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Entrepreneurship Project Expectations

A great idea is only great when it is executed properly

• Writing a standardized recipe• Costing recipes• Yield test & yield percentage• Menu analysis• Payroll and staffing• Budgets• SWOT analysis• Anatomy of a business plan

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Why Do I Need To Write a Business Plan

For Investors• Clarifies your ideas• Identifies challenges• Validates your ideas• Road map to success

For Your Team• Clarifies your ideas• Identifies challenges• Validates your ideas• Road map to success

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WHY!!!

HOW???

Acme CorpBusiness Plan

Executive Team

Mission Statement

Organizational Chart

Resume

Biography

Passion

Vision

Breakeven Point

Budget

Start-up

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Examples of Mission Statements

• McDonald’s; To provide the fast food customer food prepared in the same high-quality manner world-wide that is tasty, reasonably-priced & delivered consistently in a low-key décor and friendly atmosphere.

• Chili’s; To spice up everyday life!• Denny’s; Great food, great service, by great people, every time• Ruth’s Chris Steakhouse; To build a growing, profitable

restaurant business in which the highest standards of quality, value and hospitality are expressed.

• John’s Restaurant – Boulder; Service is an effective soundtrack: unnoticeable by virtue of its flawlessness; unobtrusive presence. Taste and tastefulness unite without pretension.

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• The Kitchen, Boulder; We believe in the power of good food and good drink to connect people as family, friends & a community, and The Kitchen remains committed to our mission of creating community through food.

• The French Laundry, Yountville CA; The mission of The French Laundry Restaurant is to represent the most definitive dining experience by means of incomparable cuisine, service, wine, ambiance and memories.

• Starbucks, international Corp.; To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

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Recipe Costing

Units of measure must be the same for the recipe item and the price

2 each carrots @ .75 per pound does not calculateInstead it should be adjusted to

1 pound carrots @ .75 per pound

Also convert units of measure where needed16 ounces carrots @ .75 per pound does not calculate

Instead it should be adjusted to16 ounces carrots @ .05 per ounce

Lowest Common Unit of Measure is always the best

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Yield & Yield Percentage

Prices must be adjusted to account for any waste during production for all recipe items.

• Book of yields• Yield test• Items with usable trim i.e. Small diced carrots as a vegetable

1 pound of carrots cut into perfect small dice has approximately 50% yield

@ .75 per pound divided by .50 = $1.50

• The usable trim should be used for other items with the price adjusted for the average yield of a peeled carrot i.e. 95%

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SWOT AnalysisRisk mitigating milestones are steps you can take to lower or control risk in the opening and operating of your business venture. They reduce risk for your investors and you.

Performing a SWOT analysis can be effective as it pushes you to consider both the internal and external factors that may affect your business.

INTERNAL factors – the strengths and weaknesses internal to the organization tending to be in the present (ie: factors relating to products, pricing, costs, profitability, performance, quality, people, skills, adaptability, brands, services, reputation, processes, infrastructure, etc.)

EXTERNAL factors – the opportunities and threats presented by the environment external to the organization, tending to be in the future (ie: factors relating to markets, sectors, audience, fashion, seasonality, trends, competition, economics, politics, society, culture, technology, environmental, media, law, etc.)

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SWOT ANALYSIS FOR A RESTAURANT IN WAIKIKI

StrengthsFarm to table, sustainable, natural or organic concept/Highly desirable physical destination/Local goods easily accessibleWeaknesses High cost of shipped goods/Local culture unreceptive to conceptOpportunities Seasonal tourism/Favorable year round weatherThreats Reliance on tourism/Government regulations/High crime statistics

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Inte

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Helpful in achieving the objectives Harmful in achieving the objectives

Strengths Weaknesses

Opportunities Threats

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Triple Bottom Line

An accounting framework that incorporates three dimensions of performance. Developed in the 1990’s by John Elkington.• A sustainable business model also known as People, Planet &

Profit.• Social• Environmental• Financial

The challenge with TBL is that only Profit can be measured consistently. Social and environmental impact does not always equate into a consistent dollar amount.

Creating a “Moral Report Card”

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The Moral Report Card

Social• Employees• Neighbors• CommunityEnvironmental• Product• Practices

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Expectations for Next Day

• Each team member to submit one recipe for each course• Complete all standardized recipes needed for menu item• Cost menu item

• Menu ideas• 3 appetizers

• 3 entrees• 3 desserts• 1 beverage

• Mission Statement First Draft• Begin Concept Summary• Work on Triple Bottom Line• Work on SWOT analysis for operation• Assign roles – Each student submit Resume, with job

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