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Commercial Refreshment Corner (Entrepreneur Final Plan)


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Commercial Refreshment Corner (Entrepreneur Final Plan)

  1. 1. Commercial Refreshment Corner Qasimraza555@gmail.comBusiness Plan submitted in partial fulfillment of therequirements of the Entrepreneurship“Commercial Refreshment Corner”Management Sciences Departmentat theNational University of Modern languages and SciencesatIslamabad, PakistanNAME(s):Group Leader: QASIM RAZAMember 1: FAIZA BATOOLMember 2: FAISAL HAFEEZMember 3: AHMED NAWAZMember 4: SALMAN ASMATCourse: EntrepreneurClass: MBA-3rdLecturer: SIR ADNAN IFTIKHAR DATE: 26-10-2011
  2. 2. Commercial Refreshment Corner Qasimraza555@gmail.comDEDICATION“To parents whose calm partnership and praysencouraged us to do whatever wedetermine.”
  3. 3. Commercial Refreshment Corner Qasimraza555@gmail.comAcknowledgementWe have the pearl of our eyes to admired blessing of the compassionate andomnipotent because the words are bound, knowledge is limited and time is shortto express his dignity. It is the one of infinite blessings of Almighty ALLAH that Hebestowed us with potential and ability to complete the present training and makea material contribution towards the deep oceans of knowledge.First we avail this opportunity to bow our head before Almighty ALLAH inhumbleness who given us the wisdom and determination for completing thispiece of report.We invoked peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch.We feel highly privilege to attribute the most and ever burning flame of ourgratitude and deep scene of devotion to Mr. Adnan Iftikhar who taught us“Entrepreneurship” with heart and also provide a guideline to prepare this report.
  4. 4. Commercial Refreshment Corner Qasimraza555@gmail.comTable of Contents1. Executive Summary_________________________________ 012. Business Description________________________________ 022.1Aims and Objectives ________________________________022.2Business and operations_____________________________ 033. Marketing Strategies _______________________________ 063.1Market Segmentation________________________________063.2Positioning Strategies_______________________________ 063.3Pricing Strategies___________________________________073.4Distribution ________________________________________073.5Promotion Plan_____________________________________083.6Sales Potential _____________________________________084. Competitive Analysis ________________________________094.1Current and Potential Competition______________________094.2Competitive Strategies_______________________________104.3SWOT Analysis_____________________________________114.4Competitors Price List _______________________________125. Design and Development Plan_________________________135.1Goals for Product Development________________________135.2Development Procedure______________________________135.3Scheduling and Costs________________________________145.4Development Budget_________________________________145.5Personnel Development ______________________________155.6Assessing Risks_____________________________________156. Operations and Management Plan ______________________186.1Management Plan____________________________________186.2Operational Plan_____________________________________196.3Overhead Expenses__________________________________227. Financial Plan _______________________________________237.1Start-up Funding_____________________________________237.2Projected Profit and Loss Statement_____________________247.3Projected Balance Sheet ______________________________257.4Projected Cash flow Statement _________________________26References ____________________________________________27Appendix 1: Pro-forma Title Page___________________________28Appendix 2: Table of Contents – Example____________________29Appendix 3: Management Plan – Hierarchy___________________30Appendix 4: Profit and Loss Statement Table 7.2 ______________31Appendix 5: Balance sheet Table 7.3________________________32Appendix 6: Cash flow Statement Table 7.4 __________________33
  5. 5. Commercial Refreshment Corner Qasimraza555@gmail.com1. Executive SummaryWe are analyzing the marketing plan of Commercial refreshment Corner which isa food items business. Our analysis for the Commercial Refreshment Corner willinclude the current market situation and strategic analysis of the businessventure. We are targeting specific segments in the consumer and businessmarkets taking opportunities indicated by higher demand of health and fresh fooditems.We provides different sort of refreshment food items including Dahi Bhally, FingerChips and Samosa etc. These all items are prepared by maintaining the taste ofthe consumer.Our competitors in the market are Dehli Chat House, Chatkhara Chat House andLahore Refreshment Centre etc. Our aim is to provide quality food to ourcustomers with refreshment items on suitable price make the products asconvenient as possible. Further we will explain the SWOT analysis and all otherstrategies used by us.The primary financial objective is to achieve first day sales revenues of Rs. 8000,keep first day losses to less than Rs. 1200, and break even early in the secondday.
  6. 6. Commercial Refreshment Corner Qasimraza555@gmail.com2. Business DescriptionThere are numerous businesses that purely deal with food items. In any socialgathering food is an important ingredient. It is a complex diverse business inwhich substances should providing energy consumed by its user is consideredimportant. In Pakistan the businesses operating food items are successful havingtough competition and enjoying high returns from investments.We are dealing with the business named as Commercial Refreshment Corner itdeals with food items names are Dahi Bhally, Samosas and Finger Chips.To achieve its objectives we offers more then one-food item to get comparativeadvantage to its competitors who offers the same or close to our product items.The business we are starting is food refreshment centre. While starting thisbusiness the aim behind is to serve youngsters and families by providing themour quality food products. When we are successful in this business we willexpend to different corners of the city and also to other big. First we are targetingour young school and college students. To attract them we are providing themgood quality food products.As we are dealing with food products like Dahi Bhally, Samosas and FingerChips for that major operation includes providing food services for that oursuppliers are local vegetable and retail food shops. It’s a partnership businessand the sources of funds are our personal pocket money and loan from friendsand family members.2.1 Aims and ObjectivesOur aim is to start Refreshing food business i.e. Dahi Bhally, Finger Chips andSamosas targeting markets youngsters and families. Our aim is to provide ourquality food items by getting weak point of our local competitors, which arealready doing their business who don’t serve quality food to their customers. Ourmajor objective is to earn profit and also to provide quality food to our customersat low price as compare to local competitors.
  7. 7. Commercial Refreshment Corner Qasimraza555@gmail.com2.2 Business and operationsAs we are dealing with food products like Dahi Bhally, Samosas and FingerChips for that major operation includes providing food services for that oursuppliers are local vegetable and retail food shops and after completing sellsdirectly to our customers. The customers are facing food item problems notconsuming good quality food items; they required good food items for theirconsumption so we have to provide them according to their demand. Suppliers:Our suppliers are local vegetable and retail food item providers. They are localfood item providers provide us our required food items as we needed. Localvegetable providers are providing us regular fresh vegetable items as per ourrequirement. Target market:We are starting our business in commercial market in Rawalpindi. This is thebest location to start such type of business. We targeted demographic marketsegment the students and. Food products business is more successful therebecause of different reasons like it’s a place covered with shopping plazas,schools and colleges. Competitor:Our major competitors in the market are local stall hawkers they are in differentcorners and providing different food items on cheap prices but are not providinghigh quality food items. There are large no of competitors from those potentialcompetitors are refreshment centre and Dehli Chat house.
  8. 8. Commercial Refreshment Corner Source of funds:It’s a partnership business and the sources of funds are our personal pocketmoney and loan from friends and family members. Current market situation:We have to start a partnership business and made a partnership deed. We havetargeted to provide our much better quality food items from already existingcompetitors who do not serve high quality food to customers. For that weselected our suppliers should be local fresh vegetable and retail food itemproviders. In market local some stall hawkers are already present and market isalso filled with potential competitors such as refreshment centre and Dehli Chathouse etc. Promotion strategy:For promotion purpose we will display our complete product menu, price list andclearly displayed business name to get the uniqueness and recognition indifferent products stalls. Market research and results:There are chances of getting high returns to our investment because of primaryinformation through market survey and judgement that there is need of fooditems we are offering in the market. Secondly, we visited all existing stall ownersrelating our business in the market and collected further information about rawmaterial prices, which are being used as our finished goods and came to knowthat there are chances of high profits.
  9. 9. Commercial Refreshment Corner Qasimraza555@gmail.comProduct review:To achieve its objectives we offers more then a single food item having highquality then competitors which provides us competitive advantage we provide; High quality food Packing facility Disposable material (plates, spoons) facility Less price then potentional competitor Multi food items Fresh food items.
  10. 10. Commercial Refreshment Corner Qasimraza555@gmail.com3. Marketing StrategiesWe are starting our business in the Commercial Market, there is a toughcompetition faced by the businesses among local competitors. The businessneeds best marketing strategies to compete with local competitors. In this marketthere is a great potential for products offer by the business, because we targetedthe all age groups including children, youngsters and families. There is nodistinction in lower, middle and upper class customers, all are treated equallybasis. The business follows different marketing strategies to do their operationalactivities in the market.3.1 Market SegmentationAfter the complete analysis in the market we divide the market into differentsegments which helps us to capture our customer attraction and to know aboutour real target customer.Demographic segmentation:This food business target market is based on demographic segmentation wherewe are divided the market into groups based on various variables such as: Groups: Children, Youngsters and families. Income Level: Middle Class Gender: Male and Female both.3.2 Positioning StrategiesThis business is newly established in the market and we used thedifferentiation strategy through some unique features like low prices and providebetter quality food as compare to commercial market’s high rates. There aredifferent products (Dahi Bhally, Finger Chips and Samosa) are available at ourstall according to need and taste of the customer.
  11. 11. Commercial Refreshment Corner Qasimraza555@gmail.com3.3 Pricing StrategiesWe made our price strategy which as it is easily affordable to the customersbecause price has the direct effect on the success of any business. The businesschoose the different pricing strategies on the base of our target market and thenature of our business we used the following pricing strategies. Market oriented marketing strategies:First we analyzed our whole target market and then we set the reasonableprices of products offered by the business which gives us a competitiveadvantage on business competitors. Cost plus pricing strategies:This pricing strategy consist of cost of producing product and adds on apercentage or profit to that price to give the selling price. We choose thisstrategy because it’s a short term strategy and our business venture isalso for a short time period we got material from wholesale market on lowprices and sale our product to some marginal profit.3.4 Distribution:As we are in refreshment business, so our distributional channel is directdistributional channel. Direct distributional channel:Direct distributional channel involves distributing the product direct frommanufacturer to ultimate customers and we select the indirectdistributional channel which is according to the nature of our business.
  12. 12. Commercial Refreshment Corner Qasimraza555@gmail.com3.5 Promotion PlanFor the competitive analysis we used the some different method to createawareness into the customer about our product through some different businessstrategies and we used the personal selling method and some sales promotionstrategies such as discount offer “Buy 5 plates of Dahi Bhally and get 1 free”,which is really good promotion strategy in this business era.3.6 sales PotentialAs we are competing in that market where sales potential is normal becausewe arrange our business in commercial market so its have good potentialtherefore we provide the good quality of products at our stall but profit margin isvery low in this venture as compare to existing local stall holders. The estimatedsales potential of our business on daily sale of products are Rs. 8000/-.
  13. 13. Commercial Refreshment Corner Qasimraza555@gmail.com4. Competitive Analysis:We conduct the research for the data we gather about our competitors and weanalyze the market situation. The data we gather about our competitors throughwhom we analyze them and the product they sell in the current market. They allare providing same food items and some different as compare to our products.There are some competitors are listed below which are our potential competitors; The Lahore refreshment centre Dehli chart house Chatkhara chat houseThese are three potential competitors that create hurdles for us. So through thisresearch we analyzed there are strengths as well as their weaknesses. That ishow we will overcome them through our market strategies. We are dealing withthe business named as Commercial Refreshment Corner it deals with food itemsnames are Dahi Bhally, Samosas and Finger Chips.4.1 Current and Potential CompetitionThere are some current and potential competitors they create hurdles andbarriers in our way. Some hawkers and corner food shops have differentproducts and refreshment items sell in market to attract customer’s thoroughoffering cheap prices. But quality of those food products is not so good. Someare our potential competitor that creates hurdles in current and future time periodbecause they have experience how to serve customers and attract them. So wedefine different strategies for our business survival in competitor market.
  14. 14. Commercial Refreshment Corner Qasimraza555@gmail.com4.2 Competitive StrategiesThere are some competitive strategies through using these strategies wecompete them in some future time period. These strategies are explained below; Product:There are different potential competitors offering different products. We areoffering Dahi Bhally, Samosas and Finger chips which differentiate us fromdifferent other competitors. Other our competitors refreshment centre, Dehli chathouse, and chatkhara chat house are offering different food items such as fruitchat, samosa chat, dahi bhally, French fries, and some other food items to attractcustomers. So we make strategy to differentiate our product from them e.g.tastes differentiation and packing differentiation. Distribution:In distribution strategy we focus on our distribution. Our competitors distributetheir product they have their own places and workers to distribute theircustomers. They have large set up of distribution so they have edge on us. Wealso focus on our distribution we arrange tables and chairs to serve our customeron such place and also use packing material and disposable cups anddisposable plates. Pricing:Our competitors charge high prices on their products. The ingredients use bythem are little expensive but not so expensive to charge such type of high priceson their food items and the quality of food items are not so good so we haveedge on this point our products quality is so batter as compare to our competitorsand we also chare low prices because our first intention is to satisfy ourcustomers and price we charge to our customer as compare to our competitorsare low.
  15. 15. Commercial Refreshment Corner Promotion:We promote our product through make the budget line of our food product wepromote our food through charge low prices as compare to our competitors.Another way to promote our product is to increase ingredients to make goodtaste of all food items. Advertising:We advertise our product through different advertisement strategies. Through billboard advertisement, television channels (media advertisement) and usebrochures advertise our product. We also advertise our products in differentschool and colleges for student’s awareness using banners and brochures.4.3 SWOT AnalysisData we gather about our competitors through market research, we analyze themarket and get information about product our competitors sell in target market.They all are providing same food items and some different as compare to ourproducts. Our potential competitors are;Strengths: There are large numbers of competitors, providing variety of food itemsbut low in quality demanded by customer e.g. not fresh food items and ouraim is to earn by providing quality food. We get raw material from fresh stores and vegetable shops and materialshould provide a good name in the market. We are willing to pack food at demand for making customers happy. Oilier and less oily both type of food items we have included to attract ourcustomers. Better way serving to make our customers satisfaction.
  16. 16. Commercial Refreshment Corner Qasimraza555@gmail.comWeaknesses: Few promotion expenses and less consumed time spend for promotingour product. Low capitalOpportunities: We have to sell near shopping malls, schools and colleges and we haveeasy access to our suppliers. As area is surrounded by middle and upper class due to shopping plazasthey demand clean and disposable items, which we targeted to provideour customer. Fewer prices are charged relative to potent ional competitors attract themost. More then one food item offered at a time. Comparative unique and entertaining menu we offer from competitorThreat: Large number of potentional competitors who capture the large number ofcustomers from the market.4.4 COMPETITORS PRICE LISTEXISTING HEALTHY COMPETITORSNAMEPRICE OFFERSLahore Refreshment centre Rs. 55Dehli chat house Rs. 55Chatkhara chat house Rs. 40Hot & Spicy Chips (per box) Rs. 25Ever Fresh Refreshment (per samosa) Rs. 10
  17. 17. Commercial Refreshment Corner Qasimraza555@gmail.com5. Design and Development plan5.1 Goals for Product DevelopmentEvery entrepreneur who stars his business thinks he will earn a great name andhuge amount of money from his business he thinks of snatching even a pennyfrom the pocket of his customer through his business in future. But snatchingmoney from ones pocket is not that much easy as he thinks of. It need a greateffort and need to change strategies for design and development of his productstime to time according to market needs. As we know new innovations are beingacquired on daily basis and every type of customer need more innovative thingsso our focus is to generate new ideas for producing our product and enhancesthe quality of traditional fast food products. So our goal will be serving people asgood as we can and produce more innovative products to capture the market andincrease our earnings.5.2 Development Procedures Gather ingredients. Determine the production process. Giving shape to the product as if the following orders are received: Samosa: A shape of samosa will be prepared and the neededmaterial will be inserted in the given samosa shape and will be fried inoil for 5-7 minutes. Dahi Bhally: All the required material like Dahi, bally, chat masla,etc. will be mixed in a plate. Finger Chips: cutting potatoes in finger shape boiling them for 5-8mints in oil and chat masala will be used on it for taste.
  18. 18. Commercial Refreshment Corner Qasimraza555@gmail.com5.3 Scheduling and Costs:Product Elements Tasks Cost(Rs.)Samosa Yeast powder,Potato, Tomato,Red Chili, Onion,Dania Cooking OilKnead the yeast and give itshapeCut potato and boilCut tomatoes and onionMix all the raw material and putin samosa shaped packet andboil.5/-Dahi bally Yoghurt, Bally,Crisp, Dhanya, chili,Onion, tomatoMix all the items in a plate andserve30/-FingerChipsPotatoes, Chatmasala cooking oilCut potatoes in finger shapeBoil for 5-7 minutes put chatmasala on it and serve5/-5.4 Development budget Material: Raw material need for development of product arranged in time. Direct labor: Direct labor cost associated with the development of theproduct will be bared. Overhead: Overhead expenses required to operate the business duringthe development phase such as rent, electricity, gas bills. Marketing & sales: The salaries of marketing personnel required todevelop pre-promotional materials and plan the marketing campaign thatshould begin prior to delivery of the product in the university. Professional services: Those costs associated with the services of chefshired from the outside renowned businesses.
  19. 19. Commercial Refreshment Corner Miscellaneous Costs: All other costs that are related to productdevelopment.5.5 Personnel DevelopmentFor development of product every company needs some more expertiseto perform the job in more sophisticated manner so that the shape and theserving style of the product to customers put impact on psychology of thecustomer. For this purpose we will be hiring more employees for different taskswhich are as follows: A well trained experienced cook will be hired who can perform batter andfast, which will save time and do good job in less time. Helpers for cook who will be helping the cook in cutting material while heis preparing an order for a customer Waiters well trained and experienced waiters will be hired who are havinggood personality and good behavior with the customers.5.6 Assessing RisksAs it is understood that “Commercial Refreshment Corner” is running a foodbusiness that’s why there are almost all kinds of risks that are being faced byother food serving businesses like McDonalds and KFC etc. As far as high riskinvolvement is concerned in this business, we will highly take care of ourproducts and services and will do effort in maintain our quality for customer’ssatisfaction.Following are the most common risks that can be faced: Technical Risks: We might not be giving a good look to our product which canattract the customer. It is possible that we are not setting up a good framework forour product.
  20. 20. Commercial Refreshment Corner We might be investing on a product that might not worth thatmuch. We might not be giving to our customers what they need orexpect from our business. Marketing Risks: Advertisement is the easiest way to let people know you. It isthe shortest way of becoming known to people. Butsometimes wrong advertisement of your company and yourproduct can lead u to lose your name in the market It is possible that what we are advertising about our businessand product, that might have wrong impact on thepsychology of the customers and we lose our name in themarket. We might be entering into the wrong market place. It is possible that our pricing strategy might not beaccordingly with the buying power of the customers arrivingat our stall. We might not have the right product at the right place. We might not be advertising enough so that the people couldknow us. Personnel Risks: The people we are hiring for performance of different jobsmight be not well trained Our employees may misbehave with customers due to loadof pressure
  21. 21. Commercial Refreshment Corner Financial Risks: The most common of risk in the development process ofour product is the availability of capital. It is most probablethat we might not have enough capital at that time. If we are borrowing money from our friends and family, wemight not be able to pay this loan back to them which canlead us to bankruptcy. The money we are investing on a product might not be somuch responsive and may not be able to pay us back in theform of cash inflow. We might face the problem of unable to pay our bills andmeet our day to day expenses in easily.
  22. 22. Commercial Refreshment Corner Qasimraza555@gmail.com6. Operations and Management Plan6.1 Management Plan:The organizational structure can vary according to the size of organization andalso depends on numbers of employees who are working in such organization toaccomplish their tasks. The commercial refreshment corner by nature exists insmall business category, therefore its management structure become narrow orflat. This business formed under the partnership of five members who share theirfunds with equal ratios. The commercial refreshment corner managementhierarchy is shown below according to operations performed in it.ManagingDirectorQualityControllerCRO ProcurementCFOMarketingOfficer
  23. 23. Commercial Refreshment Corner Managing Director:It control and manage all the operations performed bythe whole management. CFO:The chief financial officer controls the day to day financialoperations, maintain financial performance and minimize the financial risk ofthe business. Quality Controller:The quality controller is a key post in this businessdue to maintain the best quality of food items. Procurement Officer:The procurement officer performs the routinepurchasing raw material activity for the business. Marketing Officer:The major task of the marketing officer is to develop abest marketing strategy to attract customers against their competitors in themarket. CRO:The customer relation officer is the person who introduces himself tocustomers to build the relationship for the purpose of selling their products..6.2 Operational Plan:There are numerous businesses exists in the market who perform differentoperations to manage their business life cycle. The Commercial refreshmentcorner major operation is to provide quality food (Dahi Bhally, Samosas andFinger Chips) on low prices as compare to their competitors in the market andit also contains different day to day operation includes inventory
  24. 24. Commercial Refreshment Corner Qasimraza555@gmail.commanagement, quality control, product development, credit policy, personnel,customer growth and retention etc.“In the end, all business operations can be reduced to three words: people,product, and profits.” (Lee Iacocca quotes)Production Operations:The major operation of the business to provide quality food it includes: The manufacturing technique is used by the business to the developmentof product and it bear the low production costs Rs. 30/- and sale price isRs. 40/-. This business also maintains hygienic food quality and improves theretention of customers. This business also maintains their inventory control through experiencedprocurement staff. The products offers by the business are Dahi Bhally, Finger Chips andSamosas etc.Location:The best location plays a vital role in the success of business it includes: The business covers narrow space of area due to perform its activity onthe stall. The business performs their operational activities in the CommercialMarket zone Rawalpindi. This Commercial market is the core area of visitors who comes here withfamilies for the purpose of shopping.Legal Environment:Each and every business requires the permission and license for their legalityin such national and international market.
  25. 25. Commercial Refreshment Corner This business acquires legal documents to perform their operationalactivities in the market from Tehsil Municipal Authority (TMA) Rawalpindi..Personnel:This step includes the number of employees and their participation in thebusiness. The business contains five members who run operational activities of theventure. This business includes skilled and expert labor in the business operations. The pay structure is managed by the business to distribute equal amountof revenue among the partners according to their investment ratio. The major tasks performs by the employees are to accomplished theiroperational goals.Suppliers: The major supplier of the business is Hassan plastic centre narnkaribazaar Rawalpindi who provides us disposable items on whole sale price. The further supplier of the business includes Khan Sabzi Faroosh sabzimandi Islamabad. The business purchases all raw material items on cash basis rather thanadopt the credit policy.
  26. 26. Commercial Refreshment Corner Qasimraza555@gmail.com6.3 Overhead Expenses:S.No. Particulars Per unitCost (Rs.)Quantity Total Price(Rs.)1. Disposable Plates 1.40 600 pcs. 8402. Disposable Spoon 0.60 600 pcs 3603. Onion 30 6 kg 1804. Potatoes 40 16 kg 6405. Coriander 40 ----- 406. Oil 162 6 kg 9807. Yoghurt 60 12 kg 7208. Chat Masala 50 250 gm 509. White Grams 130 5 kg 65010. Panaflex Banner 400 ----- 40011. Plastic Chair Rent 12/ day 5 chairs 24012. Stall Rent 150/ day ---- 600Grand Total 5700/-
  27. 27. Commercial Refreshment Corner Qasimraza555@gmail.com7. Financial PlanOur main concerns will be aggressive time management, so that our labor costsstay under control, and proper purchasing, preparation and food handling to keepfood costs down, as well as managing the higher costs of vegetable items(potatoes and onion etc.).Growth will be sustained through a contribution to an expansion fund andpotential investment fro current investors in a “roll-over” plan and from potentialfuture investors.7.1 Start-up fundingWe are seeking Rs. 20000 for established our business and it will seek fromour five partners group by investing the similar amount in the kind of refreshmentbusiness venture. The partners of that business are liable to receive the earningsof the business in the sense of either profit or loss. Partnership Deed:The Partnership deeds the document that discloses all pertinentinformation to the investors about the company, proposed company operations,the transaction structure (whether we are selling food items or raising debtfinancing from the investors), the terms of the investment (share price, noteamounts, etc.), risks the investors may face, etc. Financial Documents:We are prepared different documents of the business including Profit andLoss statement, Balance Sheet and Cash flow statement that shows thebusiness financial position and also helps to investor to invest in right wayto earns profit margin. Profit and Loss statement:It shows the business total revenues, total expenses and alsodetermined the net profit of the business. Balance Sheet:It contains the total assets and total liabilities used by the business. Cash flow statement:It relates to the business cash operations including cash inflow andcash outflow.
  28. 28. Commercial Refreshment Corner Qasimraza555@gmail.com7.2 Projected Profit and Loss StatementCommercial Refreshment CornerProfit and Loss StatementFor the period ended October 26, 2011Particulars Amount (Rs.) Amount (Rs.)Sales 30000Cost of goods sold (10000)Gross Profit 20000Operating Expenses:Sales and marketing expenses 1500Operating supplies -Miscellaneous purchases 2000Miscellaneous supplies -Advertising expenses 500General and Administrative expenses 300Leased equipment 1500Stall rent 500Total Operating expenses (6300)Profit before interest and taxes 13700Interest expense -Tax expense -Net Profit 13700
  29. 29. Commercial Refreshment Corner Qasimraza555@gmail.com7.3 Projected Balance SheetCommercial Refreshment CornerBalance SheetAs at October 26, 2011Particulars Amount (Rs.) Amount (Rs.)Assets:Current Assets:Cash 15000Inventory 3500Other current assets -Total current assets 18500Long Term Assets:Stall 700Accumulated depreciation -Stove 800Total long term assets 1500Total Assets 20000Liabilities and Capital:Current Liabilities:Account payable 3000Other current liabilities -Total current liabilities 3000Long Term Liabilities:Long term debts -Total Liabilities 3000Paid-in Capital 9000Retained earnings 8000Earnings (Dividend)Total Capital 17000Total Liabilities and Capital 20000
  30. 30. Commercial Refreshment Corner Qasimraza555@gmail.com7.4 Projected Cash flow StatementCommercial Refreshment CornerCash flow StatementFor the period ended October 26, 2011Particulars Amount (Rs.) Amount (Rs.)1. Operating Activities:Net income 13700Depreciation -Inventory (3500)Accrued Liabilities -Account Payable 3000Net cash flow provided byoperating activities132002. Investing Activities:Fixed assets (1500)Net cash flow used by investingactivities(1500)3. Financing Activities:Long term debts -Dividend (5700)Net cash flow used by financingactivities(5700)Net change in Cash 6000
  31. 31. Commercial Refreshment Corner Qasimraza555@gmail.comReferences:Available On Demand
  32. 32. Commercial Refreshment Corner Qasimraza555@gmail.comAppendix 1:Pro-forma Title PageBusiness Plan submitted in partial fulfillment of the requirements of theEntrepreneurshipManagement Sciences DepartmentPlease ensure group members names in BLOCK CAPITALSNAME(s)Group leaderMember 1….Member 2…CourseClass, section, evening/ morningLecturerDATEAppendix 2: Table of Contents – Example
  33. 33. Commercial Refreshment Corner Qasimraza555@gmail.comTable of Contents1. Executive Summary……………………………….2. Business Description………………………………2.1 Aims and Objectives……………………………….2.2 Business and operations…………………………..3. Marketing Strategies………………………………..3.1 Market Segmentation………………………………..3.2 Positioning Strategies……………………………….3.3 Pricing Strategies…………………………………….3.4 Distribution……………………………………………3.5 Promotion Plan………………………………………3.6 Sales Potential………………………………………4. Competitive Analysis……………………………….4.1 Current and Potential Competition……………….4.2 Competitive Strategies……………………………..4.3 SWOT Analysis……………………………………..4.4 Competitors Price List………………………………5. Design and Development Plan……………………5.1Goals for Product Development……………………5.2 Development Procedure……………………………5.3 Scheduling and Costs………………………………5.4 Development Budget……………………………….5.5 Personnel Development…………………………….5.6 Assessing Risks……………………………………..6. Operations and Management Plan………………..6.1 Management Plan……………………………………6.2 Operational Plan……………………………………..6.3 Overhead Expenses…………………………………7. Financial Plan…………………………………………7.1Start-up Funding………………………………………7.2 Projected Profit and Loss Statement ………………7.3 Projected Balance Sheet…………………………….7.4 Projected Cash flow Statement……………………..References…………………………………………………Appendix 1: Pro-forma Title Page………………………..Appendix 2: Table of Contents – Example………………Appendix 3: Management Plan – Hierarchy……………..Appendix 4: Profit and Loss Statement Table 7.2……….Appendix 5: Balance sheet Table 7.3……………………..Appendix 6: Cash flow Statement Table 7.4……………..
  34. 34. Commercial Refreshment Corner Qasimraza555@gmail.comAppendix 3:Management Plan – HierarchyManagingDirectorQualityControllerCRO ProcurementCFOMarketingOfficerAppendix 4:
  35. 35. Commercial Refreshment Corner Qasimraza555@gmail.comProfit and Loss Statement – Table 7.2Commercial Refreshment CornerProfit and Loss StatementFor the period ended October 26, 2011Particulars Amount (Rs.) Amount (Rs.)SalesCost of goods soldGross ProfitOperating Expenses:Sales and marketing expensesOperating suppliesMiscellaneous purchasesMiscellaneous suppliesAdvertising expensesGeneral and AdministrativeexpensesLeased equipmentStall rentTotal Operating expensesProfit before interest and taxesInterest expenseTax expenseNet ProfitAppendix 5:
  36. 36. Commercial Refreshment Corner Qasimraza555@gmail.comBalance Sheet – Table 7.3Commercial Refreshment CornerBalance SheetAs at October 26, 2011Particulars Amount (Rs.) Amount (Rs.)Assets:Current Assets:CashInventoryOther current assetsTotal current assetsLong Term Assets:StallAccumulated depreciationStoveTotal long term assetsTotal AssetsLiabilities and Capital:Current Liabilities:Account payableOther current liabilitiesTotal current liabilitiesLong Term Liabilities:Long term debtsTotal LiabilitiesPaid-in CapitalRetained earningsEarnings (Dividend)Total CapitalTotal Liabilities and CapitalAppendix 6:
  37. 37. Commercial Refreshment Corner Qasimraza555@gmail.comCash Flow Statement – Table 7.4Commercial Refreshment CornerCash flow StatementFor the period ended October 26, 2011Particulars Amount (Rs.) Amount (Rs.)1. Operating Activities:Net incomeDepreciationInventoryAccrued LiabilitiesAccount PayableNet cash flow provided byoperating activities2. Investing Activities:Fixed assetsNet cash flow used by investingactivities3. Financing Activities:Long term debtsdividendNet cash flow used by financingactivitiesNet change in Cash