It was around a year ago I got an admission in Conestoga college like it was going easy and I visualized myself opening a business in Canada and it was going ease I used to pay my bills and house rent to ease my parents off the stress and responsibilities . my business matured and I was able to build up my career in the business. Every step was very easy to take I was earning money all things were going so well .once I had a call from my sister Anjali and she was suffering from inflation and she was jobless in my home country then I suggested her to come over Canada and I can do something for her, so I suggested her to be in my business as a manager as she was very much qualified and knowledgeable person. so setting up a business and calling my cousin was my future decision that was a career change for me as before my studies completed I thought to be in some company in HR but I change my decision of being an HR rather I make the decision of being a business women . if I was a HR then I would have been given a promotion in the company but I choose to start a business. My business will be related to food as I am a huge foodie and I m very much fond of different dishes . so the main target is to open a restaurant in Canada after completing my studies.
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Every business has a risk even restaurant business faces many risks in future like if someone complained against the quality of food then I have to be prepared to answer them why this is happening or this wont going to be happen another time they need as surety the another and as I decided that I will keep Indian and Italian dishes in my menu but after opening my business I fail to sell the Italian food and the market is for Indian food then I have to close the Italian dishes and I may fall on a loss to come up with that loss there should be a backup plan like I may kick start to some o their items like pizza, burger ,etc. like the fast-food items which is attracted by the youths . my decision might fail on the time I start the business there should be plan B to survive in the business . again the main analysis is how to meet the daily expenses of the restaurant like salaries of employees , the item of food need to be bring daily .
The main reasons to fail is there is a saturated market there are so many restaurants in the town in relation to the supplier of the customer the failure rate is shown so high in the area with a high concentration of restaurants. So it need to be very careful decision to check the area which is not saturated. Another outcome may be lack of capital at the time of opening business I may not have the enough capital with me so to avoid that lack I need to take a loan from bank . Due to entry barriers being low, would-be restaurant entrepreneurs attempt to start-up their venture with low capital, just enough to open the doors. This hinders the decision of a restaurant . we also have to look upon the quality of life of the people the study also shows that most of the restaurants are working 60 hours a week and the quality of life or lack of-of was a key reason that owners may close the restaurants. In the future I kept my cousin as a manager but she may finds it difficult and there will be a poor financial control . most of the restaurants failed had prime costs that exceeds the revenue which indicated greater potential for failure.
The fact that restaurants fail at an alarmingly high rate, as 90 to 95 percent in the first year, is actually wrong. According to recent studies done by Professor Dr. HG Parsa 59% of hospitality facilities fail in the period of 3 years. In the first year, is the highest level of failure, 26%, 19% in the second and 14% in the third year of business. According to him, the myth that restaurant failure rates from 90% could not be confirmed. “Any model which I used for study, the results of the failure of restaurants have always moved about 55% to 60%. (POS sector , n.d.)
As we know there will be failure in the business so to overcome that we do not need to go crazy about buying new equipment and furniture this will helps us to maintain financial position up . some cash reserve should be there at the time we are facing loss . there is no success without promotion if the revenue is going down then it’s a high time to promote my restaurant.
I learnt many things from this assignment as how to analyse the future risks and failure . pre mortem analysis is a technique to help prevent having complete a post mortem on a total project failure.
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