Below you can find an example of the writing portion of this assignment which will give you a a clearer idea of what I'm looking for and what you are being asked to include.

NYC Pizza Business Plan

By Mary Szyman

The company I would like to start is a restaurant called NYC Pizza.  New York style pizza is very different from Chicago Pizza and it’s some of the best pizza in the world.  New York pizzas are huge thin crust pizzas where a “slice” is enough for an entire meal.  This type of Pizza is impossible to find in the Chicago area and being a native New Yorker, I think it’s time Chicago saw what real pizza tastes like.  I think consumers will love this new and different kind of Pizza.  I plan to open one store in St. Charles, IL, with a menu that will include lots of different thin crust New York style pizzas, calzones and select pasta dishes.  Hopefully, if all goes well, I will be able to open more locations in the future. 

I am highly qualified to open a pizza restaurant because I have extensive experience in food service.  I worked for 4 years in various school cafeterias and so I know all the health code and food preparation rules that are required by law.  My experience in the cafeteria has also given me experience cooking large quantities of food using commercial equipment.  In addition, I have a master’s degree in business so I know how to handle the accounting and other financial aspects of the business. Most importantly, I am a native New Yorker, so I know what truly good pizza tastes like!

Since location is a huge part of a successful pizza shop, I plan to rent rather than buy my building.  There are plenty of strip malls close to residential housing and shopping that have vacant storefronts so I do not think I will have any difficulty finding a space that would be suitable for my business.  As of now, I only plan to have a takeout business so I don’t have to pay for furniture, dishes, and other items that would be necessary for a sit down restaurant so my space can be relatively small.  However, once I find a space to rent I will have to do some remodeling to make it look nice and up to health codes.

I will be paid in cash and credit cards so I will not have any accounts receivable on my balance sheet but I should have a large cash balance.  I will have to purchase several large pieces of equipment.  I will need to purchase a pizza oven, range, refrigerator, freezer, ice/drink dispenser, cabinets and countertops so these items would be fixed assets on my balance sheet. I will also have an asset called prepaid rent since I will have to put a deposit down on the space that I will be renting.   Even though I will be getting a cash investment, I will most likely need to borrow money from the bank to purchase all this equipment in the form of a Notes Payable liability.   Another liability would be accounts payable which is money that I would owe a vendor for ingredients for my pizzas.  Owner’s Equity should be equal to the initial investment I put into the business plus whatever income I make this year.

I am estimating that I will be selling mostly pizzas along with a small amount of additional food items which would account for my revenue.  Some expenses that I will incur would be the cost of ingredients for my pizzas, rent expense for my space, salary expense to pay my employees and advertising expenses to get customers to try my pizza.  I will also have to pay interest on my equipment loan and I will have some one time remodeling expenses.

There are several connections that I see between the type of business I have and my balance sheet.  One connection that I see is that because my business is a restaurant, I will be paid in cash.  Unlike some businesses where the company bills their customers and gives them time to pay, I get paid at the time of service so my balance sheet will have little to no accounts receivables.  Another connection that I see is that my income statement will have a large salary expense since I have to pay the individuals making, selling and delivering the pizzas.  Since I am operating a restaurant, salary expense will be one of my biggest expenses.  Lastly, the connection, I see between my income statement and my balance sheet is that since I am renting a building, I will have rental expense on my income statement and prepaid rent on my balance sheet.