6: Growth & Development

Growth & development aims & objects - next five years.

The principal growth aim of C.H.D.S - in the next five years - will be to provide the North London area with at least 5 more home delivery units, which would provide high quality Chinese cuisine,  at an affordable price and in the most expeditious way - with one unit having food-processing facilities & large freezer storage capacity for bulk-buying. The methodology to facilitate this accomplishment would be to emulate (copy) the business model (objectives) outlined in this single unit business plan.

A strategy of continuous growth minimizes the amount of Capital gains and VAT the company will have to give the tax-man, because exploiting expenditure reduces Net Profit and therefore Capital Gains; and maximizing expenditure enables the company to claim back VAT against outlays / outgoings.


Financial support for growth and development.

The financial support for the stated growth and development would essential come from 20% of the sale revenue per unit:
 
1st year    = £46,881
2nd year   = £46,881 + £69,037 i.e. 20% £345,186 = £115,918
3rd year   = £115,918 + £69,037 = £184,955
4th year   = £184,955 + £69,037 = £253,992
 
Total investment:             over 4 year period = £253,992
 
See company's record keeping used to generate the following financial spread-sheets and charts

(Fig. 5.1) Business ventures break-even-analysis

(Fig. 5.2) Estimated profit and loss account

(Fig. 5.3) Estimated cash-flow analysis

The investment will be spent in the followings areas:

(1): Marketing: Building-up at least 5 regional databases

(2): Delivery bikes: 6 x mopeds per unit

(3): Equipment: Appropriate kitchen & IT equipment

Economies of scale in the follow areas:

Purchasing: £82,845 x 5 = £414,225 i.e. the increased purcasing power will enable the company to buy-in bulk and drive-down cost with our main supplier

Marketing: As each unit establishes it target database number of customer i.e. 30,000 per region - marketing costs could be reduced to maintaining sales through contact customers for repeat business via database records & periodic boosts through Post-office mail-shots.

Human Resources
The first-line of the organisation chart illustrates the strategic element of the company. This layer of senior-manager being pay for on an indirect cost basis i.e. wage costs being spreads over all units.

The second-line of the organisation chart demonstrates the middle-management roles/function who are charged with the daily operations of each unit. These staff member are full-time personnel and have been employed on a multi-tasked basis.

The middle-management roles/function are the core of the business and these members of staff will be paid competitively and encouraged to engage in long-term staff development, such as, study for Management qualifications at local colleges / universities on a one-day-a-week basis over a two-to-three year period. This initiative will be introduced to engender stablity and intellectual capital growth within the organisation.

The third-line of the organisation chart illustrates the part-time members of staff who employment fluctuates with the level of business activity - see business trend chart below:-

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