Essay on Plagiarism report
Nowadays the Hookah bars are becoming more and more popular among the college students and other young people. While hookah bars feature plenty of smokers, it is interesting to notice that many of the patrons are non-smokers who just enjoy an aroma-filled room. By the way, the hookah smoking also includes tobacco, but it is considered to be a different experience from smoking a cigarette. Yes, the hookah is a smoking apparatus filled with water and shisha, the tobacco mixed with various flavors. It is a well-known fact that the smoking laws are different in the states, so starting a hookah bar in a college town could become absolutely lucrative.
So, at first let’s consider what a business plan is. So, a business plan is a formal statement of a set of business goals, the reasons as well as the direct plan for reaching those goals. Business plans are decision-making tools where all aspects of business planning process are represented; declaring vision and strategy alongside sub-plans to cover marketing and finance operations, human resources as well as also a legal plan if it is required.
The bar will be named as ‘Hookah Neverland’ and it will be managed by the founders. The district is Colorado. The product will include the flavored tobaccos, alcoholic and non-alcoholic drinks and appetizers as well.
The customers are expected to be young (22-35 year old) and middle-aged people interested in a community-oriented experience as well as in hookah smoking.
Mission. The aim of ‘Hookah Neverland’ is to provide a comfortable environment, both relaxing and energetic as well as stimulating, being a perfect venue for those who love hookah smoking.
The owners will invest in the company, but the bulk of the start-up funding will be provided by the outside investors, with an additional long-term loan against the assets of the bar. The business is expected to become a success in its first two years because it features the need of the market for an alternative to bars in the region. Long-term debt is expected to be paid after the first three years of its operation while the short-term borrowings will be paid within the first year.
Objectives The business plan has the following objectives to be achieved.
1. To create a great environment with a relaxing atmosphere. Bohemian or Middle Eastern décor are popular in hookah bars, so it will have the first one.
2. To provide only high quality tobacco, food, drinks, hookah equipment along with friendly and professional service.
3. To invest in barista training, if there is serving espresso. For the coffee- lovers, there is nothing matters but the great espresso. And besides, many smokers also drink coffee. Don’t overlook the financial side that comes with being famous for serving great coffee. You should definitely woo new customers from one side of the business to the other this way. It is really worth investing in solid training or hiring a trained barista.
4. To expand the market of hookah smokers within the Colorado area. The aim is to become profitable in its first year because of the sale of tobacco, food and drinks as well as a relaxing atmosphere.
5. To establish a franchise model for hookah bars and there is also a planning of franchising by its fourth year of operation.
6. To make a customer base for the generation of their own culture and events at ‘Hookah Neverland’
7. To maintain a Facebook Fan page of 10,000 individuals by the end of the third year as a sign of its community.
Moreover, ‘Hookah Neverland’ will be established by Nawaf Abdullah and his brothers. The business is to be established as a registered firm to allow the additional investors to join in.
In the first year of operation a general manager will be hired, who will be responsible for the staff supervision, staff training as well as the procurement and inventory management.
Start up Expenses
In addition to hookahs, you need to know what you want a bar or cafe. Cafes are believed to be easier to open and require a minimal amount of the additional capital. The most expensive will be the espresso machine and this will be anywhere from $2,000 to $14,000, but, of course it depends on the brand, model and, if it was used, the age of the machine as well as its condition.
Moreover, while planning the cafe route, you are recommended to pick up a copy of “Start and Run a Coffee Bar” (Matzen & Harrison, Self Counsel Press 2002), where you will find the answers to practically all your questions.
While opening a hookah bar featuring alcoholic beverages, you should open it close to a college or university campus. This will result in a steady flow of new clients that will definitely save your bar from going stale only with the locals.
So, the start-up expenses for the ‘Hookah Neverland’ include the legal consultation and other permitting fees as a retail and food service establishment and besides, there must be a special permit for the lounge that will allow smoking within.
Insurance features general and product liability premiums, renter’s and besides, and of course, key-employee insurance.
Besides, you need that rent covers one month’s security and two month’s rent for the initial location so that it may be allowed to build out of the space before opening.
Start-up marketing covers the marketing campaign before launch. The website is a great expense. It includes main information on the business as well as a scalable social networking component, allowing the organizing of hookah groups and the planning of the events.
The needed cash will see the business through until cash flow break is achieved. Current assets will include lounge furniture ($5,000), tables ($2,000), kitchen supplies, tools ($2,000), silverware, plates, and hookahs ($1,000).
Long-term assets also feature some basic improvements to the space ($2, 000 for the additional plumbing, electrical work, painting, refinishing floors), lighting fixtures as well as sound system ($1,000), POS sales system and wireless devices ($1, 000), kitchen equipment ($ 5,000 for refrigerator, and warming units) as well as office equipment ($ 3,000 for computer, printer, fax, telephones).
‘Hookah Neverland’ will specialize in alcoholic, non-alcoholic, organic drinks and healthy appetizers and snacks of both North Indian and Continental.
Prices for drinks will range from $1 for simple teas or small coffees to $ 20 for certain juices and exotic cocktails. Alcoholic drinks will be valued as per the quality and brand keeping with at least 30– 40 % profit margin. Prices for appetizers will be from $ 2 to $10 for single servings as well as $10 to $25 for group dishes (serving 4-6 people).
It is sure that the flavored tobacco for hookah pipes will be sold as well ($5 for the first round and $ 2 for subsequent rounds).
The staff will be compensated through base hourly wages and tips and will work to provide the best customer service that is possible. Wait staff will use the wireless tablets in order to place orders which will be sent over the bar’s wireless network to kitchen staff and bar staff to prepare dishes and drinks.
It is expected that sales will be from the tobacco revenues. Secondary revenue streams will be food and drinks. An intensive growth is expected over the first three years of operation as the bar community will be developing and customer-directed programs will take place.
In addition, it is expected that an average customer will return to the bar about 20 times a year, taking part in 30 rounds of tobacco in that time. Therefore, this projection represents 1,500 customer groups in the first year, 3,000 customer groups in the second year and 4,500 customer groups in the third year.
The Menu there will be the following assortment:
Assortment of organic teas
Assortment of organic coffees
Fruit juices and juice blends
Cocktails
“Mocktails” featuring fruit juices and fresh fruit
Alcoholic beverages
Barbequed chicken / fish / vegetable
Continental Salads
Smoked fish or seafood
Dry fruits
Local dishes
Flavored tobacco: Cherry, Strawberry, Blackberry, Mixed Fruit, Apple, Candy, Jasmine, Banana, Rose, Grape, Pistachio, Lemon, Cola, Mint, Coconut, Orange, Peach, Vanilla, Mango)
The facility will include a lovely stage area the performances, talks, and films can be presented on. These will be organized by the customer groups who will have to book the space free of charge for various events.
Analyses of the market
The market for the hookah bars in the USA has grown significantly within the past decade.
According to Hookah- bars.com, in October 2008, there were at least 1470 hookah bars in the U.S. and an average of five new hookah bars were opening every month. From these numbers, it can be said that people like those places and the new hookah bar is very likely to be attended. Besides, many people believe that such a bar is provided with its own culture and traditional elements. They do feel relaxed in the hookah bars, while they sometimes feel depressed in some bars where smoking is prohibited.
They really appreciate having the possibility to meet other common people at hookah bars, both with friends, family or lovers. While this is a rather small market segment in Colorado, the hookah bars are expected to be attended more frequently than other common establishments.
The potential clients
The potential clients are the following:
1. Local Residents: College students who are fed up with the simple bars and would like to have a different experience. Hookah bars are ideal venues as they feature the exotic ambiance, colorful atmosphere, focusing on group dynamics, and the element of danger because of smoking.
2. College students who would like to make their life more interesting and bright.
3. Young professionals (23-30 –year old).
4. Casual visitors (people who come not often, just because they are close to the bar).
Advertising campaign
The budget of the advertising campaign is $20, 000 and it will consist of the following aspects:
Billboards within the region saying that a new cool hookah bar is open ($7,000)
Website ($5, 000) offering a standard “brochure-style” presentation with the details on the location, products, services, and the concept of the bar, as well as a social community, tied in to Facebook. The website will be good for the casual customers interested in the bar as well as fans who become involved in creating cultural events and groups at the bar.
Advertising with posters and flyers in the area ($1,000)
Parties concerning the opening with a lot of tasty dishes and free cocktails.( $3,000)
Some extra expenses. ($ 4, 000)
.
Risks
Nobody knows what may happen but if someone wants to open a hookah bar, he or she must look through all possible risks. So, let’s examine them. The first risk is the accident that may happen to the building or to you but having the insurance gives you the possibility not to worry about this. Secondly, there may be some extra expenses that are not forecasted but you may regulate this with the creditors while taking a loan.
And one more thing, it may turn out that it is not rather profitable, but you can’t say exactly not even having tried.
Conclusion
Anyway, the hookah bar located within college towns, has proven to become one the most successful and profitable hookah business ventures. However, at first, there must be composed a business plan to show all possible risks and to declare the tools to be done and the needed amount of money.
Besides, you should definitely hire reliable employees and train them correctly so that every customer could feel his or her importance, making it the perfect hookah venue.
Don’t forget to check with local, state and federal governments to ensure that you won’t break any laws or regulations. For most areas, all that is required to begin renting hookahs is a tobacco sales tax permit or license. But, of course, it is supplemental to the typical state sales tax permit or license. You also need to check the local zoning requirements and find the best location for your bar.
