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Venture Concept

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An Entrepreneurship Project

TEAM PROJECT: BUSINESS DEVELOPMENT PLAN

To

MR. QAMAR ALI

By

USMAN FIAZ

ME-08-620

RAEES AHMAD

ME-08-574 MOSAB MUNIR ME-08-583

RIZWAN SHAUKAT ME-08-612

Project submitted in the partial fulfillment of

The requirement for the Entrepreneurship

MBA EVENINGDEPARTMENT OF BUSINESS ADMINISTRATION

GC UNIVERSITY, FAISALABAD

2010

ACKNOWLEDGEMENTS

Thanks to Almighty Allah, The Creator, most Gracious and Merciful whom we never heard Nay whenever I knocked at His door. He bestowed upon us with potential and ability to sacred wealth of knowledge, which is permanent source of benefit for his humanity and creature.

We offer our humblest thanks from the deepest of our heart to the Holy Prophet Hazrat Mohammad (Peace Be Upon Him) who is forever, torch of guidance for mankind.

We are also grateful to Mr. Qamar Ali lecturer, department of Business administration, Govt. College University, Faisalabad, for his valuable suggestions, constructive criticism ever inspiring and encouraging attitude, propitious guidance, keen interest, technical guidance in accomplishment of this manuscript.

Our gratitude would remain incomplete if we forget to acknowledge our affectionate and adorable Parents, who are true, dense of our humblest obligations and our words will fail to give them enough credit.

EXECUTIVE SUMMARYNow a day, restaurants are becoming more popular as the trend to go for outing has been growing rapidly from last few years. From the busy life whenever people feel free themselves they want to take over their stress by going the place where there will be an element of refreshment. People used to visit restaurant once or twice a month that is the reason for growing of restaurant business. We are basically creating a point that is going to be a spot of the place of relaxation and full fledge environment with quality food. For our project we have made a Questionnaire and filled it from people from different lifestyles. This is to evaluate the importance of restaurants from customers view point and to checkout the unsatisfied need of people. We are already having some very good and executive level restaurants in the area that are offering good food only. Another major issue to be faced by the visitors of restaurants is the high price charged by the existing restaurants against typical products and services. Due to this reason the middle class families hardly afford restaurant visit once a month.

In our restaurant we are not only giving our customer the quality food but also value for their money in terms of providing different cultures under same roof. We have divided our restaurant into two departments, back stage (senior chef, assistant chefs & kitchen helper, store supervisor & helper) and administrative department (manager, receptionist, waiters, sweepers, guards). We selected the employees on the behalf of their good moral character, skills, and attitude because a restaurant is a place where different people come and go and enjoy their meal. Our customers are our guests because they are very valuable for us. Thats why our main priorities are our guests and fulfill their demands in efficient and responsible way. If we fail to provide superior services to our guests they will never come back again.

We are using different advertising Medias for our valuable guests. Our main competitors are Usmania, Sardines, silver spoon, real taste, Namwah, Bundu khan etc. In short, we are providing such type of environment which will enhance the quality of services and customer loyalty.

Table of ContentsSr. NoContentsPage No

1Vision/Mission7

2Business Concept8

3Industry Analysis10

3Products & Services13

4Market & Strategies15

5Marketing & Operations16

6Management & Organizations22

7Financial Section--

8Attraction For Investors30

Certificate for Approval

We, the supervisory committee, certify that the contents and form of this project submitted by Mr. Usman Fiaz, Mr. Raees Ahmad, Mr. Mosab Munir and Mr. Rizwan Shaukat have been found satisfactory and according to prescribed format. We recommended that it be processed for evaluation.

Supervisory Committee:

-------------------------------------------------

Mr. Qamar Ali-------------------------------------------------

(Dr. Abrar)

Business: RestaurantName: Cultural RestaurantVision To become the trend setter for restaurant business in Pakistan.Mission

Our mission is to provide culture oriented environment with quality food plus superior services. The objective behind this is to make our customers loyal by providing them value for their money.Business/Venture Concept !

PROBLEM IDENTIFICATION:Now a days the concept that comes to mind while listening to the sentence lets go to the restaurant is just that we go to the near by restaurant, take a meal, pay for it and come back. Major focus of restaurant runners is to provide there customers only quality food with little or no change. Actually they are providing their customers the same environment of which the customers become monotonous. Customer wants change not only with regard to food but also with respect to the environment so that there interest remains in that particular restaurant. Another major issue to be faced by the visitors of restaurants is the high price charged by the existing restaurants against typical products and services. Due to this reason the middle class families hardly afford hoteling once a month. And at last the key concerns of the customers are to visit that restaurant which is closest to them.

Value addition :

In accordance to above problems we recognized that there is a need to launch a restaurant that is quite different from typical ones.

Several cultures at one place

Actually we are providing three different cultures

Pakistani

Chinese

Arabian

At one place and at the same time. Our motive behind this concept is to provide complete atmosphere of each culture we are presenting to our customers up to that level so that by entering that particular cultural they feel themselves a part of that particular culture. Culture Diversification

It is a totally new idea not in practice these days even in a single restaurant that we are going to diversify/revise our culture after a specific period of time either after 6months, 1 year or above depending on the need .

Superior services

This is perhaps the most important factor contributing towards the attraction of customers. After competitive analysis we conclude that the entire available competitor competes on quality of their product or services delivered and there is more rivilary among them on the basis of price. We obviously being new comers will focus on better services so that we may retain our customers loyalty.

Location

We are going to compete with the major market available on canal road thats why we have selected a location for our restaurant on East Canal Road Kashmir Pull near Beacon House Faisalabad Pakistan with an area of 1 canal and 13 Marla. It is obviously both the feasible as well as favorable location for restaurant business and we will ultimately gain advantage of being near to PC as well as beacon house as both the institutions are one of the most recognize in Pakistan.

Industry Analysis:-Porters Five Forces Model:

Rivalry among competitors

Direct competitors Rivalry factors

Sardines Food quality

Usmania Environment

Real Taste Variety of Food/Wide Range

Silver Spoon Better Services

Namwah Pricing

Quilium

Bundu Khan Etc

Bargaining Power Of Suppliers

With regards to restaurant business Faisalabad city is enriched with a wide range of suppliers available in the market .due to this reason the bargaining power of our suppliers become very low ultimately this is a very favorable scenario for our business. Out of that cluster of suppliers we are here mentioning some major suppliers. Suppliers

Hero Mutton Shop (Asghar Sb.)

Address: Street No. 7, Main Bazaar Tariqabad, Faisalabad

Ph No. 0345-7917160

Azhar Chicken Center (Azhar Sb.)

Address Chak No. 224, Fattah Din, Faisalabad

Ph No. 0300-7962028

Mian Chicken Center (Mian Munir)

Address Hameed Chowk, Peoples Colony D Block, Faisalabad

Ph No. 0301-7172023

Sufi Amin Kariana Store (Chakki Kariana )

Address Street No.9 Town Fattah Abad, Satiana Road, Faisalabad

Chohan Dairy (Ch. Nisar , Ghulam Ali)

Address Pull Korian, Opposite Pepsi Factory, Samundri Road, Faisalabad

Ph No. 041-2663986

Milk Agencies

Olpers, Adam, Haleeb, Milk Pak etc authorized dealers available in Faisalabad.

Salman Vegetables

Address Sabz Mandi Ghulam Muhammad Abad.

Bargaining power of customers

Potential Customer:

Class

incomeMiddle class

Rs. 30,000 50,000

Upper class

Rs. 50,000 100,000

Basically the customers will bargain on the above mentioned competitive rivalry factors but in our business people focus more on quality of the food plus the better services as well as the environment which a restaurant provides to them rather than the price charged for this. They will ready to pay a handsome amount if you are providing meal according to customers mind but failure of which can cause you to lose your customer as they have more choices that is the reason our customers bargaining power is high. Substitutes

KFC

Pizza Hut

McDonalds EtcNew Entrant:

We are ourselves new entrant in restaurant industry. According to survey conducted by us we have reached a consensus that there is no other new entrant to our market.

Key success factors:-According to the analysis of our competitors we concluded following critical success factors. These are; Budget allocated for interior, ambiance and dcor to provide customer environment is one of the important success factor in industry.

Services provided to customers in superior manner are another factor responsible for the success of restaurant in industry. Trained and experienced management is important in this context. Good location is also important to be successful.

Quality food is also amongst the important factors that influencing customers to visit ones restaurant again and again.Products and services

Pakistani food

Chicken/Mutton Ginger

Chicken/Mutton Jalfrazi

Chicken/Mutton Qorma

Chicken/Mutton Biryani

Mutton Kunna

Chicken Vegetable

Chicken Jalfrazi with rice

Chicken/Mutton Handi Boneless

Chicken Chops

Chicken/Mutton Karahi

Mutton Champ Karahi

Chicken/Egg Fried Rice

Vegetable Rice

Chicken Boneless Pulao

Chicken Masala Rice

Bar B QChicken/Mutton Tikka

Chicken Boti

Rashmi Kabab

Beef Seekh Kabab

Mutton Champ Grilled

Chicken Seekh Kabab

Chicken Pakora

Chicken Steam Roast

Chinese Food

Chicken Garlic

Chicken Manchurian

Chicken Cherry Pineapple

Chicken Mangolian

Sweet and Sour Chicken

Black Pepper Chicken

Chicken with Almond

Sczechuan Chicken

Sachet Chicken

Dhaka Chicken

Chicken Drum Stick

Chicken/Vegetable Chowmian

Chicken/Vegetable Chopsuey

Marketing and strategies:-

MARKETING To arouse aesthetic sense of our potential customers is our best source of marketing.

That is the main purpose of our marketing and promotions. Faisalabad is that kind of place which has various styles of events. Our major marketing depends on these events like Ramadan, Eid-ul-Fitar, Independence Day, etc. So Faisalabad is that kind of city in which every time there is going some special thing for which restaurants are very essentials. Special offers are made on such events to attract customers. Despite these events our marketing campaigns goes on regular basis through out the year.

To become profitable it is essential to develop a strong base of loyal customers that will use our F&B outlet and recreation facilities. This can only be achieved through the following:

Strong sponsorship. Skilled management.

Superb services.

Best quality.

Offering reasonable prices. Families requirements and needs.

Offering a wide variety of Food and beverages.

PROMOTION

Company split the whole media in two heads:

Cable media

Outdoor mediaCABLE MEDIAWe will contact cable network providers in their segments areas. We use cable advertisement for above mentioned events and for specific time period. We prefer local, Indian, and English movies channels for advertisements. A large number of target segment watches video channels on cable TV. Cable service providers will advertise our ad during intervals hitting exactly our consumer needs.Outdoor mediaFlier

Information about services is given on the flier. This is mostly sent to the public sector.BillboardsFor promoting our product we are going to place different billboards at different places from where it can access our target segment.

As our target segment is from class like canal road, Kohinoor, D ground, Chenab square, etc. We would place our billboards from where it is easily readable, accessible and understanding.SALES PROMOTION ACTIVITIES

We are going to carry out several sales promotional activities such as:

Societal Marketing

We are going to carry out societal marketing. This is to make our customers realize that we are environmental friendly.

Special Preferences to Regular Clients

Special preference is always given to the regular clients by giving them superior services and attention.

Business strategy:-Basically there are three strategies available to businesses as explains by Porter

Cost leadership

Differentiation

Focus

As we are new comers and going to provide different cultures we are implementing Differentiation strategy. OperationsWORK FLOW ANALYSIS

In work flow analysis of our restaurant we analyze three departments.

Inventory storage department

Back stage department (kitchen etc.)

Administrative department

Inventory storage departmentThere are following authorities in our inventory storage department. Store supervisor

Helpers

Inventory department includes our store rooms and the stocks of reserved inventories in that. Our suppliers will supply us the desired stocks and that is going to be supervised by the store supervisor. Further supervisor is in connection with the managerial authorities to make them aware of the purchasing and payments. In this process the store helpers will help the supervisor in getting the inventory, dealings and unloading.

Back stage departmentThere are following authorities in our kitchen department.

Senior chef

Assistant chefs

Kitchen helpers

In back stage department, that includes kitchen as a production sector and storage department. They both are interconnected with each other. Our kitchen supervisor/senior chef will be in touch with the store supervisor in getting the desired amount of stocks to the kitchen. The hen our chefs will start production as per orders by the customers. Our kitchen helpers will be helpful in this process.

Administrative departmentThere are following authorities in our admin department.

Restaurant manager

Accountant

Receptionist

Waiters

Sweepers

Guards

In admin department all the members follow the instructions of the manager and work under his super vision. The restaurant manager will supervise all the setup. And make the necessary amendments in the restaurant setup according to the needs and demands of the customers.DATA FLOW CHART

JOB ANALYSIS

There are following job posts in our restaurant.

Restaurant manager

Accountant

Receptionist

Senior chef

Assistant chefs

Kitchen helpers

Store supervisor

Store Helpers

Waiters

Sweepers

GuardsHierarchy of Restaurant

Human Resource required For the RestaurantManpower Detail Qty

Managers 1

Accountant1

Receptionist1

Senior cheff 1

Assistant cheff2

Kitchen helpers2

Store supervisor1

Store helper1

Waiters6

Sweepers2

Guards2

Total 20

Restaurant ManagerJob objectivesPlan, organize, direct, and coordinate the workers and resources of the restaurant for the efficient, well-prepared, and profitable service of food and beverages.

Job description1. Work with chefs and other personnel to plan menus that are flavorful and popular with customers. Work with chefs for efficient provisioning and purchasing of supplies. Estimate food and beverage costs. Supervise portion control and quantities of preparation to minimize waste. Perform frequent checks to ensure consistent high quality of preparation and service.

2. Work with other management personnel to plan marketing, advertising, and any special restaurant functions.

3. Direct hiring, training, and scheduling of food service personnel.

4. Investigate and resolve complaints concerning food quality and service.

5. Enforce sanitary practices for food handling, general cleanliness, and maintenance of kitchen and dining areas.

.

6. Comply with all health and safety regulations.

7. Review and monitor, with bookkeeper or other financial personnel, expenditures to ensure that they conform to budget limitations. Work to improve performance.

8. Perform other duties as assigned by management.

Job specification1. Bachelor of Science degree in hotel/restaurant management is desirable. A combination of practical experience and education will be considered as an alternate.

2. Good organizational skills for dealing with diverse duties and staff.

3. Pleasant, polite manner for dealing with public as well as staff.

Accountant

Job objectives

To keep the accounts balance and updated,

Tasks and Duties

1. To maintain the receipts.

2. Maintain the payments and records.

3. Balance the cash transactions.

Job specification

1. Bachelor of commerce degree is desirable. A combination of practical experience and education will be considered as an alternate.

2. Good accounting skills and sharp in calculation.

Receptionist

Job objectives

To guide the customers towards proper direction and make them aware of any sort of information regarding the restaurant.

Job description

1. deals with the matters about day to day information

2. Reservations and public dealings.

Job specification

1. Graduation and equivalent degree.

2. Good communication skills.

3. Should have computer knowledge.

4. Pleasant, polite manner for dealing with public as well as staff.

Senior chef

Job objectives

To make food desirable for the customers according to their needs.

Job description

1. Has to supervise all the coo kings and the kitchen.2. Check the accuracy of the order.3. Should have complete knowledge of all the food items of different cultures. 4. Investigate and resolve complaints concerning food quality.5. Training and scheduling of food service personnel.Job specification

1. Diploma in cooking and kitchen management.

2. 3-5 years experience in particular field of cooking

Assistant chefs

Job objectives

To make the food desirable by the customer according to their needs.

Job description

1. Check the accuracy of the order

2. Should have complete knowledge of all the food items of different cultures.

3. Resolve complaints concerning food quality.

4. Developing the food taste

Job specification

1. Diploma in cooking and kitchen management

2. 2-3 years experience in particular field of cooking

Kitchen helpers

Job objectivesTo be a supportive part in the process of production of food.

Job description

1. Helping assistant chefs in cooking foods.

2. Maintaining foods preparation utilities.

3. Storing and retrieving foods from store room,

4. Washing and maintaining caterings.

Job specification

1. Metric or relevant sporting qualification.

2. 2 years experience in relevant field.

3. Hard working, efficient and energetic.

4. Corporative with seniors and subordinates.

Store supervisor

Job objectives

To supervise the flow of inventory and maintain the storage level.

Job description

1. To maintain the inflow of inventory and keep a check and balance on the requirement of stocks.

2. Supervise the outflow of stock towards the production unit (kitchen).

3. Keep the records of purchasing.

4. Establishes a communicating role between authorities and dealers.

Job specification1. Graduation in commerce

2. 2-3 years experience in relevant field.

3. Should have computer knowledge

4. Should be competent in communication

Store helpers

Job objectivesTo play a vital role in helping the supervisor in maintenance of stores and stocks

Job description1. To help the supervisor in maintaining stocks

2. To help in the recordings of inflow and outflow of inventories

3. To be a part of dealings with the stock delivery persons and authorities.

Job specification1. Intermediate 2. 1 year experience in relevant field Waiters

Job objectives

To provide the efficient, well-mannered, and profitable services.

Job description

1. Taking and maintaining orders from customers.

2. Provide customers better services.

3. Maintain bills of customers.

Job specification

1. Intermediates.

2. One year experience in relevant field.

3. Good communication skills.

4. Polite, efficient with customers as well as staff.Sweepers

Job objectives

To clean and clear the whole restaurant.

Job description

1. Sweep the restaurant.

2. Take away garbage.

3. Maintain the cleanliness.

Job specification

1. Primary education.

2. Hard working and efficient.

Guards

Job objectives

To maintain the security.Job description

1. Keep the check and balance regarding the security issue?Job specification

1. Primary education2. Hard working and efficient.

FINANCIALS:

REVENUE MODEL:

PERIODAverage customersSales revenue (Rs.400/person)

Daily 5522,000

Weekly 385154,000

Monthly 1540616,000

Annually 184807,392,000

INITIAL OUTFLOW:

Total Capital 7,500,000

Building Expense 4,000,000

Furniture & Fixture 1,215,000

Computer & accessories 50,000

Kitchen Crockery 577,500

Patents 200,000

Advertisement 2,500,000

CULTURE RESTAURANTINCOME STATEMENT

FOR THE YEAR ENDED 2011

DescriptionAmountAmount

SALES 7,392,000

Less:COST OF GOODS SOLD

Opening Inventory -

Add: Purchases 1,800,000

Less: Closing Inventory (150,000)

1,650,000

Gross Profit 5,742,000

Less:SELLING AND ADMIN EXPENSE

Salaries Expense 1,740,000

Utility Expenses 624,000

Depreciation 1,015,250

Amortization 20,000

Culture Diversification Cost

Rent Expense 360,000

Advertisement 1,500,000 5,259,250

Add/Less: Gain/Loss on Sale of Crockery

Profit Before Tax 482,750

Less:TAX EXPENSE (@ 19%) 120,688

Net Profit After Tax 362,063

CULTURE RESTAURANT

CASH FLOW STATEMENT

FOR THE PERIOD ENDED 2011.

DESCRIPTION

Operating ActivitiesRSRS

Profit Before Tax 482,750

Depreciation on Building 600,000

Depreciation on Furniture 121,500

Depreciation on Kitchen Crockery 288,750

Depreciation on Computer Accessories 5,000

Add:Amortization 20,000 1,035,250

Less/Add:Increase/Decrease in Inventory (150,000)

Less/Add:Increase/Decrease in Advertisement 1,500,000

Less/Add: Gain/Loss on Sale of Crockery

2,868,000

Less:Tax paid (120,688)

Cash Inflow from Operating Activities 2,747,313

INVESTING ACTIVITIES

Less:Cash Paid for Building (4,000,000)

Less:Cash Paid for Furniture (1,215,000)

Less:Cash Paid for Computer Accessories (50,000)

Less:Cash Paid for Kitchen Crockery (577,500)

Less:Non Adjustable Advance (200,000)

Less:Prepaid Advertisement (2,500,000)

Add:Proceed from Sale of Crockery

Cash Paid Culture Diversification

Cash Paid Furniture

Less:Cash Paid for Intangibles (200,000)

Cash Outflow from Investing Activities (8,742,500)

FINANCING ACTIVITIES

Capital 7,500,000

Less:Drawings (500,000)

Cash Inflow from Financing Activities 7,000,000



Cash Inflow from Financing Activities 7,000,000

NET CASH INFLOW 1,004,813

Add: Opening Cash In Hand -

NET Cash In Hand 1,004,813

CULTURE RESTAURANT

BALANCE SHEET

AS ON 31, DECEMBER 2011.

DescriptionAMOUNT (RS.)AMOUNT (RS.)

Equity & Liability

Equity

Capital 7,500,000

Net Profit 362,063

Drawing (500,000) 7,362,063

Liability

Deferred Tax Liability

Total Liabilities 7,362,063

Assets

Non Current Assets

Tangible Assets

Building 3,400,000

Furniture 1,093,500


Computer Accessory 45,000 4,827,250

Intangible Assets

Patents 180,000

Current Assets

Inventory 150,000

Pre-payment for Advertisement 1,000,000

Prepaid Advance (3 Months Rent +Non-adjustable) 200,000

Cash In hand 1,004,813 2,534,813

Total Assets 7,362,063

CULTURE RESTAURANTINCOME STATEMENT



SALES 9,979,200


Opening Inventory 150,000



2,030,000





Depreciation 823,850

Amortization 18,000

Culture Diversification Cost 1,000,000


Advertisement 500,000 5,338,250

Add/Less: Gain/Loss on Sale of Crockery 11,250

Profit Before Tax 2,622,200

Less:TAX EXPENSE (@ 19%) 655,550

Net Profit After Tax 1,966,650

CULTURE RESTAURANT

CASH FLOW STATEMENT


DESCRIPTION







Add:Amortization 18,000 841,850

Less/Add:Increase/Decrease in Inventory 50,000

Less/Add:Increase/Decrease in Advertisement 500,000

Less/Add: Gain/Loss on Sale of Crockery (11,250)

4,002,800

Less:Tax paid (655,550)



Less:Cash Paid for Building -

Less:Cash Paid for Furniture -

Less:Cash Paid for Computer Accessories -


Less:Non Adjustable Advance -

Less:Prepaid Advertisement -

Add:Proceed from Sale of Crockery 300,000

Cash Paid Culture Diversification (1,000,000)

Cash Paid Furniture

Less:Cash Paid for Intangibles -



Capital


Cash Inflow from Financing Activities (500,000)





Add: Opening Cash In Hand 1,004,813


CULTURE RESTAURANT

BALANCE SHEET

AS ON 31st DECEMBER, 2012.


Equity & Liability

Equity

Capital 7,362,063

Net Profit 1,966,650

Drawing (500,000) 8,828,713

Liability



Assets

Non Current Assets

Tangible Assets

Building 3,890,000

Furniture 984,150



Intangible Assets

Patents 162,000

Current Assets

Inventory 100,000

Pre-payment for Advertisement 500,000


Cash In hand 2,752,063 3,714,063


CULTURE RESTAURANT

INCOME STATEMENT



SALES 13,471,920


Opening Inventory 100,000



2,203,000





Depreciation 785,965

Amortization 16,200

Culture Diversification Cost 1,000,000


Advertisement 500,000 5,598,205

Add/Less: Gain/Loss on Sale of Crockery -


Less:TAX EXPENSE (@ 19%) 1,417,679

Net Profit After Tax 4,253,036

CULTURE RESTAURANTCASH FLOW STATEMENT


DESCRIPTION







Add:Amortization 16,200 802,165

Less/Add:Increase/Decrease in Inventory 25,000

Less/Add:Increase/Decrease in Advertisement 500,000

Less/Add: Gain/Loss on Sale of Crockery

6,997,880

Less:Tax paid (1,417,679)



Less:Cash Paid for Building -

Less:Cash Paid for Furniture -

Less:Cash Paid for Computer Accessories -


Less:Non Adjustable Advance -

Less:Prepaid Advertisement -

Add:Proceed from Sale of Crockery -

Cash Paid Culture Diversification (1,000,000)

Cash Paid Furniture (800,000)

Less:Cash Paid for Intangibles -



Capital







Add: Opening Cash In Hand 2,752,063


CULTURE RESTAURANTBALANCE SHEET

AS ON 31st DECEMBER, 2013.


Equity & Liability

Equity

Capital 8,828,713

Net Profit 4,253,036

Drawing (500,000) 12,581,749

Liability



Assets

Non Current Assets

Tangible Assets

Building 4,306,500

Furniture 1,685,735



Intangible Assets

Patents 145,800

Current Assets

Inventory 75,000

Pre-payment for Advertisement -


Cash In hand 5,532,264 5,953,064


EXPENSE FORECASTING:

Salaries ExpenseNo.SALARY PER MONTHTOTAL SALARYSALARY PER YEAR

Designation

Receptionist1 8,000 8,000 96,000

Accountant1 12,000 12,000 144,000

Senior Chef1 25,000 25,000 300,000

Assistant Chef2 12,000 24,000 288,000

Manager1 18,000 18,000 216,000

Kitchen Helper2 5,000 10,000 120,000

Sweeper2 4,500 9,000 108,000

Guards2 6,000 12,000 144,000

Waiters4 5,000 20,000 240,000

Store Supervisor1 7,000 7,000 84,000

TOTAL17 102,500 145,000 1,740,000

Utility ExpensesMONTHLYANNUAL

Telephone 5,000 60,000

Electricity 30,000 360,000

Gas 15,000 180,000

Water 2,000 24,000

TOTAL 52,000 624,000

Inventory ExpenseMONTHLYANNUAL

Commodity

Meat (mutton, fish, chicken etc) 80,000 960,000

Vegetables 25,000 300,000

Dairy products 30,000 360,000

Spices 12,000 144,000

Misc. 3,000 36,000

Total 150,000 1,800,000

FURNITURE & FIXTURE

ItemsQuantity Unit Price Total Price

Dinning Table Square30 5,500 165,000

Dinning Cutlery150 300 45,000

Air Conditioner Split (1.5 Ton)8 45,000 360,000

Hot Water Geyser2 40,000 80,000

Portable Emergency Light10 1,500 15,000

Generator 2 250,000 500,000

Office Table & Chair Set2 25,000 50,000

TOTAL 204 367,300 1,215,000

KITCHEN & CROCKERY

ItemsQuantity Unit Price Total Price

Kitchen Cutlery 3 2,500 7,500

Cooking Range1 500,000 500,000

Freezer235000 70,000

TOTAL 6 537,500 577,500

DEPRECIATION A/C

BUILDING A/C

Building (Include Construction Cost) 4,000,000

Depreciation on Building@10%less 600,000

Building After Depreciation (2011) 3,400,000


2,890,000

Add: Value Increased 1,000,000



3,306,500

Add: Value Increased 1,000,000


FURNITURE A/C

Furniture 1,215,000

Depreciation on Furniture@10%less 121,500

Furniture after Depreciation (2011) 1,093,500


Furniture after Depreciation (2012) 984,150


Add: Value Increased 800,000

Furniture after Depreciation (2013) 1,685,735

COMPUTER ACCESSORIES A/C

Computer accessories 50,000

Depreciation on Computer Accessories@10%less 5,000

Computer accessories after depreciation (2011) 45,000





PATENT A/C

Patents 200,000

Depreciation on Patents @10% less 20,000

Patents after depreciation (2011) 180,000

Depreciation on Patents @10%less 18,000


Depreciation on Patents @10%less 16,200


KITCHEN CROCKERY A/C

KITCHEN CROCKERY 577,500

Depreciation on KITCHEN CROCKERY @ 50%less 288,750

Kitchen Crockery after depreciation (2011) 288,750

Kitchen Crockery Purchased 400,000




Kitchen Crockery Purchased 500,000


Attraction for Investors

Return on Investment (ROI)

First yearNet income + [(interest expense)*(1-tax rate)]/Avg. long term liabilities + Equity= 10.65 %

Second year

Net income + [(interest expense)*(1-tax rate)]/Avg. long term liabilities + Equity= 16.44 %Third yearNet income + [(interest expense)*(1-tax rate)]/Avg. long term liabilities + Equity= 23.14 %Payback Period (PBP)

Initial investment =

75, 00, 000

Net cash flow from first year =456,743

Net cash flow from second year =1,705, 187Net cash flow from third year =2, 684, 504

TOTAL=

7, 346, 433

As our business results shows that we make the initial investment of Rs.75, 00, 000 and our cash inflow for first three years is 7, 346, 433. It shows that our initial investment will cover within three years and three months.Pakistani culture:-

Chinese:-

Arabic cultures

Manager

Accountant

Receptionist

Senior Chef

Kitchen Helper

Assistant Chef

Sweepers

Security Guards

Store Supervisor

Store Helper

Documents

final project of enterp24.doc