Question

develop a bussiness plain for a new software restaurant please give examples?

Answer 1

For the development of business plan for a new software restaurant , this question is purely based on economics , since in development of any product or service it is necessary to analyse the economics behind it as it gives whether the enterprise will yield profit or loss and will help in analysing the investment decisions

Also this analyses provides us with the clarity in MAKE-BUY decisions , whether to outsource the production or make it on your own .

For example :

You produce an ERP software which you plan to sell to small scale retailers , this software is purely for simple accounting purposes and helps in maintaining the book of accounts in the digital format .To begin with the production process , firstly you need to ascertain whether it is logical to produce it and look at the economics of the endeavor .

The Fixed costs are in the form of salary of the employees , the spend for purchasing new computers and the rent.

The variable costs are given by : the commission offered to sales team , the marketing spend , the service costs etc i.e the costs which vary with the number of software sold.

Once you start selling the software , you need to find out the break-even quantity i.e the point of no profit no loss situation that means to yield profit or to break even minimum this much quantity should be produced .

The Break Even analysis is a very important factor in the new software development project as it will determine the success and the long term sustainability of the project.