Download - Business plan Module
Shri Ramdeobaba College of Engineering and Management
DEPARTMENT OF INDUSTRIAL ENGINEERING
Entrepreneurship Development
Business Plan on a Restaurant
Faizan Ali SayyedRoll no 33
1. YOUR BUSINESS IDEADescribe your business idea:
Mixing up the conventional Business with technology and innovative ideas to cook a fantastic, delicious, profit making Company.
A partnership firm
What is the name of your business?“Bon-A-pet-Treat”
What is competitive advantage of your business? Memberships Free food coupons Free treats on b’days Use of Web Site and Mobile app for order booking Service retrieving and processing under 5-10 minutes Use of modern techniques and automation Promoting innovation and new products
What are the strengths of your business?
Adequate Knowledge to Optimize resource utility
Quality
Cheaper rates
High level of CUSTOMER SATISFACTION
Use of technologies that nobody has used before
Gaining Customer loyalty easily
Offered cuisines:
Starters Appetizers Deserts Beverages
Menu type:
Set menu Ingredients menu Special Combos Party offers Custom offers
Staff:
2 Chefs 6 Waiters 1 Manager 1 Receptionist 3 Maintenance and Cleaning
2. MARKETINGType of business you are in:
Service Retailer sells to consumer
3. CONSUMER DESCRIPTIONDescribe your target consumer
Rich lonely Couples Kids Young generation Working class Party people Business corporate
Expected age of consumerAge group from 18-55
Expected gender of consumerBoth genders
What need or want will your product fulfil?Bon Appetite (Hunger for food)
Financial status of consumer Financially balanced Higher class
4. PROMOTION/ADVERTISING
How will you reach this consumer? Connect to Customer No Convetional promotion Visiting Malls, Exhibitions,Colleges, Markets Social Network Youtube Pamplets Online advertisements
What is the slogan for your business?“You wish, we serve”
Will you make sales calls? Sales calls: Yes
Feedback calls: YesCustomer registration: YesPromotional calls: Yes
Write a four sentence sale presentation:“Customers are a part of our mission;
To see…To do…To serve…”
5. ECONOMICS OF ONE UNIT:SERVICE COMPANY
Define your unit: One dish of any product from the menu
Selling price per unitA = Rs. 18,000 (Consider the average selling price of all the
products offered and assuming no of sales be 100 per day)
Cost of goods sold per unit
Rs. 120(Consider the average cost of all the products)
What value are you placing on your entrepreneurial time per hour?
B = Rs. 720( considering all type of employees and their wages)
How long does it take to perform your service(in hours)?C = 10 hours
Labour cost per unit=BXC
D = Rs. 7200
SuppliesWhat is the supply cost per customer?
E = Rs. 4500Cost of services sold per unit= D+E
F = 11,700Gross profit per unit= A-F
G = 18,000 -11,700
6. MARKET RESEARCHCompetition
Fierce competition from other restaurants like Krishnum Plaza, Babbu’s galaxy, Fiona, Checkers, Bangs, Dominos, Pure Veg Restaurant, Panino, and others. Though no competitors offer the fun and relaxing atmosphere that our Company plans to provide
Ask two people these questions about your business and write their answers in the space provided:
Do you like the name of my business? Yes Yes
Where would you want to go to buy my product?
Anywhere Wherever possible in the town
Do you think my service has value?
Yes Yes, it has
How much would you pay for my product?
Rs. 2000 Rs. 2500 to 3000
How would you improve my business idea?
Adding Home delivery system Opening up branches
Who is my closest competitor?
Krishnum Plaza Thaat baat
Do you think my service is better or worse than that offered by my competitor?
Service is way better than your competition Equivalent but can get better
Why your service is going to beat the competition?
The per capita income of people in our country is increasing.(indicates increasing spending power) – Economical and Reasonable price rates
People don’t like to wait when they are hungry – Faster service Beverages are preferred with meal – Variety of meal courses People are bored of the old menu – Combinations and New
dishes Use of technology
(Location is not primarily important, as people can go places if they know Service is good, and the food has quality)
Below is a sample strategy for a manufacturing, wholesale, retail or service company. Can you add other locations or methods of selling?
MARKETING PLAN LOCATIONS (WHERE TO SELL)
Door to door
Markets Street Local stores
Internet Marketing
Colleges Restaurant Others
Business Cards
Posters
Leaflets
Phones
Sales calls
Brochure
Mailing
Websites
Others
7. LEGAL STRUCTUREIs your business a sole proprietorship, a partnership, a private limited company or regular corporation, or a not for profit corporation?Explain your decision.
The business is a sole proprietorship type- a one man organization, where a single person owns, manages and controls the business. He is the decision maker in the organization.
The business will work as a Franchise. The advantages of having sole proprietorship are:
Ease of formation and doesn’t require going through elaborated legal formalities, besides the license.
The capital and profit are all in the hands of the owner The continuity is uncertain Moderate risks, moderate financial requirements.
Explain how much will you be paying for legal fees?What permits or licences will you need for your business?What are the names, addresses and phone numbers of the local officials in charge of the permits and licensing you need?
1. Food Safety license2. Health/Trade license3. Eating house license4. Fire Department5. Pollution certificate6. Music license7. Insurance8. Prevention and Food Adulteration Act(PFA) 19549. Shop and Establishment license10. Signage license11. Certificate of Environmental Clearance12. Ghumastha license
Name Adress PhoneFire Office Civil Lines 0712 256 5074
Municipal Corporation Civil Lines 0712 256 7035
Pollution control committee Civil Lines0712-2560152
Food Safety and Standards Authority of India (Consultant)
Ayodhya nagar 011 2323 6975
Police Station Gitti Khadan 0712-2580127
Forest Office Van Bhavan 0712 255 0670
Insurance Company West High Court Road
8. START-UP COSTS
What are your estimated start-up costs? Item-wise:
Item Where will you buy this?
Cost(Rs)
Flat Belt Conveyor Indiamart 60,000Interior, Carpets Projectasoz 80,000Decorations Aaron Allen 45,000Generic Furniture Amazon 40,000LCDs Homeshop18 45,000 each
Estimated Total Start-up Costs:3.75 lacks
List your sources of financing below, indicate with a check mark whether each source is offering equity, debt or a gift.
Amount Equity(investment) Debt(loan) GiftPersonal savings
2 lacks
Relatives 5 lacks 4 lacks 1 lackFriends
InvestorsGrantOtherTotal 7 lacks
If you receive equity financing, what percentage of ownership will you give up?
40 percent
If you receive debt financing, what is the maximum interest rate you will pay?
12.5 percent rate of interest
9. OPERATING COSTS(FIXED AND VARIABLES)MONTHLY FIXED COSTSThese includes utilities, salaries, advertising, interest, insurance and rent. In a small business, many operating costs are usually fixed, although a few may be variable, depending on your business.
Type of fixed costs Monthly fixed costsSalaries 0.68 lacks
VARIABLE COSTS
Type of variable costs Estimated variable cost as a % of sales
Electricity 5Water Bills 3Grocery and vegetables 6Miscellaneous 0.5
Economy
Slow Economic Recovery. We anticipate a slow-growth economy, recovering from an economic recession.
Business Growth
We anticipate modest growth over the coming years. The financials account for the following growth projections:
Year 2: 4%
Year 3: 4%
Year 3: 5%
Year 5: 6%
MONTHLY BUDGET PROJECTED INCOME STATEMENTS
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TotalUnits sold 3000 350 3600 2800 2400 2600 2000 2400 3000 3600 4000 4800 37700
0Unit selling
price(In 1000)
18 18 18 19 19 19 19 19 20 20 21 22 232
Total sales(In 1000)
54 63 64.8 53.2 45.6 49.4 38 45.6 60 72 84 105.6 735.2
Cost of goods for
services sold per unit(In 1000)
11.7 11.7 12 12 12 12 12.3 12.5 12.5 12.5 13 13 147.2
Total cost of goods or
services sold(In 1000)
35.1 40.9 43.2 33.6 28.8 31.2 24.6 30 37.5 45 52 62.4 464.3
Gross profit(In 1000)
18.9 22.1 21.6 19.6 16.8 18.2 13.4 15.6 22.5 27 32 43.2 270.9
Variable costs
(In 1000)
7.83 9.135
9.396 7.714 6.612
7.163 5.51 6.612 8.7 10.44
12.18 15.312 106.604
Total operating
costs(In 1000)
7.83 9.135
9.396 7.714 6.612
7.163 5.51 6.612 8.7 10.44
12.18 15.312 106.604
Profit/ loss before taxes
(In 1000)
11.1 12.96
12.20 11.89 10.19
11.04 7.89 8.988 13.8 16.56
19.82 27.888 156.43
Less taxes(25% estimated):Rs. 39,107
Net profit: Rs. 1,17,322
BUDGET YEARLY INCOME STATEMENT
SALES AMOUNT
Units sold 37700Unit Selling Price 18,000-22,000
Total Sales(Units sold*Unit Selling Price)
73,5200
COSTS AMOUNTCost of Goods or Services Sold
per Unit11,700-13000
Total cost of Goods or Services sold
1,47,200
Gross Profit 2,70,900Variable Expenses 1,06,604Operating Costs 1,06,604
PROFIT AMOUNTProfit/loss before taxes 1,56,4300
Less Taxes 39,107Net Profit 1,17,322
Net Profit/Unit 3.11