CHAPATI BAKING

BUSINESS PLAN

Organized By:
ILOLI ISAAC
TEL: 0777029616/0700341590.
E-MAIL:isaaciloli02@gmail.com.

REG NO.19/18/TU/186/BBAW.
NOVEMBER, 2021.
TEAM UNIVERSITY.
Table of Contents

EXECUTIVE SUMMARY.............................................................................................. 3

COMPANY DESCRIPTION: .........................................................................................6

INDUSTRY ANALYSIS: ................................................................................................. 8

MARKERTING PLAN & STRATEGIES..................................................................... 13

MANAGEMENT TEAM................................................................................................. 18

OPERATION PLAN......................................................................................................... 20

FINANCIAL PLAN ......................................................................................................... 24

APPENDIX 1 PROJECT IMPLEMENTATION SCHEUDLE .................................. 30

APPENDIX 2 CHAPATTI PRODUCTION ................................................................... 31

 1.0 EXECUTIVE SUMMARY

The only hope chapatti is a business that will run the baking of chapatti. This business is run
by the two business owners, therefore, this business called The only hope chapattis Limited.
We make chapatti with the aim to meet consumers' desire for variety of ingredients from the
industries. Here, we use quality materials and high quality as the bakers of the product. We
believe that the product we offer no less attractive than other similar product. We offer this
product to consumers who feel like to taste the The only hope chapatti with a very affordable
price. We innovate according to consumer demand for this type of chapatti. We sell these
chapatti in the city of Mbale, to meet consumer desires we provide pre-order system so that
consumers get the products they want. A new innovation that we offer also is the delivery
order system where we can deliver the product to the consumer in schools, offices taxi parks
and residential homes within mbale city and each will cost 500/= per chapatti. we believe that
this price is quite low for this type of chapatti. This business is run by the owner's ability to
master how to make this product. This suggests that these products are based on experience
and taste the owner cannot be obtained elsewhere. Consumers will be attracted by a variety of
strategies and innovations provided by the business owners. The only hope chapatti will be a
home-based business that serve baked chapatti. We will offer chapatti that use the best wheat
flour because we have best wheat flour industries. It will be family owned and operated by
Iloli Isaac he has 5 years’ experience in home-based business. Iloli Isaac will rent an outlet
that located along Kumi road market in Mbale city. the location is strategic because of its
neighboring learning institutions and health facilitate, the promotion and the taste of the
chapatti will make the business well known. The location will also require some additional
renovation to update the lavatories and increase table space.
 Mission

The only hope chapatti Limited aims to offer high quality and good tasting chapatti
product at a competitive price to meet the demand of the middle- to higher-income
local market area residents and travellers in Mbale city, while increasing the number of
people enjoying the health benefits of chapatti.

Vision

Vision Statement: In the future we enhance our competitiveness through marketing

and technology adaptation in order to sustain our business cutting edge so as to be
as customer-friendly as possible and provide the best products in our field. We also
plan to continue to invest in our community through partnerships with other
businesses and non-profit organization

Core Values

Service. Sustain. Contribute.

-Service: We work hard to provide an inviting environment for our

customers and serve them in the best and most efficient way
possible.

- Sustainability: We wish to use technology to connect with the people

of the advancing times, working with our customers to produce their
own inspired creations and update as the technology around us
advances.

-Community Contribution: We are committed to contributing to

non-profit organizations active in Mbale city areas through our
products and funding, and other opportunities.
 Keys to Success

Keys to success for The only hope chapatti Limited will include:

1. Providing the highest quality chapatti product with personal

customer service.

2. Competitive pricing.
Financial sources needed to start up the project

Project Start-Up Costs

No Items Amounts (UShs) Estimates/Actuals

Asset’s startup costs

1 Rolling Table 70,000 Actual

2 Frying pan 30,000 Actual

3 Charcoal stove[siggiri] 40,000 Actual

4 Umbrella 80,000 Estimate

5 Seats and Tables 100,000 Estimate

6 Plates and Cups 50,000 Estimate

7 Charcoal 140,000 Actual

Star up Operational costs

8 Legal/license/taxes 700,000 Estimates

9 Utilities, Graphics & 130,000 Estimates

Marketing Materials

10 Rent 500,000 Estimates

11 Materials for production 300,000 Estimates

12 Utilities 50,000 Estimates

TOTAL 2,190,000
 2.0 DESCRIPTION OF COMPANY

The only hope chapatti Limited is a chapatti baking company managed by

two partners. These partners represent sales/management and finance
/administration areas, respectively. The partners will provide funding from
their own savings, which will cover start-up expenses and provide a
financial cushion for the first months of operation. The company plans to
build a strong market position in Mbale city and other urban area, due to
mild competitive climate in the area. The company will offer high quality
baked fresh chapatti at the outlet shop from which it will also distribute and sell
packed chapatti in paper bags and branded with the company logo around
mbale. The only hope chapatti Limited will also negotiate supply contracts with
some of the leading supermarket chains in Mbale city including Bam shopping
center and Abra Supermarkets.

All regulatory requirements will be met for both baking operations and
labeling. The most valuable asset of the company is its brand, internally
developed recipe.

Objectives

The company's immediate goals are to achieve startup within the first three
months of project finance acquisition. It will start with the proprietor, Iloli
Isaac, as baker and manager with the help of two casual employees.

Our main objective is to establish a first-class chapatti company in mbale.

We hope to develop the strong presence in the community needed to support
our sales goals. It is our goal to develop our products by rolling gradually in
the first year of operation.

Company Ownership& Legal Status

The only hope chapatti Limited is owned by Iloli Isaac and Mugabi Joshua

The only hope chapatti Limited is a company that is yet to be incorporated at the
Registrar of Companies through the fore sight and vision of Iloli Isaac. Though
relatively new, the directors realize their Company's vast potential market and
opportunity for growth given implementation of the appropriate strategies, aided by
the necessary finances.

Iloli Isaac, the proprietor and baker, is the creator of The only hope chapatti
Limited. Isaac has gained extensive experience in catering, sales, marketing
management and public relations. He has bachelor’s degree in business
management

Mugabi Joshua, Isaac's brother, also has chapatti baking experience and he
contributes a keen sense of the chapatti market. He also contributes retail sales
experience accrued through several retail jobs around Mbale and neighboring
disricts.

Project Costs and Financing

The total project cost for a full-scale industrial project establishment of the
proposed The only hope chapatti limited enterprise is estimated at Ush
2,190,000. Out of this total amount, UShs 370,000 will be used to purchase, a
rolling table, frying pan, seats and tables, plates and cups, charcoal stove and
umbrella equipments .
 3.0 INDUSTRY ANALYSIS

Despite growing at a relatively sluggish pace, baked goods still continue to offer
growth opportunities for manufacturers and retailers alike in Uganda. Catering to
indulgence trend in the some of the fastest growing markets in Uganda. Factors fuelling
market expansion include convenience, affordability and health benefits of baked goods
products. Demand for healthier fortified baked products has also driven sales. Demand for
baked goods is also being driven by changing lifestyles, which leaves little time to prepare
meals. Busy consumers are increasingly quick to buy convenient baked snack foods. The
baked goods industry, encompassing product such as chapatti represents good market
potential in Uganda and eating habits continue to be adopted.

Opportunity Rationale

The opportunity of setting up the The only hope chapattis Limited chapatti business can be
linked with the eating habits of the people. People in Mbale enjoy the traditional food very
well but recently well-known regional food chains and supermarkets have brought cultural
change to Mbale. Now people are ready to eat junk food, while closely observing the trends,
a Chapatti business can play an important role in this new generation as it is the only source
which provides not only traditional baked item

Key Success Factors/Practical Tips for Success

Some of the Key Success factors that will determine the success of this project
include:
 Quality and Innovation in product.
 Selection of location.
 Pricing strategy.
 Understanding of target customers, alternative availability (product
differentiation). Launching time.
 Hygienic conditions.
 There should be regular and sustained marketing through social media.
 The store should have an ample space for customer car parking. It is advisable
 to maintain a parking space whereby cars can be parked
 The staff hired should be well-mannered and well-trained in dealing with the
customers.
 Customers free gift schemes and surprise gift, valuable customer dinner can
be additional success factors.

Legal/taxation regulations

Food Regulation and Standards

In Uganda there are both general regulations that apply to all foods and also
standards that are specific to a particular type of food. Uganda national bureau of standards
(UNBS) should be consulted on
details of the general regulations concerning:
 Labelling
 Presentation and advertisements
 Weights and measures and
 Hygiene practices during processing and handling
 Food Fortification Regulations and Standards
Bakers should contact the Ministry of Health or the Ministry of Agriculture, Animal
Industries and Fisheries for details of laws relating to public health, food safety and
hygiene and sanitation in their premises.
The company has to also file income tax returns and pay trading license permit to city
authorities

Environmental regulations
Environmental regulations also play a role in the chapatti baking process. Chapatti
will be packed in paper bags but not in black polythen bag that pose a big threat to
the environment
Market Outlook
Demand for baked goods has been changing to reflect evolving consumer lifestyles
and eating habits. Satisfying both health concerns and indulgence, consumers are
opting for baked goods free of trans-fats with high-quality. Demand for baked products
promising functional and health benefits will continue to climb as consumers opt for products
with low-carbohydrate, organic and natural ingredient products. Moving forward bakers will
likely adapt their products to remove trans-fats, include more natural ingredients, and limiting
the number of additives and synthetic products used. Other innovations keeping in line with
evolving consumer preferences include changes in packaging, with smaller size packs in
particular proving popular.
 The majority of growth will come from fresh baked chapatti
chapatti is the fastest growing category among baked goods. Product innovation
and increased penetration are the main drivers of this increase.
 Health and wellness is key to adding value to chapatti and affordability leading
to growth in chapatti
To boost chapatti sales volumes, bakers are looking into merging taste
and health through adding natural ingredients in chapatti like, green pepper, onions and
carrots.
Demand for chapatti is being driven by flavour innovation, with affordability remaining a key
concern, particularly in the emerging world.
 Traditional grocery retailers are still the most important channel but
supermarkets have gained a large share
Although the majority of people still buy baked goods from independent
stores, the numbers are falling, mainly due to the rise of in-store bakeries
offered by supermarkets. In-store bakeries are gaining importance both due to their lower
prices and the convenience of one-stop shopping trips.
Demographic trends
The consumption of chapatti cuts across all ages (2years and above) in the family which is an
advantage for our company to tape into this market. most families in Mbale are in working
class so they are busy with their schedules to bake snacks for breakfast hence they will
restore to making orders for home delivery of baked chapatti. Such families will be potential
customers of baked chapatti
Competitive Analysis/Competitive Edge

The only hope chapatti Limited competes in the Food Industry which is highly saturated
with a fairly competitive landscape. In addition to competing with other chapatti bakers, it
competes with all restaurants, chapatti street vendors and supermarkets for a share of its
baked product. There are no other retail chapatti bakers in Mbale City along Kumi road
market in direct competition with our business, however baked chapatti products produced
and sold by street vendors who come from Chikinddu market which are vended on streets but
cover small areas of Mbale city. These chapatti street vendors will be The only hope chapatti
Limited’s greatest competitor. Fortunately, the strengths of these chapatti street vendors are
all the same, allowing our company to more easily stand out. Chapatti street vendors are
characterized by three major traits: price, quality, and service, all focus on low prices and
some service. In contrast, our company would value higher quality baked chapatti and
personal service. Our prices may be slightly higher, but our products would be from better
quality of ingredients and would still be very reasonable priced for the industry. Our products
would be fresher and of higher quality, thus superior to the goods of these street vendors.

SWOT Analysis

A SWOT Analysis is a strategic planning tool used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or business venture.
Strengths and weaknesses are internal to the company. Opportunities and threats
originate from outside the company.
Internal Strengths
 Low operational costs
 Strategic location
 Goodwill
 Home-made recipes
 Reasonable prices
External Opportunities
 Easy availability of resources(manpower/salesmen)
 Growing population
  Expanding Mbale city (industrial park)
 Rising income levels, i.e., increase in purchasing power of consumers
 High baked items consumption habits of people in Mbale city
 Rising consumer goods spending
 Desire for healthier lifestyles
 Untapped rural market
 Large target market area
Internal Weaknesses
 Inexperience
 Products only sold in one region of the country (Mbale)
 Promotion tends to be word-of-mouth
 No representatives
External Threats
 Government polices
 Heavy taxes in the form of trading license and income tax on retail business
 High competition
 Credibility factor in the initial phase, as suppliers do not give credit to newly
 entrants
 Increasing costs of industrial material
 Large supermarkets making their own products using in-house bakeries
 Slowdown in rural demand
 Tax and regulatory structure
 4..0 MARKETING PLAN & STRATEGIES

The only hope chapatti Limited is to produce and sell quality chapatti. We want
to target the high-end and middle-end segments of the market (since they have
more disposable cash to purchase chapatti), maintain the quality of our product
but also keep the prices reasonable. Our strategy will therefore focus on serving
the general public and positioned market with quality goods. Our primary aim is
to become the best chapatti company in Mbale city and the neighboring areas.
We will strive to make our chapatti something that our customers enjoy. We are
determined to become part of the community–establishment.

To achieve these goals, we will provide the following:

 Quality baked chapatti for everyone to enjoy at a fair price

 Friendly, neighborhood feel atmosphere

 Special diet ingredients in relation to the advice of doctors and other

healthcare providers.

Products and Services

The only hope chapatti Limited will provide freshly prepared chapatti product at all times
during business operations and always available. The main type of baked product that will be
produced by The only hope chapatti Limited include: fresh baked chapatti, Rolex,
Chikomando and pizza. The only hope chapatti Limited will bake hand-made, naturally
baked chapatti, and distribute it throughout Mbale City and other urban towns. Our chapatti
will be sold to high-end markets, restaurants, offices, schools, and directly to the consumer.
Our product will be packaged, labeled and branded consistent with the regulatory
requirements for food. The only hope chapatti Limited will be engaged in its community, and
will be dedicated to educating its consumers and bakers about every aspect of Chapatti.
Future opportunities include expansion into other towns in Uganda

a. Meeting Customer Needs

Our customers require fresh hot quality chapatti on the go. Our system for
establishing customer needs is based on the product offering of our
competitors. We will maintain honesty and request input. We will allow
customers to take discounts on chapatti once every month. This will give
insights into what customer’s desire and create customer loyalty.
 b. Quality vs. Quantity

Ugandans on the go tend to compromise with respect to quality products.

But also, Hot and fresh sells. Therefore, quality is everything. Baking staff
will be trained regarding quality preparation, food service, storage and
holding equipment with a view of producing a superiorly prepared fresh
product consumers will come back for time and again.

c. How We Will Sell

Word of mouth advertising via quality output will be our strongest selling
point. Advertising on social media. Occasional community donations and
product gifts to active community figures. We will take the product to the
consumers and let them sample the product to help create brand awareness.

d. Ability to Penetrate Market

quick delivery along with a fine reputation for high quality product will answer the demand
for a fast, fresh, and tasty chapatti product. Our ability to deliver solutions to meet special and
unique chapatti requests will enable us to penetrate new market segments.

Pricing

Our prices will be slightly higher than those of our local competitors who vend chapatti on
streets, mainly for the reason that we strive for quality in our product. This goes hand-in-hand
with the market that we plan to target that of the upper middle class, and our higher income.
Overtime our prices may fluctuate along with the rises and falls of the industrial resources as
well as trying to remain close with our competitors and not allow the gap between quality and
price become too large.
Sales/ Sales Strategy

The only hope chapatti Limited's product will be truly unique in the marketplace. The look,
feel and taste of its chapatti, when compared with the competition, will underscore their
quality and value. The only hope chapatti Limited will also actively encourage customer
satisfaction. Our product line will react to the needs and desires of the customer, thereby
encouraging repeat and word-of-mouth sales. The only hope chapatti Limited will have the
freedom to react quickly and accurately to changes in the market. Due to its uniqueness and
convenient location, The only hope chapatti Limited will become a destination for chapatti
lovers. As described above, it is also our plan to sell first to retail stores throughout Mbale
city and then later expand into other towns. Because our product is new, consumers will have
to be given an opportunity to taste the product before they are expected to buy, especially
since it will be priced. We will focus first on building a distribution network comprising of
cooperate offices, schools, high residential areas and supermarkets providing them personal
service and delivery, obtaining feedback and most importantly, doing in-store demonstrations
of our product where consumers will have an opportunity to taste it. We will monitor the
results of in-store demonstrations by measuring sales trends between store demonstrations to
know if consumers are seeking out our product rather than just buying it when they get a
taste.
Our budget for advertising is limited but we will take advantage of low-cost social media
adverts and also create signage for the chapatti frame to draw
attention to the product and outline its benefits. We will also consider the distribution of
flyers/Leaflets in the neighbourhood

Our Strategy also focuses on building a loyal customer base by providing good
customer experience, In future with addition of the soft drink like, passion fruit etc and Tea.
We will also employ sales agents/representatives to find new customers by visiting Schools,
Hotels and Restaurants to inform them of our presence and products. We expect to have a
fully functioning web-site by 2025 At that time, we will use social media and viral marketing
to get word out. Management also intends to plough back all profits at the initial stages into
the business to help increase its capital base for a sustained growth and business expansion.
Sales Assumptions:
1. The sales are expected to be high during morning and evening hours. Obviously, a lot of
people take breakfast or evening tea around those hours.
2. Sales fall during the hot and afternoon hours because our product serves as escort in most
cases.

Distribution

The only hope chapatti Limited products will be distributed through markets, restaurants,
offices, small independent shops, cafes, schools and to major catering organizations
lying in our designated distribution area. Select supermarkets will be our starting
point. Our costs will be around UShs. 500 per chapatti.

Our second target for distribution is directly to people in their homes. By getting
people to sign up as chapatti Customers, we obtain their address, as well as all
necessary contact information. By building a custom database, we will be able to
efficiently plan daily deliveries based on neighbourhood. Distribution directly to the
consumer will be done daily by the couriers who will receive their route and transportation
options. We aim to have a large share of our customers within walking distance of the baking
placing but have bikes available for longer distances. we will provide for the expected
customer estimate of 150-600 customers per day and will be made after an order is placed. At
the end of the day,
we will move all of our unpurchased goods into an area for ―Day Old‖ chapatti where people
will be able to buy the not fresh chapatti for half the price of what we would normally sell it
for. By the second day if the products are still not sold, we plan to deliver them to the charity
organizations, or other not-for-profit organizations that may benefit from our products.
Deliveries will be based on our customers ‘requirements and will be tailored to suit the size
and individual requirements of the establishments concerned. Some customers require
deliveries once or twice a week, while others will require a daily delivery service. Time of
delivery will also be an important factor for many of our customers and we will do our
utmost to accommodate their requirements as much as we possibly can.
Promotion
We will start with excellent products at a competitive price, but then make our
service exceptional by delivering directly to our customer at no extra cost. In order
to get visibility of our offerings, we will use a variety of advertising channels and
promotions. Printed advertisements, which will run during the opening week, will highlight
chapatti as an everyday product, to be purchased fresh on a weekly or daily basis.

Marketing Materials
Marketing materials for The only hope chapatti Limited will include the following items:
 Business cards geared towards customer referrals
 Business referral program brochure
 The only hope chapatti Limited ‘s Facebook page and WhatsApp business account
 Access by the web site
 General Business cards
 5.0 MANAGEMENT PLAN

Description of The only hope chapatti Organization

The organization that involves baking, it will vary according to the size and type of
the establishment, customer expectation as well as the variety and size of menu and
the type of service given. Often the quality and quantity of production determine the
number of persons required to run the section. In a small baking unit, there will be a
chief executive, marketing officer, baker to get the job done.

Duties and Responsibilities

The baker mixes all the chapatti ingredients into dough and cuts into
pieces, rolls them one by one with a rolling stick, places it on a frying pan
and puts cooking oil.

The production manager carries all the production of bakery goods,

quality and quantity control, prevention of wastage of ingredients and
losses due to bakery.

The purchase officer(proposed) will receive the instructions from the

managers of various departments and will purchase the requirement for
the production and maintenance purpose. He has to check and maintain
the stock register for receiving and issuing the ingredients.

The sales manager(proposed) takes the role to market their products and
create the interest among the people to buy the products with the help of
sales man and canvassers.

The maintenance manager(proposed) maintains all the major equipment

as well as the electricity, water supply, lighting and ventilation, building
repairs.

Accounts officer(proposed) maintaining company books of accounts,

bank reconciliations, receive cash, pay creditor and bank cash
 Management Team

We recognize the importance of a good and experienced management; we

have therefore assembled a strong management team. The team is led by
Isaac Iloli. Isaac comes to The only hope chapatti Limited with his experience
in management. Isaac has a wealth of experience as he has a Bachelor ‘s
Degree in Business Administration and management and will act as the
Chief Executive Officer and will manage and assist in the baking.

Mugabi Joshua will be the Marketing Officer and also act as production
manager and designer for the business. Along with his abilities in baking and
design, Mr. Joshua has a strong work ethic, great social skills, and a lot of
training and experience in leadership. He will be obtaining all licensing and
certification needed for the job.

Organizational chart

Chief Executive
officer/baker

Marketing officer/ Production

Manager (Existing)

baker Purchase Sales

maintenance
officer Officers Account
manager
Officer
(proposed)
 6.0 OPERATION PLAN

Description of the Location and size

The only hope chapatti limited is located at Kumi road market. The company's
location is strategic because Kumi road market connect to different facilities like
schools and some Universities which has potential customers for chapatti the size of
outlet will be 14 meter and be divided into two sections like one section for
equipment’s and baking and other section selling stands office space
PRODUCTION EQUIPMENTS

Equipment Unit Cost(UGX)

25
Frying pan 1 30,000

Rolling table 2212222 25

2 70,000
Charcoal 2212222 40,000
stove[siggiri] 2
Charcoal 140,000

UTILITIES TOTAL 280,000

REQUIREMENT/OPERATING COST

S/N Particulars Monthly

Cost
1. Electricity 20,000
2. Water 30,000
TOTAL 50,000
COST ASSUMPTION
1. It is expected that when sales or demand increases, the cost of production must also
increase.
2. Since season affects our business positively as well as negatively, the cost of production is
likely going to increase during the raining season
The only hope chapatti Limited is primarily a baking company, and the core operation is
production of chapatti. The other two critical components are sales and distribution.
To reach the scale we intend, it will become necessary to include account
management, systems development, administrative, and operational management.

Production
Production of sellable chapatti is projected to begin within the first six months of
project finance acquisition. Industrial ingredients will be ordered for twice a month
delivery from the leading suppliers in Mbale, at which time a two-week production schedule
will be drawn up by Isaac Iloli, the proprietor/baker. Ingredients will be stored in a dry
storage area (already on the proposed premises).
The company chapatti store-front will open at 6:00 AM and close at 7:00 PM Monday to
Friday. Saturday hours will be 7:00 AM to 5:00 PM for sales only. Part time
employees will work the counter and assist with store maintenance during peak
hours while the baker is baking.

The only hope chapatti Limited will economize on bookkeeping costs by handling its payroll
duties in house. Year-end bookkeeping will be handled by a professional accountant. The
company will use the QuickBooks small business accounting software because of its ease
and convenience of use in keeping finances and bookkeeping all in one place.
Production process in the company see Appendix 2

Inventory Procurement and handling

Industrial ingredients will be ordered for twice a month delivery from the leading suppliers in
Mbale. The ingredients will be store in a cool and dry place to avoid spoilage. The baker will
follow first in first out inventory method where he will use industrial materials that came in
first to be used in baking. All products can be entered into a computerized database using
specific inventory software. This will increase the performance of cash counter and organize
the inventory in a better and proper form. This is an additional option but carries with it great
benefits. The first and foremost benefit is that it tremendously enhances the management ‘s
ability to track the depleted stocks so that purchase orders can be placed with the suppliers
timely in an effective and efficient manner. Secondly, this facility also enables the
management to trace inventory
Record Keeping
There are four sets of records that should be kept by the owner in business. Keeping records
is an investment of time and money and this must be related to the scale and profitability of
the business (the benefits must outweigh the costs.
This means that the processor must understand why the information is collected and
what it can be used for. Processors should also put in place a system of checks to
ensure that one person does not have responsibility for a whole area of record
keeping. For example, the person who keeps records of ingredient purchases should
be different to the person who records levels of stocks and manages the storeroom.
Types of records for chapatti business
Type of record Information to be Recorded
Production records
 Industrial materials or ingredients received and suppliers ‘details
 Wastage % at different stages of the process
 Stock levels for each industria lmaterial and ingredient
 Production volumes and measurements
 Maintenance routines, details of spare parts kept in stock
Quality assurance records
 Target amounts of ingredients and any changes made to
recipe
 Measurements made at process control points
 Batch numbers and product code numbers
 Cleaning standards and schedules
Sales records
 Names of customers and amounts sold to each
 Weekly and monthly sales volumes
Financial records
 Income from sales
 Costs of all process inputs
 Staff records
 Cash flow
 Profit/loss
 Tax records
  Bank statements

Avoiding waste

Ideally all baked products that have a short shelf-life should be sold on the day of
production when they are at their freshest. This maximizes the income and avoids
wastage which has a serious effect on profitability. However, unsold products are
still edible for a few days provided that they are stored correctly. They can be used
for a variety of other purposes to generate an income and avoid wastage.
Ideas that can both reduce energy consumption and save processors money include:
 Switching off lights and electrical equipment when they are not being used
 Use local suppliers of industrial materials that can be delivered by bicycle, rather
than using a vehicle to collect them. Similarly, make as few journeys as
possible to deliver products to wholesalers or retailers.

Quality Assurance

The main reason for low quality baked products is faults with the processing room,
the process, ingredients, operators or distribution methods. A Quality Assurance
(QA) programme should therefore comprise:
 Ingredient inspection
 Process control
 Operator training
 Assessing products
 Cleaning schedules
 Control over packaging and distribution.
Baked products are rarely involved in food poisoning incidents because the heat of
the baking process kills most micro-organisms or reduces their numbers to safe
level.
 7.0 FINANCIALANALYSIS

The only hope chapatti Limited expects to raise UShs 1000,000 of its own
capital (in form of equity assets and savings), raise UShs 1000,000 from a
diversity of other funding sources, and to borrow UShs 190,000 from family
member. These figures are derived from a calculation of expected start-up
costs

Key Assumptions

Key assumptions include:

1. Revenue growth is dependent on unit growth and price increases. We

expect unit growth to be 10%per year, with 10% per year price
increases.

2. Ingredient costs will increase 5%per year, in line with inflation.

3. Working capital will grow in line with sales.

 Start-up Summary

Project Start-Up Costs

No Items Amounts (UShs) Estimates/Actuals

Asset’s startup costs

1 Rolling Table 70,000 Actual

2 Frying pan 30,000 Actual

3 Charcoal stove[siggiri] 40,000 Actual

4 Umbrella 80,000 Estimate

5 Seats and Tables 100,000 Estimate

6 Plates and Cups 50,000 Estimate

7 Charcoal 140,000 Actual

Star up Operational costs

7 Legal/license/taxes 700,000 Estimates

8 Utilities, Graphics & 130,000 Estimates

Marketing Materials

9 Rent 500,000 Estimates

10 Materials for production 300,000 Estimates

11 Utilities 50,000 Estimates

TOTAL 2,190,000

Project Costs and Financing Plan

Total project cost is estimated at UShs 2,190,000

Rent:

The only hope chapatti Limited does not own land or building in Mbale
city, but it will rent an outlet in a strategic location along Kumi road market
that connects to different schools and some universities. It will cost 500,000/=
for 4 months
 Financial Plan

The project is proposed to be financed through a combination of equity and

family funding.

Projected Income Statement

The projected income statement for the The only hope chapatti Limited is given in
Table below.

Table: Summary Profit& Loss Account for First two Years of the Project (In UShs)

Items Amounts (yr. 1) Amounts (yr. 2)

Sales 4,400,000 4,820,000

Less: Industrial Materials (1,000,000) (1,400,000)

Gross Profit 3,400,000 3,420,000

Operating Expenses

Rent 1,500,000 1,500,000

Utilities 600,000 620,000

Business licenses 40,000 40,000

Advertisement/marketing 250,000 300,000

Total Operating expenses 2,390,000 2,460,000

Provision for Tax 300,000 (2,690,000) 400,000 (2,860,000)

Net Profit 710,000 560,000

Since we are a new company, it is important not to grow too fast and take
on more contracts than we can handle. The projections reflect a slow
growth due to the operational expenses and tax imposed during the
process
 Projected Cash Flow Statement

The projected cash flow for the project is shown here under:

Projected Cash Flows (In UShs) year 1 year 2

Starting cash 2,190,000 3,620,000

Cash in from operations (sales) 4,400,000 4,820,000

Cash out from operations

(Industrial material expenses and other expenses ( 2,690,000 ) (2,860,000)

Cash from investing activities

(Purchases of equipments) (280,000) (270,00)

Cash in from financing activities

Family loan 190,000 -

Cash out for financing

Debt payment (190,000) -

Ending cash balance 3,620,000 5,310,000

Starting balance for next period 3,620,000 5,310,000

Appendix 1 PROJECT IMPLEMENTATION SCHEDULE

It is expected that it will take approximately 12 months to have The only

hope chapatti Limited project put into operation from the day funds for its
execution are secured. The preparatory stage which involves the eventual
approval for funding is assumed to take 4 months from the date of its final
submission to project financiers by the project promoters. The follow-on
project implementation activities are expected to take an additional 8
months to completion–which altogether adds up to12 months (1year). The
following chart presents important project implementation milestones
highlights.

Project Implementation Milestones

ID Task Name Duration

1 2 3 4 9 10 11 12
1 Seed Capital 3
Financing and months
renting space,
equipment
purchase
Interior design, 1 month
equipment
installation
9 Hiring Key 1 month
Executives
10 Full Staffing 1 month
11 Commissioning of 0
Baking of chapatti months
12 Commence
Operations
Appendix 2 CHAPATTI PRODUCTION

Process Description

This section covers industrial scale bakeries producing bread, cake and
biscuit products for human consumption, starting with wheat flour,
salt, onions, green pepper, carrot and blue band as the basic
ingredients.

Basic Steps in Chapatti baking

Industrial
materials
The main chapatti baking activities include:

Receipt and Storage of industrial materials: wheat flour, cooking oil,

salt, onions, green pepper, carrot and blue band.

 Preparation: Mixing to make dough, cut into pieces, placing on a frying

pan, putting cooking oil, remove and pack.
 Baking: Adding cooking oil on a frying pan and removing.
 Packing: wrapping in paper bags.

Key Environmental, Health and Safety Risks/Liability Issues

Product Contamination

Baked products can become contaminated through:

 Contaminated industrial materials received;

 Poor hygiene standards with in the processing
operations, e.g., un clean machines, un hygienic
handling;
 Pest infestation, e.g., rodent, insects;
 Poor storage conditions e.g., raised moisture levels
promoting insect, mould and bacterial growth.

The Company's operation is designed to follow internationally recognized

food safety standards consistent with the principles and practice.

Packaging

Packaging is widely used for baked product to preserve the quality of

the product, for marketing and transport purposes. Chapatti product
will be chapatti in paper bag and wrapped in order to maintain quality
and avoid contamination