This document presents an analysis of the description of a venture. The business plan for a commercial venture a tool that serves both the internal management needs of the private entity and the informational needs of external entities who are critical to the venture’s success. Specifically, the business plan is a guiding document because it establishes the venture’s business objectives, strategy and approach to achieving those objectives, and also serves to provide a tool for monitoring and controlling venture operations.
Introduction for the New Venture The new venture will be a restaurant specializing in Algerian foods. The restaurant will be new medium-sized located in a trendy neighborhood of Algeria. “Abdou86’s” emphasis will be on organic and creative ethnic food. Many countries in North Africa have the same main dishes such as rice, sauces, couscous, maffenn and so on. Opening a restaurant serving theses varieties of food will be a big success. I will also provide catering services for ceremonies such as weddings, graduations and all the parties.
The location of the restaurant is very accessible by bus, by car and by pedestrians. There are many people from Algeria, working and going to school around there. “Abdou86” will employ the most experienced Algerian chefs who are very good at cooking the most authentic Algerian foods. Customers will have the choice to eat in, carry out or food can be delivered to them. The Market Opportunity The market conditions have a significant impaction the profitability of a restaurant.
The strength of the local market affects how many customers you will serve and the menu prices that you can charge. This guidebook will help you analyze your market so that you can gauge the potential of your existing or proposed operation and make more informed operating and investment decisions. The Market Entry Strategy A market entry strategy is the planned method of delivering goods or services to a target market and distributing them there. When importing or exporting services, it refers to establishing and managing contracts in a foreign country.
The Algerian economy is growing at a faster pace in comparison to other nations and has shown resilience in times of global financial crisis. Today, the Algerian market with about 35 million populations has become a hub of opportunities for the foreign investors, who can clearly see the chances of massive growth and expansion here. If you are planning to enter into Algerian market, you need to take into account several important steps. These steps are: 1. Identifying potential of the particular market in Algeria 2. Developing a fair knowledge of the market . Creating strategies for market entry. Some of the most common market entry strategies are: directly exporting products, indirect exporting using a middleman, and producing products in the target market. Minimizing Personal Risk with the New Venture Every new venture will be faced with some potential hazards, given its particular industry and competitive environment. It is crucial that the entrepreneur make an assessment of risk in the following manner. First, the entrepreneur should indicate the potential risk to the new venture.
Next should be a discussion of what might happen if these risks become reality. Finally, the entrepreneur should discuss the strategy that will be employed to prevent, minimize, or respond to the risks should they occur. Major risks for new venture could result from a competitor’s reaction; weaknesses in the marketing, production, or management team; and new advances in technology might render the new produce obsolete. Even if these factors present no risk to the new venture, the business plan should discuss why that is the case.
The more important source of risk for most entrepreneurs is financial risk the tangible value that you and your investors lose when the business fails. One of the most significant strategies you can take to manage this risk is turning as many fixed costs to variable costs as possible. For instance, rather than investing money in a sales force and manufacturing facility, consider hiring sales representatives and outsourcing production. You also may be able to tie some product development or other initial costs to sales rather than paying for them all upfront.
In addition to keeping initial investments lower, turning fixed costs to variable will also lower your breakeven point and reduce the likelihood of failure due to lower-than-anticipated sales. This will help to deal with some of the uncertainty about sales levels early on. Of course, these concepts work together: In a venture where there is more at stake if the business fails, it is in the entrepreneur’s best interest to spend more time reducing uncertainty surrounding the business.
The key is to do enough research that you feel the opportunity is right, take steps to limit the downside risk, and then execute your plan Conclusion Target market search and analysis are very important for a new venture. For an Algerian restaurant, the authenticity of the food should always be maintained so consumers can have the exact taste of their traditional foods. Another good strategy is to analyze the food preparation process for each item on the menu.
Reference Hisrich, R. , Peters, M. , & Shepherd, D. (2010). Entrepreneurship (8th ed. ). New York: McGraw Hill