Business Plan
When starting a business, entrepreneurs normally make a lot of assumptions about their new ventures (Honig & Karlsson, 2004). One of the assumptions that entrepreneurs normally make is that the product they are going to offer will be liked by the consumers and that the product being offered will be profitable. However, investors normally want to be assured that a lot of research has been done and that extra significant assumptions can be supported with data. In the proceeding paragraphs, we shall discuss the assumptions that were made for our fast food restaurant business plan.
The first assumption that we have made for the proposed business plan is that there is adequate capitalization to start and operate the business. We believe that the operations of the business can be funded with proceeds from sales. This assumption has not taken into consideration the fact that even if a business venture is making profits, then several months are still needed to settle the initial costs. We believe that the sales volume will enable the company to meet its debt service obligations within the first years of operation.
The second assumption that we have made is that the area where the restaurant will be located has enough customer base. The large customer base is expected to generate enough revenue for the restaurant and help it attain profitability in the long run. There is a general assumption that the area has a number of potential customers than is projected. Since the restaurant plans to offer high-quality products at affordable price, it is assumed that most people will buy from the restaurant instead of buying from the competitors.
Reference
Honig, B., & Karlsson, T. (2004). Institutional forces and the written business plan. Journal of Management, 30(1), 29-48.
