Professional Documents
Culture Documents
Informal Screening
IDENTIFICATION
YES
Feasibility Study
NO
TERMINATE
ANALYSIS
YES
Financial Analysis
NO
TERMINATE
EVALUATION
YES
Prepare Investment
Proposal for Funding
NO
TERMINATE
Brief Introduction
Briefly describe the nature of your business (it should be related to the
hospitality, tourism & culinary industries). Your brief introduction may include a
SHORT history of your business type or current trends in the foodservice
industry that helped you decide to choose your business concept.
II.
Company Profile
A. Company Name
What is the name of the management company running the behind-thescenes of your business? This is the name of the holding / managing
company behind a trade name.
A mission statement can tell a lot about your business. It is a cross between
a slogan and an executive summary of your business. Think of a mission
statement that will guide you in your operations!
C. Company Vision
A vision statement can pave the way for your business success and can help
get your team members to be on the same page. Ready to dream BIG? How
far do you think your concept will go? Are you thinking of franchising,
branching out, etc.? Will you be expanding your operations through the
internet?
D. Owners Profile
What are your essential skills & qualifications, experiences, and dreams &
aspirations? What will be your contributions to the company? It does not
have to be long - one short paragraph for each member will do.
III.
Business Name
A. Business Trade Name
Your trade name is your commercial name or the name that your
product/service will be commercially known. This is different from the
company name. Explain how came up with this name. If it is a foreign term,
what does it translate to?
What do the symbols on your logo represent? What prompted you to use
such colors? Does it tell your would-be customers what your business is all
about or do they have to keep guessing?
IV.
Concept Development
A. Business Type
Are you a coffee shop, a cafeteria, an ethnic restaurant, a fast food, a
delicatessen, a dessert place, a casual dining or family restaurant, a fine
dining or gourmet restaurant, are you a food cart, a kiosk or stand, a bar, a
catering business, a food manufacturer? Will you be setting up a travel
agency or an event management company? A hotel(2,3,4,5-star) resort or
spa perhaps?
Will you be serving breakfast, brunch, lunch and dinner? What time will you
be open? What time will you close? Will you be open 24-7, Monday to
Sunday?
Who is your target market? Is it the see and be seen crowd, or the
healthy options group, or the romantic-getaway couples? Are you going for
the upmarket or the masses? What are their jobs? How much are they
willing to spend or what is their buying power? Are they students, local
and/or foreign travelers, or the business sector?
1.
2.
3.
4.
5.
Age Group
Gender
Profession / Occupation
Income Bracket
Social / Consumer Behavior
What type of food will you be serving? Pasta, pizza, Chinese, Japanese, rice
meals, exotic food, breads & pastries, what have you. If you are an events
management company, what services will be catering to? If you are a spa,
what type of massages or other related services will you be offering?
ULTIMATELY:
What is so special about your concept? It is unique
enough to attract the initial interest of the consumers?
Site Description
A. Exact Location / Business Address
B. Vicinity Map
Dont show me the whole map of Manila. Instead show me how to get there
Landmarks! Whats in front of you or behind you or to your left & right?
These will help your customers find you.
Flash floods are big problems for hotel & restaurant owners! Does it flood
in your proposed area? Information may be obtained from the City Planning
Office of the City Hall governing your location
Site Evaluation
A. Visibility
Is road frontage adequate? Is your location in between tall building, or at
the end of the street or at the top floor of a mall? Is it visible to
customers riding their car or to pedestrians?
Tell me how to get via major arteries or streets or several points of origin
(i.e. from Makati, Ortigas, Alabang, etc.) using both public transportation
and private vehicles
C. Suitability
Does your location fit your concept? Is it suitable with regard to
competition and target market? Is parking a problem? Is rent competitive?
D. Zoning
Is your area under a residential, commercial or industrial zone? Information
may be obtained from the City Planning Office.
How much is RENT!!!! If you are to buy the lot, how many millions will you
need? If you are going to lease it, how long is the lease contract and how
much per square meter? If the lot is already yours, consider the business as
a separate entity paying you rent or lease.
III.
Tell me more about your captured market or the people that live in the area.
Does your initial target market match with the general statistics of the
population?
1. Age group
2. Gender
3. Income Bracket
*Information maybe obtained from the City Planning Office
What other attractions will prompt people to visit your area? Remember,
they need to eat at some point after a long tour? While your customers are
in your establishment, is there a constant fear that their cars will be
napped?
* Information maybe obtained from the Local Tourism Office
Where will all these people stay and eat? Your hotel/restaurant,
hopefully!!!! Does the business climate need a distressing business such as
your spa? Do the businessmen need a place to stay in for the night?
1. Major Retail Business
2. Major Industries
3. Schools / Universities
4. Theaters / Movie Houses
5. Banks, Savings & Loan Associations, Insurance Companies
6. Hotels
* Information maybe obtained from City Planning Office or personal ocular
visits
Ultimately:
What are your strengths and weaknesses as a company, as a food concept, your
location, as compared to your competitors, etc. ? What opportunities to foresee
that you can take advantage of? What threatens your survival?
1. Strengths
INTERNAL
2. Weaknesses
3. Opportunities
4. Threats
EXTERNAL
II.
COMPETITION SURVEY
Yikes! Who are you up against? Hope its not going to be a David and Goliath
situation . . .
1. Direct Competition
Establishments that offer the same type of products and services or close to
what your offering within the vicinity. If you are a mobile business or a
management company, you can list down your closest competitors even outside of
your vicinity.
2. Indirect Competition
Note:
To assess your survival, you may also need to assess your competitors
strengths and weaknesses and business/marketing strategies
III.
Marketing Strategies
A. Products Strategies
Whats so special about your product/hotel? How do you intend to use your
products as a marketing tool? Aside from your food & beverage, will you be
selling other merchandise such as cups, mugs, t-shirts, etc.? Will you be
adopting the American style of serving big portions? Will you be putting your
logos on your coffee cups, take-out bags, napkins, etc.? The Westin Hotel uses
their Heavenly Bed and Bath as a competitive advantage. Some spas advertise
the use of Dead Sea salts from Israel.
Will there be live-bands playing in your establishment? What type of piped-in
music will you be incorporating? Chill-out music for your caf, Italian classics for
your Italian restaurant, French music for your French wine store, relaxing
nature sounds for your spa perhaps? Will you be having cultural shows for your
foreign guests?
B. Service Strategies
Will you be using some sort of interesting technique in serving your products?
Chilis staff is required to kneel down when taking orders. Apparently customers
are kings and queens that should look down on their servers and not the other
way around. Gerrys Grill uses a unique order-taking device. Travel agencies
offer ticketless travels.
C. Pricing Strategies
Are your products and/or services of best value to your customers? Will you be
pricing your products based on what your competitors are charging?
D. Image Strategies
Decide how you want your business to look like to customers. Your business
should project an image that will attract your target market. For example, food
sellers should present an image of cleanliness and safe food, etc.
II.
Construction Costs
A. Actual Construction Costs
Ask construction companies how much is the cost per square meter and
what does this include (this depends on the quality and design or project).
Some charge cheaper for renovation costs as compared to start-fromscratch projects.
B. Architects Fee
Usually 10% of total construction costs but inquire just the same
Some charge per square meters and may include a lot of things
D. Landscape Costs
III.
Now this is the hard part! You have to quantify your estimated costs here. I
want to know what pieces of furnitures and equipments (aircon, freezer, coffee
machines, etc.) you will need and how much each of these will cost you. You can
ask manufacturers or suppliers or simply shop around . . .
(SAMPLE LIST FOR A RESTAURANT BUSINESS)
B. Back of House
1. Kitchen Equipment (Range, Burners, etc.)
2. Kitchen Utensils
3. Employees Lockers, Meal/Rest Area
4. Office Furnitures and Equipment
5. Storage Facilities (Refrigerators, Freezers, etc.)
Staffing Requirements
A. Positions & quantity required for operation and back office
B. Salaries & Wages
III.
IV.
Miscellaneous Expenses
A. Petty Cash Fund
B. Loose Change Fund
C. Office Supplies
D. Cleaning Supplies
IV.
V.
Uniform Expenses
How many employees and how many sets each?
Insurance Expenses
Ask a reliable insurance company for their rates. Choose which one/s is/are
best for your type of business and ask how much the MONTHLY/ANNUAL
PREMIUMS are for the coverage that you decide on.
A.
B.
C.
D.
E.
F.
VI.
NOTE:
Be sure to mention your references. Hopefully most of the items above are
based on actual costs and not just estimated. Fax quotations from your
suppliers should be attached as an appendix to your plan.
I.
How much do customers, on an average, usually pay at the end of his meal
at his restaurant?
C. Seat Turnover
The number of times a seat in the dining area is occupied during a meal
time. For a sit-down restaurant, an ideal seat turnover is between 1.5 to
2 per meal period.
Which days does he make the most money and which days does he sit
around counting sheep?
At certain periods of the day, when is all his staff on their toes and
when do they have time for chit chat?
Beverage Sales can be estimated at 30% of the estimated monthly food sales. But
if you are a bar or an establishment that sell beverages as your main product, this
should be bigger than your food sales.
II.
Cost of Sales
A. Food Cost
It varies from one establishment to another. You set the targets! Catering
companies usually have a 50% food cost. Restaurants would have an
estimated 35-40% food cost
B. Beverage Cost
You can make a killing with your beverages. Beverages cost range from 1020% only.
III.
Operating Expenses
You can get some of these figures from your Total Investment (Opex)
On peak months, your salaries and wages may go up. For restaurants, they
hire additional on-call waiters to help.
B. Employee Benefits
1. Labor Meals
C. Government Payables
You can use the figures that you already computed in your OPEX section.
D. Utilities
1. Gas
2. Water
3. Electricity
4. Phone
E. Kitchen & Dining Supplies
F. Monthly Rental Expense
G. Advertising / Promotions Expense
H. Other expenses
IV.
B. Office Supplies
C. Cleaning Supplies
D. Transportation Expenses
1. Gasoline Allowance
2. Public Transportation Allowance
d. Other expenses
e.
V.
Income Tax
Death and taxes are the only certainties in life! So pay the right taxes! Income
tax is pegged at 30% of your net income.
2.Payback (Months/years)
Total Cost of Investment = Payback (Months)
Average Monthly Net Income
Total Cost of Investment
Average annual Net Income
= Payback (years)
FINAL PROJECT
1. Written Feasibility Plan
Requirements:
Must follow the given format
Must be ring-bound
Must include all references as an appendix
Must be submitted before the presentation is made