Memo to: from: subject:Business Plan for Room For Dessert Date: [ 21. 09. 2010 ] In this memo I summarize my analysis of the business plan for Room for Dessert (RFD) and evaluate if the proposed venture represents a good investment opportunity. My analysis focuses on the fit between the people and the opportunity only. Successfully building a multi unit restaurant chain demands a team of people with considerable industry experience and execution skills. The people behind RFD have a deficiency in both. Also the business model lacks process innovation and is therefore easy to copy. The identified market could be attractive to some extent but it is unlikely that it will develop outside a niche. This increases uncertainty that the business will be able to perform as projected and therefore I would not recommend investing in it. The People When analyzing the venture I was evaluating if the team of people possesses the necessary skills, experience, contacts and attitude required to start up and operate the proposed business. An experienced group with a proven track record in the industry increases the likelihood of the venture’s success and thus minimizes the risk involved. 1) Skills and experience Kim and Paul are the two team members planning to launch the business; thus my focus is on their skills. Their CV’s indicate very strong analytical skills and a drive to take initiatives. They have also some experience in implementing their suggestions and in supervising/managing people. These kinds of skills and experiences will be helpful in launching RFD. However, neither of them has sufficient work experience in the restaurant industry. Paul’s background is in the insurance/finance sector and his experience at Celebration! Ice Cream cannot be regarded as sufficient for a restaurant start up. Kim’s background in TV production has nothing in common with running a restaurant operation. Also both are first time entrepreneurs with no experience in how to manage unexpected challenges. This lack of operational experience and knowledge raises the question of their ability to successfully operate and grow a restaurant. The success of the business thus heavily depends on the knowledge and skills of third party individuals, resulting in increased operating cost and risk. 2) Contacts Given the high dependability on third party knowledge I would expect the presentation of a full board of advisors with relevant industry experience and an identified set of key contributions each member is going to make to RFD in the business plan.
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