Briefing Essay

Briefing Essay: A Business Venture

Briefing Essay: A Business Venture

Introduction

The paper strives to explain the feasibility of opening up a restaurant at a business unit available in Hatfield Town Centre, Hertfordshire, England. The paper serves as an initial research on the feasibility of the business unit available, in Hatfield Town Centre, for the restaurant. I shall be explaining the feasibility of the venture through discussing the various aspects that validates the opening of the restaurant. I shall be advising on the legal form for this business venture, and the initial steps that would take this project off the ground. Further, I shall be considering the issues such as the benefits of buying or renting the business unit, likely costs of the capital employed and the sources of raising funds for the capital. This paper also assists in suggesting the ease of entry and the exit strategy to and from this venture. Lastly, the paper concludes by suggesting if the business should go ahead or not.

Discussion

Hatfield is located at a distance of few minutes from London. It is considered as the largest town in Hertfordshire, and home to the University of Hertfordshire. The University comprises of four campuses with 18, 000 students from all around the world. The huge number of students living on the campus, from around the world, creates a lively young feel to Hatfield. A business unit is available for sale or rent, in Hatfield Town Centre, which appears to be appropriate venue for a restaurant. Hatfield Town Centre serves the whole population of Hatfield, by providing them a whole range of shopping and leisure facilities. Many re-development projects, for Hatfield Town Centre, are currently active.

The business unit, which seems an appropriate venue for a restaurant, is located on the edge of Hatfield Town Centre. The unit is available immediately, in modern development, with an annual rent of approximately £7,500 per annum. This location will play a significant role in profit maximization, as the target market for this restaurant would not only cater the people living near its location, but also, the tourists visiting the retail park and the students living on the University campus.

However, opening up a restaurant in a small place is naturally a risky business. The potential risks involved in this business include illness from food, injuries to customers and workers on the restaurant premises and damage to property of the restaurant by customers or workers, besides others. Therefore, I recommend an LLP (Limited Liability Partnership) for this small risky business. An LLP, if created and ran efficiently, will have certain commercial benefits that include having a separate legal identity from its proprietors, limiting the personal liability of the proprietors from creditors and claimants (excluding fraudulent cases), treating the profit and loss of the individual proprietors by taxing like a partnership. The LLP, for this business venture, shall be created through a written agreement between the partners. This agreement is confidential to the partners, containing almost similar matter as any partnership agreement and is ...