Entrepreneurship

Project report

Submitted To:
Mam Rameeza Ijaz

Submitted By:

Adeel Idrees 17232720-093

Ali Raza 17232720-037
Anum Almas 17232720-033
Rimsha Zainab 17232720-069
Uswa Hasanna 17232720-095

MBA 4rth Semester

Section
E

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 Table of Contents
Page No.
1- Executive summery ……………………………………………………….…………. 3
2- Business description …………………………………………………….…………….4
3- Feasibility report……………………………………………………………...….…… 4
4- Company strength and core competences………………………………….……….….5
5- Concept statement………………………………………………………………………6
6- Market feasibility……………………………………………………………………….7
7- Target market……………………………………………………………….….……….8
8- Assessment tools………………………….............…………………………………….8
9- Operational plan………………………………………………………………………...9
10- Production planning…………………………………………………………….………10
11- Material planning……………………………………………………………….……....10
12- Organizational plan……………………………………………………………….….….11
13- Step of hiring employees…………………………………….………………………....12
14- Ownership information………………………………………...…………….………….12
15- How to run a truck………………………………………………...………….…………13
16- Market plan………………………………………………………………….….……….14
17- Business organization………………………………………………...…………………15
18- SWOT Analysis………………………………………………………...……………….16
19- Financial Plan……………………………………………………………...…….………16
20- Balance sheet…………………………………………………………………………….17
21- Income Statement………………………………………………………………………...17

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Executive Summary:
Overview
The purpose of this business plan is to raise money for the developments of a gourmet food truck
while forecasting the food truck’s expected financial progress and operations over its first three years. We
provide mobile sales of food to customers in its targeted market. The company was founded by Adeel &
Ali in 2019.
Products and services
The primary revenue generation for this business will come from the sale and distribution of gourmet
street food served from the food truck that will operate throughout the Gujranwala area. The business will
specialize in serving food including the following:

 Burgers
 Coffee
 Tea
 Fresh juices
 Ice cream

Financing
Mr. Ali is seeking to raise Rs.700000 from a bank loan. The interest rate and loan agreement are
to be further discussed during negotiation. The interest rate of loan is 5% fixed interest rate within one
year. The financing will be used for the following:

 Development of the food truck

 Financing for the first six months of operation
 Capital to purchase a company vehicle

Mission Statement
Management’s mission is to provide the Gujranwala area (and other area where the company
expands) with inexpensive, high quality, food served from mobile platform.
Management Team

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 Through our expertise and knowing of good flavors of food we able to bring the operations of the
business to profitability within its first year of operations.

Expansion Plan
As time progresses, we expand its presence throughout Gujranwala & Lahore and its surrounding
by attending food truck gatherings, music concerts, trade show, sporting events and other venues that
feature a large number of people.

Business Description
We launched new food truck service in Gujranwala area. The name of our company is “Hungry
Food Truck”. We provide different types of items in our targeted areas like:

 Burgers
 Coffee & Tea
 Fresh juices
 Ice cream
Our competitors are local restaurants and cafes.

Feasibility Report
General Description
Name of the company: “Hungry” Food Truck
Type of legal entity: Sole proprietorship
Significant assets: The significant assets of our business are truck, cooking machine,
coffee machine, Ice cream machine, computers (internet facility).

Mission statement
“Let’s Eat Well to Live Well”
We are in the mobile food truck industry with the aim of building a brand that can meet the needs
(foods, snacks, coffee, and drinks) of our esteemed clients in places where they can hardly access
standard cafeterias.
Company Goal and Objectives
 Obtain and increase new potential satisfied customer for the 1 st year.
 Try to manage the business with one truck through the year.
 Update menu, by including variety option of food for 2nd year.
 Make repairs in the truck and update all the equipment.

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Features of firm
 Provide services to our customer is our best feature of food industry.
 Our product made from fresh and local products (affordable prices).
 Menu includes: Burgers with (chicken, beef), Coffee & Tea, Ice cream (vanilla, strawberry,
chocolate), Juices (depends on your taste).
 If you buy food from our Food Truck you will get free/fresh newspaper, mint candy and also you
can seat and enjoy your meal with classic music or take out.
 However, for the 1st step we need an excellent promotion about our “Hungry” Food Truck. We
goanna do it through Social Media (Facebook, Twitter, Instagram) Also, Advertisement on TV,
Radio, Newspapers: Distribute brochures, flyers and etc.

Company strength and core competencies

Strength:
 Food industry knowledge
 Affordable prices
 Well known location or tourists
 Quality of food
Weakness:
 Capital
Opportunities:
 Tourists
 Foreign students
 Office employee
Threats:
 Culture / Uniqueness
 Climate

Core competencies:
To successfully run food truck, owner must possess various complementary abilities.
Some basic core competencies are as follows:
 Communication
 Leadership
 Professionalism
 Knowledge
 Business skills
Communication:
Owner of food truck are required to be able to effectively communicate with all their customers such
as:

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  Clients
 Suppliers
 Staff fellows
 Potential customer
Communication involves more than oral skills, it also includes the ability to listen, write and effectively
present information.
Leadership:
Leading is about more than being “The Boss”; true leadership is about demonstrating class,
character & practicing what you preach.
Talented leaders are sensitive to the organizational climate and use organic strategies for goal orientation
and facilitating change with an organization.
Professionalism:
Being a solid leader food truck owner must also exclude professionalism. This pertain too much
more than maintaining composure in the face of adversity; professionalism involves demonstrating and
encouraging learning.
Knowledge:
Knowledge is necessary to promoting professionalism is, of course, a thorough understanding of
the food truck business.
Knowledge includes:
 How to cook food
 Knowing Tourist and crowded place
 Knowledge about rates and prices of product
 Knowing about the taste and liking of customer
Business skill
Providing quality food at reasonable and low rate then the competitor at the particular stops to
make and retain potential customer.
Concept statement
Hungry food truck providing different types of burgers to its customer. And also provide Ice
cream, Coffee & Tea and Juices. Our main focus on quality of food that we provide our customer are
good or better within cheap and low price as compared to highly standard restaurants or cafes. People
easily order their food and received just in time. World is too much fast so every person needs everything
within limited time. So, we provide fast food to our customer in limited time as compared to others and
also set our standard through this. Provide healthy to our customer in unique style as compared to
restaurants and provide open sitting environment to our customer where their can enjoy their meal with
some music.
Three things to be liked about idea
 Eye catching Stylish food truck and its totally unique
 Easy to transfer to any crowded places or tourists place
 Better and standard food with cheap price

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Three suggestion for more improvement
 Different discount options
 Bargaining and feedback options
 can expand or change the menu on the customer demand
Is the idea feasible?
There are no more constraints for implementation of this service. It is legal and easy to
implement. We just have to make an application and deal some agreements with the wholesalers, landman
and buy a second-hand truck and we can start our business easily.

Buying intension survey

We made a survey of 50 persons in which we get 80% positive response about our idea. They are
willing to take our food in future and they also show an enthusiastic attitude towards our idea. Most of the
participates were those who directly purchase the food from restaurants or cafes. So, they were excited to
enjoy this facility and save their time.
Service Desirability
In this era life is going very fast. Nobody has that much time to travel the restaurants or cafes and
purchase the food within the line. Everyone is seeking for the best options which can save their time or
money. This is basically time saving service and also money saving system with great delicious food.
Service Demand
As I mentioned before 80% customer show their intension to use this product / Food. That service
is very convenient for customer to get the products by ordering. So, customer is demanding for this
facility. Its less time-consuming service and people enjoy this kind of staff and love the nature after eating
their meal. Customer always want some different with new style or unique.
Service Feasibility
As it is mentioned before this service is feasible. There are no more constraints for
implementation of this service. It is legal and easy to implement. We just have to make an application and
deal some agreements with the wholesalers and buy a second-hand truck and we can start our business
easily.

Part 2: Market Feasibility:

A. Industry Attractiveness
B. Target Market Attractiveness
C. Market Timeliness
Industry Attractiveness Assessment Tool:
 There is no competitor in terms of food truck providing such services because we are
providing first time this service. That will be first application in Pakistan market which will
deal with food truck.
 Age of our industry is old because indirectly this service was provided before in different
ways and products will also be same that are using before. But that will be more efficient
service than before.

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  Growth rate of our industry is stronger because customers are demanding highly this service.
 Net income will medium because we are providing first time this service and our profit
margin will be quite low and also expense will high because of application and transport
services.
 Degree of our industry is concentrated. Because all the facilities are available at one platform.
The Burgers, coffee, juices.
 Stage of our industry life cycle is initial phase because we are providing service our all the
city and we are providing first time but customer is already familiar with the products we are
providing. Just our services will be new.
 Through our survey we can conclude that the importance of industry and service is must to
have. Because we get 80% positive response.
 We will deal with medium and high class.
 Number of exciting new services emerging from the industry will be high because we can
expand our portfolio and products as well.
 Our service will be strong in long term prospects. Because we are dealing with daily base
products and providing a new and convenient facility to customer.
Target Market Attractiveness:
The target market of our industry is tourists, crowded area
Target market Assessment Tools:
 Our competitors are: Tested Restaurants, Bars, Cafes.
 Growth rate of our firms in the target market is at slowly level. But after some time, the growth
rate may be reach at moderate potential level when people get the awareness about the quality
and taste of our product or food.
 Average net income for firms in the target market is medium potential. Because we have
competitor in the target market but our profit margin is low.
 Method for generating revenue in the industry is somewhat clear because our service is well
demanding in the market and we will charge against every single service.
 Yes, we have ability to create “may or may not” for potential competitor. Because If any
competitor come into the market we can modify the service or can expand the portfolio but
cannot restrict them.
 Degree to which customers feel satisfied by the current offering in the target market at low
potential because this service is saving their time and energy. So, they are willing to use this
service.
Time line assessment tool
 Buying mood of customer is moderate because our service can be used by middle class will able
to use this. So, our potential customer will only of middle class so our customer buying mood will
be moderate
 Movement of the market is moderate and slowly gaining because we started the new business
 It is also in the Moderate for new firm in the market with your offering
 Yes, extend to which business and environmental trend or moving in favor of the target market is
medium with the moderate potentials.
 Rumors that large firms may be entering the market.
Management prowess assessment tool
 Passion for the business idea is high which help to work hard in the business
 Moderate relevant industry experience because we are fresher in the market

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  We do not have entrepreneurial experience it is our first business
 Yes, we have moderate depth of professional and social work
 High creativity among management team members
 Yes, we are graduated and still studding further for getting higher education which help for
successful business
 Experience and expertise in cash flow management is none
Resources sufficiency assessment tool
 The office space for our business is likely to unavailable. We don’t need an office to run our
business
 Manufacturing space is available because we need the manufacturing area for making the product
 Out source provider is available to get the raw material from those material
 Key management employees are available because we are starting the business
 Yes, key equipment is available for running the business (like cooking wave oven)
 Ability to form favorable business sole proprietor to expand our business

Operational plan:
Buy the second-hand truck modify it. Buy the chairs, tables, generator and other equipment’s
which need in the food truck. Buy the raw material hair the people and manage the FOH activities. Daily
activities are planned and perform according to schedule. Detailed information about processing.

 How much material we use

 How much time we need to complete the process

Operation system:

External
environment

Business input Transformation Business output

Feed back

Business input:
Breads, Eggs, Milk, etc.

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Transformation:
Cocking, etc.
Business output:
Burgers, Coffee, Ice cream, etc.
Process planning:
Take the bread cut into pieces and make the burger.

Process layout:
Three types of layout
i. Layout based on the process
ii. Layout based on the product
iii. Layout based on the marketing
We use the layout based on the product because we focus on the product and continuous flow
of production so layout based on the product is suitable for our hungry food truck business.

Production planning:
This achieved the good production planning.
Average sales forecast per month = 1500000
Price per unit =200
Number of outputs per month =7500
=
If the number of working days per month is 30 days
The amount of output to be produced per day is:
=50000

= 250units per day

Material planning:
Product No. Description Specification Quantity
1 Chicken For burgers 20 kg/day
2 Beef For burgers 20 kg/day
3 Coffee can For coffee 2 coffee can
4 Mayo For burgers 10 pieces/day
5 ketchup For burgers 10 pieces/day

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 6 Fruits For juices 1 Caton
7 Cheese For burgers 300 pieces/day
8 Ice cream corn For ice cream 100 corn/day

Machine and equipment planning:

Planed rate of production per day
Standard
No. of machine
= X production time
required
Machine productive time per day per unit

Manpower planning:
Planed rate of production per day
Worker standard
No. of worker
= X production time
required
Worker productive time per day per unit

Location planning:
where people are getter and roads are better. Easily get the customers.

Business and operational hours:

Usually spent 8 hours but special event spent more.

Overhead Requirement:
Such requirements which are the other then direct material and labor. Like tuck maintenance cost
indirect labor and material.

Operations budget:
Fixed asset expenditure:
Like truck, table, chairs expenditure.
Monthly expense:
Like salary
Other expense:
Other than fixed and monthly expenses like wages maintenance.

Implementation schedule:
It involves sequencing and allotting time to all project.

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Organizational plan
Basic human resource requirements
For food truck business with fewer employees, there are three basic things must implement to
cover the bases
1.Employee files
2. Employee handbook
3. Display required posters
Employee files
These files are maintained for employees in food truck business
Employee record maintaining a complete and comprehensive set of employee files is one
of the important things a food truck owner can do to limit their liability as a small business
owner. properly kept employee files can help to stay organized, reduce worker claims, lawsuits,
Employee medical record files maintain notes from doctors, disability information and
any medical information that you have an employee.
Employee handbook
Every food truck business must have an employee handbook, hand book serves two
important purposes
Letting your employees to know what you expect them and protecting business in case of
any internal or legal dispute .it also defines the compensation and benefits that to provide
employees both required by law and others that are unique to in own business.it also defines the
work schedules, working hours, ethics, legal aspects dress code and standards.
Display required posters
Depending upon the laws of the government required to post information in an easily
accessible place.

Steps of hiring employees:

Knowledge first
You cannot just hire people, pay them cash every two weeks or monthly knowledge of
employees includes employee eligibility verification, taxes wage rate, workers compensation
record keeping requirements, insurance information.
Define roles
When making our first official hires it’s better to go with clearly defined roles. that means
taking tasks and roles that required for achieving business objectives and goals.
Food truck business culture

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 Another factor to consider while hiring is food truck culture values and traditions do we
want to shape? if we share vision of the business with employees they are more likely to be
skillful in their jobs and long enough to give help in business success.

Ownership information:
Legal structure
Legal structure of our business is partnership form of business.

Full names of the owner

Names of owners are Adeel Idrees and Ali Raza.

Type of ownership
Type of ownership is partnership.

Percentage of ownership:
Percentage of ownership is equal that is 50% each.

Profile of management team:

Full name
Management team includes owners and employees which includes four members

 Adeel Idrees
 Ali Raza
 Hafeez Ur Rehman
 Sarmad

Primary responsibilities
Primary responsibilities of management team are to manage daily operations of the
business, purchase food and materiel for inventory, manage the suppliers fulfill customer orders,
driving the truck when needed, maintain a dual role as chef or cook.

Educational background:
Educational background of all members is that all are the business students and now
doing MBA from university of Gujrat.

Skills required for business:

 Work Ethic. It doesn't matter where you work having a good work ethic is a must.
 Be Prepared for Anything. This is basically the case for the restaurant industry in general.
 Patience
 Knowing the Menu.
 Being Positive.
 Time Management.
Salary:

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 Salary of team is about 10 to 15 thousand per month.

How to Run a truck?

 Method of community engagement is one of the and most fun to implement:
o Sell city themed stuff in food truck in local town the people feel pride and they will be
excited to see truck if we highlight some beloved cultural icons.
o local advertising is one of the most effective and cheapest way to spread the information
about truck. take out an ad in local newspaper for our target customers
o participate in events is one of the methods to run the truck because events are likely
happening around city all the time for example community art fairs, musical show, parks,
sports events and summer festivals etc.

Market plan
Recent Trend in Food Business: Food Truck

How to Segment

 Location

Our business location is Gujranwala

 Type of food

We provide Fast food, Coffee, Tea, Ice-creams and Drinks

Burgers with (chicken, beef), Coffee & Tea, Ice cream (vanilla, strawberry, chocolate), Juices
(depends on your taste)

 Price

We provide different types of burgers. The price of different burgers is 150 to 250.

 Style of service

Take away

Dine in

Drive through

Competitors

 Restaurants

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  Cafes

Substitutes

 Super markets
 Farming

Objectives

 Collaborates with the city hall

 Promote the street as a place to enjoy gastronomy
 Promote a street food based on product that are sourced locally
 Provide best quality of food
 Provide clean environment

The Concept

 Distribution of fresh-sustainable street food

 Strong image value
 Really attractive price
 Awareness
 Easily accessibility to our truck food

The Food Truck

Second-hand truck and buy recycled kitchen instruments

Install solar system

Eco-friendly touch

Business Organization

Legal status

 Investment We invest 700000 in our business

 The name is “Hungry” food truck
 Franchise if our business is work successful then we make new franchises in different cities

Sales & Offers

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 Customers:

3000 monthlies in winter & 5000 monthly in summer.

Distribution:

 Thorough direct sales

 Cooked on site and sold directly

Advertising:

We goanna do it through Social Media (Facebook, Twitter, Instagram) Also,

Advertisement on TV, Radio, Newspapers: Distribute brochures, flyers and etc.

Through tours

Promotion:

Provide student discount

SWOT analysis

Strength:
 Food industry knowledge
 Affordable prices
 Well known location or tourists
 Quality of food
Weakness:
 Capital
Opportunities:
 Tourists
 Foreign students
 Office employee
Threats:
 Culture / Uniqueness
 Climate

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Financial plan
Goals and objective:
 To increase 20% sales
 To increase our revenue from 20,00,000 to 24,00,000

Breakeven analysis:
Breakeven point is 640,000

Balance sheet:
Total fixed assets = 700,000

(truck = 300,000. Truck wrap = 50,000. Menu board= 20,000. Equipment = 100,000. Improvement/
inspection = 30,000. Generator = 65,000. 0ffice equipment 35,000. Other expenses=100000)
Total liabilities = 700,000
(capital = 550,000. Laon 150,000)

Income statement:
Total expenses = 11,76,000
Total revenue = 20,00,000
Net profit = 8,24,000
Average per unit cost is 200/-S

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