B-Plan of (BEFF)

8/14/2019 B-Plan of (BEFF)

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2009

Prepared & Submitted by: Delawar

Barekzai

Roll no 9 SY BBA08-09, DMs college

1/12/2009

Management

Accounting

DMs college, Goa University Page 1

Business plan


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Website: www.BarekzaiRedhot.com


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Table of contentsS # Topics Page no

1 Executive Summary 3

2 Vision 3

3Mission 3

4Values 3

5Business positioning strategy 4

6Marketing Strategy 4

7 Financial plan 5

8 Capital utilization 5

9 Sales Forecast & Break even analysis 6

10Cash flow statement 7

11Balance sheet 8

12Risk analysis 9

13Location Analysis 9


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Executive Summary

Barekzai Enterprises for Fast Food (BEFF), Inc. is a small food service company incorporated in January 2009 in Goa that

specializes in providing high-quality fast food via restaurants and hotels capital Panjim, Goa. The business is operated under the

name Barekzai Redhots. This plan recommends that the board of directors approve borrowing Rs. 200,000 from three currentbanks to expand marketing and distribution of its current operation in the above mentioned places. Management structure of the

BEFF is consisting of Managing director, Sales Manager, Production manager, cleaner, customer service officer, and driver.

BEFF provide best quality Italian, American, and Illinois Sandwiches and other fast food product customized by the contractor to

meet the expectation of end user.

Vision

To become Goas first class fast food company, by ensuring high quality standard and taste for customers with reasonable prices,

therefore to avoid importing fast food products from other states and robust the sustainable economic growth of the state.

Mission

To create a sustainable distribution channels through which we would provide best quality and the taste of our customers fast

food, meet the customers expectation and have best customer relationship in order to expand our business in the future.

Values

1. Excellent through quality2. Convenient to customers

3. Uniqueness & freshness

4. Reasonable prices



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Business Positioning StrategyIn the first page of yahoo there is a sign saying Barekzai Redhotssatisfy you for Rs.50! You deserve it! The message is

targeted to all passing potential customers who want to indulge themselves inexpensively with fast food in Goa especially in thePanjim. There also may be a subliminal message for sinful or forbidden indulgence, too. This unique selling proposition is self-targeting since only consumers who like fast food and feel that they deserve an inexpensive indulgence will believe this messageis meaningful to them. The benefits of this message are relatively unique: inexpensive satisfaction plus indulgence. Informal,qualitative research revealed that the target market of busy office workers are constantly in conflict with themselves aboutwanting a juicy, delicious fast food especially hot dog (Italian Sandwich) and trying to watch the fats and amount of meat intheir diets. Moreover, the hot dogs thatBarekzai Redhots serves arent high in fat. They are high quality, all natural products withno preservatives or harmful chemicals. Barekzai Redhots contractors (hotels, restaurants) make it a point to let customers knowthat indulging themselves is both inexpensive andhealthy.

Marketing StrategyBarekzai targets upscale, youth seeking fast, convenient, portable, breakfast and lunch meals.

Barekzai differentiates and positions its business from the competitive fast food and other take-out restaurants with its products(providing high-nutrition, 100 percent all-natural, no artificial ingredients, colors, additives or preservatives convenience foodsand snacks), its concern forthe environment(biodegradable, recyclable containers/wrappers and PR tie-ins), and its service(a no-questions-asked money-back guarantee of all products sold and the best distributors (hotels and restaurants) who have best-trainedcompany server personnel in the category).

Customer loyalty is encouraged with development and promotion of new and revolving seasonal menu selections each quarter,daily customer sampling, and bonus specials.

Advertisement promotion

To support its expansion efforts, Barekzai Redhots considered using Internet popular webpage such as Google and yahoo pages.Since our advertisement campaign is through internet and customers awareness is the most important objective of our businesstherefore we also strive to make communities in (Face book, orkut, Hi5 and other social electronic networks) to spread out theinformation about our product and values provided to our customers. Because this business plan anticipates rapid growth throughthe addition of contract,Barekzai Redhots plans to spend at least 10 percent of net sales during the first year for their promotion.

In performing the research into advertising and promotions, it was determined that any broadcast option involved additional

production costs that were at least as much as the cost of running a single ad.



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Financial Plan

Barekzai Redhots estimates January sales to reach Rs. 225,000 where in the first month of running the business we reach to the

breakeven point. Barekzai has six contracts and options for 24 more contracts with hotels and restaurants in Mapusa and

Porvorim. These locations generate an average of Rs. 150,000 in annual sales in one quarter. Since our sells are depending on theseason, therefore there will be less sells during rainy season thats why I have divided annual sales in two parts; first six months

and second six months.

Capital UtilizationThe distribution of my Investment of Rs. 5, 00,000 /- is as follows

1. Rent of flat for production and office purpose in Panjim @ 20,000/month 20000+ 2monthsadvance Rs. 40,000

Rs. 60, 000/-

2. Administrative expenses (salaries) Rs. 45, 000/-3. Advertising (Internet and brochures)

1. Internet 100,000

100,000 Rs.100, 000/-4. Other overheads Rs. 66,000/-

5. Material and equipments for production Rs. 210,000/-6.License of the business Rs. 19,000/-Total Rs. 5

, 00,000

/-

Note:As far as internet is concern, 11,000 for monthly payment to Yahoo and Google and 89,000are allocated for making website which total of them are Rs. 100,000. We do not give ourproduct directly to end user (consumer). We get orders from our contractors (hotels andrestaurants) via phone and internet emails.Website is our fixed asset with the cost of Rs. 89,000 and 11,000 rupees we pay for thefirst month advertisement expenses.



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Sales forecast

Sales estimate (in lakhs) first six months 2009

Month Jan Feb Mar Apr May

Sales Rs. 225,000 Rs. 250,000 Rs.265,000 Rs.270,000 Rs.280,000

Cost of Goods 78,400 80,000 87,000 87,100 92,000

Gross sales revenues 146,600 170,000 178,000 182,900 188,000

Salaries & Wages 45,000 45,000 45,000 45,000 45,000

Rent 20,000 20,000 20000 20000 20,000

Overhead 66,000 67,700 75,000 75,000 82,567

Marketing/advertisement in yahoo andGoogle webpage.

11,000 15,500 20,000 2 1,000 23,000

Earnings before interest and taxes 4,600 21,800 18,000 21,900 17,433

Taxes and interest 4,600 5,111 5,417 5,520 5,724.5

Net profit Rs. 00.0 Rs. 16,689 Rs. 12,583 Rs. 17380 Rs.11,708.5

Broken-even

Break-even point (Total Revenue=225,000=Total cost=225,000) where (Fixed cost= Rent &Salaries=45000+20000=65000) and(Variable cost=144,400), (Marketing and promotion expenses=11,000), (Taxes=4,600). Since we had 5, 00,000 rupees to start with this

business, we purchased material and equipments (fixed asset) of the remaining amount which total of all is coming 5, 00,000.



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Cash Flow Statement

By assuming that there is no sales made on account and all are collectable. Therefore;

Year 2009 Jan Feb Mar Apr MayCash InflowsOpening balance 00.0 16,689 2,9272 45,652

Income 225,000 250,000 265,000 270,000 280,000

Total Cash Inflows

225,000

250,000 281,1689

299,272 32,5652

Cash Outflows

Investing Activities

Costs and expenses 144,400 147,700 162,000 162,100 174,567

Operating Activities

Salaries and Wages 45,000 45,000 45,000 45,000 45,000

Fixed Business Expenses(Rent) 20000 20000 20000 20000 20000

Marketing/ promotion 11,000 15,500 20,000 21,000 23,000

Tax & Interest 4,600 5,111 5,417 5,520 5,724.5

Total Cash Outflows

225,000 233,311 252,417 253,620

268,291.5

Ending cash balanceRs.00.

0Rs.16,

689Rs.29,

272Rs.45,

652Rs.57,3

60.5



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Balance Sheet

Balance Sheet as of 31th May 2009

Assets Liabilities

Current assets Current liabilities

Cash Rs.57,360.5 Accounts payable Rs.289600

Accounts receivable 207,360.5 Short-term notes payable 12,00

Inventory 11,000 Long-term notes payable 24,00

Prepaid expenses 3,600 Sales taxes payable 5,800

Total current assets Rs.279,321 Employment taxes payable 0

Long-term assets Accrued payroll 24,785.5

Web site 80,000 Total current liabilities Rs. 323400

food preparation equipment 210,000 Long-term liabilities

food storage equipment 13,514.5 Loans 92000

furniture and equipment 7,400 Total long-term liabilities 92000

(less depreciation) (32,875) Total liabilities Rs. 415785.5

Total long-term assets Rs.278039.5 Owners equity Rs.141,575

Total assetsRs.

557,360.5

Total liabilities & owners

equity

Rs.

557360.5



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RISK ANALYSIS

The risks involved in this project are:

Demand is lower than expected;

Tough competition;

People disposable income is lower than anticipated;

Product is copied by competitors;

Unmet product development schedule;

Unable to assure the quality of the product and increasing in number of scraps;

High inflation, resulting in higher prices of raw material;

LOCATION ANALYSIS

The main production house is located at panjim, which is a large market for hot dogs (Sandwiches) being

fast food. We can procure our raw materials from panjim market very easily. Because our production

house is located close to market and there is no cost of transportation and shipment of raw materials.


Documents

B-Plan of (BEFF)