Business Plan Evaluation - 3487 Words

Business Plan Evaluation: Zara Restaurant Lounge (Revision) After completing my first evaluation of Zara’s business plan I could not help but feel that I had missed something in my analysis. It was over the next week that I realized that I had failed to thoroughly evaluate the plan. At a glance, I thought the Zara concept was intriguing and as a bonus, aligned with my own dream to open a restaurant. I wanted to believe in the plan so much that I missed its weaknesses. Having time to review discussions from class and more resources and opinions of what effective business plans should contain, I now see there are glaring deficiencies in this plan. Zara’s business plan was written to secure sufficient finances to open a multi-use†¦show more content†¦Revenues are projected to increase by 6% in year two, 5% in year three, and 4% in years four and five. (sec. 8.2) Barriers to this projected growth may include but are not limited to: cost mismanagement, failures in marketing strategy, and failure to meet sales projections. Collection of cash following sales is immediate. Credit receipts are typically collected in a weekly batch. Key expenses/Cost Drivers – There are fixed, semi-variable, and variable costs in the Zara business model. Fixed costs are the first major expenses in the business plan including: design and building lease. The major semi-variable cost driver affecting the plan is labor costs. The major variable costs are food and alcohol expenses. Non-recurring costs for equipment purchase and construction are also major expenses in the first year of opening. These cost drivers are unlikely to change with the current model. The cost structure of Zara is based on the dominant cost driver of the business model – food and drink. Therefore an inventory structure combined with a payroll-centered structure best describes Zara. The primary cost center at Zara’s will be its marketing and promotions department. This is an extremely important aspect of Zara’s overall strategy. The owners intend to draw-in patrons from outside their local neighborhood, without a penetrati ng and successful marketing strategy Zara’s customerShow MoreRelatedBusiness plan evaluation Essay726 Words   |  3 Pagescapture memorable pet pictures for their clients. I have chosen APP from the Business Plan Pro software’s sample database to consider it for investment purposes. The following evaluation will explain my intent to invest in APP based on the overall writing of the business plan, feasibility of the plan, and the competencies needed by the entrepreneur to be successful. Writing Evaluation Adorable Pet Photography’s business plan is overall well written. 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