A sample module for a start up business plan in service sector

1. Shri Ramdeobaba College of
Engineering and Management
DEPARTMENT OF INDUSTRIAL
ENGINEERING
Entrepreneurship Development
Business Plan on a Restaurant
Faizan Ali Sayyed
Roll no 33

3. 1. YOUR BUSINESS IDEA
Describe your business idea:
 Mixing up the conventional Business with technology and innovative
ideas to cook a fantastic, delicious, profitmaking Company.
 A partnership firm
What is the name of your business?
“Bon-A-pet-Treat”
What is competitive advantageof 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

4. 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. MARKETING
Type of business you are in:

5.  Service Retailer sells to consumer
3. CONSUMER DESCRIPTION
Describe your target consumer
 Rich lonely
 Couples
 Kids
 Young generation
 Working class
 Party people
 Business corporate
Expected age of consumer
Age group from 18-55
Expected gender of consumer
Both genders
What need or want will your product fulfil?
Bon Appetite (Hunger for food)
Financialstatus of consumer
 Financially balanced
 Higher class

6. 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 yourbusiness?
“You wish, we serve”
Will you make sales calls?
Sales calls: Yes
Feedback calls: Yes
Customer registration: Yes
Promotional calls: Yes
Write a four sentence sale presentation:
“Customers are a part of our mission;

7. To see…To do…To serve…”
5. ECONOMICS OF ONE UNIT:
SERVICE COMPANY
Define yourunit:
One dish of any product from the menu
Selling price per unit
A = 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 placingon your entrepreneurialtime
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

8. Labourcost per unit=BXC
D = Rs. 7200
Supplies
What is the supply cost per customer?
E = Rs. 4500
Cost of services sold per unit= D+E
F = 11,700
Gross profit per unit= A-F
G = 18,000 -11,700
6. MARKET RESEARCH
Competition
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 questionsabout your business and
write their answers in the space provided:
Do you like the name of my business?

9.  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 businessidea?
 Adding Home delivery system
 Opening up branches
Who is my closest competitor?
 Krishnum Plaza
 Thaat baat

10. 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)

11. 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
BusinessCards
Posters
Leaflets
Phones
Salescalls
Brochure
Mailing
Websites
Others
7. LEGAL STRUCTURE
Is your business a sole proprietorship, a partnership, a
private limited company or regular corporation, or a not
for profit corporation?
Explain your decision.

12. 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 license
2. Health/Trade license
3. Eating house license
4. Fire Department
5. Pollution certificate
6. Music license
7. Insurance
8. Prevention and Food Adulteration Act(PFA) 1954
9. Shop and Establishment license
10. Signage license

13. 11. Certificate of Environmental Clearance
12. Ghumastha license
Name Adress Phone
Fire Office Civil Lines 0712 256 5074
Municipal Corporation Civil Lines 0712 256 7035
Pollution control committee Civil Lines
0712-2560152
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

14. 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 60,000
Interior, Carpets Projectasoz 80,000
Decorations Aaron Allen 45,000
Generic Furniture Amazon 40,000
LCDs 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) Gift
Personal
savings
2 lacks
Relatives 5 lacks 4 lacks 1 lack
Friends

15. Investors
Grant
Other
Total 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 COSTS
These 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.

16. Type of fixed costs Monthly fixed costs
Salaries 0.68 lacks
VARIABLE COSTS
Type of variable costs Estimated variable cost as a
% of sales
Electricity 5
Water Bills 3
Grocery and vegetables 6
Miscellaneous 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%

17. MONTHLY BUDGET PROJECTED INCOME STATEMENTS
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Units sold 3000 350
0
3600 2800 2400 2600 2000 2400 3000 3600 4000 4800 37700
Unit 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 9.13
5
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 9.13
5
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 12.9
6
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

18. BUDGET YEARLY INCOME STATEMENT
SALES AMOUNT
Units sold 37700
Unit Selling Price 18,000-22,000
Total Sales
(Units sold*Unit Selling Price)
73,5200
COSTS AMOUNT
Cost of Goods or Services Sold
per Unit
11,700-13000
Total cost of Goods or Services
sold
1,47,200
Gross Profit 2,70,900
Variable Expenses 1,06,604
Operating Costs 1,06,604
PROFIT AMOUNT
Profit/loss before taxes 1,56,4300
Less Taxes 39,107
Net Profit 1,17,322
Net Profit/Unit 3.11