Developing a Small Business

Seminar paper from the year 2005 in the subject Business economics - Company formation, Business Plans, grade: A (71%), University of Westminster (University of Westminster (London)), course: Developing a Small Business, language: English, abstract: The launch of the business of Stammtisch in June2005 will be an absolutely new concept and is missing within London. The business will be the first traditional Germanpub in Central-London. Stammtisch¿s first-mover advantage will combine a traditional German-pub and Sport-entertainment; located in ¿Central-West-London¿. The strategy is manly based on serving the pub niche market for the Germancommunity (80,000 Germans are living in Greater-London). Markus Kutscha (native German) is the founder of Stammtisch; it will be a Limited Company. Andreas Kutscha, who is my brother, will support me in management (secretary) in the first 2 years. This business plan is a proposal to raise finances from the bank to complement the initial investment of £200,000. It requires a flexible bank loan of £125,000, re-payable in 5 years, to aid the successful business implementation. £50,000 will be employed immediately to finance the set-up costs; the remaining will be used throughout year1 to support the cash needs. The founder and his family will invest a total of £25,000 and £50,000 respectively to cover operating expenses. According to the cash flow projection, the business will break even in its 22nd month of operations.