Business plan on

“Delicious Biscuits”

Submitted by: Puspa Upreti Submitted to: Sumedha Maam

Roll no: 35 Subject: Entrepreneurship

Section: C
 Acknowledgement
I am glad to submit this business plan which includes the practical aspect of industrial study. It
also provides insight on steps to be taken, resources required for achieving our business goals
and timeline of anticipated results. This business plan will serve as a kind of road map for how to
set up, manage, and expand our new business.

I consider myself lucky to be part of this project. I am also very grateful to Miss. Sumedha
Sharma for helping in the planning process, for her remarkable guidance, help, support and
suggestions. She was a tremendous source of information and undoubtedly contributed to many
of the ideas presented in this plan.

Finally I would like to thank everyone who helped me with this business plan. I am grateful for
their ambitious direction, valuable constructive feedback and helpful advice throughout the
project. I am very thankful to our classmates who directly and indirectly helped us to complete
this within the deadline.
Table of Contents
Acknowledgement...........................................................................................................................2

1. Executive Summary.....................................................................................................................3

1.1 Business Idea and Goals...................................................................................................4

1.2Marketing………………………………………………………………………………………4

1.3 Operation………………………………………………………………………………………4

1.4 Finance………………………………………………………………………………………….

2. Background..................................................................................................................................5

2.1 Mission Statement...............................................................................................................5

2.2 Vision statement..................................................................................................................5

2.3 Products and services.........................................................................................................6

3. Marketing.....................................................................................................................................6

3.1 Market Analysis........................................................................................................................6

3.2 Marketing Strategies................................................................................................................6

3.3 Marketing Mix..........................................................................................................................7

4. Operation.....................................................................................................................................8

4.1 Management team...............................................................................................................8

5. Financial......................................................................................................................................9

5.1 Projected Profit and loss.........................................................................................................9

5.2 Projected cash flow..................................................................................................................9

5.3 Projected balance sheet.........................................................................................................11

 1. Executive Summary
1.1 Business Idea and Goals

This business plan proposes the establishment of Delicious Biscuits, a biscuit making business in
Nepal that will use locally sourced ingredients to produce healthy and delicious biscuits. The
company's vision is to provide high-quality, nutritional, and delicious biscuits at a reasonable
price while creating employment opportunities and contributing to the local economy. The
market research reveals that there is a high demand for locally sourced, naturally made biscuits
in Nepal. The target market is health-conscious individuals, children, and families looking for
affordable, tasty, and healthy snacks.

1.2 Marketing

The marketing strategy focuses on building a strong brand identity and creating awareness about
the products using modern marketing techniques. The marketing mix consists of the product,
price, place, and promotion. Delicious Biscuits will produce a wide variety of biscuits, including
unique flavors inspired by traditional Nepalese cuisine. The products will be sold at an
affordable price, ranging from Rs40-50 for 100 grams and Rs 80-100 for 500 grams , catering to
customers from all income groups and it also produce the nutritious biscuits that contain fewer
calories than other biscuits that type of biscuits price range will be quite high. The distribution
channels include local retail shops, coffee shops, and bakery stores and wholesale store.

1.3 Operations

The management team will comprise the founder, marketing manager, sales manager, and
finance manager, who will ensure the successful launch and growth of the business. The
operation will be located near the Kathmandu valley, easily accessible to raw materials and
transportation, reducing logistic costs. The company will have a warehouse to store raw
materials and finished products, and timely and efficient delivery will be ensured to the target
markets.

1.4 Finance
Delicious Biscuits start-up costs will include all the equipment needed for the home-based
office, legalfees, website creation, and start-up advertising. The home office equipment will be
the larges chunk of the start-up expenses. This equipment includes Mixers, Oven, Packaging
Machine, Weighing Machine, Storage Container . Total start-up expenses are expected to be
Rs1100000 of its own capital and to borrow Rs 1000000 as a ten year loan .

Overall, Delicious Biscuits plans to differentiate itself in the highly competitive biscuits industry
in Nepal by focusing on quality and health, using locally sourced ingredients and appealing to
the health-conscious segment of the market. The company aims to become a leading player in the
industry, offering high-quality, nutritional, and delicious biscuits at an affordable price.

2. Background

2.1 Mission Statement

Biscuits are popular snacks consumed by the people on the daily basis in every home. However,
most of the biscuits available in the market are imported and do not used locally sourced
ingredients. This presents an opportunity for a biscuit making business that uses the locally
sourced ingredients that also benefit for the health-conscious individuals. Nepal is known for its
agricultural diversity and produced a range of high-quality crops, including wheat, millet, barley
etc. these ingredients can be used to make healthy and delicious biscuits. By using locally
sourced ingredients, it can ensure the quality and freshness of our products and also supports to
the local farmers

2.2 Vision statement

 . To offer the high-quality nutritional, and delicious biscuits at a reasonable price.

 To produce the wide variety of biscuits that address the taste and preference of the
consumer.
 To create the employment opportunity and contribute to the local economy.

2.3 Products and services

Delicious Biscuits will produces the wide varieties of biscuits that address the taste and
preference of the customers. Delicious Biscuits will introduce unique flavor such as cardamom,
honey inspired by the traditional Nepalese Cuisine. All the biscuits are made from locally
sourced ingredients. It will use high-quality wheat flour, butter sugar, and eggs sourced from
the local farmers. Our Biscuits will be free from the artificial preservatives, colors flavors
ensuring that the products are healthy.

3. Marketing
3.1 Market Analysis

. We conducted the market research, which revealed that there is high demand of for a biscuit
that are made from locally sourced and naturally ingredients. Consumers are increasingly
becoming health conscious and looking for convenient and affordable snake option. Market
research also shows that there is gap in the market for biscuits that are made using only locally
sourced ingredients. The market for biscuits in Nepal can be segmented based on various factors
such as product type and distribution channel, and consumer type. The product type includes
sweet, salty cream filled and sugar free healthy biscuits. The distribution channels include local
Retail shop, Coffee shop and bhatbateni store. The target market is health- conscious individual,
children and families who are looking for affordable, tasty and healthy snacks. The biscuits
industry in Nepal is highly competitive, with several established brand in the market. The major
brand like parle products, Nebico, Anmol industries have strong brand presence and wide
distribution network, giving them a significant advantage over new entrants. However, Delicious
Biscuits will plan to differentiate the products by focusing on using only locally sourced
ingredients and appealing to the health-conscious segment of the market. We believe that our
focus on quality and health will help us compete in the market.

3.2 Marketing Strategies

Marketing strategy will focus on building a strong brand identity and creating awareness about
our products. It will use the different modern marketing technique to reach our customer.

3.3 Marketing Mix

Four Ps are the most important factors for any company in making the marketing plan. To be
specific, these 4 Ps is:

1) Product- your product(s) and services.

2) Price- what you'll charge customers for products and services.
3) Place(distribution) - how you will bring your product(s) together with your customers.
4) Promotion- how you will promote or create awareness of your product in the marketplace

3.3.1 Product and services

Delicious Biscuits will produce the wide varieties of biscuits that address the taste and
preference of the customers. Delicious Biscuits will introduce unique flavor such as cardamom,
honey inspired by the traditional Nepalese Cuisine. All the biscuits are made from locally
sourced ingredients. It will use high-quality wheat flour, butter sugar, and eggs sourced from
the local farmers. Our Biscuits will be free from the artificial preservatives, colors flavors
ensuring that the products are healthy

The packaging of the product would be according to the occasion on which the gift basket
is being given and on the size of the basket chosen by the customer.

3.3.3 Price:
Keeping in view the economic conditions of the country and the purchasing power of the people

Our pricing strategy will be based on the providing high-quality, locally sourced biscuits at
affordable price to cater to customer from all the income groups

Price range 100 grams biscuits may be price at Rs 40-60 , while 500 gram may
be price at Rs250-300
Target Market Retail shop, coffee shop, bakery, Wholesales

Discount Package Discount on bulk package, also for repeat customer, special offer
during festival season.

3.3.4 Place

The Business will be located in near the Kathmandu valley. This location is easily accessible to
raw materials and transportation, reducing our logistic costs. Delicious Biscuits will have a
warehouse to store our raw materials and finished products. The location will be closed to our
target markets, ensuring timely and efficient delivery of the products.

3.3.5 Promotion

For the promotion business will conduct the different fest and exhibitions to showcase our
product specially target to the students, health-conscious individual. Business will also use
social media like Facebook, Instagram to create the brand awareness and engage with our
customer. Business will also collaborate with coffee shop and bakery, food critics, and
influencer to reach wider audience.

4. Operation
4.1 Management team

Our management team will be founder is responsible for overall management, marketing
manager will responsible for developing and implementing marketing strategy to promote our
product, sales manager will responsible for managing distribution channel and finance manager
will responsible for managing the finance. Our dedicated management team will enable us to
successfully launch and grow the biscuit-making business in Nepal.

4.2 Equipment Required

To operate the biscuit-making business, the various types of equipment are needed.

 Mixers: to mix the ingredients for dough

 Oven: to bake the biscuits
 Packaging Machine: to pack the biscuits in different packaging sizes
 Weighing Machine: to weigh the ingredient accurately.
 Storage Container, Quality Control Equipment

5. Financial
5.1 Projected Profit and loss

Year 1 Year 2 Year 3

Sales 4910000 5671050 6550060
Direct Cost of Sales 767500 886460 1023860
others 0 0 0
Total cost of sales 767500 88646 102386
Gross Margin 4142500 4784590 5526200
Gross Margin % 84.36864 84.3687 84.36869
Expenses
Payroll 2608000 2738400 2875320
Sales and Marketing and Other Expenses 270000 352000 714600
Depreciation 600000 690000 793500
utilities 12000 12600 13230
Payroll Taxes 391200 410760 431300
others 0 0 0
Total Operating Expenses 3881200 4203760 4827950
Profit Before Interest and Taxes 261300 58083 69825
EBITDA 861300 1270830 1491750
Interest Expenses 100000 95000 8250
Taxes Incurred 31110 121460 156500
Net Profit 130190 364370 459250
Net Profit/sales 2.651527 0.64251 0.701139
The above profit and log show that Delicious Biscuits expects its steady growth in
profitability over the next three years of operation. It can earn Rs.130190 in the in
the Year1 following, Rs.36 4370 in Year 2 and Rs.459350 in year 3.

5.2 Projected cash flow

Year 1 Year 2 Year 3

Cash Received
Cash Sales 4910000 5671050 6550060
Subtotal Cash from Operations 4910000 5671050 6550060
Additional Cash Received
Sales Tax, VAT. HST/GST Received 0 0 0
New Current Borrowing 0 0 0
New Other Liabilities (interest-free) 0 0 0
New Long-term Liabilities 0 0 0
Sales of Other Current Assets 0 0 0
Sales of Long-term Assets 0 0 0
New Investment Received 0 0 0
Subtotal Cash Received 4910000 5671050 6550060
Expenditures
Cash Spending 2608000 2738400 2875320
Bill Payments 1436070 1869640 2377310
Subtotal Spent on Operations 4044070 4608040 5252630
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out 0 0 0
Principal Repayment of Current Borrowing 0 0 0
Other Liabilities Principal Repayment 0 0 0
Long-term Liabilities Principal Repayment 0 100000 150000
Purchase Other Current Assets 0 0 0
Purchase Long-term Assets 0 200000 200000
Dividends 0 0 0
Sub-total Cash Spent 4044070 4908040 5602630
Net Cash Flow 865930 763010 947430
Cash Balance 1565930 2328940 3276370

The cash flow projection shows that provisions for ongoing expenses are adequate to meet
up Upahaar’s needs as the business generate cash flow sufficient to support operations.
5.3 Projected balance sheet

The assets and liabilities of Upahaar are as follows:-

Liabilities and
Asset Year 1 Year 2 Year 3 capital Year 1 Year 2 Year 3
Current asset Current Liabilities
156593 232894
Cash 0 0 3276370 Accounts Payable 145740 154380 199070
Other current
Asset 120000 120000 120000 Current Borrowing 0 0 0
Total Current 168593 244894 Other Current
Assets 0 0 3396370 Liabilities 0 0 0
Subtotal Current
Long-term Assets Liabilities 145740 154380 199070
100000
Long-term Assets 650000 850000 1050000 Long-term Liabilities 0 900000 750000
Accumulated 129000 114574 105438 110000
depreciation 600000 0 2083500 Total Liabilities 0 0 0
Total Long-term 110000 110000 110000
assets 50000 -440000 -1033500 Paid-in Capital 0 0 0
Retained Earnings -640000 -509810 -145440
Earnings 130190 364370 459250
141381
Total Capital 590190 954560 0
173593 200894 Total Liabilities and 173593 185456 216381
Total Assets 0 0 2362870 Capital 0 0 0