Business plan
WOLLEGA UNIVERSITY
COLLEGE OF ENGINEERING
AND
TECHNOLOGY
DEPARTMENT OF SURVEYING
BUSINESS PLAN FOR CAFTERIA
NAME OF THE PRINCIPALS ID NO
1. KENENI ADUGNA……………….1001229
2. LELISA KUMERA……………..…1001264
3. LOLE FUNA RACHO………….....1001286
4. KALKIDAN MENGISTU………...1001206
5. JIO GENETI……………….….…...1001186
6. MOHA BANE...…………….……...1001421
7. MAMO ALEMU…………….……..1001295
Date: Feb 26,2021
Phone no: 0917706608/0931220256
E-mail address: merkentreaty17@gmail.com
BIG SUCCESS DOESN’T COME WITHOUT BIG CHALLENGES
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Table of Contents
1.EXECUTIVE SUMMARY ................................................................................................................. 4
2. BUSINESS AND INDUSTRY PROFILE .......................................................................................... 5
3.VISION AND MISSION STATEMENTS .......................................................................................... 6
4. INDUSTRY ANALYSIS.................................................................................................................... 6
4.2 Key Industry Trends ..................................................................................................................... 6
4.3 Description of Key Competitors ................................................................................................... 7
4.4.2 Weakness ............................................................................................................................... 8
4.4.3 Analysis of Competitive Position .......................................................................................... 8
4.4.4 Competitive Edge................................................................................................................... 9
5. FINANCIAL ANALYSIS .................................................................................................................. 9
5.1 Important Assumptions ............................................................................................................... 10
5.1.1 Nature and Limitation of Projections ................................................................................... 10
5.1.2 Nature of Operations ............................................................................................................ 10
5.1.3 Revenues .............................................................................................................................. 10
5.1.4 Expenses .............................................................................................................................. 10
5.1.5 Break-even Analysis ............................................................................................................ 11
5.1.6 Projected Cash Flow ............................................................................................................ 14
5.1.7 Projected Balance Sheet ....................................................................................................... 14
6. BUSINESS STRATEGY .................................................................................................................. 17
6.1 Keys To Success ......................................................................................................................... 17
6.2 Description of Products and Services ......................................................................................... 18
6.2.1 Key Features of the Products and Services .......................................................................... 18
6.2.2 Future Products and Services ............................................................................................... 19
6.2.4 Pricing Strategy .................................................................................................................... 20
6.2.5 Promotion Strategy .............................................................................................................. 21
6.3 Comparative Advantages in Production ..................................................................................... 22
7. MARKETING STRATEGY ............................................................................................................. 23
7.2 Pricing Strategy ........................................................................................................................... 23
7.3 Promotion Strategy ..................................................................................................................... 24
8. OPPORTUNITY ANALYSIS .......................................................................................................... 24
9. DESCRIPTION OF MANAGEMENT TEAM ................................................................................ 25
9.1 Organizational Structure ............................................................................................................. 25
10.1.1 Equipment ......................................................................................................................... 26
10.2 Personal Plan............................................................................................................................. 27
12. BUDGET PLAN ............................................................................................................................. 27
12.2 Income Projection ..................................................................................................................... 27
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12.3 Cash Requirement ..................................................................................................................... 28
12.4 Source of Financing .................................................................................................................. 28
13. SUPPORTING DOCUMENTS ...................................................................................................... 28
BIBLIOGRAPHY ................................................................................................................................. 29
APPENDIX…………………………………………………………………………………………..
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1.EXECUTIVE SUMMARY
This profile envisages the establishment of a café having the name
“Vision café” for the delivery of cafeteria services in Nekemte town.
The present demand for the proposed service delivery is estimated
from different perspective and it expected to decline after five year of
its operation but through diversifying the customer service approach
we intend to handle the existing customers along with attracting new
customers. The total investment requirement is estimated at about Birr
500,000 and out of which Birr 300,000 is required for furniture and
kitchen equipment. From the total cost investment 30% covered by
Owns capital, the rest 70% will borrow money from Oromia
International Bank. The Vision’s marketing strategy is to show people
that it has an excellent product, convenient accessibility, and with a
community benefit. The product will be a range of hot and cold
coffee-based beverages and frappes similar to the market produced by
well-trained. The Shop’s pricing will be comparable to the
competition, but with the value-added feature of immediate service
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and convenience. The shop will be implementing a low cost
promotion.
2. BUSINESS AND INDUSTRY PROFILE
Vision café is a new café partnership with an expected to open in
September 23, 2023 G.C at the heart of Nekemte town, and expected
to give a standardize café service in Nekemte. Vision will specialize
in Fast foods, Dinners, Coffee, Tea, Milk, Mechiato, Cappuccino,
Frozen, Ice-cream, homemade cookies and other related activities. In
Nekemte town there are many cafe that give services to their
customers but they cannot still satisfy the need and want of the
customer in terms of both quality and quantity. In order to maximize
customer satisfaction so that Vision decide to open a café in Nekemte.
Vision target customers are intellectuals, artists, and writers with
reserved VIP seats, Wollega University lecturers and students,
couples, families and foreigners.
Vision café expected to serve this area well.This plan offers financial
institutions an opportunity to review our vision and strategic focus. It
also provides a step-by-step plan for the business start- up,
establishing favorable sales number, gross margin and profitability.
Establishing this cafe has beneficiary in maximizing the wellbeing of
the society from different perspective. Some of them are,
Increase the income of the owner
It create employment opportunity
It satisfy the need of the customer(quality and quantity) within a
reasonable price
It provide better place for younger’s in spending their time.
It contributes for the development of the surrounding area.
Increasing government revenue through taxation (Business profit
tax and VAT). In general these business increases the welfare of
society and this business does not result any environmental pollution,
since it have very low by- product and if any (is use as food for
cattle’s especially for pig farms).
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3.VISION AND MISSION STATEMENTS
Vision cafe will become the foremost coffee shop in the area. We will
serve a perfect product at a very reasonable price. We will also be a
meeting place for every individual that want to use cafeteria service.
Vision will create an atmosphere conducive to creative expression and
promote the creative process. The cafe's aim is simple. It will provide
a completely sophisticated, sensual, yet casual dining and/or coffee
house experience for the many Nekemte people and visitors who
frequent the town's casual dining spots and entertainment venues.
Vision aim to be able to employ several full time members of staff
and build up a team so that the partners can be clear of routine tasks
and consentret on day to day activities like meeting customer,
supervising the cafeteria, holding extensive promotion activity and so
on which help the business to develop well.
4. INDUSTRY ANALYSIS
4.1 Size of the Industry
In Nekemte, the industry is quite large, for example there are many
cafeterias and restaurants. We can found cafeterias in average almost
100 meter apart, but around Komto, almost no cafeterias, no
restaurants.
4.2 Key Industry Trends
This industry is booming at the present time, there is a trend toward
small cozy places and away from the large generic chain. The
cafeteria business does not show signs of slowing down. With new
innovations such as flavorings and additives, it should continue for
some time. Vision customers will be attracted by service in addition
to this they may be attracting through standardize customer approach,
building, chairs, tables, glasses and strategic placement.
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The restaurants and cafes that make up the community of
establishments in the area surrounding. Their concepts range from
typical fast food/chain venues to expensive fine dining
establishments. However, the predominating nature of the
immediately surrounding restaurants and ccafeteria is casual/upscale.
4.3 Description of Key Competitors
Of the few cafeterias in the area, some are large chain with a very
expensive product, others are really home style cafeterias, the last
one, and competitors are a traditional store with a "tea room". Vision
located in the heart of Nekemte, while its location near many
longstanding restaurants and cafeteria would seem to offer
considerable overflow, the café is easily seen from the street and
Wollega University is at a premium. Its concept has received very
favorable press in around Komto.
Lounge: Located at the behind of the Komto.
Strength
Consider quality of food and service with a reasonable price, and its
skilled manager together with its bright waiter can attract customers,
so it has acceptance (brand name) by the customer.
Weakness
No variation on menu or service it provides. Most of its activities like
the menu are limited.
Mati Restaurant: Located at near the Wollega University . The
location is on the street and can be perceived as a marginally safe
area. Nevertheless, the café remains wildly popular given the parking
difficulties.
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4.4.1 Strength
Often have interesting alternative dishes on the menu and designer
décor. The evening atmosphere is also so attractive and suitable for
customers.
4.4.2 Weakness
Even if there is widely varying standards of food and service, they
are often expensive which does not consider the buying capacity of
the customers.
Koket hotel: Located at around Kella, this is a corporate house of
different foods which provides coffee, tea, cakes and bergo service.
Strength
This cafeteria has relatively many customers because of its good
location.
Weakness
The quality of the goods, not giving evening service and are not that
much satisfactory beside the low price.
4.4.3 Analysis of Competitive Position
None of these establishments features a coffeehouse atmosphere or
live or recorded evening entertainment. Relative to the location of
these establishments, the center of town is centrally geographically
located. Its location will easily allow for passengers from those who
came others area. Vision pricing strategy and comfortable atmosphere
will be the key to our success. None of the other cafeteria in the area
can offer this.
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4.4.4 Competitive Edge
Vision will position itself as unique cafeteria where its customers can
not only enjoy a cup of perfectly brewed coffee but also spend their
time in an ambient environment. Comfortable sofas and chairs,
dimmed light and quiet relaxing music will help the customers to
relax from the daily stresses and will differentiate Vision cafeteria
from current competitors.
5. FINANCIAL ANALYSIS
Vision want to finance growth mainly through cash flow. Vision
recognize that this means we will have to grow more slowly than we
might like. The most important indicator in Vision inventory turnover.
And have to make sure that food inventory turnover stays at
approximately four turns per month. Vision do not want to let average
collection days get above 45 under any circumstances. This could
cause a serious problem with cash flow, because working capital
situation is tight. Most credit sales will be via credit and debit cards.
Also do have plans to initiate direct billing for law firms and other
businesses conducting regular visits. Vision must target a net profit of
14% at the least, and hold marketing costs to no more than one to
three percent of gross sales.
The Start-Up Expenses Include:
LEGAL expenses for obtaining licenses and permits as well as the
accounting services totaling Birr3,000
Marketing promotion expenses for the grand opening of Java
Culture in the amount of Birr3,000 and as well as flyer printing (1160
flyers at Birr0.50 per copy) for the total amount of Birr3,580.
Consultant’s fees of Birr3, 000 paid to ABC Espresso Services for
the help with setting up the coffee bar.
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Insurance (general liability, workers' compensation and property
casualty) coverage at a total premium of Birr2, 400.
Pre-paid rent expenses for one month total amount of Birr 20,400.
Premises remodeling in the amount of Birr10, 000.
Other start-up expenses including stationery (Birr800) and phone
and utility deposits (Birr 3,500).
5.1 Important Assumptions
5.1.1 Nature and Limitation of Projections
This financial projection is based on sales volume at the levels
described in the sales forecast section and presents, to the best of
management's knowledge, the company's expected assets, liabilities,
capital, and revenues and expenses. The projections reflect
management's judgement of the expected conditions and its expected
course of action given the hypothetical assumptions.
5.1.2 Nature of Operations
The company is in the project of producing and providing café
services. The company expects to be operating in 2014
5.1.3 Revenues
The company's revenue is derived primarily from the sale of hot
drinks, strawberries, and bagged composted manure products.
5.1.4 Expenses
The company's expenses are primarily those of salaries, utilities, and
insurance costs. Other expenses are based on management's estimates
and industry averages.
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General Assumptions
Year 1 Year 2 Year 3 Year 4 Year 5
Plan Month 1 2 3 4 5
Current Interest
7.00% 7.00% 7.00% 7.00% 7.00%
Rate
Long-term Interest
7.00% 7.00% 7.00% 7.00% 7.00%
Rate
Tax Rate 20.83% 20.00% 20.83% 20.00% 20.83%
Other 0 0 0 0 0
5.1.5 Break-even Analysis
The company's break-even analysis is given below.
Break-even Analysis
Monthly Revenue Break-even $36,974
Assumptions:
Average Percent Variable Cost 68%
Estimated Monthly Fixed Cost $11,832
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Chart 1. Profit monthly
Chart 2. Profit Yearly
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Chart 3 Gross margin monthly
Chart 4. Gross margin yearly
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5.1.6 Projected Cash Flow
The chart and table below contain the cash flow assumptions and
projections for Farmers Group during the first five years of plan
implementation. Year 1 monthlies are presented in the appendix.
Chart 5. Cash flow
5.1.7 Projected Balance Sheet
We project solid cash balance and net worth over the years of the
plan.
Formal Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
Assets
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Current
Assets
Cash $239,980 $180,177 $202,250 $201,210 $182,106
Accounts
$0 $0 $0 $0 $0
Receivable
Inventory $55,760 $24,586 $29,767 $31,136 $32,475
Other
Current $250,000 $250,000 $250,000 $250,000 $270,000
Assets
Total
Current $545,740 $454,763 $482,017 $482,346 $484,581
Assets
Long-term
Assets
Long-term
$500,000 $500,000 $500,000 $500,000 $500,000
Assets
Accumulate
d $0 $0 $0 $0 $0
Depreciation
Total Long-
$500,000 $500,000 $500,000 $500,000 $500,000
term Assets
$1,045,74
Total Assets $954,763 $982,017 $982,346 $984,581
0
Liabilities
Year 1 Year 2 Year 3 Year 4 Year 5
and Capital
Current
Liabilities
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Accounts
$6,984 $44,043 $55,960 $57,150 $59,399
Payable
Current
$346,000 $246,000 $146,000 $121,000 $86,000
Borrowing
Other
Current $0 $0 $0 $0 $0
Liabilities
Subtotal
Current $352,984 $290,043 $201,960 $178,150 $145,399
Liabilities
Long-term
$400,000 $375,000 $350,000 $300,000 $250,000
Liabilities
Total
$752,984 $665,043 $551,960 $478,150 $395,399
Liabilities
Paid-in $1,000,00 $1,000,00 $1,097,00 $1,097,00 $1,097,00
Capital 0 0 0 0 0
Retained ($684,600 ($732,244 ($730,280 ($676,943 ($602,804
Earnings ) ) ) ) )
Earnings ($22,644) $21,964 $63,337 $84,139 $94,987
Total
$292,756 $289,720 $430,057 $504,196 $589,182
Capital
Total
$1,045,74
Liabilities $954,763 $982,017 $982,346 $984,581
0
and Capital
Net Worth $292,756 $289,720 $430,057 $504,196 $589,182
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6. BUSINESS STRATEGY
Vision primary goals over the next year are:
Renovate our space in Nekemte.
Acquire equipment necessary for business, i.e. coffee pots,
cappuccino machines, blenders, etc.
Make agreement with the supplier of Vision raw material and
bakery vendors.
Create a cozy, artist friendly environment (i.e. choice of colors,
choice of music, decor)
Open for business and become the most popular café in the area.
Expand our business in different in area of the country
Targeting and maintaining a net profit of at least 14 % by the
second year.
To generate monthly sales to reach Birr 15000 by the end of forth
month of operation, and Birr 30000 monthly by the end of the first
year of operation. Vision use different attractive methods to get more
customers over time. For instance we provide less price compare to
the another cafeterias and we also provide some entertainment
activities for the customers like showing DSTV, inviting music bands
for special days like Valentine ’s Day and there will also be candle
night on Sunday. This plan includes chapters on the company,
products and services, market focus, action plans and forecasts,
management team and financial plan.
6.1 Keys To Success
The keys to success in this business are:
1. Product quality: Food, coffee-based beverages, and
entertainment are our products. They must be of the high quality
and value.
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2. Service: Vision patrons are paying to have a good time. Their
experience will suffer if service is not of the highest caliber. Each
member of the staff will be courteous, efficient, and attentive.
3. Marketing: Vision will need to target our audience early and often.
While the business is located in a central and accessible location,
many people will have to be reintroduced to the neighborhood .
4. Management: Vision will need to have a firm grasp on food,
beverage, and labor costs. The dining/entertainment/coffeehouse
experience must be delivered in a fashion that will not only inspire
repeat business, but encourage word-of-mouth recommendations to
others. Proper inventory, employee management, and quality control
is key.
5. The greatest locations - visibility, high traffic pattern, convenient
access.
6. The finest reputation - word-of-mouth advertising, promotion of
our community mission of charitable giving.
6.2 Description of Products and Services
The Vision café will offer high quality coffee, tea and cappuccino,
fast foods and dinner at a very reasonable price. Also sell homemade
cookies, cakes, brownies, and Doughnuts, with fair price.
6.2.1 Key Features of the Products and Services
All drinks will be made with filtered water and the highest quality
ingredients can get. Frozen drinks will have caramel or chocolate
syrup drizzled in the glass and over the drink. Cappuccino will have
whipped cream toppings as well as the option for candy sprinkles.
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Cookies will have the option of a chocolate or caramel dip and
sprinkles. also offer designer flavored cream and five kinds of
sweetener, i.e. sugar, honey, Equal, Splenda, and Sweet-n-Low.
Cream and sweetener is at no extra charge. Furthermore, the fast
foods includes chips, cookies, Burger, pizza, Mushebek, Baklaba,
Halawa, Fetera, and dinner include Kitffo, Key Wott, Minchet.
Vision will use only filtered water and will brew our coffee in
commercial coffeepots that will be thoroughly cleaned between uses.
Vision will bake and cook cookies, brownies, fast foods and dinner in
our own on-site oven from proven recipes, daily.
6.2.2 Future Products and Services
As seasons change, the shop will be offering products that will
enhance sales and satisfy its customers' desires. During summer
months, it will subsidize lower hot beverage sales with frozen coffee
drinks and other cold beverages. The shop will also have special
beverages during holiday seasons, such as new concoctions of hot and
cold beverages depending on the season. The shop will also take note
of the peak sales during pay day and school events to offer more
products. Its primary desire will be to listen to its customers to
ascertain what they are looking for most and provide it.
6.2.3 Service Strategy
Vision will use only filtered water and will brew our coffee in
commercial coffeepots that will be thoroughly cleaned between uses.
Vision will bake and cook cookies, brownies, fast foods and dinner in
our own on-site oven from proven recipes, daily. Our Cafe will be
giving quick and quality Dine-In and Take-out Service to our valuable
clients.
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To further maximize the daily market, operating hours will have an
early shift to meet the high demand.
6.2.4 Pricing Strategy
The Shop’s pricing will be comparable to the competition, but with
the value-added feature of immediate service and convenience. The
recipe costing, price list and direct costing are shown in App Vision
will use only filtered water and will brew our coffee in commercial
coffeepots that will be thoroughly cleaned between uses. Vision will
bake and cook cookies, brownies, fast foods and dinner in our own
on-site oven from proven recipes, daily.
Product/Service Description Price
Fasting food Birr 12.00
average
Meal Birr 20.00
average
Cake Birr 5.00
average
Coca-Cola coca- Birr 13.00
cola,mirinda,pepsi,sprite,7up,fanta per bottle.
etc.
Birr 8.00 per
mineral water It includes Abyssinia, yes etc.
1 LIT.
It include packed mama milk, Birr 10 per
Milk
cheese,lowz etc. one packed.
It includes coffee, tea,makiyato,
coffee\tea Birr 3.00
e.t.c.
Juice Papaya,avocado,Apple, Birr 20.00
Birr 5.00 birr
Pool house per game
Table 1. product services
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Chart 6. Sales by year
6.2.5 Promotion Strategy
Strategically, the vision cafe has a very convenient location in a great
ease of access. The cafe will be implementing a low cost
advertising/promotion campaign which could involve distributing
flyers and also word of mouth that has always proven to be the
greatest advertising program a company can instill.
There will also be banners, panaflex advertisements and tarpaulins
installed in a number of strategic parts of the Complex. There will be
several sales strategies which can be put into place, including posting
specials on high-profit items like, additional payment for toppings on
frappes. By giving coupons to regular clients, the shop will also give
free drinks to clients who will purchase 30 different or same coffee
beverages within a month.
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The client can avail the free drink by presenting the coupon,
registered to his/her name on the coupon which will be marked or
signed by any of the Barista assigned every time the drinks are
purchased. The shop will also explore window sales techniques if the
customer would like a freshly-baked product to go with their coffee.
A 5% discount will also be given to clients that will bring their own
cups. In order to maximize daily purchases, advertisements will focus
on the need for a cup of coffee everyday matched together with the
empowerment of women at work, school and the community as a
daily endeavor. To further boost presence online, a social media page
in Facebook or Instagram can be setup to highlight the same
advertisements. Promotional activities that highlight shares and likes
of Vision Cafe products will also be conducted. Moreover, visibility
of products and services can be boosted by providing the price list in
each building or office. This can lead potential customers to try out
the products and remind current customers to make daily purchases.
Within the next three to five years we expect to branch out into
catering and offer homemade pies, whole or by the slice.
6.3 Comparative Advantages in Production
Vision low overhead and cheaper pricing will be the key to VISION
success.
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7. MARKETING STRATEGY
7.1 Sales Strategy
Our sales strategy includes:
Establish coffee service at local businesses
Sell gift cards, frequency cards, pre-paid cards, and offer discounts
to key groups
Create an ongoing sampling program
Conduct a consistent, aggressive marketing program
Be an active member of the community; be visible at charitable
functions
Solicit customer feedback to constantly improve and streamline our
operation
Staff salaries that are 10% above the industry average in order to
attract the best people
Hiring for attitude so that Vision always have a friendly,
enthusiastic staff to make customers feel welcome and appreciated;
constant staff training to assure the best quality possible
To reduce customer waiting time, and create efficient product
ordering
Create a mobile kiosk to take Dark Roast Java into the community
at special events, farmer's markets, art shows, etc.
7.2 Pricing Strategy
Food, drinks, and entertainment options are priced to give us an
attractive margin while at the same time offering value to the
consumer. Vision want repeat business. And also want the experience
to remain fresh. Within lies why the food, beverages, and
musical/entertainment programming will be relatively flexible.
Comparing with other competitive cafeterias we will provide fewer
prices to our customers.
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Vision will offer two sizes of drinks, small Birr 4.00 and large Birr
7.00. Our cookies and brownies will sell for Birr 12.00 each.
7.3 Promotion Strategy
The first step that Vision take in promoting our cafeteria is
conducting an opening ceremony. On this ceremony different well
known peoples will be invited and some part of the customers will
also be invited. Also invite our neighbors to have a good public
relationship. Intend to advertise in the local newspapers and offer a
"frequent drinkers club" discount to our best customers. We will also
send out advertise through direct mail, which will include cents off
coupons. Vision will promote our company name and label almost
more than the product itself, because to be successful besides have to
stand for brand-name integrity, excellent menu offerings, and first
class entertainment and fun. Vision will have Happy Hour, price
reduction for special days, like holidays, Valentine’s Day. As well as
provide special Torta cake for those of who celebrate their birthday
parties in our cafeteria with low price.T One thousand one hundred
sixty(1160) flayers will be distributed in the adjacent neighborhood,
on the University campus, at the malls and in the selected office
buildings within two weeks prior to the opening of Vision cafeteria.
Subsequently, free postcards with Vision endorsement will be printed
to increase the company visibility among the patrons.
8. OPPORTUNITY ANALYSIS
The cafe will expect to create employment opportunities for 15
persons. The personnel plan calls for hiring 15 full-time salaried
employees at start-up. Any additional hires will be part time and
devoted to the expansion of any catering function, as well as
increased capacity/operation of a private party function.
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9. DESCRIPTION OF MANAGEMENT TEAM
9.1 Organizational Structure
The kitchen is the responsibility of the Chief who will manage kitchen
operations including keeping it clean. The critical task of maintaining
the food inventory and
Assisting in menu development will be performed by the head chef
and the two members who are responsible for doing all the purchasing
and inventory control.
The Deputy Shift Managers will assist in all areas and will be in
charge when the
Shift Managers are absent.
The cleaning and waiting services will be performed by the waiters.
The guards will protect the area by two shifts.
List our available current staff
Job Name
Purchase and
inventory control KENENI A
Shift manager LOLE F
Shift manager MOHA B
Deputy Shift
LELISA K
manager
Deputy Shift
MAMO A
manager
KALKIDAN
Cashier
M
Cashier JIO G
Table 2. Staff team
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10. OPERATION AND PERSONAL PLAN
10.1 Operation Plan
The operation of the project will start at the beginning of (2015 EC)
or from Sebtember 2023 after certain prerequest activities are
accomplished. The time schedule is stated as follows;
1. Developing the project Seb 1- Nov 29
2. Obtaining the license from concerned body Oct 30- Nov 20
3. Purchase materials and renting the building Nov 21- Feb 10
4. Promotional activity Feb 12- March 16
5. Start running the business from April 1, 2024
10.1.1 Equipment
Since we are starting a business, we have to list equipments and any
other assets we need or have acquired to establish our business and
we have to List items individually, or by type. The table below shows
to present this information as follow.Schedule of equipment and other
fixed assets needed at start of business
1. Coffee boiler machine 30,000
2. Milk boiler machine 34,650
3. Gepas and television with necessary facilities 83,000
4. Kitchen equipment 90,000
5. Refrigerator 15,000
6. Sofas and chairs (furniture) 170,000
7. Rental for building 30,000
8. Labor cost 32,100
9. Miscellaneous expenses 15,550
Total cost of the business; 4,99700
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10.2 Personal Plan
Employee salaries are as follows: Annual Salary (Birr)
1 General manager 13,500 - 42000
2 Chief 11500 - 18000
3 Line cook 21200 - 28800
4 Waiter 61700 - 122400
5 Dishwashers/Bussers 31500 - 54000
6 Guards 11500- 18000
Sub total 14 23600-1832000
Benefits (10% basic salary) 2360-28320
Total 25960-31152
12. BUDGET PLAN
12.1 Sales Projection
The most important indicators in our case are daily seating "counts"
and weekly sales numbers. Also make sure that we are turning our
inventory rapidly so as to avoid food spoilage. Our project to perform
at five years projects .from those out of which one would be a small
scale and others would be of an intermediate implementation. The
source of sales would be the fees for the feasibility studies.
12.2 Income Projection
SOURCE YEARS
OF
INCOME
1 2 3 4 5
Hot drinks 121875 148125 183900 202650 223462
&
Beverages
Cakes & 121875 148125 183900 202650 223462
cookies
Fast foods 243750 296250 367800 405300 446926
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Business plan
Lunch & 162500 197500 245200 270200, 297950
Dinner
Total 650,000 , 790,000 980,800 1,080,800 1,191,800
Table 3. Income projection
12.3 Cash Requirement
The business at least needs 499700.00 birr for business establishment,
commencement of operations and liquidity support. The shareholders
will have equal share and business are obtained in two ways.
From shareholders 30%
From Bank 70%
12.4 Source of Financing
The finance for this business would be obtained from shareholders
and banks. From bank, Vision provide the start up cash of 350000.00
birr it have interest from bank. Each members of the company should
buy share by 16,666.60. Hard work is expected from us to be
successful in competition and to return birr taken from the bank with
interest.
13. SUPPORTING DOCUMENTS
13.1 Legal agreements
The following agreements hold for all partners involved in the
venture:
In case one partner wants to part ways from the company he or she
must inform the company one month ahead of time
All company secrets should be protected by all members of the
organization
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Business plan
Salaries of employees would be paid when revenues of the
organization exceed 50% of first months cost
Dissolving of partnership is allowed if the venture has returned the
costs involved ahead of the six month.
BIBLIOGRAPHY
Ethiopian business development service network (EBDSN), How
to write a business plan 2005/6 E.C
AAIT Entrepreneurship for Engineers lecture note/ Zerihun G. /
BMI Research. (2017, July 26).
Philippnes Food & Drink Report.
Retrieved from
https://store.bmiresearch.com/philippines-food-drink-report.html
National Coffee Association. (2017, July 26).
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Business plan
APPENDIX
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Business plan
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