BUSINESS PLAN

Presente
d By:
SAHIL
MAHAJAN(2009MBA33)

ROCKY PANDITA(2009MBA32)
 TABLE OF CONTENTS

Section1 : THE EXECUTIVE SUMMARY

Objectives

Mission

Purpose

Section2: THE COMPANY SUMMARY

Start-up Summary

Company Ownership

Section3 : SERVICES

Section4 : MARKET ANALYSIS SUMMARY

Market Segmentation

Target Market Segment Strategy

Competition and Buying Pattern

Section5 : STRATEGY AND IMPLEMENTATION STRATEGY

Marketing Strategy

Competitive Edge

Milestone

Sales Strategy

Section6 : MANAGEMENT SUMMARY

Personnel Plan

Section7 : FINANCIAL PLAN

SECTION 1: THE EXECUTIVE SUMMARY

Description of Our Business:

We plan to provide a complete catering solution to the customers. It includes providing

catering services to the customers for parties and other functions and also solving the food
problem of students who are living away from their homes by providing them tiffins. So,
our business involves two businesses but both are interrelated.

We have our Tent & Light services business, which involves catering business also. Our
new business will inject life into our existing business. Our experience, skills in the existing
business and great market opportunities will make us to develop this catering business as a
separate segment followed by tiffin system.

Objectives:

* To create a service based company whose primary goal is to exceed customer’s

expectations.

*To increase the number of clients’ served every year through superior service.

*To develop a sustainable start-up business.

*To develop enough cash flows to pay all salaries as well as grow the business.

Mission:

Our mission is to provide the customer with finest catering. We exist to attract and
maintain customers. Our services will exceed the expectations of our customers.

Purpose:

Our purpose is to meet and exceed the customer’s needs in terms of quality of food and
excellence of service.
SECTION 2: THE COMPANY SUMMARY
Our company will offer high –end catering to the customers. Initially, it will serve parties
of 25-500 people including marriages and other functions. In case of tiffin system, it will
provide food to at least 150 students. For Tiffin services, our areas are Nanak Nagar,
Channi Himmat and Sanjay Nagar.

We will rent space for the office in posh areas like Gandhi Nagar or Trikuta Nagar. For
kitchen we will rent space in the areas where we planned to provide tiffin services.

Start-up Summary:

Our business will incur the following start-up costs.

> Two commercial stoves with ovens.

>Dishwasher

>Two sets of cookware

>Two sets of dishware

>One van with racks built in it

>Serving trays and utensils, knives and cutting boards

>Computer with printer

>Tiffins (400 in no.)

Company Ownership:

Our company is a 50-50 joint venture or a partnership business.

SECTION 3 : SERVICES

Our business will provide the customers with high quality catering. The catering service
will be for weddings, birthday parties and other functions. Besides this, it will provide food
services to students through Tiffin system. A kitchen or catering service must be set up to
provide both vegetarian and non-vegetarian meals. It involves both food and drink
preparation.

This will make us to have prohibition of veg and non-veg together or made in the same
kitchen by the same pots or utensils. So, we require atleast two kitchens for the preparation.

Moreover, it will provide a wide variety of dishes because:

1. Large number of menu items is a benefit to the customers.

2. A large selection is required for both meat and vegetarian meals.

Besides this, we will provide both normal and incentive meals. The incentive meals will be
offered to appeal to higher end. Obviously, non-veg is not so cheap. The ingredients costs
more, the varieties in it costs more. Moreover, in catering for parties and functions, the
charges for any type of food per person depends upon the no. of items involved in menu
list and the cost range of these items—whether high prices items or have normal price.
Also, for the Tiffin system, price will be charged for the type and no. of items.
SECTION 4: MARKET ANALYSIS SUMMARY

The catering market is an interesting one. There are several caters that offer services that
are quite similar to each other in terms of prices and menu options. For whatever reasons,
there has been a little demand by consumers to get caters to innovate their menu. This
market consists of two target segments that are differentiated by income.

Market Segmentation:

For catering in parties and functions, it has two distinct target populations:

1. Middle class clients: this group of people does not have huge amount of income,
recognizes that it is costly to sponsor a party, and is willing to incur the expenses, but try to
minimise them.

2. Upper class clients: This group is willing to spend whatever it takes to through a high-
end party or function.

For Tiffin system for students, it has three distinct target populations:

1. Lower class students: it includes the group which prefer to have one vegetable, rice and
chapatti, sweet dish, but no non veg.

2. Middle class students: this group prefer to have two or three vegetables, rice, chapatti,
sweet dish, salad, and may or may not prefer non-veg.

3. Upper class students: this group prefer some royal type of food which includes costly
items/veg for vegetarian students and different varieties of non-veg for the non-vegetarian
students.

Choice of items will be as per the choice of the students.

Target Market Segment Strategy:

To reach the different groups does not require a distinctly different strategy. What
differentiation it will require is different menu offerings needed to satisfy the different
groups. The upper- end menu items are cost prohibitive for the middle class target segment.

Competition And Buying Pattern:

There are several caterers in Jammu that serve the low to middle end of the market. These
caterers compete to some degree on the cost, but more on service. The quality and the
serving of the food are the main areas of service that the caterers compete on.

For high-end catering, there are four – five caterers in the competition. When cost is no
object in this group, then there are many people who are willing to pay the additional cost if
some different will be provided to them.

The buying habits of consumers is price sensitive at the lower end and for middle end of
the market are price sensitive to some degree. Between two different service providers, the
lower class will choose the service provider with less price with less concern about best
services. For middle class group, it will choose the service provider with best services. The
buying habits for high end of the market is price insensitive. Here, choices are made by
menu offerings, reputation and attention to services.
SECTION 5 : STRATEGY AND
IMPLEMENTATION SUMMARY

Our business will gain the market share in the catering and tiffin system market by
leveraging its competitive edges. These edges are superior attention to detail and innovative
meals. The edges that we will leverage are the areas that have been ignored in this market
for sometime. These competitive edges coupled with a targeted advertising campaign will
be our plan to increase the market share.

Marketing Strategy:

Our marketing strategy will be based on developing visibility among the customers. This
will be accomplished by targeted advertising campaign. The advertisements will be placed
in various local newspapers like Daily Excelsior, State Times and Amar Ujala.
Advertisements will also be done by using pamphlets and distributing them in the targeted
areas like students’ hostel areas, Pay in guest areas and moreover in different colleges and
in universities. These advertisements should yield a decent amount of service inquiries.

Competitive Edge:

Our competitive edge is the attention to servicing customers and inventive approach to
cuisine. We are approaching the market as if there was significant competition between the
different service providers. By making customer satisfaction a priority, over time, the local
customers will come to appreciate the attention that their needs are given and will form a
long lasting relationship with us.

Our other competitive edge is the innovative cuisine approach to food meals. We will take
the knowledge of innovative cuisine and will create inventive, colorful and delicious
alternatives.
Milestones:

Our business will have several milestones early on:

1. Business Plan Completion. This will be done as a roadmap for the organization. This will
be an indispensable tool for the ongoing performance and improvement of the company.

2. Kitchen and Office set up.

3. The first catering job.

4. Offers for providing Tiffin services.

5. Profitability

Sales Strategy:

Our sales strategy will use a combination of superior customer attention and a
comprehensive list of dishes for the menu to turn the information seekers into customers.
When a customer calls to get the information about our business/ service, it provides us the
opportunity to turn them into a customer.

Another information that we will leverage to develop sales is our comprehensive menu. In
addition to all the traditional dishes, we will offer many innovative and new dishes. It is
believed that an innovative available menu should be seen as a large benefit.

SECTION 6 : MANAGEMENT SUMMARY

 Eroz Singh and Neeti Magotra are the founder and owners of this business. They enter into
a partnership type of business. At the initial stage, we will handle all the issues related to
bookings, orders, salaries of workers, availability of raw material/stock, etc. moreover, the
financial activities will also be handled by both of us.

Personnel Plan:

Besides utilizing the skills and experience, we will require the following personnel:

1. Supervisor: to inspect and confirm that all the ingredients and preparation will be done
in the defined and structured manner.

2. Cooks: two will be hired permanently to prepare the food and temporarily will be hired
as per the requirement of the parties.

3. Back kitchen help: two people will be hired permanently to help clean up in the kitchen
as well as assist at functions.

4. Servers: two will be hired permanently to packed the food in Tiffins and provide them to
the customers.

5. Driver: for the van to place the Tiffin orders, will be hired permanently.

Personnel plan will be done permanently for Tiffin system facility. While for catering in
different functions, personnel planning will be done temporarily and as per the requirement.

SECTION 7 : FINANCIAL PLAN

 FIXED ASSETS

QT
ASSETS Y. CAPACITY PRICE TOTAL
Food processor 1 5495 5495
Juicer mixer grinder 2 2395 4790
1200
cooker 2 6 ltr each 2400
dresses 8 500 4000
refrigirator ,dishwasher,microwave and $100,00 10000
ice maker 1 king size 0 0
350
pans 5 king size each 1750
plastic cloth for tables 1 king size 600 600
computer 1 latest 18000 18000
bar code reader 1 usage 5300 5300
silver coil 1 king size 600 600
2500
gas stove 12 king size each 30000
trays 10 king size 50 each 5000
front desk(cash counters) 1 king size 6000 6000
chaIRS 3 FULL SIZE 800 2400
washbasin 1 2000 2000
medium size
karchi 12 and large 125 1500
600
fan 4 large each 2400
tube lights 6 large 60 each 360
350
cylinder and connections 10 14.5 kg each 3500
spoons 300 8 each 2400
plates 300 35 10500
10
disposable glass 100 packets 1000
tiffins 150 120 18000
13819
TOATAL 5
EXPECTED PROFIT AND LOSS STATEMENT FOR THE YEAR ENDING

2009-2010

AMOU
PARTICULARS DETAIL(TIFFIN CENTRE) NT
2,700,0
GROSS SALES 1500*150*12 00
LESS EXCISE: NIL
2,700,0
NET SALES 00
-
LESS: MATERIAL COST 55700*12 668400
LESS: MANUFACTURING ,ADVERTISEMENT AND LABOUR -
COST AND SALARIES 2000+2500*6*12 182000
LESS: SELLING AND DISTRIBUTION EXPENSES 50*30*12+400*4*12 -37200
ADD:OTHER OPERATING (ELECTRICITY,WATER, -
EXPENSES RENT) 4000*12+1500*12+3000*12 102000
171040
NET OPERATING INCOME C-(D+E+F+G) 0
LESS:DEP APPROX @ 20% -27640
LESS:INTEREST NIL
DEFFERED REVENUE EXPENSES nil
ADD:OTHER INCOME nil
168276
PBT:(PROFIT BEFORE TAX) 1
-
LESS TAX 13% 218758
146400
PAT:(PROFIT AFTER TAX) 2