TABLE OF CONTENT

Executive summary......................................................................................................2

Mission and vision........................................................................................................3

Goals and objectives.....................................................................................................3

Business description.....................................................................................................4

Start-up requirement.....................................................................................................5

Marketing analysis........................................................................................................6

Management segment...................................................................................................7

Critical risk segment....................................................................................................10

Financial Plan...............................................................................................................11

Milestone segment........................................................................................................15

1.THE EXECUTIVE SUMMARY

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Furaha restaurant will offer an exellent and affordable services to the community around Kariakoo area. Market research indicate that there is significant need to additional meal services venture that will provide quality services to customers in that area and this will be attained by employing competents skilled person and providing to them with organized and responsive management.

The founder of Furaha restaurant are; ANOLD KILEO, as a president and JACKSON MWASONGWE as a vice president, both of them act as the general partners to the business with strong management, under this partners the venture will expecting to expand restaurant services so as to serve more customers in more convinient manner.

Furaha restaurant will offer a menu of food and beverage with distributive image to satisfy the cutomer located at Kariakoo area, the restaurant also will charg the fair price to its customers which will be 15% of the total cost incurred so as to insure adequate profit for its growth and development while pursuing the customer satisfaction.

To ensure stability of the venture there will be periodic market research on internal and external business environment. This will assist the organization in identifying the internal strength, and weaknesses, while external research will provide information on external threats and opportunities utilize it to acquiere and control the market.

The venture is expected to be financed through loan acquisition of Tsh, 25,000,000, and the growth mainly financed through cash flow. The annual sales expected to increase by 30% under the assumption of strong economy without unforeseen changes in the business environment, under this assumptions , the venture will have a sound financial position and performance.

Mission

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One mission is to offer excellence and affordable services to our customers in a more convenient way.

Vission

To become largest and dominant restaurant in an industry.

Goals

Our main goal is to ensure financial well being of the restaurant in order to meet up this goal we have to consider the effects of products on the health and well being of customers, the effect of our business practices and choices will have on environment, the high quality of attitude, fairness, understanding and generosity between management, staff, customers, and vendors.

Objectives

To increase cash sales by 30% and above annually, 90% customer satisfaction in the provision of restaurant services by end of two years.

To build up goal reputation to customers by providing quality restaurant services.

2.BUSINESS DESCRIPTION

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Furaha restaurant will operate in Dar es salaam at kariakoo msimbazi street, will be a single unit, medium size restaurant serving health, contemporary style food. Our bussines has been located at kariakoo due to the fact that kariakoo is a busines centre thus there are so many people therefore business can be able to fetch more customers.

Business ownership

The founders of furaha restaurant are Anold Kileo as a president and Jackson Mwasongwe as a vice president, both of them act as general parters to the bussines. Our bussines has a plan to employ other workers, accountant, marketing managers, human resources managers economic planners and other restaurant attendants in order to ensure sustainable development and growth.

Service description

Furaha restaurant will be offering a menu of food and baverages with distinctive image. There will be three ways to purchase these products, table services at restaurant, take out from restaurant, and delivery to home or office. Most take out food will be prepared to order with orders coming from either telephone or fax. Delivery (an indirect form of take out)will be available at certain times and to a limited area.

Start up funding

In its start up stages the venture is expecting to incure a start up costs, thus there are funding issues to adress , such as legal expenses, office equipment, office suplies, stationary and start up inventory.

Below is the summary of start up requrement;

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Start up requirements

Start up expenses

Legal expenditure......................................................................................... 300,000

Stationaries................................................................................................... 200,000

Advertising.................................................................................................... 150,000

Insurance...................................................................................................... 100,000

Computerized system................................................................................. 1,000,000

Transport cost............................................................................................... 100,000

Total start up expenses 1,850,000

Cash required............................................................................................ 8,000,000

Start up inventory......................................................................................... 3,500,000

Other current asset....................................................................................... 1,650,000

Long term assets........................................................................................ 10,000,000

Total requrement 25,000,000

Total start up requrement

Start up funding

Start up expenses to fund ............................................................................. 1,850,000

Start up assets to fund .................................................................................. 23,150,000

Total fund requred 25,000,000

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3.MARKETING ANALYSIS

The target market for the furaha restaurant is mainly the bussines men conducting their bussines around and within kariakoo market, also including the buyers, officers around the destination and the rest of the individuals around Ilala district and even those people that can fortunately come across with furaha restaurant.

3.1 MARKETING SEGMENTATION

The target market of the furaha restaurant will base on two segments of market,the incomes and the preferences of the customers. So the first market segment will be low income earners, since the restaurant provides food and drinks basing on income of a person and the secondary segment will be high income earners especially the large bussines owners found at kariakoo and other people who come accross the restaurant.

Generally the restaurant provides services or products to its customer depending on their income level but all in all to satisfy customers basing on their income.

3.2 ADVERTISEMENT PARTEN

In order to capture potential customers and conquer the awareness to the people and customers will be created through mass media advertisements so as to attract the customers. This will be done either by clouds media group, radio one and wapo radio.in addition to the methods above also printing media including local news papers, magazines and brochures.

3.3 COMPERTITION ANALYSIS

There are too dozen restaurant in kariakoo market that do sell similar prices although this presents an obvious challenge interms of market share. It also indicates the presence of large and strong potential. The compertitors have made their successful entry based on an innovative concept or novelty. The Furaha Restaurant will offer an innovative product in famillier style at a competitive price . the aggressive plans of take out and delivery will also give us an advantage to create a good market share before the competition can just appear. The Furaha restaurant is targeting to compete with the competitors through improvement of product quality, product identity and novelty, giving high employeesmotivation and good sales attitude and also using the innovative and aggressive service options.

3.4 PRICING POLICY

The Furaha restaurant will be pricing the food and drinks by adding the 15% of the cost used to prepare the food.through this policy the bussines will generate enough sales and revenue because this will lead to low prices in comparison with the 25% of the mark up prices of the other compertitors. The prices will be not high compare with prices of the compertitors and the customers/buyers will not feel ill used when they see the product prices high in other restaurants.

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4. MANAGEMENT SEGMENT/SECTION

Ownership structure

Furaha restaurant will be owned and operated as a pertinership between Anold Kileo and Jack+son Mwasongwe both of them operate as general partiners. This management structure is deemed sufficient and best suits the restaurants needs. Furaha restaurant will seek qualified employees as the restaurant begins to succeed in gaining work.

As furaha restaurant grows those employees deemed critical to providing technical services to clients or customers will be offered incentives to maintain the continual services.

INTERNAL MANAGEMENT PROFILE

Mr. Kileo and Mr. Mwsongwe will draw upon their specialization education and experiance to manage the overall operations and directions of the bussines to ensure its present and future success. Both Mr Kileo and Mwasongwe have invested much of their time for about two years in bussines administration and hotel management respectively.

Mr. Kileo

He is the holder of degree in bussines adminisration from university of Dar es saalam, he has the experience of two years in bussines administration since he was the bussiness administrators of Mabibo investment centre.through out two years of his operation Mr Kileo is the proactive person that use his actions in influencing the operation of Mabibo investiment, also he has been so innovative in giving motivation to the employees in working so that they feel as influencial in the firm. Mr Kileo is to be paid a basic salary of 500000 per month.

Mr Mwasongwe

He is the degree holder in hotel management and the diploma in food processing.he got his degree in hotel management in makerere university and his diploma in Njueni hotel management institute.Mr Mwasongwe have got an experience of two years after he worked as the manager of Dodoma hotel. He has got a good record in supervision and knowledge in food processing and quality control. He is to be paid a salary of 450000

Also furaha restaurant will employ quality personel that will constitute the management team.their responsibilities and work position will base to personel qualification.

The table below shows the other expected management team;

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NAME POSITION QUALIFICATION RESPONSIBILITY BASIC SALARY

Shinumba Joseph Accountant Advanced diploma in accountancy

Preparationof the books of accounts,

Providing monthly reporton the trend of operationin terms of revenue, profits and loss.

400000

Juma hamisi Sales manager Diploma in markerting

Monitoring the daily sale for furaha restaurant,

Designing advertisement and promotions to customers.

200000

Josephat ezekiel Store keeper certificate in procurement and supply.

Controling the inf staff and baverage.low and outflow of the store,

Periodic store inventory evaluation,

Storage of food and baverage.

150000

Amina mwauka,

Tumsifu john,

Neema kalage,

Dorice cheyo,

Joyc ally.

Restaurant attendants

Certificate in secondary education form IV

Services to our customers at the restaurant.

To be paid 80000 each.

EXTERNAL MANAGEMENT TEAM

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Furaha restaurant in the long run is projecting to have a professional service board made of difference professionals outside the restaurant such as lawyers, bankers and restaurant business consultants. Also Furaha restaurant will have the advisory body which will have the genuine interest to the business, example successful restaurant entrepreneurs and the management team as strong as possible.

HUMAN RESOURCE NEED SECTION

Furaha restaurant will employ contract workers so as to ensure the sustainable development of the restaurant and the quality services delivered to the customers. The system will help to shape the discipline of employees through the contract they sign. The restaurant will employ workers based on the experience and the education level of those workers. Also the restaurant will provide various incentives to its employees through providing timely training so as to help them cope with the daily changes of the business environment, also the bonus will be given to the workers after achieving the targeted profit.On the other hand Furaha restaurant will provide medical and insurance services so as to create conducive working environment for the workers because workers will be assured of their health.

5.CRITICAL RISK SEGMENT

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As it has been explained under competition segment. Furaha restaurant will experince intensive competion from substitute competitors arround Kariakoo area. In this case compititors will be one of the critical risks that will face the venture.

The critical competition risk as one of the potential problem that will face the venture, will result into seasonal fluctuation of demand and hence decline in the sales revenue, providing impact to the venture profit and economic instability. Inorder to insure stable venture performance, Furaha restaurant will adopt competitve measures against competitors. this will be done by exploring competitors price and area of weaknesses and use it as an opportunity to conquer the market.

Also the venture is likely to face financial risks, example existance of bad debt, tax oblgation and creditor management risk. Through the problem mentioned the venture will insure proper maintanance of reserves and utilize it when there is economic changes.

On the other hand the venture is likely to encounter storage risk, due to the fact that the restaurant will need to insure good food preservation. In order to solve the problem the venture will ensure proper storage devices of food and drinks by using refrigirators through refrigiration process.

6. FINANCIAL PLAN

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The venture will finance growth mainly through cash flow. The major important for the venture financial plan will be collection of receivables and cash sales from customers.

Projected profit and loss.

The venture projected income statement is shown in the following table with sales increasing annualy, and profit will be notable event for start up phase of the bussines per month.

The venture is projecting to growth and total annual sales very conservatively with high projected expenses. The venture cost of sales will be relatively low, since the venture is based on services, and the primary cost involved in providing services are those related to payroll and statutory deductions.

PROJECTED TRADING PROFIT AND LOSS ACCOUNT

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Year 1 Year 2

Turnover 40000000 52000000

Less: cost of goods sold

Opening inventory 0 5000000

Add:purchases 12000000 7000000

12000000 12000000

Less: closing stock 5000000 7000000 4200000 7800000

Gross profit 33000000 44200000

Less: general expenses

Rent expenses 800000 800000

Payroll expenses 25200000 25200000

Interest on loan 1250000 1250000

Insurance 100000 100000

Stationary cost 200000 210000

Advertising cost 150000 170000

Transport cost 100000 27800000 130000 27860000

Net profit 5200000 16340000

Tax expenses (5%) (260000) (817000)

Net profit after tax 4940000 15523000

PROJECTED CASH FLOW STATEMENT

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Year 1 Year 2

Net profit before tax 5200000 16340000

Discount received - -

Profit before working capital charges 5200000 16340000

Changes in stock - 800000

Changes in account receivable - 3050000

Changes in account payable - 640000

5200000 20830000

Tax paid (260000) (857000)

Net cash from operating activities 4940000 19973000

Cash flow from operating activities

Purchases of equipment (500000) (250000)

Sales of furniture 350000 -

Net from investment 4790000 19723000

Cash flow from financial

Loan 25000000 -

Interest on loan (1250000) (1250000)

Cash increased/decreased in the year 23750000 18473000

Opening cash balance 8050000 15000000

Closing cash balance 31800000 33473000

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PROJECTED BALANCE SHEET

year 1 year 2

Non current asset

Equipment 5000000 750000

Furniture 350000 350000

Motor van - 10500000

Current asset

Stock 5000000 4200000

Debtors 8050000 5000000

Bank/cash 31800000 33473000

50,200,000 62,273,000

Equity and liabilities

Long term loan 25000000 25000000

Account payable 98200 738750

Capital 20161800 21011250

Net profit 4940000 15523000

50,200,000 62,273,000

7.THE MILE STONE SECTION

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Under the venture several activities will have to be done, through proper arrangement of activities and time accomplishing the objectives set by the venture. Thus, a yearly basis charts have to be set by general management team to schedule possible events and deadline.

The following is the chart that shows how various activities of the venture will be accomplished or attempted ;

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECB C D

A

ACTIVITIES;

A= To create awreness of the restaurant to customers through advertising strongly during the months of JANUARY, FEBRUARY and MARCH.

B= Analysis of customers satisfaction which is to be done during the months of APRIL, MAY and JUNE.

C= Extension of services provided by the restaurant which is to be done during the months of JULY, AUGUST and SEPTEMBER.

D= Evaluation concerning the performance of the venture to be done on the months of OCTOBER, NOVEMBER and DECEMBER.

NOTE; The analysis activities will be done consecutively for the two year so as to ensure sustainable developnment of the venture.

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