Thursday, June 8, 2017

Wk 10 EOC: How not to fail in the first 5 years

The first thing I would do to insure my restaurant did not fail within the first five years of operation is put it in the correct location.  The location I choose would be the southwest corner of the valley, generally, west of I-15 and south of 215.  Unlike Summerlin and Henderson, the market has not been oversaturated with restaurants, although the residential growth has been exponential.  On Blue Diamond Road there are a couple privately owned bars and one franchise restaurant, although Southern Highlands, Coronado Ranch and Mountain’s Edge masterplanned communities continue to grow.
Next, I would make perform a SWOT analysis in order to increase my awareness about the competition, recognize any threats and weaknesses as well as my strengths and any special opportunities that exist.  I believe that an opportunity exists on the horizon.  Now that marijuana has been legalized, I believe an opportunity exists to have a marijuana themed restaurant or bakery.
Marketing must be the next area to focus on.  How, and to whom, will I market my business? 
Accounting and management are two problem areas.  The owner of a new restaurant must be involved in both areas (at least at first) in order to not lose money to skimming, improper purchasing, or giving away too much product.  Proper controls must be put in place and constantly monitored.  Keeping vigilant watch over labor and food costs is pertinent to maintaining cash flow.
Finally, making sure we have enough capital to make it through that first rough year.  Payments must be made immediately to cover fixed costs even while the cash flow is not yet up to par to cover the expenses.  Keeping in mind cash flow doesn’t begin until the restaurant opens doing all you can to keep labor costs low as long as possible is important.  And, again, making sure that variable costs do not rise above the level that they should is key.

Thursday, June 1, 2017

W9 EOC: Monetizing Lemonade

I think that, although, a lemonade stand with fresh squeezed lemonade sounds like a great, profitable idea, it is, however, an old idea.  This is partially due to people's increased awareness of the risk of drinking sugared drinks as well as their increased fear surrounding germs and unlicensed facilities.  Another factor I see affecting the sale of just lemonade is it's just simply not sexy enough anymore.  Customers want added flavors such as tea, raspberry, strawberry, orange etc.  So, it would be difficult to sell enough plain lemonade to be profitable.  But, the main reason I do not see the lemonade selling enough is due to the high cost of the ingredients in today's market.  The cost of citrus fruits is sky high and people just cannot seem to put together that a simple glass of lemonade requires a lot of lemons.  I think what would be more profitable, and therefore, a better business investment is shaved ice.  It could be just shaved ice lemonade, but you would probably have more flavors.  And that is what they are flavors.  Some shaved ice with some flavored syrup poured over the top.  Much easier and much more profitable than fresh squeezed lemonade.

Thursday, May 25, 2017

W8 EOC: Where am I on Lemonade Day Project and what my plans are

So far for my Lemonade Day Project, I have researched the project, printed out material and sought out the principal of a local elementary school.  I am waiting to hear back from the principal as to whether or not her students or teachers would like to participate in this Lemonade Day education project.  I have also registered myself as the mentor and begun the lemonopolis lesson plans on the website.

By next week:

  • I will get, in writing, the fact that I sought participation from the principal.
  • I will also locate a source of funding and get a letter stating such.
  • I will find a recipe.
  • I will cost out all the materials required to make the lemonade itself as well as other related supplies needed (i.e., cups, lids, stand decorations, vinyl table cloths).
  • I will source other items needed such as coolers, jugs or thermoses to hold lemonade, juicers et cetera. associated with making the lemonade.  
  • I will print materials from the website in regard to educating the children and other volunteers as to what our goals are, what our plans are and how we will define success.
The website includes two FAQ pages, one which explains the program and how to register as well as another for teachers explaining what Lemonade Day is and how it is taught.

Thursday, May 18, 2017

W7 EOC Benefits of Entrepreneurship vs. Franchising

First, simply put, is if you are a franchisee, you must give part of your profit to the franchise owner.  Who wants to run and manage a business, take all the risks and give part of the profit to someone else.  It's like sharecropping.

What business owner wants to have someone telling them what they must sell, what hours they must work and that they cannot innovate in any way?  Entrepreneurs go into business because it offers more autonomy than being an employee.  Being a franchise owner is nothing more than begin an employee.  Your hard work and sacrifice is used to make someone else money. Entrepreneurs can build income and wealth through their endeavors. Although income potential is generally capped for employees, entrepreneurs are limited only by their own imagination and tenacity.

I want to open a restaurant to showcase my skills and offer fulfillment to my life.  Successful entrepreneurs are passionate about their businesses. They are excited and fulfilled by their work. Entrepreneurs who are working to reach their full potential are rarely bored, because there is always plenty to do. If one facet of running the business is uninteresting, and they have the income to support it, they can hire someone else for that task.
Social entrepreneurs who want to contribute to societal improvement find ways to do this while also earning profits. Founders of not-for-profit organizations create enterprises to address public issues that are personally important. Other entrepreneurs start lifestyle businesses that allow them to earn money while following a passion.

So, why would anyone open a franchise.  You lack independence, you take all the risks and give part of your profits to someone else, you are set into an inflexible system which does not allow you to conform to your customer demands and you must suffer the reputation of other franchise owners.

W6 EOC: Marijuana themed restaurant

My themed restaurant has Sin City written all over it.  I want to start a marijuana themed restaurant.  Although recreational marijuana is now legal in Nevada, it is not legal to smoke, or ingest, in public establishments, but I believe that is quickly going to change.  Las Vegas is the national shining leader of all forms of debauchery and this is simply the next step.

My target market is broad.  It includes tourists, both men and women, who are between the ages of 21 and 41.  The same demographic as those people who come to Las Vegas to party and are willing to spend large sums of money doing so.

The first P of marketing:  product.  Let's be clear, marijuana is not the product I am selling.  It is not new, as anyone under the age of 70 can attest.  As with Las Vegas in general, my product is not marijuana in and of itself, but the experience of legally hanging out in a club, smoking some weed, eating, enjoying live entertainment and leaving Las Vegas having spent too much money and eaten too much and saying, "Damn, that was worth it."

The second P of marketing:  price.  As this is a new market with little formal competition, I will use skimming price strategy until the market becomes saturated.  The skimming pricing strategy seeks to charge high prices during a product’s introductory stage, to take early profits when the product is novel and has few competitors, and then to reduce prices to more competitive levels.

The third P of marketing:  Place.  Or, location, location, location.  Not on Las Vegas Blvd. within proximity.  Like the Hooter's or Hard Rock Hotel's.  I believe this will be successful because it meets the following:

Key Factors in Deciding on a Location

The key factors in deciding on a location are dependent upon the nature of the business and its customers. Considerations include the following:
  • access for customers
  • access to suppliers
  • climate and geography
  • convenience
  • cost of facilities (rent, construction, and the like)
  • demographics
  • economic conditions and business incentives
  • governmental regulations and laws, including environmental impact
  • labor pool
  • proximity to competitors
  • visibility
The fourth P of marketing:  Promotion.  OK, the LVCVA has already done part of my promotion, "What happens in Vegas Stays in Vegas".  Next, what to name this marijuana restaurant.  A couple names come to mind.  Half Baked, High Times, 420.  

Thursday, May 4, 2017

W5EOC: Still hanging in

Image result for innovation and entrepreneurship joke

W4: Question of the Week

Mills is trying to create an environment that is open to serving all women, regardless of age, size or color.  By selling suits in the same store, on the same rack, she is helping change the stereotype of the plus-sized woman.  Plus-sized women have been taught by society that they should be ashamed of their bodies and hide them.  Go to the men's department of any department store and they carry on the same rack, the same article of clothing going up to waist size 48 inches.  Now go to the women's department.  The sizes go up to XLarge or 14.  After size 14, or XLarge, you are relegated to the "Plus-size" department which carries far fewer selections.  This is discriminating and judgmental.  Mills is overcoming this by offering all fashions in all sizes.  By using this to "Sell a product or service that solves problems consumers may have with the competition (Pg 101) she has used an effective marketing tool.