Finance in Hospitality Industry Assignment Example | Topics and Well Written Essays - 2500 words - 1

Finance in Hospitality Industry - Assignment Example For some it might be a source of income while for others a source of joy. However the proposed restaurant is far from coming into being because of the absence of the budget required for the setting up of the restaurant from construction to serving the customers. The issue at hand is that the restaurant will require, according to a risk estimate, about thirty thousand pounds to start its services from the point of the buying of land for the restaurant. However, on five thousand pounds are available for the project and there are no assured sources of funding for the project. The quoted amount of thirty thousand pounds will only supply for the running of operations for the first few months of the restaurant services and does not cater for any financial risks. The five thousand pounds available for use must be utilized in the most effective way possible, even if that means using the money to acquire the required amount of funding for the project. The location that has been selected for t he restaurant lies in Leyton, East London. The restaurant is aimed at serving a part of the local community of the London Borough of Newham though there will be offerings to cater to the taste of people of all backgrounds. Hence it might be a good idea to solicit some funds from the local community of Newham as there is some value in the restaurant for that community. Newham residents are very hospitable in general because of the need for cohesion among the people of different races and origins living there. And it would be unsurprising if the residents are buoyed by the prospect of a restaurant opening in their area that is being set up specifically to serve the people of Newham. Also the Member of the British Parliament from the Newham area is very fond of supporting food-related projects from projects pertaining to feeding the poor to televised programs discussing lavish regional specialities. Therefore the most preferred source of funding should be the local community of Newham. It is to be realized though that this project is not a charity project, hence the method of approaching the public and the rationale for asking for funding should be different from those usually adopted for welfare projects. That is not to say that the project does not contain an element of welfare for the community of Newham at all, but the basic impetus behind the setting up of the restaurant is commercial. As stated earlier, the restaurant would need only thirty thousand pounds for the first few months of operation, by a rough estimate, even if it does not bring in any profit for the owner and only caters for the costs of running. However, in order to keep the proposed amount of funding for the restaurant low, it is planned that the restaurant would not need any more money and will fund itself from the profit it makes after the initial funding of thirty thousand pounds. The figure of thirty thousand pounds is not a big one if it is contributed to by a large number of people. Hen ce the solicitor does not have to ask for too much money from the Newham residents and chipping in with small amounts is all the members of the public will have to do to fund the plan, given that the number of people who chip into the project is sufficiently large. Therefore pamphlets explaining the restaurant proposal and asking for fundin