Business Venture

Abstract

The sports bar and grill are going to have to meet many legal and operational requirements before it is fully set. The costs incurred in creating the sports bar and grill will include construction, furnishing, stocking, permit and license costs. Salaries and wages of employees will cost the business more especially since the business plans to employ skilled and experienced employees. The skilled and experienced employees will help in the provision of quality services to the customers of the business. The business will set affordable prices for its products that are lower than those of competitors. The location where the business will be based has many similar businesses. The businesses pose a great threat of competition towards the new business. The company will spend a lot of marketing so that customers can know about it and its products. The company is going to include products that are not offered by other similar businesses such as conventional foods in its product list. The increasing costs of licenses and permit for selling alcohol and food are likely to result in unplanned business expenses in the future. 

Description of the venture

The business I would like to open is a sports bar and grill. The sports bar and grill will be selling alcoholic and non-alcoholic drinks to the customers. The sports bar will be a popular sports bar and will be selling affordable drinks and foods. The business will hold about 100 customers since it will have adequate space that fits the planned number of customers. The business will be established from scratch after the leasing of a one-eighth acre of land. The building structure will occupy three-quarters of the land that will be leased. 

The business will be located in New York City. The major reason for selecting the location is majorly due to the favorable business environment in the city. Citizens of the city have different levels of incomes. The residents of the locality will be able to afford the prices that I will set for my products. I am familiar with the business environment of the city, and this will help me in establishing my business in the locality and mange it efficiently.

 The business will be a sole proprietorship since I do not plan to partner with anyone. The finances of establishing the business will be sourced from my savings and partially funded by a loan that I will borrow from my bank. Additional unplanned costs will be financed by money borrowed from family members and friends. Construction of the structure will be the priority. The second priority will be the purchase of the bar’s furniture and recreational equipment. 

I will apply for licenses and permits from the different regulating agencies that control the industry. The licenses and permits will cost a lot since the business will be operating day and night. The licenses will cost the business more since it will be selling alcoholic drinks and food to its customers. The costs of licenses for selling alcohol in the locality I am going to open the business are high. Licenses for selling alcohol will be acquired from the states’ control agency of the locality. Public health and food production regulations in the business locality are very strict. Food production permits and licenses are very expensive as compared to costs of other regions. 

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Alongside non-alcoholic and alcoholic drinks, food will be availed to customers. Conventional and fast foods will be prepared in the sports bar and grill. Food will be served throughout the day since the business will handle customers’ orders throughout the day. The food menu will consist of different types of food that are popular in the locality. Fast foods will be available since they are easy to prepare and will be served to customers within short periods time. Conventional foods are the preference of the local people hence they will dominate the food menu. 

Seats and tables will be appropriately spaced to ensure that customers have adequate movement space. The structure can handle up to two times the planned customer capacity, but I settled for the capacity of customers since I do not want it to be congested. Customer congestion is usually experienced in low social class sports’ bars and grills, but this business is a middle-class sports bar. Customers from all social classes are welcome since the bar’s prices will be affordable. Local customers are expected to be the major customers of the bar while people from nearby neighborhoods are welcome to the bar. 

Sports equipment will be fitted in the corners of the bar to ensure that they do not obstruct customers. These sports equipment will include pool tables and foosball tables. The tables will be purchased from companies that offer low prices for them. I do not intend on buying second-hand pool and foosball tables since they may get damaged easily. Furniture such as sofa sets, bar seats, and tables will be purchased from local furniture companies. Television sets for watching sports will be fitted in different sides of the building structure. I plan on installing six television sets in the structure.

SWOT analysis

SWOT chart

                                 Positive                                                           Negative

Strengths

Affordable prices

The business will set prices that are affordable to the residents of the locality it is based. Prices of other sports bars in the locality are high. I have decided to set the prices of my products lower than those of other businesses. The affordable prices will attract customers from all social and financial classes. My pricing strategies were influenced by the prices of other sports bars in the locality. Non-alcoholic and alcoholic drinks do not cost even close to what other sports bars in the locality have set as their product prices. The drinks are purchased from suppliers at prices way cheaper than the prices they are sold. The low prices that I will set for my products will still earn high profits since I will acquire the products from cheap suppliers. The business sales will be very high due to the low prices that I will set for my products.

Experienced and skilled employees

The business will employ experienced employees that have worked elsewhere before applying for the vacant positions in the business. Employment of experienced and skilled employees will enhance customer services. Bar attendants will serve customers appropriately and will act professionally towards customers, other employees and the management. The performance of the employees will be high since they will already have the necessary skills and experience before getting employed by the business. Provision of quality services to the employees will promote customer experience and satisfaction (Nzekwe, 2014). 

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Weaknesses

The business is faced with high expenses on salaries and wages. The business will incur great costs in the payment of wages and salaries of its employees. Skilled and experienced employees that the business plans on hiring will cost it more. To attract experienced employees from other similar businesses the employees have to be offered higher wages and salaries than what they are paid at their current workplaces. The number of employees will be high so that it can serve the planned number of customers sufficiently. The expenses on employee wages and salaries will reduce the profits of the business greatly. Reduced profits will hinder the efficiency of the business. Profits are used in the running and management of the business, and reduced profits will affect the company’s management negatively (Nzekwe, 2014). 

The costs of marketing the business are high. The marketing and promotional budget for the business will be high. The business will hire marketing personnel to market the new business so that people get to know about it and the products and services that it offers. These promotional and marketing costs will add to the total operating expenses that the business will incur. These expenses alongside salaries and wages will reduce the profits of the business. 

Opportunities

The business has limited variety of products from similar businesses. The business will sell conventional food products to its customers. Most sports bars and grills in the locality only sell fast foods to their customers. The demand for conventional foods in the locality is high. I observed that most residents purchase conventional food products from nearby supermarkets. Including conventional foods in the food menu will attract more customers to the business since it will provide an alternative to cooking at home. Most residents of the locality are employed or are involved in other income-generating activities. These residents get off work very late and have no time to prepare conventional foods at home. Selling them cooked conventional foods instead of cooking at home will help them to save time. The conventional foods will provide customers with an alternative to the fast foods that most similar businesses in the locality offer them.  None of the other sports bars and grills includes conventional foods in their food menus since most of the food products they sell are fast foods and snacks. 

Threats

Competition is the biggest threat in the business. The locality has very many similar businesses. The high number of similar businesses congests the market. Each business has its share of customers in the market. Some big businesses in the locality dominate the market, and these businesses will greatly reduce the market share of my new business. Due to a reduced market share, the business will be unable to make sufficient profits since it will have a low number of customers (Ronald, 2013). Most customers belong to the big sports’ bars in the locality. The business is smaller in size compared to the other similar businesses in the area.

Increasing costs of licenses and permits in the industry poses a significant threat in the business. The costs of alcohol and food production permits and licenses in the locality have been increasing over time. The costs are now stable, but it is unpredictable if the costs will increase in the future. Unplanned increased costs of licenses and permits will affect the operations and profits of the business negatively (Ronald, 2013). The business will incur unplanned expenses that will result from the increased cost of licenses and permits.