The venture that I chose is not conceptual but reality. The venture that my family started three years ago is SaMi’s Place Mexican American Restaurant. This paper is to describe and analyze the startup of a business venture. The startup process would be to plan and develop this business by listing such details as 1) number of employees 2) type of facility/equipment needed 3) target customer demographics and 4) marketing channels. Research will also be conducted on one current company that is an appropriate benchmark to my venture, describing similarities and differences. Description of products
In today’s fast-paced lives, there are people that do not have time to cook and need a good restaurant to eat at with reasonable prices. SaMi’s Place will offer a variety of Mexican-American food that can appeal to all ages and food palates. Our cuisine ranges from grilled pork chops to traditional homemade tamales with fresh salsa, chips, and an array of dips/sauces. Number of employees
The number of employees that we began with was 13 employees, which included a dining room manager, servers, hostess, cashier, chefs, and a bus boy. Several employees are needed to make sure that each customer is attended to properly so as not to wait for drinks, refills, and their food (M.S. Segars, personal communication, July 6, 2015). Type of facility/equipment needed
A building will need to be chosen that would accommodate the size restaurant we envision in our business plan. We will need grills, ovens, microwaves, commercial dishwashers, cooler, freezer, and an assembly buffet for the kitchen. For the dining room, table, chairs, menus, silverware, plates, glasses are a few items that will need to be purchased (M.S. Segars, personal communication, July 6, 2015). Target customer demographics
There are several Mexican restaurants that are already open so competition will be great and the need to target customers will be a part of the strategic plan. Analyzing target markets and competitive markets are essential to knowing what type of developments will need to be made (Fuerst & Geiger, 2003). “Eating” is something that every person has to do, but it depends on your business plan of how you will run your business that will determine if your restaurant is one that the people pick. You want to make sure to have a restaurant that all classes of people will feel comfortable in. Menu pricing will need to be researched and compared to not only the competitor but with the cost of food (M.S. Segars, personal communication, July 6, 2015). Marketing channels
The most common and successful channels of marketing are with mail-out coupons, hand-outs, newspaper coupons, and social media. In the business plan, keeping your menu fresh with new “Daily Specials” and discount pricing days for our senior citizens and military customers is a great way to attract new customers. Implementing customer loyalty programs and asking your customers spread the news of your great restaurant. Another marketing channel would be radio commercials. The commercial will broadcast over thousands of people, letting everyone know you are open. We, the owners, will be accountable for building the business relationships with the food service companies, the advertising/marketing organizations, and the area city business developer (Briere, L., 2015).
One restaurant, which I know is directly competitive with us, is Camino Real Mexican Restaurant. This restaurant has been in business for 24 years. They were one of the very first Mexican restaurants that opened in our town. The restaurant started out having 12 employees and now has expanded to having 20 employees and is still very successful. The restaurant opened in 1991 and had remodeled and expanded by adding a back patio for customers to eat outside. They have been generating a huge profit for the last 20 years. However, the past couple of years have brought less profit. With the economy being on a roller coaster, people are finding areas in their budgets to cut back on and eating out can be considered a luxury that needs cutting. All restaurants realize that there is a lot of rivalry for the “eating out” business and will try their best to offer the best food and customer service at the lowest price. When Camino Real began all partners needed to put their investment money and obtain financing for the restaurant.
The partners also had a couple of other restaurants and were in good standing with the bank that their loan originated. With a small personal investment and the bank loan, they were able to open Camino Real. Besides obtaining a bank loan for the actual building, they also invested money in the purchase of grills, ovens, coolers and other restaurant equipment that was needed to open the business. To start our Mexican restaurant, we will put together a strategic business plan. Fortunately, since this is a small town restaurant, the financial budget of $50,000.00 was all that is needed for startup.
It is inevitable that beginning as big as Camino Real is not possible. However, we will begin a little smaller and will look to developing the restaurant for achievement. Setting up our business as an LLC and investing personal money will be a positive move when presenting our plan to investors due to there are more personal guarantees within the business. A bank or investor would look more positively on the long-term objectives and forecasts for the restaurant with more personal guarantees involved. With a solid business plan, startup and investment money lined up, a good facility located on a prime location, and dedicated employees, and the restaurant has a good successful start in its future (M.S. Segars, personal communication, July 6, 2015). Conclusion
As you have seen, when starting up a small business it is extremely important to research some major areas. Having an educated knowledge of your employee base, the type of facility, location, and equipment type that is needed, customer demographics and marketing channels, a business should have a strong foundation to build on. Researching a comparable business’ successes and failures, is a great learning tool for the startup process of a new business. Paying attention to another business’s mishaps can save your business a lot of money and wasted time.
Briere, L. (2015). 14 Restaurants marketing tips for success online and off. Retrieved from http://vision-advertising.com/restaurant-marketing-tips-success-online-and-in-the-restaurant/ Fuerst, O., & Geiger, U. (2003). From Concept to Wall Street. Upper Saddle River, NY: Prentice Hall.