Evaluation for Ice Bar Essays

Evaluation for Ice Bar Essays Evaluation for Ice Bar Essay Evaluation for Ice Bar Essay You dont want the expenses to be more than the sales. Management and employees would want to see this information to see how well the business is doing. Also to see if the business can afford to pay the employees. Evaluation for Ice Bar First of all we were deciding upon what kind of business we were to set up. First we had decided to set up a chocolate shop. The reason for not starting up a chocolate shop was because we thought this was not necessary and there are a lot of shops which sell chocolate in Sheffield. We wanted to introduce something new instead. So we decided upon setting up an Ice Cream parlour, the reason for this was there are no Ice Cream parlours in Sheffield, but there are cafes and restaurants which sell Ice Cream. By doing research we found out that Ice Cream does not have to be restricted to the summer months only as it is a cold dessert. At the time we started our business plan in the winter where a lot of Ice Cream is not eaten due to the cold weather. Due to us starting our plan in the winter we thought it would be difficult to find information on Ice Cream due to Ice Cream is known as seasonal. We also decided not to open Ice Cream parlour at one point due to it being seasonal. However, doing a lot of research finding out the important information for our business we realised we could be successful. If we put a lot more effort in advertising in the winter. Research is the most important part of the business plan and we believe we were successful in this area. As we found out a lot about Ice Cream the profits you can make buy selling the product. Pricing is really important in a business. If it is pitched too high then it will frighten off potential customers, but too low a price might give you levels of demand we wont be able to cope with, or worse leave us with higher costs than revenues. So we had decided making the prices reasonable. We decided to locate on Ecclesall Road due to it being a predominately student area. We believe it could start us with a good client base. There were different areas from where we could choose from for example London Road, somewhere in the City Centre. As Ecclesall Road is just off the City Centre so it does have its advantages and it is a long road with a lot of competition. Finding the property on Ecclesall Road was difficult as there are a lot of businesses successful. We managed to find a property after a while we had to wait, if we had not been successful in finding a property on Ecclesall Road we would have decided to locate on London Road which is a road like Ecclesall Road with a few cafes and takeaways. London Road is being developed into being another Ecclesall Road. There are flats being made on London Road which are to be filled with mainly students. We had decided to set up the business as a partnership due to having more ideas and we both have different skills within each other. By putting the skills together we thought we could have a successful business. Setting the business up as partners does have its advantages and disadvantages. As above they are the advantages but the disadvantages are not agreeing on the same idea, which can cause some problems but me and Emma managed to work together and if any disagreements occurred we had sorted them out by working them out. We did manage to get on well with each other and work as partners. The quality assurance was used by the help of Emma getting information how a food handling business works. As Emma works at Massarella she had the experience and knowledge of what was needed to be done. We used the information from Massarella as it is a food handling business. It had helped us a lot with our quality assurance, production plan, and constraints on production. The financial plan is crucial as it is a forecast on the business to see if we are to be successful in making any profit. The financial part of the plan took us a long time to do by trying to get it right. It was not difficult doing the cash flow forecast and the profit and loss account as we had to just fill in the months and it were calculated automatically. However finding out all the prices and working them out was difficult and took most of our time working them out. However looking at the financial plan we seem to be doing well not losing a lot of money. As we do expect sales to be high in the summer but not in the winter so it can be understood that the sales figures are low and we dont make any profit in the first three months. It is expected though we dont make any profit at the start of the business. Nevertheless we seem to be doing well not losing out on much. Looking at the ratios in gross profit we are doing extremely well, but not in the net profit but we are totally low in the net profit we are jus near the 50% mark but we can grow on this as it is the start of a new business and we might even expect more customers than we predict or less. If we had more time we would have convert the Ice Bar into a drinking bar in the night. We have a bar in Ice Bar and the name which would be suitable, so there would not be a lot to change the premises itself. We would have to apply for licence for alcohol. We also have a basement we could refurbish it and convert it to a dancing area or have another bar downstairs. To convert the Ice Bar into a night bar it would cost us a lot of money so we would need to take out a loan. If we were not successful in our Ice Cream Parlour this idea would be our back up plan. We decided to use the Lloyds TSB Bank business plan to help us construct our own plan to help us construct our own plan. There were a variety of business plans to choose from to help us to construct our business plan for example HSBC Bank, Natwest etc. The business plans are mainly available from the banks. We chose Lloyds TSB Bank because there is a lot of information given to help with the business plan, for example a CD was given a book which guides you through the planning of a business. It also gave an outline of a business plan where you can fill in the spaces and use it as a business plan. The guide was very helpful, we used the construction of the Lloyds TSB business plan we did not use as we had a lot more information to add and some of the information in the plan was not necessary to our business plan. We could have chosen different plans like HSBC but we felt HSBC did not have lot information like Lloyds TSB. It was not very helpful it had just given a business plan where you can just fill in what was necessary.