Milestones, Risks, And Financial Projections For A Sushi Restaurant Business

Key Milestones for a Sushi Restaurant Business

Milestone for the sushi business is relevantly essential, as it helps in understanding the pathway in which the business can direct and flourish. In addition, the milestones indicate relevant dates and projection of identified achievement, which needs to be conducted for luring in investors and gathering the required funds for the business. Furthermore, the milestones relevantly indicate the future performance, which needs to be taken into consideration while portraying or depicting the list of key milestones. In this context, Burns & Dewhurst (2016) mentioned that with the help of milestones the pathway to the project can be detected, which might help in guiding the organisation’s progress. On the other hand, Chambers & Humble (2017) criticises that without conducting adequate research the overall milestones of the business cannot be achieved, which might relevantly demotivate the investor and can negative affect the invested capital.

Date	Key Mile Stones
December 2018	Automated scheduling process of the staff will be completed by December, as it might help in reducing the detecting process of scheduling. Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper
January 2018	Buying the relevant supplies for the kitchen, completion of menu and developing the production plans.
February 2018	Successfully printing 1,200 sushi in the 3D printer by the end of the month and creating distribution filers, which can be dispersed.
March 2018	Achieving the milestone of 6,000 sushi prints at the end of the month, while building a website for increase the online presence.
April 2018	Operating in full capacity while servicing the visiting and online customers, which helps in generating high revenues.

The above identified milestone directly portrays different level of activities, which needs to be fulfilled by the organisation for supporting its long erm goals and vision. In addition, the identified milestone in the above table indicates the process and the different level of measures that would strengthen the resolve of the business for surviving in the competitive market. McKenzie (2017) mentioned that with the help of defined milestones the business relevantly portrays the ways in which the operations will progress and achieve sustainable growth and profitability. However, there are certain risk factors, which might hinder the capability of the business to achieve the relevant milestones. The major risk can be conducted with the intense competition from different restaurants, which might hinder the business to achieve set milestones. The other risk in projected from the employees, where experienced individuals are needed for operating the 3D machine and making high grade sushi for the consumers. The acquisition of high end workers in the competitive market is relevantly difficult, which might hinder the business to achieve the required level of business achievement.

The risk-mitigation method can be used for reducing the overall risk occurring from the identified milestones. The method can eventually help in understanding the level of techniques and method that can be used by the business for achieving the identified milestone at the designated time. The use of online presence and extensive marketing strategy can eventually help in detecting the overall .

Initial Capital Requirement:
Particulars	Amount	Amount
Capital Costs:
Purchase of Sushi Machine	$ 120,000
Purchase of 3D Printer	$ 48,000	$ 168,000
Business Set-Up Cost:
License Fees	$ 800
Deposit for Telephone & Internet	$ 1,200
Logo Design	$ 300
Business Registration Cost	$ 2,250	$ 4,550
Costs
Salary of Employees	$ 6,000
Manager’s Salary	$ 2,500
Rent	$ 7,500
Maintenance Cost	$ 1,900
Promotional Expenses	$ 4,500
Electricity Expenses	$ 1,200
Telephone Expense	$ 500
Cash Fund	$ 50,000	$ 74,100
TOTAL CAPITAL REQUIREMENT		$ 246,650
Share Capital	$160,322.50
Loan from Bank @9% interest	$ 86,328
TOTAL INVESTMENT		$ 246,650

Income Statement:
Particulars	1st Year	2nd Year	3rd Year	4th Year	5th Year
Total Revenue	$ 48,900	$ 65,800	$ 88,540	$ 119,140	$ 160,314
Expenses:
Cost of goods	$17,115.00	$23,029.94	$30,989.09	$41,698.92	$56,110.07
Salary of Employees	$ 6,000	$ 6,090	$ 6,181	$ 6,274	$ 6,368
Manager’s Salary	$ 2,500	$ 2,538	$ 2,576	$ 2,614	$ 2,653
Rent	$ 7,500	$ 7,613	$ 7,727	$ 7,843	$ 7,960
Maintenance Cost	$ 1,900	$ 1,929	$ 1,957	$ 1,987	$ 2,017
Promotional Expenses	$ 4,500	$ 4,568	$ 4,636	$ 4,706	$ 4,776
Electricity Expenses	$1,200	$1,200	$1,200	$1,200	$1,200
Telephone Expense	$ 500	$ 500	$ 500	$ 500	$ 500
TOTAL OPERATING EXPENSES	$ 41,215	$ 47,466	$ 55,766	$ 66,822	$ 81,585
NET OPERATING INCOME/(LOSS)	$ 7,685	$ 18,334	$ 32,774	$ 52,318	$ 78,730
Less: Interest on Loan	$ 6,043	$ 6,043	$ 6,043	$ 6,043	$ 6,043
NET PROFIT BEFORE TAX	$ 1,642	$ 12,291	$ 26,731	$ 46,275	$ 72,687
Less: Income Tax @30%	$ 492.62	$ 3,687.29	$ 8,019.36	$ 13,882.42	$ 21,806.08
NET PROFIT AFTER TAX	$ 1,149	$ 8,604	$ 18,712	$ 32,392	$ 50,881

Cash Flow Statement:
Particulars	1st Year	2nd Year	3rd Year	4th Year	5th Year
Cash Flow from Operating Activities:
Total Revenue	$ 48,900	$ 65,800	$ 88,540	$ 119,140	$ 160,314
Cost of goods	(15,404)	(22,438)	(30,193)	(40,628)	(54,669)
Salary of Employees	(5,500)	(6,083)	(6,174)	(6,266)	(6,360)
Manager’s Salary	(2,292)	(2,534)	(2,572)	(2,611)	(2,650)
Rent	(7,500)	(7,613)	(7,727)	(7,843)	(7,960)
Maintenance Cost	(1,900)	(1,929)	(1,957)	(1,987)	(2,017)
Promotional Expenses	(4,500)	(4,568)	(4,636)	(4,706)	(4,776)
Electricity Expenses	(1,200)	(1,200)	(1,200)	(1,200)	(1,200)
Telephone Expense	(500)	(500)	(500)	(500)	(500)
Tax Paid	(493)	(3,687)	(8,019)	(13,882)	(21,806)
Net Cash Inflow/(Outflow) from Operating Activities	$ 9,612	$ 15,249	$ 25,561	$ 39,517	$ 58,376
Cash Flow from Investing Activities:
Purchase of Sushi Machine	(120,000)
Purchase of 3D Printer	(48,000)
Business Set-up Cost	(4,550)
Net Cash Inflow/(Outflow) from Investing Activities	(172,550)	$ 0	$ 0	$ 0	$ 0
Cash Flow from Financing Activities:
Owner’s Contribution	$ 160,323
Loan from Bank	$ 86,328
Interest Paid	(6,043)	(6,043)	(6,043)	(6,043)	(6,043)
Net Cash Inflow/(Outflow) from Financing Activities	$ 240,607	(6,043)	(6,043)	(6,043)	(6,043)
Net Increase/(Decrease) in Cash Flow	$ 77,669	$ 9,206	$ 19,519	33,474	$ 52,333
Add: Opening Cash Balance	$ 0	$ 77,669	$ 86,875	$ 106,394	$ 139,868
Closing Cash Balance	$ 77,669	$ 86,875	$ 106,394	$ 139,868	$ 192,201

Balance Sheet:
Particulars	1st Year	2nd Year	3rd Year	4th Year	5th Year
Current Assets:
Cash at Bank	$ 77,669	$ 86,875	$ 106,394	$ 139,868	$ 192,201
TOTAL CURRENT ASSETS	$ 77,669	$ 86,875	$ 106,394	$ 139,868	$ 192,201
Non-Current Assets:
Sushi Machine	$ 120,000	$ 120,000	$ 120,000	$ 120,000	$ 120,000
3D Printer	$ 48,000	$ 48,000	$ 48,000	$ 48,000	$ 48,000
Preliminary Expenses	$ 4,550	$ 4,550	$ 4,550	$ 4,550	$ 4,550
TOTAL NON-CURRENT ASSETS	$ 172,550	$ 172,550	$ 172,550	$ 172,550	$ 172,550
TOTAL ASSETS	$ 250,219	$ 259,425	$ 278,944	$ 312,418	$ 364,751
Current Liabilities:
Accounts Payable	$ 1,712	$ 2,303	$ 3,099	$ 4,170	$ 5,611
Wages & Salaries Payable	$ 708	$ 719	$ 730	$ 741	$ 752
TOTAL CURRENT LIABILITIES	$ 2,420	$ 3,022	$ 3,829	$ 4,911	$ 6,363
Non-Current Liabilities:
Loan From Bank	$ 86,328	$ 86,328	$ 86,328	$ 86,328	$ 86,328
TOTAL NON-CURRENT LIABILITIES	$ 86,328	$ 86,328	$ 86,328	$ 86,328	$ 86,328
TOTAL LIABILITIES	$ 88,747	$ 89,349	$ 90,156	$ 91,238	$ 92,690
NET ASSETS	$ 161,472	$ 170,076	$ 188,787	$ 221,180	$ 272,061
Capital:
Owner’s Contribution	$ 160,323	$ 160,323	$ 160,323	$ 160,323	$ 160,323
Retained Profit	$ 1,149	$ 9,753	$ 28,465	$ 60,857	$ 111,738
TOTAL CAPITAL	$ 161,472	$ 170,076	$ 188,787	$ 221,180	$ 272,061

Reference

Burns, P., & Dewhurst, J. (Eds.). (2016). Small business and entrepreneurship. Macmillan International Higher Education.

Chambers, I., & Humble, J. (2017). Plan for the planet: a business plan for a sustainable world. Routledge.

Ghezzi, A., Cavallaro, A., Rangone, A., & Balocco, R. (2015, April). A Comparative Study on the Impact of Business Model Design & Lean Startup Approach versus Traditional Business Plan on Mobile Startups Performance. In ICEIS (3) (pp. 196-203).

Hopp, C., Greene, F. J., Honig, B., Karlsson, T., & Samuelsson, M. (2018). Revisiting the influence of institutional forces on the written business plan: a replication study. Management Review Quarterly, 1-38.

McKeever, M. (2016). How to write a business plan. Nolo.

McKenzie, D. (2017). Identifying and spurring high-growth entrepreneurship: Experimental evidence from a business plan competition. American Economic Review, 107(8), 2278-2307.

Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management. Pearson.

Simón-Moya, V., & Revuelto-Taboada, L. (2016). Revising the predictive capability of business plan quality for new firm survival using qualitative comparative analysis. Journal of Business Research, 69(4), 1351-1356.

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