SWOT chose this plan for a couple of
SWOT Analysis BUS/210 SWOT Analysis: “On the Water” A Mediterranean Restaurant Business Plan The business plan I selected is a Mediterranean restaurant that is to be built in on the Sunset Strip in Hollywood. This plan seems fairly reasonable and has a high chance of success. I chose this plan for a couple of reasons. First of all, many aspects of this plan are in an area where I have a little bit of experience. Being part of a failing restaurant opens your eyes to many struggles and the many obstacles business owners face.
The other reason I chose this plan is because I am Lebanese, so I thought it would be fun to read the plan and fantasize about owning and opening a Mediterranean restaurant in a place that I would love to live. The hardest part of a business plan being successful or being accepted by a bank is the financial analysis and capital. From experience in working in a bank and seeing the plans come in, there needs to be substantial evidence of success and cash equity for them to become the lenders.
Only having enough for the first six months does not promise too much, there are going to be peaks and off seasons in any business, so it would be better to be more prepared than having a slight shortfall. Strengths: This restaurant will be led by an extremely knowledgeable and talented manager, with 12 years of experience with us and 20 years of experience cooking for her large family in Greece. The business model seems well developed and researched, covering all aspects of a successful business plan. The product is sure to satisfy a majority of our customer’s needs with a variety of choices and an elegant atmosphere.
Our target segments have been researched and graphed to show the accuracy of the market area. The leadership of this restaurant is fully equipped to manage, train, recruit and operate sufficiently and productively. With the years of experience and the crucial training of our employees, there should be impeccable service and sales. The manager has already place appropriate compensation and will maintain human resources for the future. Opportunities: With our sales pitch and service, the likeliness of expansion is very high and probable.
Our goal is to expand within five years, as long as sales follow our projections. The chosen location is constantly growing and with our target age group, this growth should continue to rise with gradual speed. As we warm up and become regular with the area and population, the outer target group should become the inner group allowing us to grow and expand that way as well. In the future we will continue to have our employees participate in new training and refresher programs to keep the momentum going and our service spectacular.
Global expansion has been mentioned and is definitely a possibility for the far future. Weakness: The plan for the business has been well thought out and planned. The target area should do well and allow room for expansion and excellent feedback. Our structure, along with leadership and employees has been well placed and will prove to quite profitable. As for a weakness, capital is not quite accurately placed. There should be more cash equity and assets. There are substantial long term assets, which will turn to depreciation.
Not enough capital has been established for the first six months, if basing off of the financial projections. A company with such rapid growth will require more financial means to start. This could possibly allow room for investors. Threats: Competition in the area does not seem to be a huge threat. The target area and groups are large enough that if competition were to come, it should differentiate enough that there are enough opportunities to still succeed. If the economy has another downfall, I do not anticipate that being a problem, people will still continue to eat and spend money.
As long as our marketing skills are up to par and we present our product perfectly, there should be no doubts and no failure. Community participation and awareness will be a significant part of our success, so once again, if there is any incoming competition, our developed relationships with the surrounding community should subside and threats there. There are so many opportunities that lie in this business plan. A lot of experience and talent will benefit the restaurant and bring guests in from around the world. The knowledge of what our weaknesses are and what we need to do to overcome those faults will strengthen our plan.