Business # 1 - Mexican Takeaway Ltd...

So, it's time for a little case study on the first of the business ideas I've come up with and would like to implement as part of 'The Challenge'.

I'd like to start a Mexican restaurant. Specifically, a casual Mexican restaurant/takeaway. I should point out that I'm not talking about an authentic Mexican restaurant, but more along the style of 'Tex-Mex'. I believe there is a huge gap in the market for this. For instance, in 2006, 13% of all food eaten in UK restaurants was Mexican. Despite this, there is no chain that dominates Mexican food, or specialises in it.

So, I've decided to start a casual-dining Mexican restaurant with a view to franchising the concept. I've had this idea for on-and-off over two years now, but it's only really now that I've been in a position to make this work.

We propose to open one unit initially; in a busy, Edinburgh location. The store will serve freshly made burritos, quesadillas, crispy tacos and drinks made freshly for each customer. Each customer will be served only the finest product; made from quality ingredients, and brand-name soft drinks from a fountain.

The focus will be on the quality of the product being served; coupled with excellent customer service, and a clean, pleasant store. The food will be served in takeaway packaging each time, keeping the dining experience informal and keeping costs as low as possible.

I say 'we' because for this business, I intend to have a partner. My now ex-flatmate, who is a qualified chef and who is bored of his full-time role and looking for a new challenge. He loves the concept and the brand I've come up with, so we've decided to split the risk down the middle by investing the same amount of a 50/50 equity share basis.

We're also both up for getting our hands dirty and working as many hours as possible to save money on labour costs and thus maximise cashflow in the business early on. If successful; obviously we'll need to take a step back from these roles and actually employ people to fill them, but for the moment cashflow is the most important aspect whilst we build a brand, a reputation, and allow people to come round to the concept.

Our target-market are people under 35, specifically students. We are looking for a site in the South of the city, where most of them live. Most students have no vehicle, so you really need to be close to the place where they spend most of their time if you are going to maximise the sales from your target market.

We have our first meeting with an accountant tomorrow (Friday). We intend to chat about limited company formation and about how we can get our initial investment back out of the business if we have to (such as providing it as an interest-free loan to the company). Obviously, this won't be an issue if the business crashes and burns! We're currently looking for suitable premises and when we find it, want to be trading within 5 weeks of commencing the lease.

So, that's business no.1. I'll do a quick case study on business no.2 and let you know how we got on with the accountant over the next couple of days.