Nugget Inc.

Business Feasibility Plan

Date plan completed: 4-04-2013

   

Contents

Executive Summary        

Business Description        

Market Analysis        

Internal and External Influences of your Business        

Marketing Strategies        

Financial Analysis        

Breakeven Analysis        

References        

Appendix I        

Executive Summary

Nugget Inc. was founded by Yee Cher, Pides, Oliver & Renjie in March 2013.  We currently have only 3 store which is located at Clementi Mall, Ion Orchard, Bishan Junction 8. We offer a comfortable room for everyone to enjoy and do what they like to do in them. We also provide free internet access, earpiece and also free chargers for their computers and phones. We also have a snack bar so if you want a bite can go and get something there for an affordable price. We aim to provide customers with world-class rooms so that they can rest comfortably inside. We also provide aim to wonderful experience with competitive prices and fast internet speed and also world-class food.

We are currently trying to get investors that are interested in our service to invest in us.

At Nugget Inc, customers can rent a room for $10 every hour and $5 for every half an hour or part thereof. If they rent the room for 3 hours or more, they will have a rebate of $10 and also free snacks for them.

Our target audience is mostly teens or working adults as they might want to have a quiet place to work or do they projects. They also can come here to have fun and play games as we have the best internet speed that is available in the market.

If this service is profitable, we will expand all across Singapore and also go overseas to make more branches. We also wants to be known by its customers as place that is reputable, reliable and friendly to its customers.

All our rooms and sound-proof so even if u want to blast some music to let go, no one else outside would be able to hear it.

Business Description

Business Name:

Mission Statement:

 Nugget Inc. aims to provide customers a comfortable place to do their work in peace. Food and drinks are sold there as well, so when our customers are hungry or thirsty, they can always go and get a quick bite at our little diner.

Vision Statement:

Nugget Inc. will be famous in Asia and will be slowly spreading their business globally.

Objectives:

To be drafted and completed after Financial plan in Term 3

Business Description:

        A mini library-like environment, ample amount of computers and sockets for people who needs to go online for their work

Business Structure:

Business Type:

Bookings for membership can be registered via the internet. (members get discounts and free bookings of discussion rooms etc.)

Location:

Clementi Mall, Ion Orchard, Bishan Junction 8

Markets:

Singapore

Market Analysis

Target Market: Working adults, busy teens, people who needs a quiet place to work/ think

Competitors: Other gathering hubs/ places people tend to go to relax/ do work, such as starbucks, mcdonalds, and even coffee shops

Pricing strategy: Depending on the age. For example, students between 13-18 will be cheaper than adults’ charge. Customers are charged hourly.

Potential Demands: The cost of the charge, whether or not the environment is suitable for their work (eg. some noisy customers may come about), cleanliness

Internal and External Influences of your Business

3 Internal Influences

  1. Product –  We provide the best cosy and beautiful room for you to let you do practically anything you want! From hanging out with your friends at our hub, to studying, doing projects, you choose. We also provide all the equipment to accommodate for you such tables and chairs, sofas and even cater food for you whenever you feel like grabbing a bite!
  2. Finance/ Capital - Business with low capital layout, and low inventory to be kept, thus there is lesser risk involved if there is not much people coming.
  3. Staff/ Management - There would be one or two people directing the customer to each room and also to collect money at the same time so that there is not a need for a lot of manpower.

3 External Influences

  1. Technological - Free internet provides so that they can go online to find information and also to listen to music to relax themselves when they are studying or doing other projects. Other equipments such as beanbags and sofas are also there to provide maximum comfort. Air conditioners are present to help our customers to feel as comfortable and cooling as much as possible. Staff will be asked to check the equipments everyday or so in case there is damaged or broken furniture. That way, the company can make preparations for fixing or replacements.
  2. Competitive situations - Other places that people might gather such as mcdonalds, Starbucks which has free internet and also food to eat/ coffee when they are doing their project or studying. Our aim is to make our place much more inviting and comfortable than any other gathering areas people tend to go.
  3. Geographical - We do not have many options as Singapore is a very small country. However, we can spread our business elsewhere such as Malaysia, China or maybe even U.S if our business is successful.

Marketing Strategies

Product:

 Our product is a gathering area and also a cafe for people to gather to do their projects, homework and also revise and also they can get a quick bite when they are hungry after doing their projects, meetings and etc.

 We also provide earpieces, 3-pin plugs for them to listen to music and also charge their computers, phones, etc respectively. So that they can finish whatever they are doing without having problems with the amount of battery their computers or electronic devices contain during the period which they are at the gathering hub and for projectors for meeting and presentations as well. This saves the trouble of the customers of them having to travel to other places to buy good food.

Each room is also built with soundproof wall and windows so that they would not disturb others and also getting disturbed and can do their work in peace without any disruptions.

Price:

 

We plan to attract our customers to our gathering hub on one main idea, they can do anything they would like there. The number of customers will affect our business as our business only receive money from the food people catered and the rents of the room, thus the number of customers have to be increasing each time in order to keep our business running for the long run. Thus we plan to have promotion like decreasing the rent of the rooms once in awhile or even upgrade the facilities at the hub, just to attract more customers to our gathering hub.

 The cost for the rents of the rooms will depend on how long they will be using it in terms of half-hour. Each half-hour they will have to pay $10. The cost of the food will vary with the different kinds of food being sold. Drinks will vary from $1 - $3 and food will vary from $1 - $6

Our competitors are places where people are mostly found to “hang out” or relax or do work in a quiet environment. Possible competitors are Starbucks, McDonalds, and maybe the gathering area at community centres.

Our goal in this business is to make it very successful so that we can further expand to other countries, portray ourselves as quality and great place for gathering and also for a snack and also having the best customer service and image. Lastly more growth in our business with in return gives us more profits.

 

Promotion:

Place: Our business is retail. We have the physical location for our business.

Factors that will affect

Market Segmentation-  

Visibility and convenience-

Herding effect- In terms of food, our competitions are McDonalds and Starbucks. But in terms of service, places such as the void deck in Community Centres and other places where other people sit and relax or just finding some quiet time.

Allocated area/ location-

Market Coverage (exclusive/ intensive/ selective)

Financial Analysis:

Cash Flow statement

1Q12

2Q12

3Q12

4Q12

Beginning Cash

10000

Cash In

Service Revenue

6000

7700

10400

11100

Bank Loan

0

0

0

0

Cash Equity (From investors)

50000

0

0

0

Total Cash in

56000

7700

10400

11100

Cash Out

COGS

400

80

80

80

Insurance

200

50

50

50

Marketing expenses

4500

500

500

500

Rental Expenses

10000

5000

5000

5000

Salaries expenses

5000

5000

5000

5000

Supplies (Food) used

1000

1100

1300

1450

Maintenance expenses

3000

2500

3200

3500

Bank Charges

400

50

50

50

Utilities

5000

5500

6000

6400

Loan Interest

0

0

0

0

Start Up Capital

100000

0

0

0

Others (Chargers, earpieces, etc)

2000

2500

2600

3000

Total Cash Out

31500

19600

23900  

25000  

Net Cash Flow

Ending Cash

24500

11900

13500

13900

Income Statement

1Q12

2Q12

3Q12

4Q12

Revenue

Rental

4000

5500

7000

7400

Food

2000

2500

3400

3700

Total Revenue

6000

7700

10400

11100

COGS

1000

1300

1600

1800

Gross Margin

5000

6400

8800

9300

Expenses

Loan Interest

0

0

0

0

Incorporation Expenses.

2700

0

0

0

Insurance

200

50

50

50

Marketing Expenses

4500

500

500

500

Rent Expenses

10000

6000

6000

6000

Salaries Expenses

5000

5000

5000

5000

Supplies used

1000

1100

1300

1450

Maintenance

3000

3200

3500

3600

Bank charges  

50

50

50

50

Utilities Expenses

5000

5700

6500

7300

Others

2000

2500

2600

3000

Total expenses

33450

19600

25500

26900

Operational Income

56000

7700

10400

11100

Interest Income

1575

539

728

777

Other Income

0

0

0

0

Profit before Tax

22500

11900

15100

15900