Bahria University Islamabad

Department Of Business Administration

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................5 B........................ Goals and milestone objectives............................................................................. 7 D............................................................................................................................................................................................................................. Marketing plan and strategy............................................ Organizational structure......... 9 B.......... 7 C......... Business Description............................... Management Team......................................................................................................................................................................................... 5 C....................... 4 II........... Capital budgeting...............................6 B................ 7 C.............................. Industry background.................................................................... Venture or firm background.......................... 11 B........................ Target market…………………………………………………………………………………………… ……………………………..................................................... 14 Page 3 of 26 ... Competitor................... Quality targets......................... 6 A..................................................... 9 A........................... 10 VI...................... Service support.........5 D......7 A................................................................................................................. 4 A............................................................. Income Statement.. Description of product/ Services... Balance Sheet............................................................... 9 V............................................................................................................ Statement of cash flows...............TABLE OF CONTENTS PAGE I...................................................... Executive Summary.............................................. Pricing strategy..............6 III....................... 12 C..................... Experience and expertise...................................... Operations and support..11 A........................................................................................ 13 D....................................... Financial Plans and Projections...

Appendix............ 20 Page 4 of 26 .................VII.................................................................................

while taking exceptional care of our guests and staff. Vision Through a shared commitment to excellence. We have also conducted the business description with its industry background.1. Executive summary This plan we are presenting here is for Green Heaven restaurant. We have divided our target markets into 3 different segments. We have also calculated the BETA of our restaurant by using HAMADA equation. Profitability index. good and healthy place to eat. The mainly emphasis on organic ingredients is based on Green Heavens dedication to sustainable development. We have also used capital budgeting technique like NPV. Green Heaven focus will be only on organic and creative ethnic food. We have done financial forecasting for 5 years along with pre-money and post-money evaluation. We further then discussed the operations and supports. We will continuously rive to surpass our own accomplishment and be recognized as a leader in our industry Page 5 of 26 . Green Heaven is an exciting new concept offering fresh organic food. payback period. Business Description Mission Green Heaven is a very great. balance sheet and cash flow statement for 5 years. We want to deliver the best possible quality and services and want to earn fair enough profit. IRR. 1. We have forecasted the income statement. a little about the venture and about the goals and objectives. service. it will combine an intriguing atmosphere with excellent and healthy food that will be really good for the people who will eat there. We have further discussed the marketing plan and strategy. we are dedicated to the uncompromising quality of our food. it will be a new medium sized restaurant that will be located in the middle of the Islamabad city in F7. people and profit.

The food market is greatly increasing due to the increase in the population of the people. Some of the well known restaurants in the city are Marriot. D. B. Description Of Product And Services Green Heaven will be offering the people of Islamabad a place where they will be having a great healthy food in a very good environment. Goals & Objectives We want to focus mainly on the customer satisfaction and want to create a good brand image for our restaurant. Recipes will be used to provide the customers with a diverse and unusual menu. C. Venture Background The venture that we will be launching will be a bit change from the others restaurant that are operating in the city We will be introducing for the first time an organic restaurant in the city with some of healthiest food menu and some fine quality services. Green Heaven will also be emphasizing on the healthy dishes.A. Savors etc. The chef that will be hired will be having a large repertoire of ethnic ingredients and recipes. Industrial Background Currently in Islamabad we will find a large number of restaurants and food huts providing different kind of foods. If our venture started running successfully and if we earn a lot of profit we will then purchase our own land for the farming of the organic food by ourselves under supervision of experience staff and we also have plans to open different branches of our restaurant in some other different cities of Pakistan. Jahangir. the recommendation of chef will also be considered. each and every of them have their own specialization. Green Heaven is planning that in many of things they purchase. Page 6 of 26 . Habibi.

and each segment is complementary to the others. We also do plan to raise menu rates as the restaurant gets more and more crowded and to make sure we are charging a premium for the feeling if being in the crowd Customers GREEN HEAVEN believes that the market can be divided into different groups that it will be aiming to target. the third group can be divided as health conscious who will be really willing to go for the organic food and the last group that will be really interested in the healthy food offerings will be the men and women that are on dieting. and most of these work really hard for earning more money. Because this wealth has come fairly easily for them. The first group can be divided as the rich ones. As the founder of GREEN HEAVEN has connection within the area of Islamabad and also in its neighbor city of Rawalpindi therefore we have an excellent feel for the area and its customers. the second group can be divided as young energetic group. They hang out with each other but they want to get away from it and use their money that they are earning on their health. it is particularly easy to separate them from their money again and they spend the most on drinks and food etc. Their life has become really busy and also of the people who help them in making them help in making that businesses possible.6 million.2. Management Market Segmentation Rich Ones Many of the rich are tech workers these days. which is a feeling of being in the crowd and having gotten it in life although the crew will be different and will not connect to each other in each segment. Marketing Plan & Strategies Target Market & Customers The current population of Islamabad is about 2. They will all share something alike. Page 7 of 26 .

A. Pricing Strategy Our menu will be fully about the organic foods. We will also visit different universities and colleges to inform the people about the benefits of the organic food Page 8 of 26 .Young energetic The restaurant will have an atmosphere that will encourage people to come as couples or some in groups along with their friends. C. Dieting Men & Women The organic food of GREEN HEAVEN will always have a line of extremely delicious very low fates meals. Promotion As far as the promotion of the venture is considered we will use Newspaper for the advertisement. GREEN HEAVEN will have separate tables for women in which they may sit together and may discuss all matters while feeling good about the food they eat at GREEN HEAVEN. Initially we will target to earn less profit as the venture will be new but with the passage of time once we make our hold strong in the market and attract more customer then slowly we will increase our margin depending on the sales and reaction of the customers. We will also place some banners in the main location of the cities. We will create a face book official page for it as well. Competition & Market Share As far as competitor in the organic food market is concerned we won’t be facing any of it as there is no organic restaurant around the city but we can face some competition from the other entire restaurant and it will be challenging for us to attract the customers from the normal food restaurant to the organic food restaurant. D. We won’t be providing anything else apart from it. GREEN HEAVEN does want to be a social place where people meet each other and develop network.

Page 9 of 26 . Our main target will be always the quality. C. Operations & Support A. We believe that if we can provide top quality healthy food and perfect environment then we are sure that we can really create a strong grip on the business and can really capture a lot of the market. Ali financial skills will be invaluable in keeping GREEN HEAVEN on the right track and making it more profitable. Management Team Experience & Expertise GREEN HEAVEN will be a having a really strong management team for the services. Computer. 3. It will be the part of our customer service and support as well. Ali will be responsible for the finance and accounting section as he is vastly experienced in it. Quality Targets One of our main focuses in all the entire venture will be about our quality. Technology Requirement As far as the technology is concerned so we won’t be in need of any such advance technology but still be in need of some of the electronic stuff like Air-conditioners. LCD. Software for the financial record.and we all introduce our venture to them. B. 4. conserve and restore the mental and physical well being of the personnel. Service Support All the services that we will perform. provide and arrange will be to purely promote. He has a vast experience of working in organization with more people. improve. In the last GREEN HEAVEN will be having chef Gulzar who will be totally responsible for all the cooking food stuff. Credit Card Machine. etc. MANSOOR SHAHZAD will be the general manager. Gulzar has a vast experience of 15 years and is well aware of the local community and people around. We will also be having our own website and we will warmly welcome the people to share their own feedback and to inform us of our suggestion too.

The most important thing towards GREEN HEAVEN is the financial success which will be achieved by having some strict controls over the financial records. GREEN HEAVEN has also do plan to raise their rates with the passage of time as the restaurants gets more and more crowded. Organization Structure Our organization structure for the new venture is given below in the Table Owner Restaurant manager Executive CHEF Financial Manager Assistant CHEF Line Cooks Marketing Manager HRM Manager Operation Manager Front line Manager Workers Page 10 of 26 . Success will be ensured by offering a very high quality services and providing a very clean environment along with really well decorated interior.

500. 16% in year 4 and 16% in year 5 of annually sales Cost of sales 10% of sales Admin & Selling exp 8% of sales excluding depreciation Balance Page 11 of 26 . Miscellaneous expense are increase by 2% of sales 8.000 Our business is 100% equity base business We use HAMADA equation to find out the Beta Use CAPM to calculate the cost of business sales increase by 3% annually for the first year 70% Of Sales collected in a period of sales 30% of sales collected in period of after sales 3% Increase in sales from 2nd month 7. Sales increase by 16% in year2 and 16% for 3rd year. 4. 3. Financial Plans And Projection Assumptions 1. 6.5. Utilities expense are increase by 15% of sales 9. We use financial calculator for calculations Startup capital is RS 1. 2. 5.

Sheet 2% of sales A/R increase by 25% of sales A/R increase by 40% of sales Stock increase by 5% of sales A/P 32% of sales A/P 23% of sales A/P 12% of sales A/P 7% of sales 10. If additional funds needed in the business we provide the funds by own Green Haven Income Statement Page 12 of 26 .

0 544 4984263 .) Generator 1.77146 Utility Expenses Total Variable Expense Total Admin & Selling expense 617353.7 45 477419. 831 642416.2859 699667.484 4 Year 3 5538070.5 kva Rent Expense Total Fixed Expenses Year 1 Miscellanea Expense 82313.7 723 6706824 .Income Statement Net Sales 4115688. 87 240000 432000 600000 540000 216000 108000 216000 240000 432000 600000 540000 216000 108000 216000 240000 432000 600000 540000 216000 108000 216000 240000 432000 600000 540000 216000 108000 216000 240000 432000 600000 540000 216000 108000 216000 51000 11004 10008 720000 51000 11004 10008 720000 51000 11004 10008 720000 51000 11004 10008 720000 51000 11004 10008 720000 3144012 3144012 71612.0 395 1185251 .05 7 Earnings Before Tax & Interest Interest Expense Earnings Before Tax Income Tax (40%) Earnings After Tax 684160.489 474100. 544 553807. 723 745202.489 Year 4 6424161.489 1964403 .5 957 1964403 .648 785761. Page 13 of 26 .484 4 0 684160.057 4 3843679.573 Less: Cost Of Sales 956170 3159518.951 1149949.648 Year 5 7452027.951 A.189 1724923 .0 395 203300.484 4 0 684160.87 45 4296778.648 2874872 .1 831 5781745 .951 508250.4 59 2874872 .8 305 3788528.771 Gross Profit Admin & Selling Expense Manager Kitchen Supervisor Chefs Servers/ Waiters Delivery Boy Dishwasher Cleaner Dep.0 237 711150.981 17 572903. 8936 1178642 .01 58 1185251 .84 93 644516.57 3 Year 2 4774198. Expense Floor Air Conditions Freezers (12 cf. 831 3144012 3144012 3144012 75000 76880 77650 580000 596450 610290 655000 673330 687940 3799012 3817342 3831952 508250. 18 304950.

8 321208.535 299000 2.973.5 7 205784.6 66 Balance Sheet Current Assets 353.5 238709.700 227000 3.1 3.421.8 76 2.838.530 1527743.535 2215228.993.613.67 58 1909679. Dep Book Value Net Plant Equipment Total Assets 75000 10000 65000 65000 10000 55000 55000 10000 45000 45000 10000 35000 35000 10000 25000 443000 2.453 1863007 223560.2 276903.211.154 Cash Accounts Receivable Stocks Liabilities Current Liabilities Accounts Payable Long Term Liabilities Long Term Debt Owner's Equity Equity Total Owner's Equity B.453 155000 4.921.237.9 17 2812587.370 63145.582. Dep Book Value 80000 11000 69000 69000 11000 58000 58000 11000 47000 47000 11000 36000 36000 11000 25000 Generator Less: Acc. Page 14 of 26 .53 2.840.879 1234706.973.Green Haven Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5 2751585. Dep Book Value 360000 51000 309000 309000 51000 258000 258000 51000 207000 207000 51000 156000 156000 51000 105000 Floor Ac Less: Acc.582.642 1500000 1054791.0 24 1699943.693 73 182.700 2569664.94 2.840.9 2 521.154 1.674.154 Non Current Assets Floor Ac Less: Acc.370 371000 2.993.700 3.568 722579.6 1.84 4.453 4.1 06 4471511.756 1027865.794.273.530 2.535 2.43 1.

Green Haven Cash Flow Statement Cash flow Statement Cash flow fro Operating Activities Year 2 Year 3 Year 4 Year 5 304950.879 63. Act Cash flow for Financing Activities N/P Net cash provided (used) by Fin.580 722.04 119422. Act Net Change in cash Cash Beginning Cash Ending Page 15 of 26 .146 182.2 436 540011.38 -245890.6 290733. 991 0 0 0 0 0 0 0 0 0 0 0 0 0 290733.73 85 2029005.568 722.02 37 711150.751.580 2.24 36 540011.7 71 6001 6001 6001 6001 (-) Increase (+) Decrease in A/R (-) Increase (+) Decrease in Inventory -674972.30 63 0 0 0 119422.8 706658 -32925 -38193.57 (+) Increase (-) Decrease in A/p 106213.89 36 1178642.7 385 2029005.3 063 -253987.7 -354436.146 63.93 -305548.586 Net Income/ Loss Add: Dep Net cash provided (used) by OP.26 506224.57 -44304.08 97647.568 182.9 91 353. Act Cash flow for Investing Activities Capital Expenditure (CAPEX) Net cash provided (used) by Inv.1 89 1724923.

8 384367 37885 9 29 51000 11004 10008 720000 31440 12 51000 11004 10008 720000 314401 2 51000 11004 10008 720000 3144012 75000 76880 77650 580000 65500 0 37990 12 596450 610290 673330 381734 2 687940 Earnings Before Tax 272009.8 699667.) Generator 1.7 71612.9 0 98566 9. 64451 1 6.4 10434 260682 0 0 260682 0 104272 8 156409 Cost Of Project Initial Investment in WC Net Cash flow over project life Net Sales Admin & Selling Expense Manager Kitchen Supervisor Chefs Servers/ Waiters Delivery Boy Dishwasher Cleaner Dep. Expense Floor Air Conditions Freezers (12 cf. 572903 3 . 5 Income Tax (40%) Earnings After Tax 0 394268 272009. 59140 17390 59 0 17390 59 695623 . 7 98 617353. 5 0 272009.5 kva Rent Expense Total Fixed Expenses Miscelleance Expense Utility Expenses Total Variable Expense Total Admin & Selling expense Earnings Before Tax & Interest Interest Expense Year 1 1266750 -50000 240000 432000 600000 540000 216000 108000 216000 98566 9.9 3831952 3620076 0 3620076 1448030 2172045 Page 16 of 26 .Green Haven Capital Budgeting Year 0 Year 2 Year 3 Year 4 Year 5 477419 4115689 9 553807 1 642416 2 7452028 240000 432000 600000 540000 216000 108000 216000 240000 432000 600000 540000 216000 108000 216000 240000 432000 600000 540000 216000 108000 216000 240000 432000 600000 540000 216000 108000 216000 51000 51000 11004 11004 10008 10008 720000 720000 314401 31440 2 12 82313.

5 0 0 1. 5 59740 2.9 6001 59740 2. 131675 0 5 6001 278010.Add: Dep Expense Opportunity Cost Salvage Value Project Net Cash flow C.9 0 0 35 6001 10494 36 0 0 2 6001 157009 3 0 0 2178046 0 0 278010.9 10494 36 157009 3 2178046 6001 Page 17 of 26 .

L C.89% 0.nyu.Inventory / C. Page 18 of 26 .pages.51 3.19 + 5% 44.47 1.83 1.28% 0.90% 0.29 68379 1 2.08 Global Resturant Industrial Beta www.11 37284 0 Year 3 Year 4 Year 5 1.84 1.30% 0.Year 1 Year 2 1.84 43165 12 1.86 1.49 0.34% 0.74% D.41% 0.L Net Sales / Total Assets Net Sales-COS/ Net Sales NPAT/ Total Assets NPAT/ Owner's Equity HAMADA Equation BL = Bu (1+(1-t) D/E) Bu = BL / (1+ (1-t) D/E) BL = Beta of leverage Company Bu = Beta of unleverage company D = Debt E = Equity BL = 1.90% 0.24%) + .09 1.90% 0.A .27 8.76% 0.5% + 1 (12.edu D/E = 13.30% 0.stern.11% 0.2 25855 87 9.23% 0.88 14009 44 3.38% Liquidity Ratio Current Ratio Quick Ratio Working Capital Total Asset Turnover Profitability Ratio Return On Investment Return On Equity Ratio Analysis Current Assets/ Current Liabilities C.83% 0.15% Bu = 1 Cost of Equity = Rf + B (MRP) + Lp + Mp 8.67 1.42% 0.C.26 1.A .

1027866/6424162 (886092) 6424162 (.44)^5 207183 Profitablity Index PI = PV of Future Cashflow/ Initial Cost 1523933/ 1316750 1.18342) 529718 .128411) 410165 .50 (763871) .S1 x M x (1-PQR) 2nd Year 356211 .231457) 688710 .1316750 + 278010.(Lo/So) Δgso . AFN Form ula (Ao /So)Δgso .44)^4 + 2178046/ (1.175690 – 711150 -476675 4th Year 3840453/6424162 (886092) .Net Present Value NPV = .90/ (1.71950 – 1724924 -1108163 Page 19 of 26 .44)^2 + 1049436/ (1.141774 – 1178642 -790698 5th Year AFN 4993154/7452028 (1027866) .44)^3 + 157009/ (1.50/(1.44)^1 + 597402.521642/7452028 (1023866) 7452028 (.210723 – 304950 -159462 3rd Year 297370/5538070.1273756/5538070 (763871) 5538070(.15 E.

420546846 Internal Rate of Return 51.49% Net Present Value 207183 Profitability Ratio 1.of years prior to full recovery + Unrecovered cost at the start / Cash flow full recovery period Year Year 0 Year 1 Year 2 Year 3 4 131675 278010.905.5 59740 10494 15700 Cash Flows 0 156 2.42 Years Pay Back Period Value of Resturant 31/12/2018 = FCF (1+g) / Cost of equity – g VOP = Rs 1.Payback Period No. 44133 60809 21781 Commulative Cashflow 0 484 7 9.000 Page 20 of 26 .9 36 93 131675 1038739.6 92 during Year 5 21780 46 43562 39 No.of years prior to full recovery + Unrecovered cost at the start / Cash flow during full recovery period 2.15 2.

00 RS255.00 RS51.000.000 2015 RS309.000 RS51.000 RS207.00 RS306.000.000 RS51. First Year: 12 months Depreciation Schedule Year Book Value Year Start Depreciation Expense Accumulated Depreciation Book Value Year End 2014 RS360.000.000 RS309.00 RS102.000.00 RS204.000.000 RS105.000 RS156.000 RS51. Life: 6 years Convention: Full-Month.000 2018 RS156.000 Page 21 of 26 .00. Salvage: RS 54.000 RS258.000 RS51.000 RS51.Appendix Depreciation Schedule Cost: RS360.00.000.00 RS153.000 RS51.000 2019 RS105.000.000 2016 RS258.000 RS54.000 2017 RS207.000.

000. Life: 6 years Convention: Full-Month.000 RS11.000 RS58.000.00 RS33. Expense / 12 = 51000/12 = 4250 Depreciation Schedule Cost: RS80.000 RS36. First Year: 12 months Depreciation Schedule Year Book Value Year Start Depreciation Expense Accumulated Depreciation Book Value Year End 2014 RS80.000 2016 RS58.Monthly Depreciation = Dep.000 RS47.00.000 Page 22 of 26 .000 RS11.000 RS11.000 RS25.00 RS44.000. Salvage: RS14.000 2015 RS69.000 RS11.000 2017 RS47.000.000 2018 RS36.000.000 RS69.00 RS11.000.000.00 RS55.00 RS22.00.000 RS11.

000 RS11.000 Monthly Depreciation = Dep.000.00 RS66. Page 23 of 26 .2019 RS25.000 RS14. Expense / 12 = 11000/12 = 917 F.

000 RS10.000 Monthly Depreciation = Dep.000 RS45.000 RS10.00 RS10. Salvage: RS15.000.00 RS20.000 2018 RS35.00.000.000 RS10.000. First Year: 12 months Depreciation Schedule Year Book Value Year Start Depreciation Expense Accumulated Depreciation Book Value Year End 2014 RS75.000 RS10.00 RS50.000 RS10.000.000 RS15.000 RS55.000 2015 RS65.000.000 RS65.00 RS30.00 RS60. Expense / 12 = 10000/12 = 834 G.000 RS10.00 RS40.000 2016 RS55.000.000 RS25.000.00. Page 24 of 26 .000 RS35.000 2019 RS25.000 2017 RS45.Depreciation Schedule Cost: RS75.000. Life: 6 years Convention: Full-Month.

500.500 RS55.000 2018 RS44.500 RS32.500 RS11.00.500.00.500.Depreciation Schedule (Motor Bikes) Cost: RS90.00 RS23.000.00 RS69.500 RS78.500 2015 RS78.500 RS11.500 2019 RS32.500.000.500 RS11.000 RS11.000 RS67.00 RS46.500 2017 RS55.00 RS34. Salvage: RS21.000 RS11. Life: 6 years Convention: Full-Month.000 RS44.000 Monthly Depreciation = Dep.000 RS11.500.500.00 RS57.000 2016 RS67. Expense / 12 = 11500/12 = 958 Competitive Edge Page 25 of 26 .00 RS11.000 RS21. First Year: 12 months Depreciation Schedule Year Book Value Year Start Depreciation Expense Accumulated Depreciation Book Value Year End 2014 RS90.

Opportunities  Line extension  Horizontal and vertical brand extension .Our competitive edge is that we will be the first in the market to introduce an organic restaurant in Islamabad which will be really a competitive advantage to us also because people prefer healthy food for themselves and we often find a lot of people that they do not compromise one health.Threats  Lack of supplies  No copyright  Competitors Page 26 of 26 . SWOT Analysis Strengths:  The first to introduce organic restaurant in the area  Hygienic and healthy food  More attraction for the people as it will be greatly beneficial to health Weakness  Attitude of staff  Employee turnover .