BUSINESS, FINANCE &
MARKETING PLAN
BUSINESS, FINANCE &
MARKETING PLAN
*COMPLETION OF ALL SECTIONS OF THIS PLAN IS MANDATORY
Pub Name
Pub Address
Applicant Name
Company Name
Proposed
Trading Name:
i.e. Sole
Trader/LTD/LLP
Registered Co
Name (if
applicable)
VAT Number:*
(See notes on
Page 2)
N.I Number
Correspondence
Address
Email Address
Telephone No.
INTRODUCTION
Planning is the key to business success!
Your Business, Finance & Marketing Plan is the foundation of your application for the pub, and
should you be successful, will be a key document for yourself and your Retail Development
Manager to consult during business reviews.
This document provides you with a clear structure by which to develop the operational,
marketing and financial plan that will be an essential part of your business. It will also allow
Charles Wells to make sure that both the pub and you are ideally suited.
It is worth remembering though that your business plan will need to change and evolve as your
business does, and you will need to re-visit it on a regular basis.
It is your plan, and will allow your ideas and creativity to deliver the profit and prosperity within
your business.
The business plan will require you to address the following key aspects;
o
o
o
o
o
Marketing Plan
Competitor Analysis
Retail Offer
Financial Forecasting
Licensing Objectives
Whence the plan is completed it will be reviewed internally by the Retail Development Manager,
Business Support Manager and Retail Marketing Manager.
* Note: It is important to register your business for VAT at the earliest opportunity, as this
process can take 4-6 weeks. Without your VAT number, you will be unable to register for
machine gaming duty, and you will be unable to operate any gaming machines, which will
ultimately affect your income.
If you are buying a lease (lease assignment) once the assignment has been approved by
Charles Wells you should instruct a solicitor as soon as possible, and give the details of your
solicitor to both the assignor (seller) and Charles Wells to enable each party’s solicitor to move
the process forward. You will need to allow 10-12 weeks for the process to complete, and both
you and the assignor are responsible for driving the assignment through to completion.
Please note: This plan does not represent commitment from Charles Wells to accept your
application. It does not represent any offer, expressed or implied of any appointment. In order
to be considered as a candidate for any Charles Wells pub you must complete all required
sections of this business, marketing and finance plan.
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CURRENT CUSTOMERS
A successful business fully understands its customers. In light of this, it is imperative that when completing your
business plan you must understand the demographics and consider the current customer base. With this in
mind please ensure you consider the following;
o
Segmentation of current customer base considering; age, gender, income, marital status, families,
occupation and geographical area. In addition to source of custom; local businesses, tourism etc.
o
Demographic report; try using local council website or www.checkmyarea.com to get a free
neighbourhood profile.
o is the current
What
customer profile?
What are the
demographics of the
current customers?
What are the key
reasons for visiting
the pub?
When do these
customers frequent
the pub? Please split
these into key day
parts.
AM:
PM:
Eve:
Where do the
current customers
live?
How do the
customers travel to
the pub?
How do you intend
on increasing
frequency of current
customers?
3
TARGET MARKET
It is again imperative that a business understands its target market, the reasons for visitation and the best
method of communication. In light of this please ensure you consider the following;
o
Segmentation of target market considering; age, gender, income, marital status, families, occupation
and geographical area.
o
Demographic report; try using local council website or www.checkmyarea.com to get a free
neighbourhood profile.
o
Consider potential reasons for why new customers would use the pub with regularly.
What are the target
customer profiles?
Please consider other
groups of users.
What are the
demographics of the
target market?
What will their key
reasons be for
visiting your pub and
how can you
increase regularity?
How will you use
each trading session
to attract the
differing customer
types?
AM:
PM:
Eve:
Where does the
target market
reside?
How will you
communicate with
them?
Will the current and
target market mix
successfully? How do
you intend to
manage this
situation?
4
SWOT ANALYSIS
Please consider all aspects of the pub, the current retail offer, the competition, location and local area in order to
fully understand the present weaknesses and future opportunities.
STRENGTHS: Protect & Promote
WEAKNESSES: Recognise & Remove
List all the benefits of your business compared to
the local competitors i.e. location, product,
garden, car park etc.
List any negative factors that will impact on the
business i.e. poor decoration, customer care,
standards, reputation, retail offer etc.
1.
2.
3.
4.
5.
6.
7.
1.
2.
3.
4.
5.
6.
7.
OPPORTUNITIES: Maximise & Market
THREATS: Manage & Minimise
Opportunities are where you can exploit your
strengths and minimise your weaknesses i.e. new
housing development, staff training, improved
standards, improved produce offer etc.
Threats should be removed or reduced if
possible. Look at things that might prevent your
business plan from being achieved i.e.
competitors, new bypass, neighbours etc.
1.
2.
3.
4.
5.
6.
7.
1.
2.
3.
4.
5.
6.
7.
Given the outcome of the swot analysis what are the key issues and greatest opportunities within the business and
how do you intend to best maximise them?
Overtype here…
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COMPETITOR ANALYSIS
In-depth competitor analysis will allow you to fully understand the key strength and weaknesses of the local
competition. In completing this exercise you will be able to identify the gap in the market in which to exploit.
Given the change in economic climate and shift in consumer habits across each consumer type it is imperative
that you not only consider public houses as direct competition but restaurants, café’s, clubs, takeaways and
other leisure facilities where people can spend money i.e. cinemas.
Competitor Name
Business Type: public
house, café etc
Proximity: distance
from the pub
Customer Type
Retail Offer: consider
trading style, product
type, price, location,
promotions,
condition, reputation,
USP.
Price Point: please
detail both wet &
dry including any
product offers
available.
Perceived Impact:
how will this retail
offer impact on the
pub? What
weaknesses can you
exploit and how will
you differentiate.
Communication
Method: please
detail website
address, social
media information,
type of marketing
materials used.
6
COMPETITOR ANALYSIS
Competitor Name
Business Type: public
house, café etc
Proximity: distance
from the pub
Customer Type
Retail Offer: consider
trading style, product
type, price, location,
promotions,
condition, reputation,
USP.
Price Point: please
detail both wet &
dry including any
product offers
available.
Perceived Impact:
how will this retail
offer impact on the
pub? What
weaknesses can you
exploit and how will
you differentiate.
Communication
Method: please
detail website
address, social
media information,
type of marketing
materials used.
7
COMPETITOR ANALYSIS
Competitor Name
Business Type: public
house, café etc
Proximity: distance
from the pub
Customer Type
Retail Offer: consider
trading style, product
type, price, location,
promotions,
condition, reputation,
USP.
Price Point: please
detail both wet &
dry including any
product offers
available.
Perceived Impact:
how will this retail
offer impact on the
pub? What
weaknesses can you
exploit and how will
you differentiate.
Communication
Method: please
detail website
address, social
media information,
type of marketing
materials used.
8
COMPETITOR ANALYSIS
Competitor Name
Business Type: public
house, café etc
Proximity: distance
from the pub
Customer Type
Retail Offer: consider
trading style, product
type, price, location,
promotions,
condition, reputation,
USP.
Price Point: please
detail both wet &
dry including any
product offers
available.
Perceived Impact:
how will this retail
offer impact on the
pub? What
weaknesses can you
exploit and how will
you differentiate.
Communication
Method: please
detail website
address, social
media information,
type of marketing
materials used.
9
GAP IN THE MARKET
Given the competitor
research what is the
identified gap in the
market?
What will your
unique selling point
or USP be? In short
why would a
customer visit your
pub over your
neighbour?
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RETAIL OFFER
Following your review of the customers, market place and competition please outline the future retail offer
below;
Main characteristic
of the proposed
trading style i.e. is it
community oriented,
food led, a
destination ale house
etc.
What elements of
the retail offer will
you need to change
in order to achieve
this?
Do you have any
competitors – public
houses, restaurants
or other retail
businesses – which
you admire and aim
to replicate elements
of the respective
businesses?
What is your
businesses’ mission
statement?
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PRODUCT OFFER
Wet Offer
Retail Offer
Cost (£) If
applicable
By when
Retail Offer
Cost (£) If
applicable
By when
What wet
products do
you intend to
stock? Will the
offer be driven
by ale, wine etc
How will your
product range
stand out from
the
competition?
How will you
promote wet
products
internally and
externally?
Food Offer
Food: what type
or style of food
will be offered?
Please provide
a sample menu
Pricing: what
price point are
you opting for?
Chef: who will
be doing the
cooking and
what
experience do
they have?
Promotion: how
will you
promote your
food offer
internally and
externally?
Kitchen
Facilities: can
the kitchen
cope with the
proposed
menu?
Service Style:
what is the
route to
service?
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ACTIVITY
Activity &
Events
Offer: how will
your offer differ
during the day?
Please list day
parts.
Rhythm of the
Week: what
regular weekly
activity will be
provided i.e.
quizzes etc
Retail Offer
Cost (£) If
applicable
AM:
PM:
Eve:
Mon:
Tue:
Wed:
Thur:
Fri:
Sat:
Sun:
Special Events:
what
entertainment
will you provide
for the local
community i.e.
karaoke etc.
Team Games:
will you be
inheriting a
team or will
you create
some?
Satellite TV:
does this
feature in your
business plan
and can you
ensure ROI?
External Areas:
how will you
maximise the
potential of
your external
area?
Music: will
provide
background
music and will
this change
during the day?
Will you be
hosting live
music?
13
By when
PROMOTION
Promotion
Retail Offer
Cost (£) If
applicable
USP: how will
you promote
your unique
selling point?
Communication:
what mechanics
will you use to
say in touch
and attract new
customers?
Re-launch: how
do you intend
to re-launch the
business?
Key Dates:
what key
calendar dates
will you
promote and
how?
Feedback: how
will you
measure
customer
satisfaction?
Promotions:
what wet led
promotions will
you use to drive
sales?
Promotions:
what food led
promotions will
you use to drive
food sales?
Evaluation: how
will you monitor
the success of
your retail
offer?
14
By when
SERVICE
Service
Retail Offer
Cost (£) If
applicable
Training: what
training needs
do you have?
Staff Training:
how will and in
what will you
train your staff?
Uniform: what
style of uniform
will you adopt?
Best Practice:
how will you
incentivise staff,
collect
feedback and
improve
service?
Standards:
what measures
will you put in
place to ensure
that
operational
standards,
regulations and
licensing
requirements
are met?
Housekeeping:
what
procedures will
you put into
place to ensure
standards
excel?
15
By when
PROPERTY
Property
Retail Offer
Cost (£) If
applicable
By when
Lighting: what
lighting levels
will you opt for
and will this
change during
the day?
Bric a Brac:
what elements
will you be
bringing into
the business to
improve the
décor?
Décor: how
suitable is the
internal décor
to your retail
offer?
Music: what
type of music
will you play
and will this
differ during
trading
sessions?
Other: please
detail aspects
of the property
which you feel
you would like
to address both
internally and
externally.
*Please note that if your application is for a lease assignment, you must arrange for a
schedule of condition to be prepared in accordance with the repairing responsibilities, to
ascertain the condition of the property, and this should form part of your negotiations
with the assignor. The survey should be completed prior to you making a formal offer to
buy the lease, and is a pre-requisite to the assignment being approved.
16
PROPERTY REPAIRS
Please identify any immediate property repair issues you feel require attention in the following areas:-
Trading Areas:
Back of House:
Domestic
Quarters:
External Areas:
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LICENSING OBJECTIVES
The licensing laws state that each pub must strive to achieve the four licensing objectives. Please state below
how you will achieve these;
Prevention of
Crime &
Disorder:
Pubwatch, door
staff, training
etc.
Public Safety:
first aid,
disability access
policy etc.
Prevention of
Public
Nuisance:
complaints
procedure,
customers
leaving quietly
etc.
Protection of
Children from
Harm:
controlled area,
specific hours
etc.
*Please note that if you do not already have a Personal Licence, you should obtain one
before applying for a pub as the process can take up to 2 months. We will be unable to
offer a pub to applicants who do not hold a Personal Licence.
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ADDITIONAL NOTES
Please include any further information you feel would your business case…
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FINANCE
It is essential that you forecast how much money you are likely to make, how much investment will be required
and the level of return that can reasonably be expected. In light of this, you will need to provide the following;
o
12 month profit and loss forecast
o
12 month profit and loss forecast
o
Statement of capital required
o
Analysis of fund sources
Cash Flow
The cash flow projection tracks the flow of money in and out of your business on a monthly basis. It should
portray your plans for how much the business will take and when. It will take into consideration any peaks and
troughs of your business, especially at seasonal times. The majority of the items will be identical to your profit
and loss projections but note that the profit and loss does not include VAT whilst the cash flow does.
By breaking down your forecast daily drinks and food sales, you will be able to build up a full picture of your
monthly takings. It will also allow you to focus on exactly how much income you expect to make from each
customer and how much of that will be profit.
The “closing bank balance” is carried forward each month to the next month. You will then need to add your
current months “Income less expenditure” to your “Balance brought forward” which will provide you with the
new “closing bank balance” and so on. This will occasionally be a negative figure which is not uncommon but
does tell you when you need to arrange an overdraft facility with your bank.
Verification Certificate
As part of this process you will have to take professional advice from a qualified accountant whom upon
completion will have to provide a verification certificate.
Tools
In order to make to allow you to accurately forecast the P&L account and the cash flow please consult the
separate excel spreadsheet provided to you.
Funding
Please Complete:
Funds Proof:
Source of funds &
amount available to
invest. (Proof of funds
i.e. copy
Bank/Building Society
Statement (s) with
name & address
must also be
provided).
For Lease
Purchases only:
Agreed lease
purchase price
including Fixtures &
Fittings.
Funds Source:
Funds Amount: £
Amount: £
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APPENDIX
Useful Links
www.checkmyarea.com – provides information on local areas based on postcodes
www.camra.org.uk – Campaign for Real Ale
www.businesslink.gov.uk – practical advice on setting up and running a business
www.charleswells.co.uk – information about our pubs, brands and support available for licensees
www.wellsandyoungs.co.uk – information about Wells & Youngs brand portfolio
www.portmangroup.org.uk – organisation whose aim is to promote responsible drinking
Basic Financial Formulae
o
Add VAT to a cost price = selling price (ex VAT) x 1.20
o
Deduct VAT obtaining net figure = selling price (incl VAT) / 1.20
o
Determine VAT in an inclusive figure = selling price (incl VAT) / 1.20 x 1.20
o
Basic gross profit (GP) calculation = selling price (ex VAT) – cost of product = GP£
o
Gross profit calculation = gross profit (£) / sales (ex VAT) x 100 = GP%
Financial Calculations
o
Costing a product to achieve a certain GP =
cost of product (ex VAT) / (100 – desired GP) x 100 = £… x 1.20 = selling price (incl VAT)
o
Wage cost as percentage of total sales =
(total wage + NI) / sales (ex VAT) x 100 = wage %
o
Calculating extra sales required to break-even in relation to entertainment =
total extra costs x 1.20 / margin = additional sales required
Profit & Loss: Volume to Cash Sales
o
o
o
o
o
Beer = barrels x 288 x selling price (ex VAT) per pint
Wine = gallons x 36 x retail price per glass NB. use highest selling wine
Spirits = gallons x 182 x retail price per measure NB. use vodka, gin & whisky price
Cider = gallons x 8 x retail price per unit NB. use draught dry cider
Soft Drinks = gallons x 40 x retail price per mixer NB. this is a rough calculation due to sales
mix
Please note the above is a rough and ready guide rather than an accurate measure of cash sales.
Gross Profit Percentages
o
o
o
o
o
o
o
o
o
Food average: 60-65%
Drink average: 47-52%
Draft product average: 48-50%
Bottled beers: 48-50%
Sprit average: 65-70%
Wine average: 60-65%
Mineral average: 70-80%
Sundries average: 25%
Accommodation: 100% NB. costs will be taken out of your net profit calculation
Please note the above is a rough guide and will vary depending upon outlet, product mix and area
demographics.
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