Healthy eating restaurant Student’s Name Course Date

Table of Content Executive summary…………………….. 3 Description of the foreign country……... 4 Business description and structure………5 Market and company analysis…………...6 Marketing and sales operational plan…….7 How you plan to use the $300,000……....8 Financial statements forecast (3 years)..…9 Business health assessment…………….10 Liquidity ratios……………………....11 Solvency ratios……………………....12 Asset management ratios………….....13 Profitability ratios…………………....14 Market value ratios………………..…15 Reference……………………………………..………16

Executive summary Health Eating Restaurant is a start-up restaurant targeting the Chinese market that is meant to provide healthy diets to the Chinese population. Mission: To provide healthy diets and wellness services to Chinese consumers with healthy issues. Vision: To be a leading restaurant providing healthy diets to a promoter a healthy lifestyles to the Chinese consumers. Products: Healthy dietary foods and provision of other wellness services The Chinese people have had a growing need of healthy diets such as fresh vegetables, fruits and wellness services which are not readily available. Healthy Eating Restaurant would therefore provide this highly sort for product the wellness services.

Description of the foreign country China has the largest market of food products and wellness services. Research has shown that the obesity rates in China have been increasing significantly over the past few decades. This therefore increases the demand for healthy diets and wellness services China has the largest food market in the world because of its high population. The population has also had an increasing health complications due to unhealthy diets and unhealthy living standards. Healthy Eating Restaurant would therefore tap in the market by providing a product and services that currently highly demanded on the market.

Business description and structure Healthy Eating Restaurant is a start-up that targets a market that has the highest demand of healthy diets and living healthy lifestyles. The restaurant’s products and services are customized to serve the emerging needs of specific customers in the market. The structure of the company would comprise of a general manager who will head the operations of the restaurant, chefs, waiters, gym instructors and a couple of other personnel who will proving supporting services to consumers.

Market and Company analysis China is the highest populated country in world with a population of over 1 billion. It’s also an emerging economy implying a fast growing middle and high social classes. These customers are therefore willing and able to provide the dietary food products and wellness service that the consumers need.

Marketing mixes would involve the following; Social media marketing Internet marketing Event marketing Mass media marketing

Sales Operational Plan The sales operational plan would involve selling the food products in the restaurant and also online platforms where the customers can order the food products and have it delivered at their door steps. The gym services can be offered from the restaurant gym area or request for gym instructors to provide the wellness services from their premises.

Capital Expenditure The $300,000 would be invested in the first three years as shown below; Marketing $20,000 Leasing premises & other Eqpmnt $30,000 Hiring staff $40,000 General operations $50,000 Expansion fund $80,000 Buying gym equipment $30,000 Reserve $50,000

Financial statements forecast (3 years) Income Statement Projections US Dollars in 100s Fiscal years ended on 2017 2018 2019 Net sales $2,000.00 $ 2,114.00 $2,209.13 Cost of sales $ 800.00 $ 816.00 $ 846.19 Gross margin $1,200.00 $ 1,298.00 $1,362.94   Expenses: Selling, general and administrative $ 500.00 $ 547.00 $ 552.00 Depreciation $ 200.00 $ 230.00 $ 260.00 Interest - net $ 65.00 $ 70.00 $ 78.00 Total expenses $ 765.00 $ 847.00 $ 890.00 Pre-tax earnings $ 435.00 $ 451.00 $ 472.94 Income tax provision (35%) $ 152.25 $ 157.85 $ 165.53 Net earnings $ 282.75 $ 293.15 $ 307.41

Business health assessment Liquidity ratios Being a start-up, the initial $300,000 would represent cash (current assets), assuming that 50% of it was borrowed, current ratio would be calculated as shown below; Current Ratio = Current Assets/Current Liabilities = $300,000/150,000 = 2 This ratio implies a good leverage hence the company’s financial health is okay.

Business health assessment Solvency ratios Debt Ratio = Total Liabilities/Total Assets = 150,000/300,000 = 0.5 This ratio shows a good solvency since total assets are higher than total liabilities.

Asset Management Ratios Business health assessment Asset Management Ratios Total Asset Turnover = Net Sales/Total Assets = 200,000/300,000 = 0.67 The company uses $1 of its assets to generate 67 cents in revenues which is a fair financial performance

Business health assessment Profitability ratios Profit Margin = Net Revenues/Net Sales =28275/200,000 = 12.63% The company makes a net profits of 12.63% implying a good financial performance.

Business health assessment Market value ratios Assuming that the company sold 1000 common shares at $50 per share to raise common equity of $50,000, EPS would be calculated as shown below; Earnings per Share = Net Profit/Average basic common shares outstanding =28,275/1000 = $28. An EPS of $28.28 implies a good financial performance which would attract higher investments if the event the company goes public.

References McNally, K. (2002). Corporate Venture Capital: Bridging the equity gap in the small business sector. Routledge.   Creamer, D., Dobrovolsky, S. P., Borenstein, I., & Bernstein, M. (1960). Debt and Equity Financing. In Capital in Manufacturing and Mining: Its Formation and Financing (pp. 156-191). Princeton University Press.