Company 's Vision Of The Mountain Glen Shopping Center

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Jeff and Margaret have entered into negotiations to purchase this pizza restaurant business because of its great location in the Mountain Glen Shopping Centre with the highest number of passing shoppers which is supported by a large and growing local population. There are a limited number of restaurants within the centre and with both Jeff and Margaret’s experience with having successfully operated and owned a number of pizza restaurants in Australia and overseas they will be able to increase their market share from 35% to 40% in 12 months. The competitive advantages of the business are: • location • quality of food and service • knowledge and experience of the industry available financial resources Vision and Mission…show more content…
There are lots of colleges close to us. There are lots of offices next to pur premises Threats Having leased premises and not owned one. Threat of a new restaurant opens near by us. Changing technology can be a threat for us… as it can end up in high investment from us.. Management Team Jeff and Margaret Elliott, both are experienced rest.. Owners/managers having successfully operated a number of rest.. in Australia and overseas. jeff is a qualified chef and has previously worked for the Hilton and the Sofitel groups before owning his own restaurant. Margaret has a degree in Business Management (Hospitality) and she too has worked for the Hilton group of companies and for the Rydges group. . Financial Plan Our projected performance is summarized below: Turnover: Year 1 $536,650 Year 2 $580,000 Gross margin $378,690 (71%) Net profit (before tax) of $109,869 in the first year, growing to $131,175 in the second year of operation. The business is cash flow positive from the first month of operation Break-Even is estimated at a monthly sales level of $30,869 Return on Total Assets: 37.3% Return on Equity: 51.2% The purchase price of the business is $170,000. Total start-up cost has been calculated at $209,810 and is to be funded by way of a $104,905 bank loan and equity injection of $104,905 from Jeff and Margaret. It is proposed that the loan be paid back over a two year period from cash flow.

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