green addiction business plan

8/13/2019 GREEN ADDICTION BUSINESS PLAN

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Acknowledgment

Several people played an important role in the accomplishing of this Report.

And we would like to acknowledge them here. First, we would like to thank Ms.

Fakhr-e-Alam, our course teacher for the assistance and encouragement to

pursue to this study. We thank him to give us an opportunity to explore our

learning of business activities and molding them in form of a business plan.

We thank Almighty Allah for reasons too numerous to mention. Thanks to

Allah who gave us an opportunity to complete this report and submit on time.

We also thank Him for supporting us on each and every stage of the Business

Plan.

We also wish to thank our families who cooperated with us and allowed us to

spend time on preparation of this report. We also thank them for believing that

we can finished this Report before due date of submission.

In the end thanks to all the group members who worked on their assigned parts

effectively and efficiently and utilized their time and energy in the preparation

of this report.


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Table of Contents

S. No. Contents Page No.

1 Executive Summary 3

2 Business Description 5

3 Marketing Plan 7

4 Strategy and implementation 12

5 Operations 14

6 Legal Environment 18

7 Organic Certification 23

8 Management Team 26

9 Startup Expenses and capitalization 28

10 Financial Statements 30

11 Critical Risk Analysis 3312 Timing and Objectives 36

13 Deadlines 37

14 References 38


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Executive Summary

We will be in the business of organic food; farming and using the farm produce to make

salads and juices. Our restaurant Green Addiction! will provide delicious confectionary

items and a variety of delicious salads and juices with a salad bar stretched in the middle of

the restaurant. This will not only look attractive but will also pull public to itself, who are

stressed out from a hectic day and desire health, taste and a quick and handy service to get the

best.

Green Addiction is based on a partnership business. There are four partners of the business,

each contributing equal amount of capital. The profit and loss is decided to be shared equally

among all the members.

Our mission is to make people enjoy the feeling of eating healthy food; food which is free of

dangerous amount of chemicals and is not genetically modified. Natural food which is

healthy and delicious is offered by Green Addiction.

The world market for organic food is predicted to exceed $88,000 million by 2015, according

to Market Line, a near 50% increase in five years. Fruit and vegetables represent the leading

segment, representing over 30% of the overall market. Karachi represent close to 55% of theorganic food market in Pakistan.

Consumers are not only increasingly aware of the potential health risks from poor diets but

are also taking more responsibility in optimizing their own health. Bad publicity given to the

use of pesticides and fertilizers is spurring consumers to look for organic alternatives. Greater

care is given to ensure organic food labels are not misused, with a possible Rs. 10,000 fine

for food producers and retailers who mislabel or sell organic products that do not meet the

standards imposed by the DAoP.

The target market for Green Addiction is broadly the upper class and upper middle class.

Zamzama is an elite area and shopping hub for residents of Defense Housing Authority and

neighboring areas. Residents of these areas have high income and they have high purchasing

power. They spend a huge portion of their income on snacks and food. People are becoming

more conscious of their health and thus Green Addiction has an opportunity to target this

market.


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Business Description

We will be in the business of organic food; farming and using the farm produce to make

salads and juices. Our restaurant Green Addiction! will provide delicious confectionary

items and a variety of delicious salads and juices with a salad bar stretched in the middle of

the restaurant. This will not only look attractive but will also pull public to itself, who are

stressed out from a hectic day and desire health, taste and a quick and handy service to get the

best.

Product and services

Green Addiction will produce organic fruits and vegetables. These will be produced by

acquiring a farm land near superhighway, Karachi. Farmers will be hired who will then be

trained under organic standards so that they are well aware of the organic procedures. These

produces will then be used by the chefs to prepare some delicious and full of nutrition salads.

Green Addiction will also offer fresh healthy juices.

Mission Statement:

Our mission is to make people enjoy the feeling of eating healthy food; food which is free of

dangerous amount of chemicals and is not genetically modified. Natural food which is

healthy and delicious is offered by Green Addiction.

Vision Statement:

Our vision is to be the best organic restaurant in Pakistan. Providing healthy food and

increasing awareness regarding organic food. We see ourselves as the market leader in

organic food restaurants in next five years.

Goals and Objectives:

Our principle goal is to produce healthy food which is free of harmful chemicals and which

has its nutritional value preserved. To ensure this we have also planned to acquire

international organic certifications. Healthy food provides opportunity for consumers to


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consume more nutrition and live a healthy life. Our goal is also to increase awareness in the

market for consuming healthy food and growing vegetables and fruits at their homes; kitchen

garden, for their daily consumptions.

We believe that our commitment to healthy organic food help us create loyal customer base

and increase profitability by increasing sales revenue. It may also give us an opportunity to

expand our business and explore other cities as well. We also aim to market our salads in

shopping malls and restaurants who wish to have a salad bar.

Target Market

The target market for Green Addiction is broadly the upper class and upper middle class.

Zamzama is an elite area and shopping hub for residents of Defense Housing Authority and

neighboring areas. Residents of these areas have high income and they have high purchasing

power. They spend a huge portion of their income on snacks and food. People are becoming

more conscious of their health and thus Green Addiction has an opportunity to target this

market.

Legal Form of Ownership

Green Addiction is a result of partnership between four members; Anum Nasir, Dajana

Khalid, Saniya Siddiqui and Shiza Aslam. All the partners have invested equal amount of

capital and will share profits and loss equally. The partnership will be registered in order to

avoid any future problem though registering the partnership is not compulsory. The ideas and

resources are all mutually decided by the partners and all the conflicts are resolved with

mutual consideration.


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Research Analysis

The world market for organic food is predicted to exceed $88,000 million by 2015, according

to Market Line, a near 50% increase in five years. Fruit and vegetables represent the leading

segment, representing over 30% of the overall market. Karachi represent close to 55% of the

organic food market in Pakistan.

Like many other food industry sectors, the organic food market was hit by the global

financial crisis as consumers prioritized budgets over other concerns. Yearly growth more

than halved in 2009, falling as low as 4.5%, according to Dion Research. With revenues setto pick up again to exceed $60 billion by the close of 2011, the global organic food market

will continue to rebound.

Organic food is processed differently to similar products in the same categories, such as fruit

and vegetables. Organic produce is grown in soil farmed without the use of pesticides and

fertilizers. Organic foods are also produced without other potentially harmful practices such

as irradiation and genetic engineering. Organic products adhere to National Organic Program

standards in Pakistan. Regulations seek to maintain a balance between farming methods and

the ecological system, and to cut down on residue due to water, soil and air pollution.

Market Trend

Consumers are not only increasingly aware of the potential health risks from poor diets but

are also taking more responsibility in optimizing their own health. Bad publicity given to the

use of pesticides and fertilizers is spurring consumers to look for organic alternatives. Greater

care is given to ensure organic food labels are not misused, with a possible Rs. 10,000 fine

for food producers and retailers who mislabel or sell organic products that do not meet the

standards imposed by the DAoP.

Consumer products producers and food retailers alike are according greater importance to

organic and natural foods and beverages to meet growing demand. Moving forward,

awareness surrounding health issues and eating habits will continue to fuel consumer demand

and companies will diversify their product ranges in response. Non-food organic products are


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also seeing growth, with products including organic clothing, household cleaning products

and pet food.

Because of our connections within the very trendy area of Zamzama, we have an excellent

feel for the area and its core group of customers. They will all share something alike, which is

a feeling of being in the "in crowd" and having "gotten it" in life. Although the crew will be

different and not connect with each other in each segment, each segment is complementary to

the others. We do plan to raise menu rates as the restaurant gets more and more crowded, and

to make sure we are charging a premium for the feeling of being in the "in crowd."

Market Segmentation

The Lonely Rich

Most of the lonely rich are technology workers these days, and most of those technology

workers are Internet workers. Their life has become their website servers and code they write,

and the people who help them to make the decisions in that world. They hang out with each

other, but desperately want to get away from it and use the money they are racking up.

Because this wealth has come fairly easily for them, it is particularly easy to separate them

from their money again - they spend the most on juices, appetizers and salads. This segment

of market is mainly males and generates high monthly income but has fewer opportunities to

take care of their health.

Young Happy Couples

The restaurant will have an atmosphere that encourages couples to visit it. It won't be

awkward for others, and Green Addiction does want to be a social place where people meet

each other and develop a network. These young couples are generally very successful and

would like to spend quality time with each other while having light foods and snacks and

juices. They are more likely to spend for quality food and consume their large portion of

income on hangouts and restaurant visits.

The Rich Hippies

The rich hippies in Defense and Clifton are a massive group with tremendous influence over

the city's government and private enterprise. They wear tie-die but drive BMWs and crave thefeeling of being in a social circle that is changing the world - even if in different ways than in


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their glory days. We will cater to their ecological ideology and contribute to charities to help

them part with more of their money. This segment is mostly male youngsters. They have their

pockets full of money and they visit different cafes and restaurants with their friends.

Women on diet

The organic food menu will always have a line of extremely delicious very low-fat meals.

Green Addiction will have tables of women meeting to discuss all types of matters while

feeling good about the food they eat. The trends have increased in women for going out and

spend time with their friends and colleagues. Women coming for shopping to Zamzama are

likely to choose Green Addiction for resting and having an energy boost meal.

Other

Shopaholics at Zamzama Street will be our attractive customers who would like to get rid of

their thirst by consuming fresh juices and healthy salads.


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Competitors

Our competitors will be juice spots like aghas juice and salad bars of pizza hut, nandos ,

roasters, subway in general and with respect to location that is Zamzama Street our

competitors will be butlers chocolate caf, tutti frutti, roasters etc.

Green Addiction will not have a major competitor as there is no other company in the

business or organic food restaurant. We believe that Green Addiction is a trend setter and our

quality products will help us gain market share.

Competitive Analysis

Factor Me Strength Weakness Tutti

Frutti

Butlers

Chocolate

Cafe

Importance

to Customer

Products Healthy Yes Healthy Limited, sweet

mainly

Very

important

Price Moderate-

High

Yes Moderate High Very

important

Quality Excellent Yes Very good Very good Important

Service Good Yes Good Good Very

important

Reliability Reliable Yes Reliable Reliable Important

Expertise Expert chefs Yes Expert in

frozen

yogurt

Expert in

chocolate

products

Important

Company

reputation

Not well

known in

market

Yes Well-

known

brand

name

Well-known

brand name

Important

Location Zamzama Yes Zamzama Zamzama Important

Appearance Lively, fresh Yes Simple,

trendy

Dark, dim

lights

Important

Sales Self service Yes Self Ale carte Very


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Method service Important

Credit

Policies

Credit and

debit cards

accepted

Yes Credit and

debit

cardsaccepted

Credit and

debit cards

accepted

Very

Important

Advertising Newspapers,

hoardings,

internet

Yes Word of

mouth

Newspaper

advertisement

Important

Image Not well

built up

Yes Good

image

Good Important

The competitive analysis suggests that Green Addiction has two main indirect competitors,

Tutti Frutti and Butlers Chocolate Caf. Tutti Frutti is a frozen yogurt parlor which offers

self service to its customers. It offers different range of flavors and toppings within an

affordable and reasonable price. Customers can take yogurt quantity according to them. It

offers credit opportunities as well by accepting credit cards. On the other hand, buttlers

chocolate caf offers sweets, mainly desserts. They offer Ale Carte and also accept credit

cards.

As compare to our competitors, we offer healthy food. Tutti Frutti is giving major

competition as people prefer frozen yogurt rather than salads. Green Addiction has an edge as

it produces its raw material itself and has planned to obtain international organic standards.

The image of Green Addiction is not well established but with the passage of time the

company will be able to position itself in the market as the leading salad bar and organic

healthy food provider.


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Strategy and Implementation

Our strategy is simple; we intend to succeed by giving people a combination of great,

healthy, interesting food, and an environment that attracts "trendy" people like a magnet.Strategies regarding different sections are discussed below.

Promotion

The promotional strategies of Green Addiction will start a month prior to inauguration. The

inauguration is planned on the Chand Raat, 9th August 2013. There will be distribution of

catalogs and pamphlets in the malls near the shop and Zamzama market. There will also be

banners and posters in the nearby target market areas so that people can get aware. It is also

planned that the sales staff will guide the people and tell them about the health benefits of

organic food and salads. (Haberberg, A. and Rieple, A. 2008)

The electronic media is not ideal to use as Green Addiction is located in Karachi only and

electronic media spreads the word nationwide. It is also expensive medium. Using print

media is cheaper and suitable to reach the target market. Through our promotional activities

we want the customers to know that we are offering organic food products. Organic foods are

free of harmful chemicals and genetic modification. They are more nutritious and healthy.

In the long run we wish to develop awareness and desire in people to have and maintain

kitchen garden at home. This would help people to improve their diet and grow organic and

chemical free fruits and vegetables.

Pricing

The prices of the products of Green Addiction will be high-moderate. The pricing will

depend on the quantity bought by the customer. As we are offering organic food, it would not

be suitable to charge low prices and give a negative impression about our product. Most of

the customers have a perception that low quality is associated with low prices. For this

reason, green Addiction aims to charge a reasonable price which covers our costs and

generate reasonable profits. (Grewal, 2008)

Once we are able to capture market and build loyal customer base, we wish to increase our

prices slightly. The prices also depend on the raw material used in preparation of salads and


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prices of seeds and fertilizers. Some of the fruits and vegetables will be purchased from other

suppliers as weather of Karachi does not support each fruit. The prices of the salads and

juices will rise with an increase in the prices by the suppliers and due to inflation.

Proposed Location

The Location for the farm land is chosen to be near superhighway, Karachi. It is prime

location for farming as there is already some small scale farms located in the nearby area.

Transport is also easy to access as the farm connects to the superhighway which connects to

the city. There is availability of water for irrigation throughout the day. The farm is located

away from the city so that noise pollution caused by the farming activities and farming

activities may not disturb the residents of the area. The requirement of land was not of a bigland, so the land for farm is 11.62 kanal in size. (Haberberg, A. and Rieple, A. 2008)

For the retail outlet, we have chosen Zamzama. It is a commercial area where loads of shops

and offices are located. Zamzama street is home to Karachi's most elite designer shops for

clothes, shoes and accessories. It also has a number of high end restaurants and coffee shops

which are popular hangout spots for the rich and the fashionable residing in the posh

neighborhood of DHA.

Distribution Channel

The distribution will be through the salad bar, restaurant located at Zamzama. The customers

will be given the opportunity to visit and take a look at the salad bar and serve themselves.

The restaurant will have dining facility as well as take away. In the long run we also plan to

start delivery service for free. We also aim to distribute our products in the shopping malls

and other restaurants in the long run. For the initial start, we have only one outlet at

Zamzama. (Grewal, 2008)


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Operations

Production

Green Addiction is aimed to produce organic vegetables and fruits and produce salads and

juices using this organic farm produce. The farm will is decided to be located near

superhighway, Karachi. The farming will be done on a small scale in order to meet the daily

requirement of the business and cut storage costs. It is decided that all extra produce of the

day will be sold in the market so that it is not wasted and the business does not face storage

problems.

To make sure that the farm produce is organic, Green Addiction will be acquiring organic

standards, certification from SGS. SGS is the worlds leading inspection, verification, testing

and certification company. The land for farming will be acquired in January after inspecting

different locations and choosing the best land. After acquisition of land, farmers will be hired

and they will be trained under the SGS organic standards so that it can be ensured that our

staff is well trained and is aware of the business vision and mission. (Haberberg, A. and

Rieple, A. 2008)

The company will then hire two chefs for producing fresh salads and juices from the farm

produce. First produce will be harvested in the beginning of august. The chefs will decide the

menu with mutual discussion and expertise. For selling juices and salads, Green Addiction

will have its shop opened in Zamzama Commercial area. The shop will be decorated by an

interior designer who with the concern of the partners will decorate the shop. Chefs will also

help in setting up the kitchen and buying all necessary kitchen machinery, tools and

equipment.

There will be other supplies needed to make salads, for example eggs, olive oil, olives,

spices, sauces etc. These supplies will be purchased on a regular basis as per the demand.

Keeping the stock of these supplies would deteriorate the quality. On the other hand, salads

and juices will need to be stored in a cool place. For this reason, refrigerators and deep

freezers will be bought.

It is also aimed that Green Addiction will acquire quality standard certification for its shop

produce as well. ISO certification and HACCP certification are aimed to be acquired. This


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would help to improve food quality, service quality and hygienic environment of the shop

and kitchen.

Location:

Farm Location: The farm is decided to be near superhighway, Karachi. The farm

land is 11.62 kanal in size. This location of the farm is selected because it is a non-

residential area, it is easy to acquire agricultural land here and there is availability of

all necessary facilities.

Choosing the location for the farm was an important decision to make. It was to be

taken in to account that the farm is away from the residential area as the farming

activities might disturb the residents of neighboring houses. Farming activities may

produce noise pollution that would not please the residents. It is also difficult to find a

land for agricultural purpose inside the city. For these reasons the land for farming is

acquired near the superhighway.

As the farm is located near the superhighway, transport of farm produce and raw

material is very easy. The Super Highway begins north of Karachi at the end of

Mohammad Ali Jinnah Road, near junction of Karachi Northern Bypass (also known

as M10). It is connected with the Karachi Northern Bypass with a trumpet

interchange. Then it continues out of the city. Transport of fresh organic produce to

the shop is very easy and fast through superhighway and Karachi northern bypass.

The farm land is also near the airport. It would be easy for to transport imported seeds

and fertilizer to the farm. The prime location of farm will save transportation cost and

time.

The availability of water is also an important factor in choosing the farm land. There

is availability of water through-out the day on the land that is acquired. Heavy farm

machinery, e.g. tractor, can easily be used on the farm without the difficulty of storage

and disturbing neighbors. There are other small scale farms also located near the land

acquired. It has increased the opportunity to take benefit from the location. Instead of

buying the heavy farm machinery, it is decided to rent machinery from other farms for

beginning.


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Shop: The shop is located at Phase 5, Zamzama Commercial. The shop is acquired on

rent. Zamzama is a commercial road that is connected with Khayaban-e-Shaheen on

one side and ends at 'Two Talwar' on the other side. Zamzama It runs in Phase V of

Defence Housing Authority (DHA). Zamzama street is home to Karachi's most elite

designer shops for clothes, shoes and accessories. It also has a number of high end

restaurants and coffee shops which are popular hangout spots for the rich and the

fashionable residing in the posh neighborhood of DHA.

As Zamzama is a commercial area, there is always crowd for shopping. During

shopping people prefer to have light snacks instead of heavy meals. For this reason it

is a prime location for opening our salad bar which offers fresh organic salads and

juices. It would provide an attraction to the people coming for shopping. People are

becoming health conscious day by day, and the targeted market for our product is

upper and upper middle class of the society who are health conscious and have high

purchasing power. (Haberberg, A. and Rieple, A. 2008)

There are restaurants and cafes already present in Zamzama but our product is

differentiated and offers fresh organic produces. There is competition in the area but

the differentiated product provides a competitive edge. During shopping when people

are tired and hungry, they tend to choose snacks and we offer healthy organic salads

and juices for them.


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Taxation

According to Income Tax Ordinance, 2001, the agricultural land and produce is exempted

from tax. It is mentioned in the Tax ordinance 2001 that where a person uses his own farm

agriculture produce in the manufacturing that article whose income is treated as

business income. Only the market value of the agricultural produce is deducted. No full

deduction shall be made in respect of any expenditure incurred by the taxpayer as cultivator

or as a receiver of rent-in-kind. The market value of such produce used as raw material is

allowed as deduction against income from business is calculated as follows:

Total income from business XXX

Less: Market value of the agricultural produce

Utilized in the business as raw material (XXX)

Taxable income from business XXX


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Legal Environment

Partnership

Green Addiction is based on a partnership business. There are four partners of the business,

each contributing equal amount of capital. The profit and loss is decided to be shared equally

among all the members.

Registration of Partnership

Procedure and Requirements

The registration of Partnership firm is not required by law and there is nopenalty for non-

registration. Nevertheless registration can give many advantages to the firm. The Partnership

Deed is prepared on the Stamp Paper of worth Rs. 500. Registration fee of Rs. 500 also

needs to be deposited in National Bank of Pakistan through Challan Form. It is mandatory for

the firm to be located in commercial area. Copy of Lease Agreement or Ownership

proof needs to be provided as well. The next requirement is the attachment

of computerized National Identity Cards of Partners and Witnesses.

It is mandatory that all papers should be attested from Notary Public. And the partners should

contact the office after three days of submission of papers. All partners are required to appear

before Registrar of Firm during 9:00am to 11:00am with their original National Identity

Cards. Lastly an affidavit regarding accuracy of papers and existence of office needs to be

submitted on stamp paper worth Rs. 5.

Partnership Deed

PartnershipDeedis a document that tells about the mutual rights andobligations of all

partners. This needs to be signed by all the partners and subsequent copies held by each

partner. At the time of registration, a copy of the deed has to be submitted with an application

to the Registrar of Firms in the concerned area. This document may also be referred to as an

Article ofpartnership. A partnership deed usually containsthe following format:

1. The name of the firm


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2. The nature of business that is to be carried out by the firm

3. The address at which the firm intends to conduct its business

4. The amount of capital that each partner contributes. The form ofcapitalwhether that be cash or property needs to be documented. If the capital is

property, a full description of the property and the valued amount should be given

also.

5. The names and addresses of each partner should be given

6. The duration of the partnership if any

7. The ratio of sharing profits and losses

8. The amount or percentage of interest, if any, which is to be allowed on capital

9. The amount of salary each partner is to receive

10.The manner in which a partnership is to be dissolved and thesubsequent distribution

of property among the partners.

11.In the case of insolvency the valuation and treatment of goodwill

12.Provisions regarding the accounting system and the fiscal year to be used

13.Rules to be followed in the case of retirement, death and admission of a partner

14.The method of settling disputes if any among partners. I.e. whether or not an

arbitrator is to be appointed

15.Method of calculating amount issued to a deceased partner, and

whether this is to be paid in full or in installments to his legal representative.

16.In the case of breach of duty by one partner, powers of other partners to expel him

from the firm

17.The keeping of proper books of accounts and periodical preparation

of accounts.18.Any provisions to prevent any future misunderstanding and ill will.


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Application

The procedure of registration is comparatively simple. An application in the Form No. 1 ofPartnership Act 1932, along with the fee has to be submitted to

the Registrar of Firms. All the partners must sign the application. The application or

statement must contain the following particulars:

1. The name of the firm

2. The place or principal place of business of the firm

3. The names and addresses of other places where the firm may conduct business

4. The partners date of joining thefirm

5. The duration of the firm

6. The name and address of the partners. Once the registrar is satisfied with the

application, a certificate of registration is issued to the partners. As mentioned

previously this is not required to commence business. If at any time there are changes

to the firm in relations to the partners, place of business, insolvency etc. the registrar

must be notified.

Costs for Non-Registered Firm

In case of dispute between the partners or ex-partners, the unregistered firm

cannot enforce any right arising from the contract or granted by the Partnership Act of

1932. No law suit can be filed against the third party

the partner of the firm to enforce the rights from a contract and the partnership cannot claim

any dues in the court which may be outstanding. If one denies the existence of the partnership

nothing much can be done legally as there are no formal documents as a proof, thus

registering the firm is very important.


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Rights Duties and Liabilities of Partners

Rights of Partners

The different rights of the partners are as follows.

1. Right to take part in business.

2. Right to express opinion

3. Right to inspect books.

4. Right to share the profits.

5. Right to interest on capital.

6. Right to interest on advances.

7. Right to be indemnified.

8. Right to act in emergency.

9. Right to give Consent.

10.Right to retire.

11.Right not to be expelled.

12.Right to carry on competing business.

13.Right to enforce.

14.Right to share in profits or interest.

15.Right to bind other partners.

Duties of Partners (General/ Fundamental /Absolute)

The following are the duties of the partners:


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1. Duty of good faith.

2. Duty to carry on business.

3. Duty to share losses.

4. Duty to use firms property forthe firm.

5. Duty to account for personal profits.

6. Duty to be liable individually and jointly.

7. Duty to work for the greatest common advantage.

8. Duty to render accounts.

9. Duty of disclosure.

10.Duty to indemnify for frauds.

11.Duty to act within authority.

12.Duty in emergency.

13.Duty not to transfer interest.

Liabilities of Partners

The liabilities of the partners are given below.

1. Liability of partner for acts of the firms.

2. Liability of the firm for the wrongful acts.

3. Liability of firm for misapplication.

4. Liability of retiring partner for all the liabilities of the firm prior to his retirement

Process for the dissolution of a Partnership firm

The process requires a Rs. 250 stamp paper called the dissolution deed which is submitted in

National bank through a challan form. After this, the partnership is required to inform the


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general public through best possible means so an ad is placed in a newspaper. The copies of

N.I.C. of all partners are attached to all the attested documents. Later, when all the documents

are submitted, the partners are required to report to the office with their original N.I.C. from 9

am to 11 am.

Organic Certification

SGSs organic food certification services ensure regulatory compliance and enhance brand

value, while safeguarding the environment and satisfying consumer demand for organically

produced foods. SGS is the worlds leading inspection, verification, testing and certification

company. They are recognized as the global benchmark for quality and integrity. With more

than 70,000 employees, they operate a network of more than 1,350 offices and laboratoriesaround the world.

SGSs core services can be divided into four categories:

Inspection: The comprehensive range of world-leading inspection and verification

services, such as checking the condition and weight of traded goods at transshipment,

help to control quantity and quality, and meet all relevant regulatory requirements

across different regions and markets

Testing:Their global network of testing facilities, staffed by knowledgeable and

experienced personnel, enables to reduce risks, shorten time to market and test the

quality, safety and performance of products against relevant health, safety and

regulatory standards.

Certification:They enable business to demonstrate that its products, processes,

systems or services are compliant with either national or international standards andregulations or customer defined standards, through certification.

Verification:It ensures that products and services comply with global standards and

local regulations. Combining global coverage with local knowledge, unrivalled

experience and expertise in virtually every industry, SGS covers the entire supply

chain from raw materials to final consumption.


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How does the certification process work?

PROPOSAL: SGS provides with a proposal based on the nature and size of operation.

If we accept the proposal the process continues.

PRE-ASSESSMENT: Optional pre audit review of business operations to give an

indication of the readiness of organization for the audit. It is often found useful for

identifying any weaknesses in operational activities.

DOCUMENT Review: Business production and handling system is evaluated prior

the on-site audit to check the feasibility of operation to become organically certified.

It further helps to understand your activities and to plan the on-site audit as effectively

as possible.

CONTRACT: After a review of the certification agreement between the business and

SGS, the contract is signed.

ON-SITE AUDIT. The on-site visit on business operation includes interviews with

the partners and staff and examination of working practices. In addition, records and

documentation are evaluated. The on-site visit is essential to check compliance with

the respective organic standard. At the end of this stage, all findings of the audit are

presented to the partners. If any nonconformities are observed Partners will receive a

Corrective Action Report so can address the non-conformities before a technical

review is conducted.

CERTIFICATION: Once business comply with all relevant organic productionrequirements a technical review is conducted by a qualified and authorized SGS

Certification Manager, who will then decide the issuance of an organic certificate.

ANNUAL RECERTIFICATION: The document review, on-site audit and

certification are annually repeated to maintain your organic certification. During the

on-site visits, SGS review the implementation of the corrective actions taken to

address the past non-compliances.


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Benefits of being certified by SGS:

Cost-effective and customer oriented set of solutions

Independence and confidentiality

Highly qualified and experienced staff

fast and efficient execution of your requests

Effective entry-to-market tool to the most important global organic markets

Use of the organic standard and SGS logos distinguishes your product in the

marketplace and adds brand value

If different certification schemes or organic standards are requested they can be

combined in a single cost effective audit

HACCP Certification through SGS:

HACCP certification is an international standard defining the requirements for effective

control of food safety. It is built around seven principles:

Conduct Hazard Analysis of biological, chemical or physical food hazards

Determine critical control points

Establish critical control limits, for example, minimum cooking temperature and time

Establish a system to monitor control of Critical Control Points

Establish corrective actions

Establish procedure for verification to confirm that the HACCP system is working

effectively

Establish documentation and record keeping


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Management Team

Partners:

1. Anum Nasir

2. Dajana Khalid

3. Saniya Siddiqui

4. Shiza Aslam

Quality Control Manager:

1. Jane Aster

Job Description of each Partner

Anum Nasir

(Partner)

Dajana Khalid

(Partner)

Saniya Siddiqui

(Partner)

Shiza Aslam

(Partner)

Finance

Huma Hashmi-accounts officer

Record keeping

Cash

management

Annual

statements

payments

Shop Operations

Jane Aster-Quality control

officer

Chefs(2)

Shop floor

employees(2)-

daily sales and

service

Inventory control

and storage

Farm Operations

Farmers Suppliers of

seeds and

fertilizer

Transport to

shop

Marketing

Advertising Promotional

campaigns

Expansion

strategies


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Business Advisor

Mr. Khalid Eijaz Qureshi

He has 30 years background in farming and exporting farm fresh vegetables and fruits. He

has visited several countries and has acquired quality certifications, international and

national. He is one of the leading exporters of fresh fruits and vegetables in Pakistan and has

been working for organic production. He guided us towards organic standards and other

business activities.


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Start Up Expenses and Capitalization

Sources o f Capita l

Rs.

Partners' Investment

Anum Nasir 1,250,000

Dajana Khalid 1,250,000

Saniya Siddiqui 1,250,000

Shiza Aslam 1,250,000

Total Investment 5,000,000

Startup Expenses

Farm Land

Purchase 1,100,000

Construction of shelter and store 100,000

Total Buildings/Real Estate 1,200,000

Shop

Security Deposit 150,000

Total Leasehold Improvements 150,000

Capital Equipment List

Furniture (Shop) 200,000Equipment (Shop, Kitchen) 100,000

Fixtures 160,000

Machinery (Kitchen) 300,000

Cold Storage (Kitchen, Shop) 300,000

Agricultural Tools 100,000

Total Capital Equipment 1,160,000

Location and Admin Expenses

Rent (Shop) 300,000

Rent (Farm Machiner) 30,000Ownership Transfer (Farm land) 50,000

Organic Certification Cost 100,000

Legal Consultant 40,000

Pre-opening salaries 300,000

Transportation 50,000

Total Location and Admin Expenses 870,000

Opening Inventory

Kitchen Supplies 60,000

Seeds 30,000

Fertilizers 80,000Imported Fruits and Vegetables 75,000

Rs.


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Total Inventory 245,000

Advertising and PromotionalExpenses

Advertising 100,000

Signage -Printing 70,000

Travel (For promotion to malls) 30,000

Website development 100,000

Total Advertising/PromotionalExpenses 300,000

Other Expenses

Electricity Bill (Pre-opening) 60,000

Interior Designer (Shop) 100,000

Preparation for inauguration 80,000

Hiring Cost 20,000

Total Other Expenses 260,000

Reserve for Contingencies 815,000

Summ ary Statement

Sources of Capital

Owners' and other investments 5,000,000

Total Source of Funds 5,000,000

Startup Expenses

Buildings/real estate 1,200,000

Leasehold improvements 150,000

Capital equipment 1,160,000

Location/administration expenses 870,000

Opening inventory 245,000

Advertising/promotional expenses 300,000

Other expenses 260,000

Contingency fund 815,000

Working capital -

Total Startup Expenses 5,000,000


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Financial Plan

The financial plan consists of a 12month profit and loss projection, a cashflow projection, a

projected balance sheet, and a Break

even calculation. Together they constitute a reasonableestimate of our companys financial future. More important, the process of thinking through

the financial plan has improved our insight into the inner financial workings of our company.

(Randall, H. 2006)

Opening Day Balance SheetGreen Addiction

Assets

Current Assets

Cash in Bank 815,000$

Inventory 245,000

Total Current Assets 1,060,000$

Fixed Assets

Machinery & Equipment 400,000$

Furniture & Fixtures 360,000Cold Storage 300,000

Farm Land 1,100,000

Agricultural Tools 100,000

Total Fixed Assets 2,260,000$

Total Assets 3,320,000$

Total Liabilities -$

Owners' Equity (Net Worth) 3,320,000$

Total Liabilities & Net Worth 3,320,000$


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Critical Risk Analysis

SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within our

restaurant and describes the opportunities and threats facing it. (Bohm, A. 2008)

Strength:

Healthy food

Protection of biodiversity

Monopoly

Product and Service innovation

Provision of hygienic environment

Weakness:

High rent

High prices charged

Variation in demand and supply from natural disasters

Lack of customer awareness and brand equity

Opportunity:

Creative idea

Room for growth and expansion

Trend setters

Exploring new market

Threats:

Threat of new entrant

Brand equity of other dining areas

Critical situation of the city

Economic recessionSupplier frauds


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Porter Five Forces Model

IndustryRivalry

Intensity ofcompetiton isalways high in

food industry as

other food chainare always in the

run to getcustomers

attention withnew offers.

Supplier Power

Supplier power willbe moderate to high

as there are numberof seed andequipment suppliers

available in themarket.

Potential Entrants

Moderate threat ofnew entrants because

of high costassociated.

Buyer Power

Initially there is verylow threat of buyer

power as its a foodindustry and wehave differentiated

product.

Substitute Threat

There is moderateto high threat ofsubstitute as its a

food industry andother food outletsare also available.


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Continuity of Business Structure

If we are able to meet our objectives that include sales and market share we have set for the

year than we have plans of expanding our business. We have plans of opening up small cafes

in big malls around the city like in Saima mall food court and Dolmen mall food court and

also one in Food Street this way more people will get easy access to our caf and it will help

us in achieving our future goals.

Successor

Its going to be a joint venture with equal power residing with each partner so if any one

partner dies others will take over after settling the compensation and other policies with the

deceased family and so on and if all die than according to the polices their children will take

over the business.


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Timing and Objectives

1-December-2012 concept building (concept testing/vision statement/mission statement)

15-December-2012-industry analysis/competitor analysis

-identify target market/customers/suppliers

25-December-2012-deciding name for business (Green Addiction!)

1-January -2013-applying for partnership

15-January-2013-registration of partnership confirmed by the registrar

18-January-2013-surveying locations for developing organic farm and shop

20-January-2013- acquisition of land for organic farm and shop

23-January-2013-hiring farmers for growing the crops and interior designer for the shop

15-February-2013-acquiring machinery for use on the farm

25-february-2013-getting updates from interior designer regarding progress of the shop

1-March-2013-surveying markets for acquisition of manure and seeds for farming

20-March-2013-acquisition of manure/seeds for production

26-March-2013-sowing of seeds commence

10-April-2013-interior of the shop completed

11-April-2013-purchasing equipment and furniture for the shop

13-April-2013-recruiting activities for the shop commence

16-April-2013-listing the menu

-marketing activities for the shop commence

16-May-2013-generating market response analysis

20-May-2013-Testing of the menu card

26-May-2013-Finalizing the menu card

29-May-2013-negotiations with the suppliers

1-June-2013-getting updates from farmers regarding growth of crops

15-June-2013-signing contract with suppliers

20-June-2013-increased marketing and promotional campaigns for the shop

8-July-2013-preparations for the launch show commence

20-july-2013-further marketing and promotional campaigns/online promotions

25-July-2013-sending invitations for the launch show

26-July-2013-reviewing program design of launch show


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29-July-2013-coordinating with guests

1-August-2013-harvesting first produce of crops

3-August-2013-coordinating and getting updates from guests/photographer/media etc.

8-August-2013-launch of Green Addiction! on chaand raat9-August-2013-outlet open officially

Deadlines

19-January-2013-signing the partnership deed

24-January-2013-acquiring land for shop and farm

14-April-2013-interior of the shop completed

30-March-2013-sowing of seeds

16-April-2013-recruiting activities for the shop

20-April-2013-marketing activities for the shop

12-July-2013-preparations for the launch show

8-August-2013-launch of Green Addiction! on chaand raat


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References

Bohm, A. 2008, the SWOT Analysis, Germany, Grin Verlag

European Commission, 2007, Food consumer science, Belgium, European Communities

Grewal, 2008, Marketing, Special Indian Edition, India, Tata McGraw-Hill Publishing

Company Limited

Haberberg, A. and Rieple, A. 2008, Strategic Management: theory and application, United

States, Oxford University Press

Hall,D., Jones,R., Raffo, C., 2004, Business Studies, 3rdedition, causeway press limited

Helfert, A. E. 2004, Techniques of Financial Analysis, 9 thedition, India, McGraw Hill

MICHAEL BLUEJAY, n.d., Whole Foods Market: What's wrong with Whole Foods? From

http://michaelbluejay.com/misc/wholefoods.html

Randall, H. 2006, Accounting, 3rdedition, Dubai, Oriental Press
http://michaelbluejay.com/misc/wholefoods.htmlhttp://michaelbluejay.com/misc/wholefoods.htmlhttp://michaelbluejay.com/misc/wholefoods.html

green addiction business plan

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