Project management for business professionals a comprehensive guide. Discuss

Project Proposal
Caribbean Corner Restaurant
Odessa S. Murray
BUS517
Dr. William McConnell
Strayer University
7/24/2015

Executive Summary
The project seeks to ascertain the procedures effective in securing capital and location that will be useful in establishing the Caribbean Corner Restaurant as a family business. The project is estimated to take duration of 12-15 months with the focus of expanding within a span of two years. The expansion program is to be facilitated by the restaurant’s ability to generate adequate profits and increasing its market share through proper mechanisms. The procedures include customer satisfaction through innovation, good business location, and effective advertising. The project adopted the Analytic Hierarchy Process (AHP) of Project Portfolio Management (PPM) as a methodology of effectively managing the portfolio. It was able to ascertain the project scope, timeframe and the potential cost for a successful completion. The costs determined were assistive to the potential investor since they gave an eagle’s eye view of the amount required to begin the project.
Project Description
Caribbean Corner Restaurant will be a family owned business fusing Caribbean and American cuisine, catering and hosting services. The business in its entirety is a limited liability company, whereby the main persons running the business are family members. The restaurant shall require a total of $193,495 for it to pass all the phases until its initiation. The main sources of capital are the local banks, potential venture capitalists and personal income. The main activities of the business as previously stated focuses on cooking American and Caribbean cuisines, catering and hosting events as part of its products and services.
The focus on Caribbean Corner Restaurant is to attract the market share that has been left by the existing restaurants, which provide solely American, Asian and Italian cuisine. Thus, it acts as a unique selling quality, which shall attract, retain and satisfy both the new and existing customers. Additionally, the justification of the type of business is not only to provide customers with high-quality food, but also it will serve as an avenue to explore my passion and love for cooking. Therefore, this will translate into a profitable business, which will make me to be self-employed and running my personal business. The location is highly populated making it a potential market segment, which renders it a viable avenue with regard to the uniqueness and quality of the goods and services that shall be provided. The market availability will lead to business expansion and growth in its customer base.
Caribbean Corner Restaurant is mounted on a mission, vision and objectives all directed at propelling it to achieve the objectives of profitability, market share, business growth and a good business image.
Mission Statement of Caribbean Corner Restaurant
To provide a unique dining experience that serves to satisfy our customers’ tastes by being high above in everything we do.
Vision of Caribbean Corner Restaurant
To inspire our employees to be the best they can be in order to have sustainable engagements and anticipate the needs of our consumers, in order to provide high quality food and services on a consistent basis, which will maximize the company’s market share.
Goals/Objectives of Caribbean Corner Restaurant
To increase the market share by 10% annually.
To increase the sales volume by 5% quarterly.
To register 10% rise in profitability on an annual basis.
To build two restaurants within the next five years in different locations
To maintain an efficient cash flow that will pay off obligations when they are due.
The marketing entry strategy is a challenge for the Caribbean corner restaurant since the market is almost saturated. The demand is relatively saturated and the additional demand cannot be generated. The only entry strategy within the industry is for the new business is by focusing on innovation, which is a strategy that will be assistive in customer acquisition and to help in winning market shares from competitors. Product innovation while maintaining the desired quality will serve to increase the restaurant appeal to customers, which is directly proportional to the growth in market share. A higher market share leads to increased sales thus, an increased profit margin, which will result into the entire expansion of the company. It is in tandem with the company overall goals of growth in profitability and market share.
Project Portfolio Management Method
Project Portfolio Management (PPM) is a set of practices within the fabric of project management technology, which serves to make effective use of resources and deliver certain benefits in alignment with organizational strategies. PPM gives an eagle’s eye view of a project, their impact on business health and its governance. PPM is paramount to the successful completion of any project since it identifies the possibility of back lags and offers the blueprint to minimize on the likelihood of project withdrawal. According to Levine (2005), PPM has integrated projects with business operations such that, its absenter formerly resulted is a wide separation between the project functions and an enterprise operations.
Adopting a definite PPM method, calls for an analysis of the type of project involved. In this context, the project is meant to benefit the client with the primary objective of profit maximization to the producer of the project, that is, the restaurant providing the products for profit, while the customer being the receiver. The secondary benefits include surplus in resources or building a reputation in the new location. The blueprint provides for resource availability and ensures that the project is completed within the predetermined timeline.
Analytic Hierarchy Process (AHP) PPM Methodology
Analytic Hierarchy Process (AHP) is the best PPM methodology recommended for the project since it is a powerful and flexible system that improves decision-making for entrepreneurs. AHP is assistive in proper resource allocation, strategic planning, risk assessment and project portfolio analysis (Pakroo & Stewart, 2014). It follows three major steps, which include the structure, measure and synthesize. The structure involves a proper analysis of the benefits, costs, scenarios and risks associated with the decision. The measure is used to compare the viability of the project while the synthesize fuses together the qualitative judgment and the quantitative data and other information with regard to the project. The project has to meet the strategic objectives established by the organization, for instance, the purpose of Caribbean Corner Restaurant is to enhance profitability and growth of the business.
The literature above focused on the theoretical foundations in validating the AHP methodology regarding the Caribbean Corner Restaurant project. The application of AHP in the project will assist the investor in making long-term strategic decisions regarding capital acquisition and its effective utilization. Additionally, it will enhance the persons concerned in formulating and implementing effective organizational goals and objectives in respect of the project. Knutson (2001) asserts that the AHP is effective in governance since it considers factors that are paramount to the goals of the project, for instance, aligning with the architecture, in this context, it entails scalability, responsiveness and the requisite infrastructure.
It also aligns the project with the predetermined corporate strategy, which involves a focus on the target market, improving customer support and the necessary internal business drivers. It also serves to improve the internal financial performance, which is to maximize the Net Present Value and the Return on Investments. It maximizes the organizational efficiency by improving service efficiencies and effective management of resources. Finally, it minimizes risks that could have occurred without it being in place, for instance, ensures readiness of the business. The mentioned achievements are usually outlined in the organizational strategic plan to ensure minimal or zero deviations from the determined results. Thus, it makes the AHP methodology an effective tool for the project.
Project Deliverables
Miller (2009) acknowledges that all projects, no matter how ethereal have a specific deliverable. A deliverable is the final product of the project that should be delivered to a customer, thus it is the result of a process. The deliverables for this project are mounted on the procedures followed to accomplish the restaurant.
Securing Capital
Gravagna & Adams (2013) provides different ways of securing capital for the entire project and he provides the main ones, which include three Fs (friends, family and fools), accessing grants, making contact with investors and loans from financial institutions. As stated previously, the Caribbean Corner Restaurant is a family owned business thus, a substantial amount of capital shall come from the family. Accessing grants is also another factor to secure capital, which in this case is referred to as the non-dilutive capital. With grants one does not have to pay back, however, it calls for a substantial amount of time to prepare and receive the money. Making contact with investors involves developing a hit list of potential financers with the capabilities of financing the business. The financial institutions can also provide loans nevertheless, all the potential capital providers need to be convinced on the potentiality of the business. To accomplish the project, the family can secure funds from the family and loans from financial institutions for the business to remain within the family circles. Therefore, it should be done within the first four months of the project inception.
Location for the Business
The appropriate location for Caribbean Corner Restaurant should consider the size of the premises, the maximum rent to be paid, the availability of customers, the status of communication wiring, the population of the place, the household incomes and the security. The mentioned items are the minimum factors that should be considered in getting a viable location for the business. The place should serve to increase the customer volume in the business, which will result to increased sales and profitability margin of the business. Additionally, the project leader should consider the costs that come with a lease of constructing a building, whichever is lower, though meets the mentioned criteria should be put in place in order to reduce the startup costs associated with new businesses.
Identifying the Appropriate Human Resources
The restaurant is fast-paced business, which requires efficient human resources in place to monitor performance and to comply with food handling regulations. In this context, a proper analysis should be done to hire the appropriate manager, the departments and the subordinate staff to run the restaurant operations. Managing restaurant operations require a competent and certified staff in order to streamline the entire operations of the restaurant. The project should ensure that while hiring the staff, the objective of cost minimization is put into consideration.
Restaurant Organization
Restaurant organization deliverable entails getting the right equipment and training of employees in order to meet the food safety requirements, which can also include sourcing for the right suppliers. The right suppliers will offer price friendly and high quality goods and materials, which shall ensure efficient and consistent creation of value for the customer. Additionally, organization entails acquiring the necessary items necessary to kick-start the restaurant operations.
Establish the business within the Specified Timeline
The purpose of deliverables is to ensure goals and objectives are met within the predestinated time graph. Ensuring that the project is accomplished within 15 months is the major objectives to minimize on resource expenditure and reduced time lag. This type of deliverable makes it certain to the project leader to organize all the development phases by fulfilling resources and manpower to steer clear of the possibilities of a delay.

Generic Resources Needed for the Project
Employee Remunerations and Incentives
SN JOB TITLE No. BASIC SALARY ALLOWANCES TOTAL MONTHLY SALARY
1 Manager 1 2,500 800 3,300
2 Chef 2 2,000 900 2,900
3 Server 4 1,200 400 1,600
4 Cashier 1 1,200 300 1,500
5 Delivery Person 1 1,000 400 1,400
TOTAL (monthly) 10,700

Licenses and Permits
Licenses and permits required to open a restaurant vary from state to state while other are the same depending on a given business locality. The permits are a requisite in order to protect the public health and in some cases, employees are required to attend classes in order to receive the necessary permits.
License or Permit Cost Incurred
Business License 1,500
Resale Permit 1,200
Building Health Permit 1,000
Employee Health Permit 1,000
Liquor License 600
TOTAL 5,300

Operational/Production Facilities
SN FACILITY QUANTITY/NUMBER
REQUIRED COST/UNIT TOTAL COST
Machines
1 Coffee Machine 4 80 320
2 Dishwasher 2 1,000 2,000
3 Commercial Stove/Oven 1 5,000 5,000
4 Microwave Oven 2 250 500
5 Freezer – – 8,000
6 Food Supply/Misc – – 10,000
Sub-total:25,820
Tools and Equipment
1 Credit Card Machine 1 200 200
2 Point of sale system 1 3,500 3,500
3 Cutlery, porcelain and glassware – – 4,000
4 Pots and Pans – – 3,000
Sub-total: 10,700
Furniture and fittings
Lighting – – 4,000
Chairs – – 5,300
Tables – – 4,200
Water – Drink Taps – – 3,100
Sub-total: 16,600
GRAND TOTAL 53,120

Pre-Operational Costs
These are the costs incurred in opening the business.
Item Amount
Rent 8,000
Salary 10,700
License and Permits 5,300
Production facilities 53,120
Miscellaneous 21,000
Total pre-operational costs 98,120

Working Capital Estimation
It entails adding up the total three months to get an idea of how much to put aside for business operations, from the total invested in order to cater for the initial months, just before the business begins to generate revenue.

Item 1st month 2nd month 3rd month
Salaries and Wages 10,700 10,700 10,700
Electricity 1,000 880 920
Water 600 600 630
Mail and Telephone 100 120 90
Transport 1,100 900 1,300
Advertising 1,650 1,485 1,300
Loan repayment 1,000 1,000 1,000
Insurance 800 800 800
Other Expenses 3,300 4,100 3,800
Total working capital 18,250 18,585 18,540
GRAND TOTAL 55,375

Desired Financing
The table below shows the amount I would wish to have for the project if everything worked out as planned.
Item Amount
Pre-operational Costs 98,120
Working capital 55,375
Contingency funds 40,000
Total Desired Financing 193,495

Proposed Capitalization
This shows the total budget for the project based on the information tabulated in the tables above.
Source Amount
Owner’s equity 85,000
Bank loan 108,495
Total Investment 193,495

Key Success Criteria
Timely Completion
This project will be rendered a success if it is completed within the predestinated 15 months. It will depict proper planning using the AHP methodology of the PPM such that it does not flood the stated period.
Absence/ Minimal Cost Overruns
The project becomes a success if it does not overrun the stated $193,495 with a greater margin. In this case, costs overruns depict poor planning at the initial stages, which render the project a fail. However, a 10% excess or below the stated figure is acceptable, which renders it a success.
Attainment of the Strategic Objectives
The project will be a success if the strategic objectives of growth in profitability, customer satisfaction and the entire organization are achieved. Failure to achieve the objectives implies that the project deviated from the programmed goals and objectives.

References
Gravagna, N. & Adams, P. (2013). Venture capital for dummies. Hoboken, New Jersey: John Wiley & Sons.
Knutson, J. (2001). Project management for business professionals a comprehensive guide. New York: John Wiley.
Levine, H. (2005). Project portfolio management a practical guide to selecting projects, managing portfolios, and maximizing benefits. San Francisco: Jossey-Bass.
Miller, D. (2009). Building a project work breakdown structure visualizing objectives, deliverables, activities, and schedules. Boca Raton: CRC Press.
Pakroo, P. & Stewart, M. (2014). The small business start-up kit for California. Berkeley, California: Nolo.