Business Plan

Small Business Management
-Assignment-
TC/IS/2011/MS/118
Small Business Management : GMT – 4213
Department business and Management Studies
Faculty of Communication and Business Studies
Trincomalee Campus
Eastern University, Sri Lanka
( Business Plan )

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Business plan
11
KPWDR Weerasinghe,
Rasa Foods,
No.12/B,
Kandy road,
Dambulla.
T.P.+94777207092,+94662234569
Email. rasafood@gmil.com
Staywithfreshness..
..

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Content
Topic Page No.
01.Executive Summary .................................................................................................................................... 4
02.Vision and mission ..................................................................................................................................... 5
03.Company Overview ………………………………………………………………………………………………6
04. Marketing Plan ……………………………………………………………………………………………...7
05.Management plan ………………………………………………………………………………………...…...10
06.Operating plan ……………………………………………………………………..……………………..13
07.Financial plan ………….………………………………………………………………………………...17
08.Appendix

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01. Executive Summary
Rasa Food is one of fast food store that provides the best food service with quality products made with local
ingredients. As well as it has best hospitality services surrounding the organic environment. Today most
people are suffering from some diseases such as diabetes, blood pressures, cancers and fatty levers due to the
bad food habits of the human. Therefore, the people who are suffering from these diseases are trying to use
the local products.
We have forecasted to achieve an annual net profit of Rs.300,000 by the end of year 2017.All from an initial
planned investment of Rs.800,000.We have currently invested Rs.300,000 and are now looking for an
additional investment of Rs.500,000 to enable the business to start up.
Most people adapt to the fast foods due to the limitation of time. Every time they use foods which including
huge amount of fat, carbohydrate, colouring, sugar and also various soft drinks. We try to target the
customers who re working with limit time, suffering from some diseases. As well as most foreigner like to
use the local foods and beverages to take experience when they are travelling. We already provide the
service within the well-established natural environment.
The Rasa Food organization does their operation as a sole proprietorship and small business including 10
employees. The owner of the Rasa Food is the manager of its. Apart from the 09 employees, one accountant
will be recruited to maintain the daily exchanges and financial statements.
The business location of Rasa Foods is the Kandy road, Dambulla. When designing the service
environments, landscaping and some interior designing will be planned to use without harming the
environment. Mostly we plan to create the environment by using some materials which are being used by
the villagers such as (traditional kitchen equipment) pots for cooking, banal eves, with equipment which is
made out of Palmyrah tree leaves or coconut tree leaves for serving. Dambulla area is famous or the
farming. Mostly, Kurakkan, Undu, Rice and other farming products are grown in the rural area of
Dambulla such as Kandalama and Sigiriya.
Now the trend is moving from western foods to foods with local ingredients based on the customer
preferences. That is the business opportunity was identified to fulfil the market demand.

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02. Vision and Mission Statement
Vision
‘’ To provides the freshness for a
healthiest life ’’
Mission
‘’ We are providing local tasty for the
customers with quality product and
hospitality under the natural
servicescape ‘’

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03. Company Overview
Rasa Food is one of fast food store that provides the best food service with quality products made with local
ingredients. As well as it has best hospitality services surrounding the organic environment.
We hope to provide the service in the attractive servicescape including environment as a village with the
norms and all the treatments as villagers. Mainly, the environment provides more relaxation to the customers
without unexpected situation.
We are trying to provide all the products related with the environment (organic) without using meet and fish,
and also all the ingredients will be supplied assist with the local farmers for low cost but some raw materials
are grown in the service place. We will arrange all the aspects related with this small business with aim of
attract the customers who are preferred to use the local foods and some cool drinks such as steam hoppers,
hoppers, cutlets, pittu, dose, roti and juice with water melon, pineapple, tamarind, papaya, passion fruit,
soup.
Nowadays, most people are like to eat organic foods based on some health issues. Some people who are
living in foreign countries and town areas also like to use the domestic cuisine. As well as, today most
people are suffering from some diseases such as diabetes, blood pressures, cancers and fatty levers due to the
bad food habits of the human. Therefore, the people who are suffering from these diseases are trying to use
the local products.
We have forecasted to achieve an annual net profit of Rs.300,000 by the end of year 2017.All from an initial
planned investment of Rs.800,000.We have currently invested Rs.300,000 and are now looking for an
additional investment of Rs.500,000 to enable the business to start up.For the food production process we
will recruit local people who are expert for cuisine of local foods and beverages and to provide best
hospitality services.
The main objective is increase the customer preference under the better environment while increasing profit
and sales per annum. In addition to that we expect to continue long-term sustainability to the society.
Goals
 Grow the business by approximately 5% each month.
 Increase the customer retention rate by 10% each month.
 Minimum impact to the environment and society.
 Identify the organic ingredients from the environment.

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04. Marketing plan
4.1 Market analysis
Foods and beverages are urgent need of the human life. In past, most Sri Lankan fulfils their foods and
beverages by using vegetables, leaves, and fruits. They not much concern about the fish and meets and they
not concern about oily (fat) foods. Mostly they organically eat and cook the foods and other beverages.
Therefore they were able to spend their life style with healthy life and healthy body.
But nowadays, most people adapt to the fast foods due to the limitation of time. Every time they use foods
which including huge amount of fat, carbohydrate, colouring, sugar and also various soft drinks. We try to
target the customers who re working with limit time, suffering from some diseases. As well as most
foreigner like to use the local foods and beverages to take experience when they are travelling. We already
provide the service within the well-established natural environment. Anyone who prefer to the friendly
environment can come and take the foods and beverages under the few of local resources. The young couple
also come and eat foods with local beverages in the pleasure times. Most people are travelling for the
pleasure, pilgrimages and some of reasons. If they want eat some things when travelling, they can come and
taste the local foods and relax under the organic environment.
Now the trend is moving from western foods to foods with local ingredients based on the customer
preferences.
4.2 The competition
Nowadays, there are some competitors in my business area. When analysing the market, It clearly seen that
some business are doing fast food store and their customer bases. There are some strongest competitors such
as Perera & Sons(P&S), Mango Mango(Alankulama), Benthota Bake house and also small competitors such
as Ninu, Asela bakers and other grocery stores but, as a small fast food producer, Rasa food have distinctive
competencies to face the rival in my business areas. It may be the competitive advantages to the success of
my business.
Then, from the starting point of my business I try to response against dynamic business changes by adding
more competitive advantages to my business and convert it to the sustainable competitive advantages while
enhancing the customer relationship.
4.3 Marketing Strategy

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Product Rasa food has a variety of foods and beverages made with the local ingredients without fauna
(meets and foods). When I select this name as ‘’Rasa food’’, I concentrated the meaning with aim of to give
a quality of food, like ‘’tasty foods’’. The product is include :
Item Ingredients
01.Stream hoppers White rice flour , Red rice flour
02.Hoppers White rice flour
03.Cutlets Green jack fruit
04.Pittu Kurakkan, Corn flour , Madu flour
05.Dose Undu flour
06.Roti Kurakkan flour, Corn flour, White rice flour with sambola
07.Juice Water melon, Pineapple, Tamarind, Papaya, Passion fruit and mix fruit
08.Soup Mushroom, Vegetables, Leaves
09.Sweet Kawum,Undu Walalu, Kokis,
10.Wadei Undu flour and white rice flour with sambola
Table 01: foods and beverages with ingredients
Under the business logo, I expect to give the idea that native foods and beverages. Therefore, the green logo
was created with the cutlery. The slogan is mentioned as ‘’ Stay with freshness’’. Customer can easily
identify and memorise the slogan and it also give some enthusiastic to customer with to make the positive
contribution to sale.
Staywith freshness..
Figure 01: Business logo with slogan
Distribution Products will be distributed to final customers through the fast food store in Dambulla within
the well-designed landscape area.
Pricing We always try to continue the affordable price to the customer purchasing power. When we
determine the cost for pricing we consider the total cost as;
+ +
Figure 02: cost determination for pricing
Based on that, the price of product is:
Item Price (Rs. per item)
01.Stream hoppers 4
02.Hoppers 15
03.Cutlets 25
Cost of goods offered Selling cost Overhead cost

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04.Pittu 25
05.Dose 10
06.Roti 10
07.Juice 40
08.Soup 50
Table 02: Price of products
Promotion To pursue the customers and creating customer awareness, we use some promotional tool such
as social media (Face book), bundled price, publicity events (CSR activities) and catalogues.
People Our personnel will be recruited from the villages near to the business place with best way of talking
and neat appearances. We already put 10 employees for the cuisine and other works. We use green colour
uniform to them related with the organic environments and foods.
Physical evidence When, planning the business environment, the in store atmosphere is important condition.
Specific interior design (colours), exterior facilities (parking, landscaping), ambient condition re used to
enhance the customer convenience related with the concept of village.
Process All the cuisine process will be done in front of the customers by using pots without using plastics
and aluminium. Therefore it is easy to serve the hot foods with freshness.
4.4 Market Segmentation and targeting
Figure 03: Market Segmentation and targeting
A
B
C
D
E
F
Market segment A- Travellers (domestic, foreign)
Market segment B- Business people and workers
Market segment C- Youngest
Market segment D- Patients
Market segment E- Environment friends
Market segment F- Others

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05. Management Plan
The Rasa Food organization does their operation as a sole proprietorship and small business including 10
employees. The owner of the Rasa Food is the manager of its. Apart from the 09 employees, one accountant
will be recruited to maintain the daily exchanges and financial statements.
5.1 Organization hierarchy
Figure 04 : Organization hierarchy of Rasa Food
Manger
Employee – A
Employee – B
Employee – C
Employee – D
Employee – E
Employee – F
Employee – G
Employee – H
Employee – I
Accountant

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5.2 Business Details
Rasa Foods.
No.12/B,
Kandy road,
Dambulla.
T.P.+94777207092,+94662234569
Email. rasafood@gmil.com
VAT Details: Not VAT Registered
Legal Status: Sole Trader
Financial Year Start Month: April
5.3 Key people
01.Ms. KPWDR Weerasinghe
Job title: Owner and manger
Skills
Qualified with a degree of B.Sc (Mgt) sp. Marketing and as my experience , I have acquired a number of
skills. These include being able to manage people and deal with pressurised environments, to being able to
design a menu and select quality food. I have a local passion for food, and beverages. By using these skills
and my interest in food, I hope to create a highly successful specifics experience for my customers.
Responsibilities
As well as helping to serve in the local foods and beverages, and ensuring the customer experience is right:
I will be responsible for sourcing the local ingredients by visiting farmers, growers and bakers in the
region. From being a chef, I have a number of contacts in the area, and will use these contacts to source the
best ingredients and prices.
02.Mr. KMDJ Jayawickrama
Job title: Accountant
Skills

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Qualified with a Diploma in Accounting in Open University and completed AAT, Sri Lanka. He has
acquired a number of skills related with Accounting & Financial Management. He has abilities to
effectively manage the financial situation of the organisation.
Responsibilities
As well as managing the financial situation to serve in the local foods and beverages, and ensuring the
customer experience is right: He will be responsible for providing the well – managed financial statements
and hold down daily entry book.
5.3 Bank Details
Commercial Bank PLC.
Main Street,
Dambulla.
T.P +94667896540
We have an agreed overdraft limit of Rs.200,000 for the first 12 months.
5.4 Employees Details
Employees are selected based on the ability of cuisine and efficiencies of them. After recruitment, one month
probationary periods will be given. The quality of the workers will be evaluated while this period then, after
end of the month they become as a permanent worker of the Rasa food.
Following things are the minimum requirements to be fulfilled by the employees:
 Age limit between 30-45.
 Neat appearances and cleanliness.
 Communication skills.
 Experience(not essential)
The employees are selected by conducting a test.
Selection test
We will give a small tsk to prepare the one meal of the menu. We will give all the ingredients to prepare
those foods. Cleanliness, material handling, time management, and tasty of food will be evaluated after
finishing of the cooking.

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06. Operating Plan
6.1 Location Decision
I considered main factors when selecting this place such as customer accessibility, business environment
condition, availability of resources, the entrepreneur’s personal preferences, site availability and cost. As,
business location of Rasa Foods, I selected the Kandy road, Dambulla. These are the distinctive
competencies of this place.
 Convenience place to customers.
 Attraction place to do this business.
 Mostly, Dambulla is a hub of tourism (Central point of the Sri Lanka).
 Tourism attraction place.
 Easy to supply row materials for the production process.
 Near to A9 road.
According to my business place, it is possible to supply the row materials on times. All of the local
ingredients are available in this place and also easy to provide the labours for its.
6.2 Designing the physical facilities.
When designing the service environments, landscaping and some interior designing will be planned to use
without harming the environment. Mostly we plan to create the environment by using some materials which
are being used by the villagers such as (traditional kitchen equipment) pots for cooking, banal eves, with
equipment which is made out of Palmyrah tree leaves or coconut tree leaves for serving. The following
things are considered when designing the environments;
 Exterior Appearance
 Interior Appearance
 Ambient Conditions
 Interpersonal Factors
 Employee Appearance
 Employee Behaviour

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6.2.1 Servicescape of the business
Facility exterior
-Exterior design
-Signage
-Parking
-Landscape
-Surrounding environment
Facility interior
-Interior design
-Equipment
-Signage
-Layout
-Air quality/temperature
When designing the service environments, ambient condition is directly influence to the customer
satisfaction.
Ambient conditions
-Temperature
-Air quality
-Noise
-Music
-Odor
-Colours
Therefore, I considered colours and its influences to the business.
6.3 The Operation Process
2
Other tangibles
-Stationery
-Billing statements
-Reports
-Employee dress
-Uniforms
-Brochures
Inputs
Raw
materials
Cash Labour Equipment Information
-Designing
-Cleaning
-Processing
-Treating
-Cooking
-Storing
Operations
-Supervising
-Instructing

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6.3.1 Raw Materials
For the production process, I concern to use some raw materials and also all the raw materials are taken
from the selective farmers and also some are grown around the environment which surrounding my
business premise.(such as fruits).
Dambulla area is famous or the farming. Mostly, Kurakkan, Undu, Rice and other farming products are
grown in the rural area of Dambulla such as Kandalama and Sigiriya.Therefore, I plan to take the raw
matrials from the ;
 Kandalama
 Sigiriya
These are the raw materials which are supplied from these areas.
 White rice flour
 Red rice flour
 Green jack fruit
 Kurakkan
 Corn flour
Other raw materials are grown from the surrounding environments.
 Green jack fruit
 Pineapple, Tamarind, Papaya, Passion fruit.
These fruits are grown in the business environment for the landscaping with aim of increase the
attractiveness of the environment and to established the ‘localization’ on consumer’s mind.
6.3.2 Cash and labour
Cash
 Loan from the Commercial bank- Rs.500,000
 Own money - Rs.300,000
Outputs
 Undu flour
 Vegitables and mushroom
 Madu flour
 Water melon
 Coconut
Figure 05:Operation process of the production

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Labour
 No. of employees for gardening and other arrangements.(cleaning) - 03
 No. of employees for cuisine and other preparation - 07
10
07.Financial Plan
7.1 Financial Statements
7.1.1 Income Statement
Income statement for Rasa Foods,
for the year ending 31 December 2017
(Rs.)
Sales Revenue 1050,000
Cost of goods sold (550,000)
Gross profit on sale 500,000
Operating expences
Mareketing expences 90,000
General and administrative
Expences
80,000
Depreciation expenses 30,000 (200,000)
Total earning 300,000
7.1.2 Balance Sheet
Balance sheet for Rasa Foods,
for the year ending 31 December 2017

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7.1.3 Cash flow
statements
Cash flow for Rasa Foods,
for the year ending 31
December 2017
Assets (Rs.)
Current assets
Cash 150,000
Account receivable 80,000
Inventories 220,000 450,000
Investment 100,000
Fixed assets
Gross fixed assest 960,000
Depreciation (390,000) 570,000
Total assets 1120,000
Liabilities and equity
Current liabilities
Account payable 10,000
Others 10,000
Long-term debt
Bank loan 500,000 520,000
Ownership equity
Capital 300,000
Total earning 300,000 600,000
Total liability and equity 1120,000
(Rs.)
Sales income 275,000
Accounts payable 60,000
Others 10,000 370,000
Investment 25,000
Depreciation expenses 4,000
Salaries 150,000
Accounts receivable 5,000
Interest 8,500
Inventories 50,000
Other expences 2,500 (220,000)
Increase in cash 150,000

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APPENDIX
Service Blue Print

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