University of Phoenix
Freshies Soul Food Restaurant Proposal
Hello my name is Donna Smith, I’m interested in opening up a Soul food Restaurant. I’ve found a building that is waiting to be utilized. I’m in need of financing to help with the startup cost. In my opinion this investment will prove profitable in the end. My support system is amazing and their willing to give donations to help out as much as possible. I’ve also found a company that has recently gone out of business that will allow me to purchase all of their cooking equipment at a 75% discounted price. As for the other items I will need to purchase besides the obvious food, I will need platters, bags with the companies name on it, napkins, plastic forks, knives, and spoons, aluminum foil, wax paper, and napkins. I will get Sam’s Club Card that will enable me to buy everything in bulk as well as a cheaper price.
My family members are willing to help with decorating, as well as making and giving out flyers to promote my business investment.
I’ve done plenty of research for this investment, while reading a book on business According to Jones (2007) “you may think that making a profit and profitability aer the same. But, in fact, the two concepts are different: Profit is simply the total or absolute monetary difference between sales revenues and operating cost; if a company’s sales are $10 million, and it cost are $8 million, it has made a profit of $2 million (ignoring other complicating factors). Profitability measures how well a company is making use of its capital by investing in resources that create goods and services that generates profits.” (Chapter 1).
The easiest way to increase would be to reduce cost. If I have a low gross profit margin, reducing direct costs increases the profit of each sale. If I eliminate any unnecessary issues it has an immediate impact on the plan at hand. If I have a high gross margin every sale is highly profitable. Once my turnover reaches the breaking even point, profits will start increasing rapidly.
Acquiring new customers will be will be easier by my restaurants appearance and reputation, unit cost will be reduced. If my customers are loyal, the value of each new one lies not just in the first…