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Buasuwan: The Golden Lotus, Business Proposal Example

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Financial analysis

Financial Analysis presents a very essential aspect in planning a business. With the dream of making Buasuwan a five-star restaurant in the future calls for a strong foundation in developing a financial budget. To start up this new venture, several items need consideration. Start expenses would include Rent, Phones (business phones and cell phones), Utilities, and Credit card processing. There will also be the need for website service fees, Promotion commitment, Equipment Lease Payments, and Dues/Subscriptions (De, Anupam, Bandyopadhyay & Chakraborty, 2011).

Other than that, there will be a need for Office Supplies, Dues/Subscriptions, Professional fees (legal and accounting), Business insurance Employee Payment /Benefits, Advertising (Publicity, online ads). To cater for any arising expenses some cash set aside for Miscellaneous Expenses and Business Loan Payment among others. With the so unpredictable cash flow, only a business with an efficient and reliable budget would survive the tough economy. A budget estimate of the same for a classic restaurant would appear as follows:

EXPENDITURE	AMOUNT AND PAYMENT METHOD
Initial franchise fee upon the execution of the Franchise	$10,000- $40,000 (paid in cash)
Advertisement cost	$5,000 (paid in cash)
Contractor license	$0- $250 (paid upon incurrence to state administrators)
Lease and utilities, Payments and deposits	$0 – $1,000(paid upon incurrence, to landlords, utility companies or the supplier)
Franchise Premises Rent	$0 – $1,500(paid upon incurrence to landlord)
Supplies and Equipment Inventory	$0 -$7,000(paid upon incurrence to suppliers)
Office Set-up	$500 – $1,500 (paid as incurred to suppliers)
Computer equipments and accessories	$500 – $1,500 (paid as incurred to suppliers)
Hiring staff, Travel and Living Expenses While recruiting the staff	$500 – $2,000 (paid as incurred during the training period to venue hotels, restaurants, and airlines)
Cell phones	$50- $250 (paid in cash to suppliers)
Clothing and Uniforms	$0 – $250 (paid in cash to suppliers)
Cars signs and vehicles	$2600-$6500 (paid in cash to suppliers)
Licenses and Bonds	$0 to $1,500 (paid as incurred to government agencies)
insurance	$60-$250 per month( paid as incurred to insurers)
Miscellaneous expenses during opening	$200 -$600 (paid as incurred to suppliers and utilities)
Salaries, wages and other funds (for at least 6 months)	$6,000 -$10,000 (paid as incurred to employees and other utilities)

Licenses and approvals

In starting up any business, one has to obtain the necessary permits in terms of licenses from the government officials. Other than that, there are also the approvals needed to run the business, more especially in the food industry. The first state comprises of company registration. This includes

Approval of company name and
Obtaining of the certificate of incorporation (for a local company)/ certificate of registration (for a foreign company)

For the approval and registration of a company, a minimum of two directors, two subscribers to the company shares and a company secretary are required. The company name then searched to determine its availability. Registration of the company then done, where registration varies depending on the authorized share capital, and the locality of the business (Sullivan& Steven 2003). As the authorized share capital increases, the registration fee also increases. The second stage that comes in is the employer registration that comprises:

Employer Registration with EPF
Member Registration with EPF
Employer Registration with SOCSO
Employee Registration with SOCSO
Employer Registration with IRB
Registration as Corporate Taxpayer with IRB

The third stage comprises of the Pre-operational Approvals

Composite License for Hotel
Registration of Tourist Accommodation Premise
Registration of Installation
Authorization Letter to Purchase Diesel

Other than the mentioned approvals, there also are other approvals including:

Public House License
Temporary Public House License (Extension of Time)
External Advertising License / Permit
Money Changer License
Apparatus Assignment
Publication Permit
Visit Pass (Professional)
Approval for Expatriate Posts
Employment Pass / Visit Pass (Temporary Employment)

While the licenses and approvals would mean incurrence of many costs, it is worthwhile. Each of the approval and registration process accompanied with expenses (Sullivan& Steven 2003). One must pay all taxes as per the requirement of the local, state and federal laws. The permits of a restaurant as listed above are quite many, but one must obtain all permits, certificates, and licenses that mark the essentials for the proper conduct of the franchise.

Design, Furnishing, And Equipment

With the dream of having a classic five star restaurant, the setup of the restaurant will aim at offering all essential services under one spectacular roof. The Buasuwan resort will offer a luxurious scenario of the epitome of a luxurious lifestyle. The Buasuwan restaurant will have a wide range of services from a hotel, a casino, a conventional facility, entertainment facilities and shopping sites. The piece of land i divided into four, where one corner is made of the entrance and reception, and the living room, the second corner has the casino, the third corner has a shopping mall and convectional facility. The fourth corner has a classic swimming pool. The facilities and equipments listed below strategically incorporated in the four main facilities. The car parks situated in between the compound in an aesthetic manner.

Upon entrance into the Buasuwan restaurant, one will enter the living room, decorated with the latest designs from Europe. The living room will have beautiful Egyptian linens covering the room and the luxurious hand wash tabs. The curtains and roman shades will be remote controlled. The walls painted in a faint blue color that brings in the relaxation mood. Powerful speakers installed in the ceiling to offer cool music. The furniture in the living room consists of a range of stylish chairs and tables, comfortable sofas and stools.

The casino will be located on the far right corner. It is equipped with fixed seating and Champagne lounging. This equipment will offer hot cars and cool nightclub entertainments. At the casino, there will be street performances, gondola rides and a small interesting museum. At the Buasuwan casino, a booth created for the signing up purpose. There will be a special room for the VIPs with a complementary dining. Loyal VIPs by default win free show tickets, or shopping tickets. There will be more in the Buasuwan than just the hotel and casino. Listed below are equipments and the services one expected to receive:

Massage equipments- massage services where one reinvented into a new hairstyle during the immerse body message.

A challenging 40-foot climbing wall
Entertainment equipments- entertainment offered from the best musicians
A multilevel ultra sports bar centre
A boutique full of every fashion of attire, jewelry, shoes in the shopping centre 6) Lounges
Shopping sites
Hotel gyms
Excellent swimming pools
Business meeting sites and convectional facilities

The Buasuwan restaurant will be a special place to be. It will be the world’s site for health, fitness, nutritional food, and indulgence place for spending holidays.

References

De, Anupam, Bandyopadhyay, G., & Chakraborty, B. N. (2011) “Factor analysis on the financial ratios”, Journal of Business Studies Quarterly, Vol. 2 Issue 3, p13-31.

Sullivan, A. & Steven M. Sheffrin (2003). Economics: Principles in action New Jersey Upper Saddle River publishers.