Business Plan Essay

Submitted By Kypra
Words: 1783
Pages: 8

The Pancake House

Description of the business and ownership
The Pancake House aims to provide high quality pancakes and an exceptional place for customers to come, relax and eat pancakes, while also providing entertainment for children such as a playground and games room. The Pancake House will invest profits to increase employee satisfaction while providing a stable return to its shareholders and employees. The Pancake house was established in 1974 as a Sole-Trader, by Emilio Kyprianidis, but has now merged into a partnership with Um Isvari and is well known in the Byron community.
Executive Summary
This report provides an analysis and evaluation of the current and prospective profitability, liquidity and financial stability of The Pancake House and will be updated every 12 months. The research conducted draws attention to the fact that The Pancake House is quite profitably and has a large market share of about 56% in the Pancake industry in Byron Bay. The aim of the business, initially started by Emilio Kyprianidis, is to provide high quality pancakes to the public with a wide variety of toppings and ingredients. The business will operate in a 100 square metre building, located right in the centre of Johnson St, Byron Bay. The Pancake house employs 8 people, all highly trained through our three week course conducted by our head Chef, James Smith.
The purpose of this business plan is to illustrate to all stakeholders and possible investors, where the business is heading within the next 12 months in terms of its product range and market segmentation. The business plan ensures the business has made a realistic assessment of its current position in the market, and provides the business with pathways for the future.

Business Life Cycle
The Pancake house is currently in the sustained segment of the business lifecycle, since being established in 1974 the business has just plateaued but is slightly starting increase in gross profit every financial year. We plan to expand our business to Ballina within the next 36 months, which will move the businesses into the Innovation/Renewal stage. Expanding the business to Ballina will increase our profits and we will establish a good reputation by advertising in the Ballina area, which will eventually attract a large customer base.
Description of Good and Service
The Pancake House buys some of the ingredients from a Wholesale farm, the materials we buy from them include: Flour, Milk and Eggs. The rest we buy from a Wholesale supermarket and order in bulk to reduce costs, the products we buy vary on the demand and current stock of supplies, these may include things such as: Maple Syrup, Chocolate Sauce, Napkins and berries.
The kitchen equipment used to produce the final pancakes can add up, and is required to be renewed every few years, it can cost up to $2,000 to replace the equipment. This may include: Saucepans, Pancake pans, Whiskers, Mixing spoons, Mixing bowls and Electrical mixers.


Current assets
Petty cash
Pre-paid expenses
Fixed assets
Property & land
Furniture & fitout
Computer equipment
Total assets
Current/short-term liabilities
Credit cards payable
Accounts payable
Interest payable
Accrued wages
Income tax
More… Long-term liabilities
More… Total liabilities

Financial Plan Objectives
The Pancake house will increase its gross margin to 65% within the next 12 months, ultimately leading to larger Net Profit and strengthening the business.
Next year’s objectives
Net Profit
To achieve net profit of $150 000
Gross Profit
To increase the average gross margin for all products from 55% to 65%
To not exceed the following expense budgets