Essays on Feasibility Study for a New Business Venture Case Study

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The paper "Feasibility Study for a New Business Venture" is a great example of a case study on business. The paper presents a feasibility study for a proposed new business venture, in this case, a mid-sized multi-cuisine restaurant at the Waterfront in Sydney. The restaurant would follow the business model of partnership, wherein, I would be a major partner with 60 percent stakes and would also look after the financial issues. My partner (name) would hold the rest of the 40 percent stakes and would oversee operational issues. The restaurant aims to target foreign tourists, inbound tourists as well as local residents by providing them with ethnic cuisines from around the world under a single roof.

The business is expected to start getting profits by the operation’ s second year and substantial profit by the next year. Thus, the feasibility report states that the venture is a viable business option. Introduction and BackgroundThis restaurant feasibility study is for “ Cuisine of the World” , a new medium-sized multi-cuisine venture to be located in the up-market neighborhood of Waterfront in the bay area of Sydney. The emphasis of this restaurant is to provide different cuisines from the world over by retaining its ethnic flavor. Business modelIn order to make a business successful, it is imperative to choose the right business model.

Such a business model should not just aim at making profits but should also be sustainable in the long run. While starting a business, we were faced with many choices regarding the business model. We could start a business that could be either part-time or full-time, from home, online, or in a commercial complex. The first and the foremost step towards choosing the right business model was to identify the amount of time we could devote to the business.

In case we decide to start a full-time business, we had to commit wholeheartedly to the process and were required to spend a considerable amount of time working to establish the business. Thereafter, we had to decide on the model to be adapted, whether to set-up a home-based business or one in a business complex. Further, we also had to define the type of ownership for the business as well (Kuratko & Hodgetts, 2007). We decided that the business model for the restaurant would be based on a simple partnership model i. e.

the business would be owned by the founders, with a 60:40 partnership ratio. Due to the business’ s nature, we would have to devote full-time to the business. Further, we also need to run the business from a suitable location, ideally a busy commercial complex or a famous tourist spot. An ideal location for the restaurant at the Waterfront has been secured for a lease of $2000 per month.

It is expected that the restaurant would start generating a profit by the year-end. The place secured had been an old restaurant; therefore, infrastructure cost would not be much as the place is already equipped for starting a restaurant.

References

ABS, 2000, Cafés and Restaurants Industry Australia, ABS Catalogue number 8655.0, p. 4.

ABS, 2001, Census of Population and Housing.

ABS, 2002, Labour Force Supplementary Survey.

ABS, 2003, Business Use of Information Technology, ABS Catalogue number 8129.0.

ABS, Aug 2003, Retail Trade, ABS Catalogue number 8501.0, p. 11.

Drucker, P.F. (1985). Innovation & Enterpreneruship. New York, HarperTrade.

Hoagland, H. and Williamson, L. (2000). Feasibility Studies. Kentucky, University of Kentucky.

Thompson, A. (2003). Business Feasibility Studies: Dimensions of Business Viability. Perth, Best Entrepreneur.

Porter, M.E. (1980). Competitive Strategy. Free Press, New York.

Schaper, M. and Volery, T. (2004), Entrepreneurship and Small Business: A Pacific Rim Perspective, Milton, Qld: John Wiley & Sons Australia.

Kuratko, D. F., & Hodgetts, R. M. (2007). Entrepreneurship: Theory, Process, Practice (7th ed.). Mason, OH: Thomson/South Western Publishing.

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