The document provides a business plan for a proposed sweet shop called "The Sweet Shop" in Maharagama, Sri Lanka. It will be run as a sole proprietorship by the owner, Sujan Himasha. The plan includes details on the owner's qualifications and experience, the shop's vision/mission/goals, market analysis of competitors and target customers, financial projections including startup costs and break-even analysis, and regulatory requirements. A marketing plan is also proposed which focuses on the 4 P's of marketing - product, price, place, and promotion.

1. Preparing Formal Business Plan- H7V5 34
Individual Assessment
Name:Sujan Himasha
Index number: 19s08063.

2. THE SWEET SHOP
Business Name: The Sweet Shop
Business type: Sole proprietorship

3. 3. Executive summary
This report is regarding a Business Plan for a Sweet Shop. The name of the shop is to be set as
“The Sweet Shop” and the location will be Maharagama city. I have planned to start up the
business as a sole trader where myself will handle all the costs of the business. This business
is different from its competitors in many ways. The Sweet Shop will provide online deliver
service via Uber and PickMe foods, thereby customers can order their pickles or juice from
wherever they are. We will mostly target the students of schools, classes and private
universities around Maharagama area. This business plan includes organizational structure,
financial analysis, personal details, business details and cooperate information. Furthermore it
includes how the business process will carry out, the market analysis and the internal and
external factors, which might affect the business. Finally, A research questionnaire and the
responses are included at the end of the report which is conducted to identify the potential
market of the sweets shop.

4. 4. Personaland Business details
PersonalInformation
Owners’ name
R.A.D Sujan Himasha
Owners’ qualifications
BSc (Hons) Business management
MBA in business administration
Knowledge in the industry
I think that I have some idea about the industry because I have observed how customers react
to such places and products for a period of time. So it will not be much more difficult for me
to operate in the industry and I believe that I’ll learn more about the market quickly.
Experience
I may not have experience in doing business in this industry, but as a person from a business
family I may have some sort of experience to operate a business. So I hope that it will be easy
for me to make this business idea a success.

5. Business Details
Business name
 The Sweet Shop
Business type
 Sole trader
Contact Details
 Mobile: 0769367620
 Land line: 0112228901
Location
 Maharagama
Cooperate information
Vision
To satisfy the needs, desires and demands of all valued customers.
Mission
The proposed venture is committed to innovate quality products and services.
Core Values
 Quality service
 Respect
 Integrity
 Value people
 Customer focus
Goals
 To become well known sweet shop in Sri Lanka
 Expand my business to other locations
Objectives

6.  Provide sweet you will want to eat over and over again, while also maintaining a
quality and attractive look for each product sold
 Improve the quality of nutrition content of pickles served to customers.
 To understand the customer behavior
Business logo

7. Market Analysis
Market Segmentation
Market Segmentation is a procedure of dividing the market of potential clients into various
categories and segments based on specific attributes. The individual from these groups share
comparable attributes and generally have at least one than one angle regular among them.
There are various reasons with respect to why market segmentation is finished. One of the
significant reasons advertisers segment the market is because that they can make a custom
promoting blend for each portion and cook them as needs be.
Market segmentation is one of the most efficient tools for advertisers to take into account their
objective group. It makes it simpler for them to customize their crusades, center around what's
vital, and to amass comparative buyers to focus on a particular crowd in a financially savvy
way. Market segmentation is being utilized by advertisers since the late 1900s. Straightforward
however it might be, it is of indispensable use to shaping any advertising arrangement.
Target Market
The best location to start up the ‘The Sweet Shop’is Maharagama, because a large number of
customers can be targeted in this area due to having of universities, Schools and mass group
classes. Maharagama is a well-developed area,Many people visit from various areas to
Maharagama for shopping and to go for educational institutes. Therefore it would be easier to
attract a large number of customers in this area. Mainly students of universities, schools and
tuitions can be targeted as this age group prefers to have sweetss, Which clearly explains that
a huge crowd can be attracted.
Market survey
Market survey is the review research and examination of the market for a specific product,
which incorporates the examination concerning client tendencies. An investigation of different
client capacities, for example, ventures properties and purchasing potential.

8. There are two ways to conduct a market research as primary and secondary research. Primary
is the fresh data and secondary is the data, which has being already collected. Primary would
be effective than secondary as it fresh data.
To identify the consumer buying behavior a market survey can be conducted and the best
method for ‘The Sweet Shop’ would be through observation and questionnaire, which are a
primary research method.
Through observation the buying habit can be identified, whether it has a continuous demand or
not and through questionnaire information can be gathered directly.
Competition
we are offering cakes, sweets and savories ranging from Rs. 15 but its competitors are offering
cake in Rs. 20. So for the consumer Rs. 15 is very much affordable. The sweet shop uses high
quality raw materials to make the best food products.
Suppliers
A supplier is a person, organization or other entity that provides something that another person ,
organization or entity needs. The role of a supplier in a business is to provide high quality
products from a manufacturer at a good price to a distributor or retailer for resale. A supplier
in a business is someone who acts as an intermediary between the manufacturer and retailer,
ensuring that communication is forthcoming and stock is of sufficient quality.
Environmental analysis
SWOT Analysis
Strengths
o Higher target market
o Unique from its competitors
o Using organic fruits

9. o Excellent customer service
Weaknesses
o Business is too dependent on the owner
o Lack of experience in the industry
o Start up cost is high
o Difficult to find raw materials
Opportunities
o Technological development
o Increasing market for sweets
o Target market from all age groups
o Hot weather will make customers feel to have cool juice.
Threats
o Similar products of competitors
o Bad weather condition will affect the supply
o High regulations as it is in food industry
PEST Analysis
Political
o High regulation when entering to the market
o Price regulations
o Tax policies
Economical
o Inflation rates

10. o Recession in market
o Unemployment rate
o Income of consumers
Social
o Consumer taste and preference
o Health awareness
o Quality expectations
o Customer service expectations
Technological
o Ability to target a wider market through E-selling
o Increase in productivity
o Internet advertising
o Use of machines with latest technology ensures quality and affordability

11. Five forces analysis
In the case of sweet supplier
power is low as there are many
suppliers providing the required
items such ,salt, sugar, so they
can be taken by bargaining.
Entry
potential
As there are some already existing
sweet businesses so it is difficult for
sweet shop to establish in the
market and to create an audience. It
is expensive and hard to enter into
the industry.
Competition
There are so many sweet
shop in the industry so the
competition is high for my
business and I have to
compete in price, quality,
and provide a
differentiated product
&service.
Power of suppliers Buyer power
According to my business buyers
have high power the reason because
there are many sweet shops in the
market. So they have an option to
select from. And also they can
bargain about the price of products
according to the other sweet shop
prices.
Substit
ute
product
s
There are some substitutes for pickle
in the market such as, fresh
fruit,veggie chips. But it’s not been
a high influenced to the business.

12. 6. Resourcerequirement and Marketing plan
Premises
Location of the business is very essential to the success of the business. So we must spend an
enough time to find an ideal location to start the business. The Sweet Shop is located in
Maharagama area. The reason because there are no any proper high stranded sweet shop in
Maharagama. This is a city where a huge number of people gather for shopping and to get day
today essentials. The city is also full of various kinds of shops, but there is no any proper Sweet
shop with good quality and with good looking so I can move my business among customers
easily. And also by using a floor plan for the sweet shop helps to know how much space we
need in our shop Such as a place for the people to queue, seating area.
Equipment
There is several equipment that needs to start up a pickle shop. It can divide into two main
categories. Like kitchen and shop.
 Kitchen
2 refrigerator, 5 machines, 4Blenders, 3 food processor, 10 ovens, 30
glasses, ,10spoons, 15 knifes, 5 bowls, 10 treys.
 Shop
3 tables, 15 chairs, 2 showcases, 1 cashier machine, 1 motorbike, materials required packing
sweets, material required to dispose of waste and equipment for cleaning
Labor requirements
The sweet shop will hire seven labors for the several tasks. I will hire a one head chef for my
kitchen & one assistant chef and one dishwasher to help head chef to make easy his tasks. For
the managerial staff I will include one shop manager, one cashier, and one storekeeper. I will
also hire a person as a delivery guy to deliver our products to our customers.

13. Marketing Plan
Marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand
or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion
and Place.
Product
Product refers to a good or service that a company offers to customers. Preferably, an item
should satisfy a specific buyer request or be convincing to the point that purchasers accept they
have to have it. Sample of products that Sweet shop is going to sell are listed below.
 candied nuts
 chocolates
 chewing gum
 sweetmeats
 pastillage
Price
Price is the cost consumers pay for a product. Marketers must link the price to the product's
real and perceived value, but they also must consider supply costs, seasonal discounts, and
competitors' prices. (Twin, 2019)
Our payment policy is all inclusive because we are quite aware that different people prefer
different payment options as it suits them. Here are the payment options that will be available
is our pickle shop:
- Payment by cash
- Payment via Credit Card or Debit card
- Introducing Ez –cash transfer system (which aims mainly in attracting students)
In view of the above, we have chosen banking platforms that will help us achieve our payment
plans without any difficulty.
Place
Place decisions outline where a company sells a products and how it delivers the product to the
market. (Twin, 2019)

14. The Sweet Shop will be built initially in the area of Maharagama. There are several residences
in Sri Lanka and there is also a young working crowds and students which can be targeted
easily. And also pickle products are available in Sweet shop’s online store.
Promotion
Promotion includes advertising, public relations, and promotional strategy. This ties into the
other three Ps of the marketing mix as promoting a product shows consumers why they need it
and should pay a certain price for it.(Twin, 2019)
Promotional Methods
 Special Discount
 Buy 1 Get 1 free
 Loyalty cards

15. 7. Regulatoryand legalrequirement
The legal requirements for a Sweet business may be change from country to country even from
cities to cities. Before start up a Sweet shop it is very essential to get clearance from local
health authority and foods agencies.
 Food safety and hygiene
Sweet shop is a food buying business. So, the main priority when it comes to food
products is food safety. Because, they deal to customers. All procedures relating to
food health follow HACCP principles. By using HACCP we are able to ensure our
procedures yield healthy eating sweets. A local authority also provides information on
food hygiene in our area. sweet products rely on high quality ingredients and raw
materials, strict supplier partnership schemes and safety standards.
 Health and safety
A health and safety policy ensures that the employer complies with the occupational
safety and health act and relevant state legislation. It provides guidelines for
establishing and implementing programs that will reduce workplace hazards, protect
lives and promote employee health. Health and safety as a sweet shop, as we buy eats
and deal with customers, we need to focus on health and safety. We must think about
the health and cleanliness of our goods and the shop before making sweets. Therefore
we need a certificate of kitchen approval, certificate of food handler and other valid
certificates.
 Training and legal requirements
Staff training legal requirement are one of the most important forms of training that an
organization can conduct. Before making the sweets we must provide the sweet maker with a

16. training course and legal requirement as a sweet shop. We can also provide our sales people
with a training course on how to promote our sweets shop products among our customers
And also before we start up the sweet shop we should obtain permission from the
environmental authority to ensure that the products are not harmful to the environment and
waste is not harmful to the environment.
8.Finance Analysis
Start up cost
Kitchen
Quantity Price Total
Refrigerator 2 80,000 160,000
Machine 5 15,000 75,000
Blender 4 8,000 32,000
Fryer 3 5,000 15,000
Ovens 10 175 1,750
Glass 30 120 3,600
Pan 10 80 800
Tissue paper 6 100 600
Spoon 10 125 1,250
Fork 15 150 2,250
Knife 5 750 3,750
Bowls 10 325 3,250
Trey 5 1,000 5,000
Total (Kitchen) 304,250
Shop
Tables 3 18,000 54,000
Chairs 15 2250 33,750
Showcase 2 20000 40,000
Cashier machine 1 18000 18,000
Motor bike 1 300,000 300,000
Total (Shop) 445,750
Cash for recurrent items 500,000
Registering and other cost 150,000
Total Startup Cost 1,400,000
The startup cost of The Sweet shop is 2000,000. That 1400,000 is divided in, 304,250
for kitchen, 445,750 for shop, 500,000 for recurrent items and 150,000 for registration cost.

17. BEP Calculation
BEP Calculation
Total Fixed cost per month 325,000
Variable cost per unit 150
BEP Calculation TFC 325,000
SP - VC SP - 150
Contribution BEP
Different Prices 200 200-150 50 6500
250 250-150 100 3250
Pickles 3250
The cost per unit is 150lKR and fixed cost 325,000. Accordingly, the variable cost is taken to
be
150LKR and the selling price 250LKR, when the variable cost is subtracted from the selling
price, the 100LKR is received as the contribution. So, the BEP value of Sweets are 3250
Direct material Kg Price Total Per Unit
Honey 5 250 1250 12.5
Chocolates 10 150 1500 15.0
Yeast 5 175 875 8.8
Biscuits 20 180 3600 36.0
Flour 5 150 750 7.5
Nuts 15 400 6000 60.0
Sugar 2 100 200 2.0
Salt 2 100 200 2.0
Other ingredient 1 300 300 3.0
146.8
Packing 1 300 300 3.0
150

18. Total Fixed cost per month
Depreciation Total cost
De pre.
Period
Dep per year
Dep. Per
month
Refrigerator 160,000 10 16000 1333
Machine 75,000 5 15000 1250
Blender 32,000 4 8000 667
Fryer 15,000 3 5000 417
Tables 54,000 10 5400 450
Chairs 33,750 5 6750 563
Showcase 40,000 10 4000 333
Cashier machine 18,000 10 1800 150
Motor bike 300,000 10 30000 2500
1 Total depreciation 7663
Shop manager 50,000
Cashier 40,000
Shop keeper 35,000
Head chef 45,000
Assistant chef 35,000
Dish washer 30,000
Delivery guy 30,000
2 Salary 265,000
3 Rent 35,000
4 Water 3000
5 Telephone 1500
6 Electricity 7000
7 Selling and Distribution 4500
8 Others 1337
Total fixed cost 325000
Cash Budget

19. Minimum requirement 3250
Sales Budget January February March April May June July August September Octomber November December Total
Units 3500 3300 3250 3400 3600 3250 3400 3600 3750 3500 3500 3500
Per unit price 250 250 250 250 250 250 250 250 250 250 250 250
Total sales 875000 825000 812500 850000 900000 812500 850000 900000 937500 875000 812500 875000 10325000
Expenses
Per unit requirment 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
No of units 3500 3300 3250 3400 3600 3250 3400 3600 3750 3500 3500 3500
Total honey requirement(Kg) 175 165 162.5 170 180 162.5 170 180 187.5 175 162.5 175
Per unit price 250 250 250 250 250 250 250 250 250 250 250 250
Total cost for honey 43750 41250 40625 42500 45000 40625 42500 45000 46875 43750 40625 43750 516250
Per unit requirment 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
No of units 3500 3300 3250 3400 3600 3250 3400 3600 3750 3500 3250 3500
Total chocolates requirment 350 330 325 340 360 325 340 360 375 350 325 350
Per unit price 150 150 150 150 150 150 150 150 150 150 150 150
Total cost for chocolates 52500 49500 48750 51000 54000 48750 51000 54000 56250 52500 48750 52500 619500
Per unit requirment 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
No of units 3500 3300 3250 3400 3600 3250 3400 3600 3750 3500 3250 3500
Total yeast requirment 175 165 162.5 170 180 162.5 170 180 187.5 175 162.5 175
Per unit price 175 175 175 175 175 175 175 175 175 175 175 175
Total cost for yeast 30625 28875 28437.5 29750 31500 28437.5 29750 31500 32812.5 30625 28437.5 30625 361375
Per unit requirment 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
No of units 3500 3300 3250 3400 3600 3250 3400 3600 3750 3500 3250 3500
Total biscuits requirment 700 660 650 680 720 650 680 720 750 700 650 700
Per unit price 180 180 180 180 180 180 180 180 180 180 180 180
Total cost for biscuits 126000 118800 117000 122400 129600 117000 122400 129600 135000 126000 117000 126000 1486800
Per unit requirment 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
No of units 3500 3300 3250 3400 3600 3250 3400 3600 3750 3500 3250 3500
Total flour requirment 175 165 162.5 170 180 162.5 170 180 187.5 175 162.5 175
Per unit price 150 150 150 150 150 150 150 150 150 150 150 150
Total cost for flour 26250 24750 24375 25500 27000 24375 25500 27000 28125 26250 24375 26250 309750
Per unit requirment 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15
No of units 3500 3300 3250 3400 3600 3250 3400 3600 3750 3500 3250 3500
Total Nuts requirment 525 495 487.5 510 540 487.5 510 540 562.5 525 487.5 525
Per unit price 400 400 400 400 400 400 400 400 400 400 400 400
Total cost for Nuts 210000 198000 195000 204000 216000 195000 204000 216000 225000 210000 195000 210000 2478000
Per unit requirment 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02
No of units 3500 3300 3250 3400 3600 3250 3400 3600 3750 3500 3250 3500
Total Mangoes requirment 70 66 65 68 72 65 68 72 75 70 65 70
Per init price 100 100 100 100 100 100 100 100 100 100 100 100
Total cost for Mangoes 7000 6600 6500 6800 7200 6500 6800 7200 7500 7000 65000 7000 82600
Per unit requirment 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02
No of units 3500 3300 3250 3400 3600 3250 3400 3600 3750 3500 3250 3500
Total Sugar requirment 70 66 65 68 72 65 68 72 75 70 65 70
Per unit price 100 100 100 100 100 100 100 100 100 100 100 100
Total cost for Sugar 7000 6600 6500 6800 7200 6500 6800 7200 7500 7000 65000 7000 82600
Per unit requirment 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
No of units 3500 3300 3250 3400 3600 3250 3400 3600 3750 3500 3250 3500
Total Salt requirment 35 33 32.5 34 36 32.5 34 36 37.5 35 32.5 35
Per unit price 300 300 300 300 300 300 300 300 300 300 300 300
Total cost for Salt 10500 9900 9750 10200 10800 9750 10200 10800 11250 10500 9750 10500 123900
Per unit requirment 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
No of units 3500 3300 3250 3400 3600 3250 3400 3600 3750 3500 3250 3500
Total ingredients requirment 35 33 32.5 34 36 32.5 34 36 37.5 35 32.5 35
Per init price 300 300 300 300 300 300 300 300 300 300 300 300
Total cost for ingredient 10500 9900 9750 10200 10800 9750 10200 10800 11250 10500 9750 10500 123900
Fixed Cost 325000
Administration Cost
Rent 35000
Electicity 7000
Water 3000
Salary 265000
Telephone 1500
311500 311500 311500 311500 311500 311500 311500 311500 311500 311500 311500 311500 378000
sales and distribution cost
Advertising 3000
Printing 1500
4500 4500 4500 4500 4500 4500 4500 4500 4500 4500 4500 4500 54000
Others
Other Expenses 1337
1337 1337 1337 1337 1337 1337 1337 1337 1337 1337 1337 1337 16044
Total cost 841462 811512 804024.5 826487 856437 804024.5 826487 856437 878899.5 841462 804024.5 841462 9992719
Net Cash Flow 33538 13488 8475.5 23513 43563 8475.5 23513 43563 58600.5 33538 8475.5 33538 332281
Cash Opening Balance 500000 533538 547026 555502 579015 622578 631053 654566 698129 756730 790268 798743 832281
Cash closing Balance 533538 547026 555502 579015 622578 631053 654566 698129 756730 790268 798743 832281 1164562

20. Income Statement
Sales 10,325,000
Total sales 10,325,000
Opening Inventory -
Purchases 6,184,675
Closing Inventory
Cost of goods sold 6,184,675
Gross profit 4,140,325
Cost
Manufacturing cost
Depreciation
Refrigerator 16000
machine 15000
Blender 8000
Fryer 5000
Tables 5400
Chairs 6750
Showcase 4000
Cashier machine 1800
Motor bike 30000
91950
Administration cost
Rent 420,000
Electricity 84,000
Water 36,000
Salary 3,180,000
Telephone 18,000
3,738,000
Sales and Distribution cost
Advertising 36,000
Printing 18,000
54,000
Others
Other expense 16,044
16,044
Total expenses 3,899,994
Operating profit 240,331

21. The income statement is prepared for the year (12months). The total sales during the year
10,325,000 and the cost of goods sold is 6,184,675. Thus, the gross profit is 4,140,325. The
annual
Total expenses are 3,899,99. Thus, when the total expenses is subtracted from the gross
profit, the
Operating profit is 240,331.