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<ul><li> 1. Business Plan Go Go Authors Ray Carey, Paul Hand, James Hayde and Donna OSullivan Module Enterprise Development Lecturer Clement Ryan Date of Presentation Thursday 12th May</li></ul><p> 2. Table Of Contents </p> <ul><li>Executive Summary </li></ul><ul><li>1. Goals and Objectives </li></ul><ul><li>2. The Market </li></ul><ul><li>2.1 Target Market </li></ul><ul><li>2.2 Competitors </li></ul><ul><li>2.3 Marketing Plan </li></ul><ul><li>3. Primary Research </li></ul><ul><li>3.1 Survey Results </li></ul><ul><li>3.2 Footfall Results </li></ul><ul><li>4. Design and Floor Plan </li></ul><ul><li>5. SWOT &amp; PEST </li></ul><ul><li>6. Key Personnel </li></ul><ul><li>7. List of Suppliers and Costs </li></ul><ul><li>8. Financials </li></ul><ul><li>8.1 Expenses </li></ul><ul><li>8.2 Profit and Loss Statements </li></ul><ul><li>8.3 Balance Sheet </li></ul><ul><li>8.4 Cash Budget </li></ul><ul><li>8.5 Projected wages </li></ul><ul><li>8.6 Fixture and Fittings </li></ul><ul><li>8.7 Ratios </li></ul><ul><li>9. Conclusion </li></ul><ul><li>10. Table of contents Appendix </li></ul><p> 3. </p> <ul><li>The purpose of this paper is to outline the authors business plan for a new bar which they plan to open in Dublin 2. </li></ul><ul><li>The proposed business is to be called Go Go. The reasoning behind the name partly pays tribute to the famous Hollywood bar, Whiskey Go Go which played a prominent part in the careers of such legendary bands as The Byrds, Buffalo Springfield and </li></ul><ul><li>The Doors.</li></ul><ul><li>http://www.youtube.com/watch?v=flOvM4Z355A </li></ul><ul><li>We have added a fada to the to incorporate a touch of Irish-ness into the name. </li></ul><p> 4. </p> <ul><li> Go Go will open on Aungier Street in Dublin 2. It is a very central location in the city with Dublin Institute of Technology amongst other colleges all within easy walking distance.</li></ul><ul><li>It is just a short stroll from Stephens Green. The area is easily accessible by bus, DART and Luas and is heavily serviced by taxis. The building itself has a ground floor space as well as 3 upper levels.</li></ul><p> 5. </p> <ul><li>The bar itself will be styled as a 1960s bar. Not so much a themed bar, but it will have a 60s retro style interior and the music played will be from that era with some modern indie music incorporated also.</li></ul><ul><li>The ground floor space is 118 square meters in size. This space could seat 50 people comfortably but the owners plan to have a more casual layout of beer barrel and pod tables with stool seating along with wall sofas.</li></ul><p> 6. </p> <ul><li>The upper levels of the building are all 88 square meters in size and will be open for patrons to consume drinks and listen to music. </li></ul><ul><li>The owners will be serving a Pizza Menu on the ground floor level but patrons will be welcome to move to the 1st floor with their food and drink, where music and comedy nights will take place, the 2nd floor will be used as storage and staff areas. </li></ul><ul><li>The owners plan to use the upper levels of the bar for different themed nights,</li></ul><p> 7. </p> <ul><li>At the moment there are numerous bars operating around the Aungier Street area of Dublin 2, but the authors feel Go Go will definitely add something to the bar trade and give patrons something different, something new and an alternative to the old man pub of which you find a lot around South Dublin City. </li></ul><p> 8. </p> <ul><li>The company as mentioned will be known as Go Go. The four part owners of the business are Ray, Paul, James and Donna.</li></ul><ul><li>Their goal is to open a place that attracts a clientele aged from 18 40 years old. To attract people who are interested in good music and entertainment. Food service does come secondary in the bar. Therefore the owners do not plan to have an extensive menu running from day into night.</li></ul><ul><li>The bar will open &amp; serve alcohol from 10.30am Monday Saturday and from 12pm on Sunday. It will serve until 11.30pm Sunday to Thursday and until 12.30am Friday and Saturday.</li></ul><p> 9. </p> <ul><li>There will be a Pizza menu available from 12.00pm each day up until 10pm each evening. It will be available until 9.30pm on Fridays and Saturdays as the bar would tend to be busier on these particular night. </li></ul><ul><li>The menu itself will offer a choice of two pizza bases along with a choice of 20-25 toppings, sized small (for one person) medium (for 2 people) and large (for 4 people) </li></ul><p> 10. </p> <ul><li>Initial financing </li></ul><ul><li>The initial amount of 110,000 to start up the business came from the investment of the shareholders and in the form of a bank loan. The four shareholders and owners of the business are all committing 15,000 each to the business. The remaining 50,000 was loaned from AIB with a 10 year repayment plan with an interest charged at a fixed 7%. </li></ul><p> 11. Profit &amp;Loss Statement 12. </p> <ul><li>Profit &amp; Loss </li></ul><ul><li>The projected sales revenue of 924,896 minus cost of sales of 721,419 and expenses of 623,674 gives us a projected operating profit of 97,745.</li></ul><ul><li>The majority of our sales stream will be generated through bar sales, with the remaining coming from our pizza only menu. The food operation comes secondary to the business, and is seen as an extra source of revenue for little outlay. We cannot envisage much waste in this department as it is cheap to buy and will be strictly controlled. </li></ul><ul><li>Bar sales are centred around our market research, which revealed 18-24 year olds spend an average of 20 on a night out in Dublin City Centre. This is a very reserved figure, so we are confident it will be achieved. </li></ul><ul><li>The management team are all very experienced in this industry, with a combined 30 years of experience between them and are all dedicated to up-selling and increasing sales revenue within the business.</li></ul><ul><li>They were able to achieve a high mark-up on all products due to previous sales agreements with suppliers in different companies they have worked carried onto their new venture. </li></ul><p> 13. Balance Sheet 14. CashFlow Statement Cash Budget for A Go Go Bar &amp; Music Venue for year ending 31st May 2012 Jan-Mar Apr-Jun Jul-Sept Oct-Dec Total Payment Due Receipts: Share Capital 60,000 Bank Loan 50000 Sales (Cash) 231,224 231,224 231,224 231,224 924,896 341,224 231224 231224 231224 1,034,896 Payments: Purchases (Beverage &amp; Food) 50,869 50,869 50,869 50,869 203,477 Wages &amp; Salaries 47,593 47,593 47,593 47,593 190,372 Rent 21,266 21,266 21,266 21,266 85,064 Rates 7,300 0 7,300 0 14,600 Insurance 3,125 3,125 3,125 3,125 12,500 Pest Control 150 150 150 150 600 Water Charges 625 625 625 625 2,500 Waste Disposal 300 300 300 300 1,200 Telephone / Broadband 501 501 501 501 2,002 Stationery 450 450 450 450 1,800 General Expenses 6250 6,250 6,250 6,250 25,000 1,200 Sundry Expenses 1500 1,500 1,500 1,500 6,000 Marketing &amp; Advertising 3000 3,000 3,000 3,000 12,000 Light &amp; Heat 4000 4,000 4,000 4,000 16,000 Building Repairs 6750 6750 6750 6750 27,000 Professional Fees 5500 5500 5500 5500 22,000 Cleaning &amp; Maintenance 3900 3900 3900 3900 15,600 Bank Charges 625 625 625 625 2,500 Equipment 40,000 40,000 Fixtures &amp; Fittings 20,000 20,000 Loan Repayment (50,000) 2500 2500 2500 2500 10,000 Loan Interest (7%) 1750 1750 1750 1750 7,000 227,954 156,404 163,704 156,404 Net Cash Inflow / Outflow 113,270 74,820 67,520 74,820 Opening Balance 0 113,270 188,090 225,610 Closing Balance 113,270 188,090 225,610 330,430 15. Projected Costs A Go Go Projected Wages - Year beginning 2011 Position Monthly Yearly Employees Monthly Total Yearly Total Shareholder / Employee 3,600 43,200 4 14,400 172,800 Part-time Staff 865.00 10,380.00 2 1,730.00 20,760.00 Based on: 900 per week for 4 full-time staff working 6 days per week 8.65 per hour, 25 hours per week, 2 employees Sales Turnover Figures - Year beginning 2011 Formula used to forecast the turnover for A Go Go is: Number of Seats x Seat Turnover x Average Check x Days Open = Yearly Sales Revenue Weekdays: Sunday - Thursday 140 x 1 x 20 x 260 x 70% = 509,600 70% full. Approximately 98 customers per day. Weekdays: Friday - Saturday 140 x 2 x 20 x 103 x 72% = 415,296 72% full. Approximately 101 customers per day.Average check per customer is estimated at a very reserved 20.00. 924,896 Projected Sales Revenue Drink accounts for 80% of turnover. 16. Costings A Go Go Equipment, Fixtures &amp; Fittings Analysis Glasswares Units Price Total Supplier Wine Glasses 100 4.00 400.00 Nisbets Carafes (1 litre) 30 4.50 135.00 Nisbets Water Glasses 200 1.20 240.00 Nisbets Branded Pint Glasses 300 0.00 0.00 Suppliers Balloon Glasses 20 1.60 32.00 Nisbets Latte Glasses 30 2.20 66.00 Nisbets Coffee Cups 50 2.00 100.00 Nisbets Cappuccino Cups 30 2.50 75.00 Nisbets Universal Saucers 100 1.80 180.00 Nisbets Bar Equipment Wine Buckets 10 5.00 50.00 Nisbets Ice Buckets for Bar 4 0.00 0.00 Suppliers Ice Machine 1 460.00 460.00 Nisbets Drip Mats 10 0.00 0.00 Suppliers Drip Trays 10 0.00 0.00 Suppliers Lemon &amp; Lime Containers 2 0.00 0.00 Suppliers Cocktail Shakers 1 20.00 20.00 Nisbets 17. Costings contd. General Necessities Cafe Barriers 5 60.00 300.00 Nisbets Black Board Sign 2 90.00 180.00 Nisbets 7 piece Knife Set 2 65.00 130.00 Nisbets Cool Vent Hats 5 5.30 26.50 Nisbets Safety Shoes 5 45.99 229.95 Nisbets Chopping Boards 5 18.99 94.95 Nisbets Tongs / Utensils 15 6.00 90.00 Nisbets Disposable Gloves x 180 5 6.70 33.50 Nisbets Mobile Trolley 2 105.00 210.00 Nisbets Mop &amp; Bucket 2 125.00 250.00 Nisbets Refuse Bins 5 150.00 750.00 Nisbets Bin Liners x 100 3 30.00 90.00 Nisbets Wall Mounted Ash Tray 3 60.00 180.00 Nisbets Glass Racks 5 35.00 175.00 Nisbets Dishwasher Rack 2 19.00 38.00 Nisbets Blue Roll Dispenser 3 18.00 54.00 Nisbets Blue Roll 10 6.70 67.00 Nisbets Hand Towels 5 18.00 90.00 Nisbets Hand Dryer 4 100.00 400.00 Nisbets Pizza Slice Box 100 1.00 100.00 Nisbets Plastic Cutlery Sets 100 1.49 149.00 Nisbets Salt &amp; Pepper Cruets 20 2.50 50.00 Nisbets Anti-slip Serving Trays 10 6.00 60.00 Nisbets 1 2,000.00 2,000.00 Nisbets Preparation Area 1 1,000.00 1,000.00 Nisbets Refrigeration Units 2 1,000.00 2,000.00 Nisbets Furniture Chairs 100 50.00 5,000.00 Liquidation Sofas 10 100.00 1,000.00 Liquidation Tables 20 180.00 3,600.00 Liquidation Barrels 5 200.00 1,000.00 Liquidation Pod Tables 15 130.00 1,950.00 Liquidation Pool Table 1 2,500.00 2,500.00 E.J Riley Juke Box 1 600.00 600.00 Amuse.ie 18. </p> <ul><li>Fixed assets of A Go Go Ltd. Include fixtures &amp; fittings such as sofas, chairs, tables and bar equipment.</li></ul><ul><li>This has been purchased from Nisbets Suppliers and from Liquidation sales from flailing business who cannot operate anymore. </li></ul><ul><li>Depreciation for these fixtures and fittings and equipment will be accounted at 20%. </li></ul><ul><li>The long term loan has been recommended to be paid back over a ten year period. </li></ul><p> 19. </p> <ul><li>1. Return on Capital Employed the primary accounting indicator of overall business performance, is 41%. This percentage is satisfactory after one year of trading, and poses no overall risk for shareholders or lenders. </li></ul><ul><li>2. Operating Margin Due to the fact that this was the first year of trading for A Go Go Ltd., there were numerous large financial outlays for the setting up of the business such as furniture, equipment, repairs etc. It is also hoped the market share it possesses and general awareness of the business will be increased in the coming years. </li></ul><ul><li>3. Gross Margin The gross margin is affected by the selling price, a shift from less profitable items to more profitable items, or costs and expenses increasing slower than sales. The company achieved a gross margin of78%, encouraged by up-selling by employees and strict control over budgetary expenses and ordering of stock. </li></ul><ul><li>4. Beverage Sales were a lot higher than Food Sales, as expected. This corresponds with the projected targets. As the company grows, an increase in food sales is expected as costs will be continually decreased to meet demand exactly. </li></ul><ul><li>6. Wages &amp; Salaries are at an appropriate level for the type of business, at an accepted 35%. Strict control carried out by the management and a hands-on approach has helped achieve this.</li></ul><p> 20. </p> <ul><li>The initial goal when opening the bar is not to make the owners hugely wealthy as such.</li></ul><ul><li>It is to run a business that will first off be successful and well-known in the city, and then hopefully start to make enough of a profit so the owners can take home a decent monthly salary from the business.</li></ul><p> 21. </p> <ul><li>At the moment there is not another bar like it in Dublin City.</li></ul><p>No No Camden St, Dublin2 Anseo Yes No South Great Georges St, Dublin 2 Hogans No No South William St, Dublin 2 Pygmalion No No Fownes St, Dublin2 Foggy Dew Yes Yes Suffolk St, Dublin2 ODonoghues Yes No Wellington Quay, Dublin 2 The Workmans Club No No Essex St, Dublin 2 The Garage Bar Yes Yes Harry St, Dublin 2 Bruxelles Live Music Serves Food Location Name 22. </p> <ul><li>At Go Go the owners also plan to host acoustic live music nights midweek, comedy nights and quiz nights. There is also a plan to install a pool table on the 1st level of the bar where patrons can play for fun.</li></ul><p> 23. </p> <ul><li>Obviously at the moment the country is in the middle of a recession but contrary to reports of pubs dying a death and closing down, as pub frequenters themselves the owners feel that if the establishment has a niche, people will still come.</li></ul><ul><li>There are certain bars in Dublin City Centre that are full almost every night as they cater to a particular market. Currently there are 436 pubs in Dublin and 98 of these pubs are situated in the Dublin 2 area. </li></ul><p> 24. </p> <ul><li>As previously mentioned the target market which the owners wish to attract is </li></ul><ul><li>Aged between 18 years &amp; 40 years. </li></ul><ul><li>People who have an interest in music, retro music from 1960s / 1970s and modern indie music.</li></ul><ul><li>Students from local colleges such as DIT Aungier St and Dublin Business School </li></ul><ul><li>Have an interest in comedy nights </li></ul><ul><li>Like to socialise midweek but more at weekends </li></ul><ul><li>Appreciate a good deal i.e. the Pizza Menu </li></ul><ul><li>Are attracted to a cool retro interior </li></ul><ul><li>Laidback and fun crowd </li></ul><p> 25. </p> <ul><li>The type of customer that Go Go wants to attract would more than likely be an avid social networker.</li></ul><p> 26. </p> <ul><li>The colour scheme for Go Go will be orange and black, like the colours seen in the company logo. The walls will be painted white &amp; orange but the tables will be black with orange seating (stools and wall sofas).</li></ul><ul><li>There will also be dark beer barrel tables on each level with stool seating. On each level the walls will be decorated with images of the 1960s. Pictures of The Beatles, Rolling Stones, Twiggy and other iconic images will adorn the walls.</li></ul><p> 27. </p> <ul><li>5. SWOT Analysis: </li></ul><ul><li>Strengths: It is a new and unique bar.There arent many competitors with the same attraction in Dublin City.U.S.P. New and Funky,Live upcoming bands. Ideally situated.Modern yet retro.Marketing: Students and members of the general workforce. </li></ul><ul><li>Weaknesses: Current Economic Crisis .i.e. Recession.No reputation, presence or reach in the market.New business breaking into an established market </li></ul><ul><li>Opportunities:New to the Market. It has a niche target market.It appeals to the masses. </li></ul><ul><li>Threats:Established Businesss Competitors intentions, Changing Markets, The Recession ,Economy and Seasonality. No student s during the holidays. </li></ul><p> 28. </p> <ul><li>Political : Environmental Situation: The RecessionChange in government and the new policies introduced.Whether the funding and grants are still available for the setting u...</li></ul>