1 EXECUTIVE SUMMARY

The launch of the business of Stammtisch in June2005 will be an absolutely new concept and is missing within London. The business will be the first traditional Germanpub in Central-London. Stammtisch’s first-mover advantage will combine a traditional German-pub and Sport-entertainment; located in ‘Central-West-London’ ¹ .

The strategy is manly based on serving the pub niche market for the Germancommunity (80,000 Germans are living in Greater-London ² ).

Markus Kutscha (native German) is the founder of Stammtisch; it will be a Limited Company. Andreas Kutscha, who is my brother, will support me in management (secretary) in the first 2 years.

This business plan is a proposal to raise finances from the bank to complement the initial investment of £200,000. It requires a flexible bank loan of £125,000, re-payable in 5 years, to aid the successful business implementation. £50,000 will be employed immediately to finance the set-up costs; the remaining will be used throughout year1 to sup-port the cash needs. The founder and his family will invest a total of £25,000 and £50,000 respectively to cover operating expenses.

According to the cash flow projection, the business will break even in its 22 ^nd month of

operations.

¹ See Assignment.1

² www.auswaertiges-amt.de

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TABLE OF CONTENTS:

1  Executive Summary  2

Table of  Contents:  3

2  management  4

3  Legal and tax Issues  5

3.1  Legal  5

3.2  License/Regulations  5

3.3  Employment Regulations  6

3.4  Business Taxation  6

4  Produkt or service  6

5  Sales proposal (Promotional mix)  7

5.1  Marketing Strategy  8

5.1.1  Stage 1 (Pre-Launch)  8

5.1.2  Stage 2 (Introductory Phase)  9

5.1.3  Stage 3 (Launch Phase)  10

5.2  Sales Objectives  10

5.3  Promotion Budget  13

6  Financial Proposal  14

6.1  Cash Flow Statement year 1  14

6.2  Cash Flow Statement year 2  14

6.3  Cash Flow Interpretation  14

6.3.1  Income  14

6.3.1  Expenditure  15

6.4  Break-Even Analysis  18

7  Conclusion  19

8  Bibliography  20

9  Appendix  22

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2 MANAGEMENT

Name: Markus Kutscha Position: Business Manager

Key Activities:

Financial Management Purchasing Advertising/Marketing Personal Management Supporting in service area (bar keeping)

Requirements:

Entrepreneurial- and Leadership Skills Team-oriented Organisational Skills Communication- and Interpersonal Skills

Qualifications:

Degree in Business Management

2 years of customer service experience gained in a café-bar

With the business opening, the team will consist of 3 full-time barkeepers (including myself) and 2 part-time barkeepers.

Once the business starts to grow, I will recruit additional staff to meet the demand.

Management Support Team:

Andreas Kutscha; (Brother) (office administrator) - experience with business startup and recruitment issues. He agreed to assist in the management as my secretary for the first two years.

Peter Krieg; (Friend) (tax consultant) - 15 years of accounting/bookkeeping experience. He will be able to offer advice and verification of bookkeeping. Julia Schneider; (Family Member) (graphic designer). She will design a logo and promotional leaflets/flyers/posters.

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3 LEGAL AND TAX ISSUES

3.1 LEGAL

‘Stammtisch’ will be operating as a public limited company ³ with Markus Kutscha owning 100% of the business.

Advantage of this company form:

In the event of bankruptcy the members’ liabilities are limited to the amount of capital which they have contributed in company’s assets It is simple to admit more members

There is a wider range of allowances and tax-deductible costs that can be offset against a company’s profits

The above reasons outweigh the benefits of other operating options. A Sole Trader, for example, would have it harder to raise finance, to sell shares, to raise capital, and is even unlimited liable.

Relevant law:

Companies Regulations 1985 All Companies Act 1989

The process involves registering the company with Companies House, which will cost £15 ⁴ through electronic filing service. A Memorandum and Articles of Association is produced as a legal requirement.

LICENSE/REGULATIONS 5 3.2

‘Stammtisch’ needs to register with the local Environmental Health Department to comply with the Food-Safety Act 1990 and General Food-Hygiene Regulations 1995 (no registration fees).

³ www.companieshouse.gov.uk

⁴ www.companieshouse.gov.uk

⁵ www.food.gov.uk

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3.3 EMPLOYMENT REGULATIONS

National Minimum Wage Act 1998 ⁶ (Rates applicable in October2005)

- Main/adult rate for workers aged 22+: £5.05/h

- Development rate for workers aged 18-22: £4.25/h

Equal Opportunity Act

BUSINESS TAXATION 7 3.4

As business owner I am self-employed and therefore responsible to the Self-Assessment scheme and National Insurance payments. Self-Assessment Tax

- Income tax is paid on annual income, less allowance (personal tax code) and expenses

National Insurance

- Owner: Inland Revenue Office

- Employees: Receive wages and are taxed through PAYE

VAT 8

Note: No VAT or tax payments will be considered in cash flow statement.

PRODUKT OR SERVICE ⁹ 4

Stammtisch will be providing a combination of a traditional German-pub (ambience, atmosphere and the offering of German beer and simple food) and Sport entertainment (especially German-football).

The furnishing of the room will have the charm of a typical German ‘Kneipe’ ¹⁰ . The pub has a space of 150m ² .

⁶ www.dti.gov.uk

⁷ www.inlandrevenue.gov.uk

⁸ www.here4business.co.uk

⁹ See Assignment.1 for additional information

¹⁰ pub

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