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’. The strategy is manly based on serving the pub niche market for the Germancommunity (80,000 Germans are living in Greater-London). 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 support 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 22nd month of operations.
Table of Contents
1 Executive Summary
2 management
3 Legal and tax Issues
3.1 Legal
3.2 License/Regulations
3.3 Employment Regulations
3.4 Business Taxation
4 Produkt or service
5 Sales proposal (Promotional mix)
5.1 Marketing Strategy
5.1.1 Stage 1 (Pre-Launch)
5.1.2 Stage 2 (Introductory Phase)
5.1.3 Stage 3 (Launch Phase)
5.2 Sales Objectives
5.3 Promotion Budget
6 Financial Proposal
6.1 Cash Flow Statement year 1
6.2 Cash Flow Statement year 2
6.3 Cash Flow Interpretation
6.3.1 Income
6.3.1 Expenditure
6.4 Break-Even Analysis
7 Conclusion
Project Objective and Thematic Scope
The primary objective of this business plan is to outline the strategy for launching "Stammtisch," the first traditional German pub in Central London, and to secure the necessary bank financing for its successful implementation. The document evaluates the business's market potential, operational requirements, and financial viability.
- Strategic launch of a niche traditional German pub and sports bar concept in London.
- Development of a comprehensive marketing and promotional mix targeting the local German community.
- Detailed legal and tax planning regarding the incorporation and operation of a limited company.
- Financial modeling including cash flow projections, break-even analysis, and funding requirements.
- Analysis of recruitment and management structures required for the initial years of operation.
Excerpt from the Business Plan
3.1 LEGAL
‘Stammtisch’ will be operating as a public limited company 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 through electronic filing service. A Memorandum and Articles of Association is produced as a legal requirement.
Summary of Chapters
1 Executive Summary: Provides an overview of the business concept, founder details, financing requirements, and the projected timeline for breaking even.
2 management: Outlines the roles and responsibilities of the business manager and the supporting team, along with necessary qualifications and experience.
3 Legal and tax Issues: Details the choice of company structure, relevant legal regulations, and tax obligations for the business.
4 Produkt or service: Describes the business offering, which combines a traditional German pub experience with sports entertainment.
5 Sales proposal (Promotional mix): Explains the marketing strategy, split into three distinct stages, to generate consumer awareness and demand.
6 Financial Proposal: Presents the comprehensive financial roadmap, including cash flow statements, income and expenditure breakdown, and the break-even calculation.
7 Conclusion: Summarizes the financial outlook and confirms the viability of the business model based on conservative growth estimates.
Keywords
Stammtisch, German Pub, London, Business Plan, Marketing Strategy, Cash Flow, Break-Even Analysis, Limited Company, Entrepreneurship, Sports Entertainment, Promotional Mix, Financial Proposal, Market Niche, Startup Costs, Sales Objectives
Frequently Asked Questions
What is the core purpose of this business plan?
The document serves as a formal proposal to secure a £125,000 bank loan to complement the initial investment and facilitate the launch of a new German pub in Central London.
What is the primary target market for the business?
The business primarily targets the German community living in Greater London, which comprises approximately 80,000 individuals.
What strategy is used to attract customers?
The business employs a marketing strategy divided into Pre-Launch, Introductory, and Launch phases, using tools like leaflet distribution, direct marketing, and local magazine advertising.
How is the financial viability measured?
Viability is measured through detailed cash flow projections over two years and a break-even analysis indicating a projected break-even point in March 2007.
What is the unique selling proposition of the business?
The USP is the originality of being the first traditional German pub in London, combined with the exclusive offering of German sports-TV.
Which business structure has been chosen?
The business will be operated as a limited company to benefit from limited liability and tax-deductible expense allowances.
Why are the initial months of operation capital intensive?
High initial costs are driven by refurbishment, the purchase of furniture and kitchen equipment, and the upfront deposit and rent requirements for a high-street location.
How does the business plan account for the FIFA World Cup?
The financial projections anticipate a significant 25% increase in sales during June 2006, coinciding with the FIFA World Cup event.
- Quote paper
- Markus Kutscha (Author), 2005, Developing a Small Business, Munich, GRIN Verlag, https://www.grin.com/document/70644
