entrepreneurship project example

8/10/2019 Entrepreneurship Project Example

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Table of Contents

Introduction 1

Research Objectives 2

Population and Sample 3 - 4

Methodology 5

Findings 6 - 20

Product Characteristics 21

Market analysis 22 - 25

Sales Analysis 26

Customer Analysis 27

Promotion and Advertising 28

Pricing Strategy 29

Competition 30

Conclusion and Recommendations 31

Appendices 32 - 37



Introduction

The business idea is conceptualized from the merging of the lounging/lyming experience

together with that of fine dining. This unique restaurant, proposed to be named, “The Lounge”,

takes the form of a partnership and is to be located in New Kingston. This location will further

serve to facilitate and support the vibe that we are hoping to convey, based off the quality and

aura of the other entertainment, as well as business places in the area. Being able to provide the

working class with the fine dining concept, as well as relaxation at an affordable cost is our main

goal. However, the possibility to host business meetings exists, while still being the “chill spot”

after work; hence the slogan Chill. Eat. Relax.



Research Objectives

The research is conducted to answer the following objectives. These objectives will provide vital

information that will help the proposed business satisfy its potential customers and will also help

to determine the business growth and lucrativeness.

1. To determine if there is a viable market for our proposal.

2. To determine the price potential customers are willing to pay.

3.

To identify the target market.

4. How profitable will this project be?

5. To identify the major players in the market.

6. To determine the kind of service guest prefer.

7. To determine the kind of cuisine potential customers are willing to buy.



Population and Sample

This restaurant concept is very unique and innovative, offering more than just food but also a

place where persons can come and relax. We are planning to use questionnaires as our main

means of gathering data on our potential customers and consumers. The population size that we

are planning to target is approximately 1000; we are planning on using a sample size of 70 (7%).

Our main demographic focus is on the working upper middle class persons who are earning a

disposable income of $80000 and more. Our psychographic emphasis will be placed on those

persons who are food lovers and are healthy eaters.

The method used to decide the sample population was stratified-random; this is a method of

sampling that involves the division of a population into smaller groups known as strata. In

stratified random sampling, the strata are formed based on members' shared attributes or

characteristics. A random sample from each stratum is taken in a number proportional to the

stratum's size when compared to the population. These subsets of the strata are then pooled to

form a random sample.

The strata were formed based on several demographic and psychographic factors. Demographic

factors include age, income level, location and marital status. Psychographic factors include life

style, interest and hobbies. Seven hundred persons were chosen based on these criteria, after

which seventy were randomly chosen. The main advantage with stratified sampling is how it

captures key population characteristics in the sample. Similar to a weighted average, this method

of sampling produces characteristics in the sample that are proportional to the overall population.



Stratified sampling works well for populations with a variety of attributes, but is otherwise

ineffective, as subgroups cannot be formed.



Methodology

In doing our research to open a high end restaurant named The Lounge and located in New

Kingston, we have decided that, in order to know exactly what the clientele is looking for in a

restaurant, we decided to issue out questionnaires to get their feedback. The questionnaires were

administered in a survey form where the clients answered both open-ended and close-ended

questions. The questionnaires were administered in the New Kingston area, Papine, Spanish

Town, University of Technology, Jamaica and Half Way Tree. This will help us to know and

determine what our restaurant will be like.



Findings

1. How often do you eat in at a restaurant?

The figure above shows that people mostly go out to eat once a month, twice a week and once a

week.

Once a week

Twice a week

Once a month

Other

0

0

0

0

20

19

25

8



2. Where do you presently go to eat out?

In the pie chart above, the results show that the Jamaican people both go to fast food

restaurants and fine dining restaurant presently when they go out to eat and hardly go to local

restaurants (cook shop) and casual eateries.

28

2

28

3

Fast Food Restaurants

Local JamaicanRestaurants (cook shop)

Fine Dining Restaurants

Casual Eateries (Cuddiesand TGIF)



3. How open-minded/conservative are you about food

The graph above shows that Jamaicans are more conservative than open minded about their food.

They rather to stick to what they know rather than trying new cuisines they know nothing about.

0

5

10

15

20

25

30

Open minded Conservative



4. What time do you prefer to visit a restaurant?

In this figure above, guests mostly prefer to visit a restaurant between the time of lunch and

dinner as it is a better fitting to enjoy the ambiance.

0

5

10

15

20

25

30

35

40

45

Breakfast (9a.m. – 11 a.m.) Lunch (11:30 a.m. – 4 p.m.) Dinner (7p.m. – 12p.m.)



5. How much would you pay for a full course meal?

The figure above shows that guests are willing to pay from $2500 - $3500 for a full course meal

as it is a high end restaurant.

0

5

10

15

20

25

30

$2500 - $3000 $3000 - $3500 $4000 - $5500 Other (Please specify)



6. What type of dining room would you prefer?

This image shows that guests prefer a more relaxed environment from that of a private room,

casual chic and formal dining at a restaurant.

0

5

10

15

20

25

30

35

40

Private room Relaxed environment Casual chic Formal dining



7. When going to a restaurant, which criteria are important for you? (Tick 1-5, 5 being most

important)

Restaurant Concept

Dining Environment

The figure above shows that the dining environment is very important when eating at a

restaurant.

48

1924

13 1

2

3

4

5

0

3 3

30

33

1

2

3

4

5



Food Quality

The pie chart shows that food quality is the most important to customers when going at a

restaurant.

Service

As seen in the figure above, service is the most important at a restaurant.

10 1

27

66

1

2

3

4

5

0

18

1839

1

2

3

4

5



Price

The figure shows that price is very important to customers when paying at a restaurant.

Convenience

The figure above shows that convenience is somewhat important and somewhat not that

important.

1

6

12

24

24

1

2

3

4

18

15

13

131

2

34

5



8. How would you prefer your food to be served?

The figure above indicates how potential customers prefer to have their food served to them in a

restaurant setting.

0

2

4

6

8

10

12

14

16

18

20

Buffet Style Plated Family Style A’ la Carte All of the

above



9. What type of cuisine would you prefer? (Choose all if applicable)

The figure above shows that customers would prefer more Chinese, American, Jamaican and

Italian food at the restaurant.

27

8

13

46

18

31

108 American

Mexican

Indian

Jamaican

Italian

Chinese

French

I don’t mind



10. How many items would you order for the meal?

The figure above shows that customers would mostly order two items (salad/soup and main dish)

than a full course meal.

14

34

27

3Only main dish

Two items (salad/soup

and main dish)

Full course

Other items (including

side dish)



11. What is your age range?

The figure shows that, mostly young adults answered the questionnaires.

0

10

20

30

21-25 26-30 31-3536-40

41-4546-50

over



12. What is your education level? (Specify if you have more than one)

In this figure above, it shows that the clientele/customers‟ education level is mostly a degree

(bachelors, associates).

01020304050Diploma

Degree

(Bachelors,

Associates)

MastersPh.D

Other (Please

specify)



13. What is your income level?

The bar graph shows that our clientele/customers earn a maximum of $80,000 - $300,000 for

their income.

0

5

10

15

20

25

$30,000 -

$35,000$25,000 –

$30,000

$80,000 –

95,000 110,000 -$300,000 $350,000+



Product Characteristics

The product that will be offered is a restaurant and lounge. It will cater to the working class as

well as students and will offer a place to relax and unwind after a stressful day. It will be a one of

a kind experience for customers because while taking part in the fine-dining experience they will

also get to experience a relaxed atmosphere that also entertains with pool tables, music and

comfortable seating. The product is unique in the services that it offers as this two-fold restaurant

dining experience is one of a kind. The combination of a fine dining restaurant and lounge will

result in a new and exciting experience.



Market Analysis

Market Size

The questionnaire conducted provided valuable information that was used to determine the

potential market size of the proposed business. The business we are venturing is an open market

and as a result there are many businesses of similar interest in and around the location that our

restaurant (The Lounge) will be situated. However because of our unique service, style and

facilities it was determined that our proposed business „The Lounge‟ will attract customers.



Market Share

The Lounge will execute different strategies in order to gain a remarkable share in the market.

According to our questionnaire and information gathered about the area, we expect within 3

years of operation an extensive share of the market. Also we wish to gain at least 20% of the

market share based on the size of our operation and as time progresses our business will expand

to increase from the 20% market share by offering the best quality services to our customers.



Opportunities for Potential Growth

Having profitable core business based on high quality products and services gives you the license

to go further in solving customers‟ problems. The proposed business helps to uncover other

customer needs that involve using services more effectively. The Lounge will be providing first

class services to our customers therefore we will be having repeat guests and even new

customers due to effective advertising. The hosting of business meeting will further attract new

customers and set a standard for our business. The renting of the lounge and bar area of The

Lounge for special events will then attract customers to our business and so our services will be

utilized in a positive way to enhance and improve our business. A happy guest is a returning

guest. Within The Lounge, staff will be rewarded for their job well done and so they will be

motivated and when staffs are motivated services will portray effectively to our potential

customers however, business will grow successfully.



Threats That Might Pose a Risk

The set up or the layout of the different areas of The Lounge may not suit potential

customers.

Government may want to present a significant risk to the values that this business will try

to uphold.

Operational risk in terms of issues that might affect day-to-day viability of working in the

new market and its profitability.

Due to the newness of the business a profit may not be obtained for the first few months

of opening.

Well trained potential professionals may not want to work in this business because of

limited resources and employee benefits.

Customers may want to go overboard with events and may cause damage to the

reputation of the business.

Enough capital may not be in place to get required resources for this type of business

Resources may not be available or maybe limited to set up business



Sales Analysis

In conducting the feasibility study for the proposed restaurant we were able to identify the

business potential customers and competitors by conducting a survey in the form of

questionnaires. The information gathered from the questionnaires was also used to determine if

the business would be profitable. The feasibility study also determines the market share we were

hoping to capture over the first two years of the business operation. For the first year the business

hopes to capture 20% of the target market in and around its location and within two years‟ time

we hope to capture approximately 35% of the target market.

For the first year, the business plan is to invest an average of 4 million dollars to establish

the business. We have identified our potential customers for the first year to be approximately

nine thousand and sixty five (965). The potential yearly sales are expected to be 3,860,000 after

calculating the potential customers and the average amount to be spent for the first year.

Sales are expected to be constant. The restaurant expects to continue to attract customers

because of its unique dining experience and facilities offer to the guest. Sales will also increase

as a result of promotional strategies and special group packages offered to groups.



Customer Analysis

The Lounge customers will be consumers, persons who will come to eat and stay for the

relaxation and vice versa. Our potential customers will be targeted based on various

demographic information; Age, our core target customers should be over 18 years of age but

there is no maximum limit. Marital status, we will be focusing on both married and unmarried

individuals, reason being; evidence show that single persons have a higher tendency of going out

to lounge and bars than married persons. Evidence also shows that married persons are the most

frequent, health conscious and loyal restaurant patrons. Income level, we will be targeting

persons whose disposable income is a minimum of $80,000, persons who fall within this income

level are more likely able to comfortably afford and appreciate the food and services that we will

be providing.

Psychographic profile of our potential customers, the customers that we are targeting are

persons who love food, healthy eaters, occasional eaters and persons who just want to relax.

Food lovers are those persons who love food that are prepared at the highest quality even if they

have to pay a little extract, these are the persons that we will be placing emphasis on.



Promotion and Advertising

When opening a new business especially a high end restaurant, in order to make our restaurant

known and in the public, we have decided that the most effective way to inform customers about

our restaurant is by:

• Radio

• Internet/Social Media- Facebook and Twitter

• Press – Newspaper ads

• Fliers

• Television



Pricing Strategy

The business will arrange its prices so that it will attract potential customers and encourage

customers to continue to use our facilities and services. For the first four months the restaurant

will offer special prices as a promotional strategy. There will be a 15% discount for persons who

order full course meals. There will be discount packages for groups, for example, graduation

dinner. Also the restaurant menu will have a different range of prices. On special holidays such

as Christmas Day, Valentine‟s Day, Mother‟s Day and Father‟s Day, there will be menu specials

to attract customers. However prices will be increased on these holidays.

The restaurant will also take advantage of the Kingston Restaurant Week by

participating. During this week prices will be adjusted to feature special discount fixed prices on

appetizers, main course and dessert.



Competition

According to our findings, Gloria‟s, TGIF, Cuddy‟z, Acropolis, Tracks and Records, Tera Nova,

Aunt Mae‟s, Spanish Court, Island Grill, Pegasus, Kentucky Fried Chicken and Burger King are

some of The Lounge‟s competitors. The current market is a combination of both small and large

sellers but the main competitors are TGIF, Acropolis and Tracks and Record simply because

they have a similar concept to what The Lounge has; a place where eating and lyming is under

one roof.

When it comes on the competitive advantages of our competitors, we safely conclude that

the strengths when compared to our concept would be that the products and services they offer

are already known to the market, hence the reason for them holding such a large part of it. The

prices they offer for their product is one factor that gravitates their target market to them.

However, their weakness, when compared to our concept is the ambiance. Our concept sets us a

cut above the rest simply because the ambiance that we will portray is one of elegance and

exclusivity and this along with our impeccable service will be our competitive edge.



Conclusion and Recommendation

The findings of this research informed us about our target market, about what they look forward

to from any dining experience and what they expect of service and food quality. From this, the

business seeks to ensure the main goal of establishing a fine dining restaurant with a relaxed

setting at an affordable cost is met and maintained. It is recommended that we ensure the food

quality, the dining environment and service are all in keeping with the slogan, “Chill. Eat.

Relax”.



Appendices

The Questionnaire

We are young entrepreneurs from the University of Technology, Jamaica, planning on opening a

restaurant. We are conducting a survey on how receptive the public is about fine dining. The

information given by you will be of high anonymity and greatly appreciated.

1. How often do you eat in at a restaurant?

Once a week

Twice a week

Once a month

Other (Please specify)

2. Where do you presently go to eat out?



3. How open-minded/conservative are you about food?

4. What time do you prefer to visit a restaurant?

Breakfast (9a.m. – 11 a.m.)

Lunch (11:30 a.m. – 4 p.m.)

Dinner (7p.m. – 12p.m.)

5. How much would you pay for a full course meal?

$2500 - $3000

$3000 - $3500

$4000 - $5500


6. What type of dining room would you prefer?

Private room



Relaxed environment

Casual chic

Formal dining

7. When going to a restaurant, which criteria are important for you? (Tick 1-5, 5 being most

important)

1 2 3 4 5

Restaurant Concept

Dining Environment

Food Quality

Service

Price

Convenience


8. How would you prefer your food to be served?

Buffet Style



Plated

Family Style

A‟ la Carte

All of the above

9. What type of cuisine would you prefer? (Choose all if applicable)

American

Mexican

Indian

Jamaican

Italian

Chinese

French

I don‟t mind

10. How many items would you order for the meal?

Only main dish



Two items (salad/soup and main dish)

Full course

Other items (including side dish)

11. What is your age range?

21 – 25 26 – 30 31 – 35 36 – 40

41 – 45 46 – 50 over

12. What is your education level? (Specify if you have more than one)

Diploma

Degree (Bachelors, Associates)

Masters

Ph. D

Doctorate


13. What is your income level?

$30,000 - $35,000 $25,000 – $30,000 $80,000 – 95,000 $110,000 - $300,000

$350,000+



Product Design



The Lounge

Eat Chill Relax

entrepreneurship project example

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