Business concept

A RESTAURANT

I want to open a restaurant (WRONG)

I want to open a restaurant featuring moderately priced Mexican food and located in the El Paseo Plaza of Palm Desert California (BETTER)

9.1 © 2004 Ewing Marion Kauffman Foundation

Characteristics of the Ideal Business• No investment

• Recognized, established market

• Perceived need for product

• Dependable source of input supply

• No governmental regulation

• No labor

• 100 percent gross margin

• Buyers purchase frequently

• Favorable tax treatment

• Receptive, established distribution system

• Great news value

10.2 © 2004 Ewing Marion Kauffman Foundation

• Customers pay in advance

• No product- or service-liability risk

• No product obsolescence

• No competition

• No fashion obsolescence

• No physical perishability

• Impervious to weather

• Workable and feasible product/service

• Proprietary rights

• Continuous revenue flow

• No legal entanglements

• Exit potential

Concept Statement (exer. 9a)

• Distinct function of product/service

• Proprietary aspects

• Innovative technology

• Position in the industry

• Intended customers

• Customer benefits

• Market-penetration methods

• Maker or supplier of product/service

9.2 © 2004 Ewing Marion Kauffman Foundation

Feasibility Plan

• Cover page

• Table of contents

• Executive summary

• Product/service

• The market

• Price and profitability

• Plan for further action

8.1 © 2004 Ewing Marion Kauffman Foundation

Business Plan

• Cover page

• Table of contents

• Executive summary

• Management and organization plan

• Product/service plan

• Marketing plan

• Financial plan8.2

• Operating and control systems plan

• Growth plan

• Appendix© 2004 Ewing Marion Kauffman Foundation

Executive Summary

• Narrative or plan in miniature

• 1-2 pages in length

• Be specific and to the point

8.3 © 2004 Ewing Marion Kauffman Foundation

3rdQtr

4th

Feasibility Plan Format and Tips

• 12-15 pages

• Use a cover page

• Include table of contents

• Use subtitles

• Use charts, graphs, and bullets

• Put support documents in appendix

• Number pages

• Check math

• Check spelling8.5

Qtr

© 2004 Ewing Marion Kauffman Foundation