The research will be carried out through analyzing of secondary research which has been previously carried out. Primary research can also be very beneficial which can be carried out through observations and surveys (Richardson, 2008).  Market analysis should also be concerned with the age differences among its consumers. For instance, it is suggested that the restaurant will offer variety of products that will suit both the young and the old population.

Industry overview

Understanding the industry under which the proposed sole trader business will be operating is very essential in making the business a success. It is under this section that the business owner can determine the viability of the business through analyzing the size and growth of the industry. It also involves research on the available markets and the products offered by competing firms. Primary and secondary research is very essential in industry analysis as it helps the sole trader to be strategically placed within the industry.

The sole trader should try to take advantage of the competitors’ business plans. This forms a part of secondary research since some business plans can be sourced online and in the newspapers. Sole traders should be concerned with business plans of those businesses which have done exceptionally well in that industry. A thorough market analysis will help the sole trader to have a competitive edge over the competitors which can be achieved through offering distinguished products(Barrow, 2011).

Industry overview will help determine a winning strategy for the sole business trader.This will form the basis upon which you will distinguish the services from those of the competitors. For instance, the New Del Mini Restaurant will ensure that it provides affordable and delicious meals to its customers. The business should also strive to ensure that it’s strategically placed and more noticeable than its competitors. This will be achieved through adding special features to the products and services offered. It is also proposed that the restaurant’s outer appearance should also be appealing thus attracting more customers.

Marketing strategy

Marketing is a very important aspect in the success of any business. This is the process through which a business can communicate the existence of a product or service to its potential customers. Marketing also gives crucial information to consumers on the need to consume a certain product or service. A good marketing strategy is vital for enhancing the competitive advantage of the company(Reuvid, 2011). It is always advisable to have a better marketing strategy than that of the competitor to have an upper hand. A good marketing strategy should focus on differentiating the products and services as well as defining the products unique selling position.

Marketing is defined by the 4Ps which refers to place, product, price and promotion. The restaurant proposed place is very ideal since it is in the heart of the city. This provides the restaurant with abundance of the urban population. The urban people are known of not having time to make meals at home thus offering the restaurant the most needed consumer base.  It is proposed that the restaurant will also offer high quality product suitable to any age group or gender(Southon, 2010). Special diets for special people should also be offered in the market. For instance, the restaurant should offer sugar free beverages and snacks to be consumed by those suffering from diabetes.

Promotion is another vital aspect in marketing. This is the tool through which a business entity ensures that the population gets information concerning the products offered. A good promotional strategy is much needed in the success of a sole trader. For instance, the restaurant can adopt trade shows as a major platform of promotion. It is also proposed that the restaurant can use social media such as Facebook and twitter to fulfill its promotional agenda. This is a very instrumental marketing tool since it provides a platform through which consumers can comment or compliment the services offered by the restaurant. Print, audio-visual and online advertising can also be used in the quest to promote the products(Imber, 2005).

Price is also another paramount consideration in the marketing strategy of a business. This entails describing how the products and services offered in the organization will be sold. A proper pricing strategy should be greatly concerned with the prices offered by competing firms as well as the objectives of the firm. For instance, if the firm charges higher prices than its competitors, then there is high possibility that the consumers will buy from the competitors. On the other hand, charging very low will result to collapse of the business. A sole trader should come up with a pricing strategy that gives the firm a competitive edge and at the same time ensure perpetuity of the business.

Organization and management

Different business entities have different organizational structures. This is the section under which daily operations of the firm are broken down and assigned to different people within the organization. The management team and their qualifications are outlined in this section. As a sole trader, it is very important to have highly qualified personnel to ensure that the objectives of the organization are realized(Barrow & Barrow, 2012). However, it is important to ensure that the management team and other personnel are manageable and thus the firm does not have a huge wage burden.

The restaurant is proposed to have one manager with adequate management skills. The manager will have the responsibility of ensuring that all the operations are run smoothly. It is also important to have a supervisor with sole obligation of ensuring that all the patrons in the restaurant are accorded great service. There will also be two cashiers with mandate of collecting cash received from sales. It is also proposed that the restaurant will have four service attendants and two kitchen helps. The restaurant will be open all the days of the week from 6.00am to 10.00 am. The sole trader should also be involved in the management of the restaurant as he remains the decision maker in all matters of running the business(Spedding, 2010).

Financial projections

This is another vital stage in ensuring the success of the organization. After market analysis and having laid a clear objective of the organization, it is important a financial projection of at least three to five years is laid out. This acts as a road map to assess the growth and development in the business in question. The projected financial plan should be depicted in form of income statements, pro-forma balance sheet annual and monthly cash flows among others.  This is very vital in a business plan as it helps financial institutions in deciding whether or not the business is worth financing(Benjamin & McDowall, 2010). The process involves some assumptions all of which should be disclosed to make the projections realistic.

For instance, the financial projection of the New Del Mini Restaurant will be based on its initial investment. The investment included personal savings, bank loans and loans from friends and family members. All the interests and projected revenues and expenditures must be included in the sole traders five year projected financial plan. In order to secure bank loan, it is fundamental to have a projected financial plan that depicts the capability of the business to meet the liabilities(Weygandt&Kieso, 2010). Appendixes indicating the SWOT/PEST and the financial statements of the business are recommended in a viable business plan.

References

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