The management has a philosophy based on responsibility, integrity and mutual respect. People who work at Japanese Fine Dining want to work at Japanese Fine Dining because we have an environment that encourages creativity and achievement. The company is led by a group of seasoned professionals possessing a combined 8years in the hotel industry. In particular, the four founders have served for various hotels for the past 5years and improved considerably the utilization of restaurant services and products.
Apart from the four founders/partners, the restaurant will depend on part time employees, because there is ample supply of culinary and other students. The projected staff will be 12 full time employees and 19 part time employees who will work on an average of 800 hours per week and generate a weekly payroll of about $6,848 on average. Walker (2007) says that the payroll should be about 30 percent of the total sales. This therefore means that the restaurant will run an estimated annual payroll of $356,070 which will be 30 percent of the total sales of the restaurant.
Japanese Fine Dining is a partnership limited liability venture. The venture was incorporated on 20 February 2010 as a partnership. Each of the four founders has 20 % shares while the remaining 20 % were floated for interested investors. Dickson (2006) says that the benefit of this venture and legal structure is that it reduces potential legal liability hence lowering the insurance costs. Above that Dickson (2006) says that it will also provide additional tax planning options to the owners of the restaurant.
Our start-up costs of $350,100 are to be financed by direct owners’ investment with additional boost from an angel investor. The details are shown in the table below.
|
Start-up Funding (Year 2010) |
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Yearly Totals |
|
Start-up Expenses to Fund |
150,100 |
150,000 |
1,100,100 |
300,000 |
1,700,200 |
|
Start-up Assets to Fund |
200,000 |
0 |
200,000 |
0 |
400,000 |
|
350,100 |
150,000 |
1,300,100 |
300,000 |
2,100,200 |
|
|
Investment |
|
|
|
|
|
|
Owners |
350,100 |
150,000 |
400,100 |
300,000 |
1,200,200 |
|
Venture capitalist |
0 |
0 |
5,000,000 |
0 |
5,000,000 |
|
Bank Loan |
0 |
0 |
0 |
0 |
0 |
|
Total Investment |
350,100 |
150,000 |
5,400,100 |
300,000 |
6,200,200 |
Japanese Fine Dining restaurant is seeking funding to the tune of $ 5, 000,000 from venture capitalist. It will utilize the anticipated cash injection to indulge restaurant operations. Provided below is a breakdown of the sources and application of the funds.
Backup statement:
- The additional funding will be used to acquire business licenses
- The $ 5, 000,000 in venture capital funds are needed by September 1st 2010 in order to proceed with the purchase and installation of restaurant equipments and make it fully operational.