Kabuli Inn

Entrepreneurship
Submitted by:

Ali Raza Shah-8255 Aleem Ahmed-11086 Ghayyur Ali Yazdani-11087 Jawad Ali-11085
Submitted to:

Mr. Irfan Bandukda

Date: 01/08/2011

Acknowledgement This report on Kabuli Inn was assigned to us by our teacher Mr. Irfan Bandukda, for the course of Entrepreneurship. First and foremost, we would like thank Allah Almighty for blessing us with all the health, strength and courage to complete this report. Then we would like to thank our teacher for his support, guidance and encouragement throughout the semester to proceed further with the project. Then we would like to extend our thanks towards our parents who are our constant supporters, steering us towards achieving our goals

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Table of Contents ACKNOWLEDGEMENT EXECUTIVE SUMMARY INTRODUCTION

SWOT Analysis: Product: Geographic Region:

II VI 1
1 1 2

ABOUT THE BUSINESS

Company Name: Type of Business: Vision: Mission: Long-term Objectives: Values:

3
3 3 3 3 3 3

INITIAL FEASIBILITY ANALYSIS

Customer Analysis: Pricing Strategy: Unit Costing: Breakeven Analysis: Sales Projection:

4
4 4 5 6 6

MARKETING PLAN
Product Description: Distribution Strategy:

8
8 8

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Promotional Strategy: Marketing Costs:

9 9

PUBLICITY PLAN
Public Relations: Business Networking: Word of Mouth & Publicity:

10
10 10 10

MARKET SURVEY
Consumer Survey: Competitor Analysis: Supplier Analysis:

12
12 14 15

HUMAN RESOURCE PLAN

Business Structure: Hiring Phase Plan: HR Costing: Job Analysis:

16
16 16 16 17

PROJECTED FINANCIAL STATEMENTS

Monthly Profit and Loss Statement 2012 Income Statement For Year 2012,2013 & 2014 Monthly Cash Budget Statement, 2012 Yearly Cash Budget Balance Sheet as on 2012, 2013 & 2014 Source of Funding:

18
18 20 21 23 24 25

MULTIMEDIA

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Business PowerPoint Template: Logo: Website Plan:

26 27 28

NETWORKING
Why? When? How?

30
30 31 31

BUSINESS DEVELOPMENT PLAN

Milestones: Scheduling:

33
33 33

APPENDIX

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Executive Summary The busy streets are a norm in Karachi and the city beach lives up to this tradition. As twilight begins to wrap the streets of the city, people from different areas come to enjoy the city life of Karachi. Karachi has many cultures in it but one thing that every karachiite fond of is its authentic Afghani Taste that we can find in many faces like its Chalow Kabab, Aash and Sajji etc. and therefore we start up our business of the Afghan Cuisine of Kabuli Pulao. Initially the location that we have choosen for our business is Shaheed-e-Millat road, Near Iqra University, Main Defence View, Because many people and students of Iqra University visit the adjoining Biryani cafe and walk past the caf every day, usually the Students come there to have lunch that is readily available at the Biryani centres. Moreover, we will be the only Kabuli Pulao serving restaurant inn that location, apart from this we will provide our customers with great taste and with the better quality that would make them call on us every time they visit our restaurant. We aim to expand our business and by end of 10 years the business will be established in Karachi and Lahore catering general public along with students. We desire to start business with Rs 325,220 and 40% of this amount will be our equity and for

60% would be financed by an investor. Positive trends are seen in the year in income on year on year basis and similarly the assets. It gives us the hope that our business is very much feasible and has capacity to prosper even in such uncertain conditions of country. In short we have a perfect configuration of Marketing Mix which will lead our business to heights of success.

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INTRODUCTION SWOT Analysis: Strengths: Nobody else produces the Kabuli Pulao in the target location. Nourishment with the Afghan touch. Friendly and secure environment. Comparatively low prices.

Weakness: Consumer awareness will take time because the dish is new to the people of Karachi. It takes time to prepare Kabuli Pulao.

Opportunities: The shop is located besides an empty shop so we have the opportunity of growth in terms of size. The area is always crowded with students so a lot of customers are expected.

Threats: Fluctuations in the lamb prices. Fluctuations in the sales due to the holidays.

Product: The busy streets are a norm in Karachi and the city beach lives up to this tradition. As twilight begins to wrap the streets of the city, people from different areas come to enjoy the city life of Karachi. Karachi has many cultures in it but one thing that every Karachiite fond of is its authentic Afghani Taste that we can find in many faces like its Chalow Kabab, Aash and Sajji e.t.c. and therefore we start up our business of the Afghan Cuisine of Kabuli Pulao.

Geographic Region: Initially we will start our business near Iqra University main Campus Karachi. We have chosen the ideal location of Shaheed-e-Millat road, Near Iqra University, Main Defence View. We intend to be the pioneers in selling the Kabuli Pulao at this location. Advantages of the Initial Location Location: The Students of Iqra University and the nearby residents visit the adjoining Biryani centre, Burger spots and the tea cafe. Hundreds of students to the Iqra University visit these cafes to have snacks and lunch during their break time and the nearby residents also have lunch from these cafs. Mostly the students sit in these cafes to chat with friends and to have lunch during their break. Likewise the residents also come to these cafes to have lunch and snacks. More over Iqra University is open for the entire week so we will be able to sell our Kabuli Pulao for the entire weeks and hence enjoy increased sales. Disadvantage of Initial location: This shop is located in the residential area so in the day hours less students and people are expected to come and consume our cuisine. To overcome this fact proper check is required for inputs we consume for our production because excessive amount of production can lead to wastage of our raw materials.

ABOUT THE BUSINESS Company Name: The name of our business will be Kabuli Inn. We have chosen this name because of our product origin and taste and we believe it will produce a secondary effect. Type of Business: Our business Kabuli Inn will be a partnership business. There will be four partners; Ali Shah, Aleem Ahmed, Ghayyur Ali and Jawad Ali who will invest in equal amounts. We intend to finance 40% of our business through liability mode and 60% through equity mode. Vision: To provide best quality and tasty food with cultural touch to students throughout the Pakistan. Mission: Students irrespective of geographic region want to have best food at lowest possible cost. We aim to full their desire by providing tasty and quality food with cultural touch which is most feasible to them. Furthermore we aim to integrate and introduce cultures to students, necessary to live in harmony. Because people enjoy culture by consuming the products of that particular culture. Long-term Objectives: To cater the students different university in Karachi. Once we reach at maturity stage we aim to inter into Lahore market targeting the same target market and then to different cities of Pakistan like Islamabad, Rawalpindi etc. Values: Respect ,Tolerance and Peace Trust Collectivism Customer care

INITIAL FEASIBILITY ANALYSIS Customer Analysis: Our target market is not restricted to any age or gender, but our main focus is on the University students who consume food items on a daily basis. As students want to have best quality food at lowest possible costs. Therefore we need to be careful while designing our strategies to cater their needs. The age limit of our target market is between the 18 years to 60years because in university there are students doing their bachelors and students doing their doctorate. Therefore the incomes are also very variable from student to student. We can build customer loyalty in target market easily because they are regular students coming to university on daily basis. Hence by providing quality food at affordable price they can be converted into regular customers and can be retained in future. Pricing Strategy: We have decided to use Price Penetration Strategy because target market, which is mainly comprised of students, is very much cautious about the price. To enter a market where there is indirect competition is very intense, Price Penetration Strategy can best serve our purpose of attracting and retaining the customers (students) and it is also best strategy because our indirect competitors are following the Price Penetration Strategy. As our strategy is compatible with nature of target market and with that of competitors, there is high probability of success.

Unit Costing: Raw Material Cost For One Cauldron

Sn o Ingredients 1 1 1 1 QTY Kilograms Kilograms Liters Kilograms 50gm 50gm 50gm 20gm 500g m 25gm Unit Cost PKR 90 PKR 460 PKR 160 PKR 40 PKR 20 PKR 40 PKR 15 PKR 30 PKR 20 PKR 24 Total Cost PKR 90 PKR 460 PKR 160 PKR 40 PKR 20 PKR 40 PKR 15 PKR 30 PKR 20 PKR 24 10 8 4 3 5 2 2 1 1 1 Explanation kg/cauldron kg/cauldron lit/cauldron kg/couldron packets/cauldron packets/cauldron packets/cauldron packets/cauldron packets/cauldron packets/cauldron Cost/Unit PKR 900.00 PKR 3,680.00 PKR 640.00 PKR 120.00 PKR 100.00 PKR 80.00 PKR 30.00 PKR 30.00 PKR 20.00 PKR 24.00 PKR 5,624.00 PKR 46.87

1 Basmati Rice 2 Lamb 3 Vegetable Oil 4 Carrots Black Seedless 5 Raisins 6 Zeera (cumin) Dalchini 7 (cinnamon) 8 Illachi (cardamom) 9 Salt 10 Black Pepper Total cost per cauldron Total cost per plate

1 Packet 1 Packet 1 Packet 1 Packet 1 Packet 1 Packet

Raw Material Cost Sn o Ingredie nts Unit Unit Info Unit Cost PKR 60.00 PKR 120.0 0 Add Info Per Unit Cost

Raita Tissue paper Total

1 Kg 1 packet(1000 tissues) Total cost per plate Cost/ Cold Drink

20

grams/plate

50 50 0

plates per kg piece per plate PKR 48.31 PKR 15.00

PKR 1.20

per plate

PKR 0.24 PKR 1.44

Breakeven Analysis:
Variable Cost Unit Price Total Fixed Cost PKR 165,220 $48.31 $65.00

Break Even($) Break Even(units) 0.27 Years 3.23 Months 97.03 Days

$643,329 9,897

Year to attain Break Even Point Year to attain Break Even Point Year to attain Break Even Point

Sales Projection:

Maximum Sales Pulao Working Hours Time Per Order No. of Working Days Max Sale/Day Max Sale/Month Max Sale/Year 8 2 350 120 3,600 43,200 Hours Minutes Days per year plates plates plates

Projected Sales Pulao Production Potential Expected Sales Expected Sales Expected Sales 85% 102 3,060 36,720 Projected Sales Cold Drink % of customers buy Cold Drink Expected Sales Expected Sales Expected Sales 50% 51 1,530 18,360

plates per day plates per month plates per year

Cold Drinks per day Cold Drinks per month Cold Drinks per year

MARKETING PLAN Product Description: Kabuli Pulau is an Afghani rice dish consisting of steamed rice mixed with lentils, raisins, carrots and lamb. It is the most popular dish in Afghanistan, and is considered the national dish. Kabuli Pulau is a made by cooking basmati or long grained rice in a brothy sauce (which makes the rice brown). This dish may be made with lamb, chicken, or beef. Kabuli Pulau is baked in the oven and topped with fried sliced carrots and raisins. Chopped nuts like pistachios or almonds may be added as well. The meat is covered by the rice or buried in the middle of the dish. Ingredients:

1 large onion, sliced salt, to taste 2 chicken, cubes 500 g rice 3 tablespoons oil 1/2 tablespoon ground cardamom 1/2 tablespoon ground cumin fresh ground black pepper, to taste 1 large carrot, cut into match sticks 1/4 cup dark raisin 1/8 cup chopped pistachios (optional, toasted in a dry frying pan) 1/4 cup blanched slivered almond (optional, toasted in a dry frying pan) Distribution Strategy: As our vision is to target the students especially the university students because they get good pocket money and spend much of time at institute. Therefore we will use selective distribution strategy because we aim to open the branches outside the various universities and not to general public. Selective distribution will be most compatible with nature of our business as we aim to target a niche market i.e. students.
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Promotional Strategy: We will use the blend of Push-Pull promotional strategies. First we will advertise our product through various media like banners near respective university, word of mouth through Facebook fan page et cetera which will stimulate customers to ask for the product (Pull Strategy). Except of that the product will be available customers and some customers will come to know through the physical existence of shop. Marketing Costs: For our first branch we will post 3 banners in the nearby area. One outside main campus of Iqra University, one between the two campuses i.e. EDC and Main Campus and one outside EDC campus of Iqra University. Each banner will be of 4*10 square feet. Each banner will cost Rs.1000. Following the push strategy we will out an attractive board containing our brand and logo on top of our shop. It will cost Rs. 2200.

Marketing Costs 1 Sq foot Area of 1 banner 10*4 sq feet Cost of 1 banner Cost of 3 banners Cost of board Total Marketing Cost PKR 25 40 PKR 1,000 PKR 3,000 2200 PKR 5,200

PUBLICITY PLAN Public Relations: In order to make enduring relationships with public we aim to sponsor the events in concerned universities. As initially we are trying to cater the needs of students of Iqra University, Main Campus Karachi. Therefore we will sponsor an event for students just when the fall, 2012 semester will start. It helps our business to build a good first impression in minds of customers and it will help to position our products afterwards and retain the customers in longer run. To do this we will sponsor major sport events, like I.U.P.L (a cricket league which is conducted in every semester at Iqra University), E-competencia (another sport event which was related to gaming on computers) and sponsor workshop or seminars held on small scale. To keep the relationship working we will continue this practice forever i.e. sponsoring the university events once a year et cetera. Moreover, to consolidate our P.R. campaign, we will offer buy 2 get 1 free package during the first 2 weeks of our launch. Business Networking: We will attend conferences held by different entities in the Karachi regarding our industry. For instance we will join the displays at Expo center where a lot of food business come. In long run for business networking we aim to join the Pakistan Food Association. This association will help in improving our processes because market leaders of our industry like Student Biryani et cetera are the members of the association. Word of Mouth & Publicity:
Word of mouth marketing is the most difficult to measure, but its also the most cost effective because it costs nothing. We will make our customers talk about our restaurant in the following ways:

Ask them to try our product: If we want consumers to talk about our product, we will ask them to try and then to tell others about it. This is an effective way to build excitement and genuine recommendations.

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Provide a forum for influences to have a conversation on behalf of your brand. Giving influencers a platform to share their opinion and feedback. This could be a facebook like page or event sponsored by us.

Provide quality service and treat every customer with respect. We will give our customers something good to talk about us. We will make our best efforts to show them quality in service & food and treat our every customer with respect.

Stay in touch, provide them with specials that they want to talk about. We will put our customers in the know. Inform them of the special discounts, offer them coupons and by all means stay in touch. This will not only increase their visits, but it will get them talking about us.

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MARKET SURVEY Consumer Survey:

What is your gender? Frequency Valid Male Female Total 31 19 50 Percent 62.0 38.0 100.0 Valid Percent 62.0 38.0 100.0 Cumulative Percent 62.0 100.0

What do you mostly prefer in your break time? Frequency Valid Burger Biryani French Fries Aloo Chat Total 16 19 10 5 50 Percent 32.0 38.0 20.0 10.0 100.0 Valid Percent 32.0 38.0 20.0 10.0 100.0 Cumulative Percent 32.0 70.0 90.0 100.0

Do you like your food to be: Frequency Valid Spicy Mild Non Spicy Total 12 27 11 50 Percent 24.0 54.0 22.0 100.0 Valid Percent 24.0 54.0 22.0 100.0 Cumulative Percent 24.0 78.0 100.0

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Would you like trylike something What willto you to try? new? Frequency Frequency Valid Valid Yes Pizza Somewhat Kabuli Palao Total Tikka Chicken Chargha Total 44 12 6 29 50 6 3 50 Percent Percent 88.0 24.0 12.0 58.0 100.0 12.0 6.0 100.0 Valid Percent Valid Percent 88.0 24.0 12.0 58.0 100.0 12.0 6.0 100.0 Cumulative Cumulative Percent Percent 88.0 24.0 100.0 82.0 94.0 100.0

How much are you willing to pay for a quality meal? Frequency Valid Rs 30 to 50 Rs 50 to 70 Rs 70 to 90 Above 90 Total 5 21 19 5 50 Percent 10.0 42.0 38.0 10.0 100.0 Valid Percent 10.0 42.0 38.0 10.0 100.0 Cumulative Percent 10.0 52.0 90.0 100.0

Are you interested in eating healthily in casual restaurants? Frequency Valid Yes Somewhat Total 43 7 50 Percent 86.0 14.0 100.0 Valid Percent 86.0 14.0 100.0 Cumulative Percent 86.0 100.0

How often do you visit a casual restaurant each week? Frequency Valid Rarely, 0-1 times Sometimes, 2-4 times Very occasionally, 5-7 times Total 8 37 5 50 Percent 16.0 74.0 10.0 100.0 Valid Percent 16.0 74.0 10.0 100.0 Cumulative Percent 16.0 90.0 100.0

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Who do you usually go with when you eat at casual restaurants? Frequency Valid Alone Friends A large group Total 1 44 5 50 Percent 2.0 88.0 10.0 100.0 Valid Percent 2.0 88.0 10.0 100.0 Cumulative Percent 2.0 90.0 100.0

Do you prefer restaurants which have the service of take-away or sit down? Frequency Valid Take away restaurants Sit down restaurants Total 11 39 50 Percent 22.0 78.0 100.0 Valid Percent 22.0 78.0 100.0 Cumulative Percent 22.0 100.0

From above survey we can conclude that people want to try some new but on the same time are health cautious. The price range most preferred is also favorable to our product. Therefore there is high probability of success of our product Kabuli Pulao.

Competitor Analysis: Although we dont have any direct competitors in the area, we still face competition from burger shop, biryani shops, and the universitys cafeteria. They are charging less as compared to our product and moreover they are well established in the area, so therefore, it will be an uphill battle to lure their share of customers to our product. As far as weakness is concerned, our competitors lack enough space to accommodate customers at peak hours and moreover the hygiene factor is another aspect in which we can beat our competitors on. On the other hand, our shop is spacious and we are paying special attention on the quality of our product.

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Supplier Analysis: Initially we are opening our business on a small scale, which implies that we dont need the help of a big supplier. We will be purchasing our main raw material i.e. mutton from Delhi colony and rice from empress market. The reason for choosing these suppliers is that we will buy quality product at a low cost. But on the other hand we will have to bear the expense of transportation cost.

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HUMAN RESOURCE PLAN Business Structure:

OWNER
COOK/ACCOUNT HOLDER

HELPER 1 HELPER 2
Hiring Phase Plan: Initially we will hire one chef and two waiters, which is enough for us according to our needs. We do not intend to hire additional labor in near future because we forecast that two helpers and one cook who will also take care of cash will suffice our labor requirements. We have forecasted that we will need an additional waiter after three years when our sales will increase by more than 30%. HR Costing: As our business is simple and initially on small scale therefore the HR cost includes salaries only. There are no training costs because we will hire chef who is expert in cooking Kabuli Pulao and as far as waiter are concerned they do not need to be trained. Waiters will get on the job training with passage of time. To retain the employees we will offer competitive salaries which will increase by 10% on yearly basis.

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Salaries Expense Description Chef Helper Waiter Total Salaries Expense QTY Unit Cost Total Cost Mnth Total Cost Annual

1 1 1
3

PKR PKR PKR

9,000 7,500 7,500

PKR PKR PKR

PKR

9,000 7,500 7,500

24,000

PKR PKR PKR

PKR

108,000 90,000 90,000

288,000

PKR 24,000

Job Analysis: As far as job specifications are concerned, we only have one major and most important job specification and that is the chef should know how to cook a perfect, traditional, tasty and delicious Kabuli Pulao. Except of that the cook should be able to manage the cash et cetera. As far as the waiters are concerned we will prefer to hire waiters with fair complexion because they will wear Kabuli traditional dress while serving the customers in traditional way. As far as job description is concerned the chefs responsibilities are to cook the Kabili Pulao,serve it into the plates and take care of cash. While the waiters responsibility is to serve the Pulao to the customers in more friendly and traditional way.

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PROJECTED FINANCIAL STATEMENTS Monthly Profit and Loss Statement 2012

Description

Jan 7.50% PKR 206,550 153,692 PKR 52,858 24,000 3,000 2,200 5,200 15,000 171 1,458 1,450 PKR 52,480

Feb 8% PKR 220,320 163,938 PKR 56,382 24,000 3,000 2,200

Mar 8% PKR 220,320 163,938 PKR 56,382 24,000 3,000 2,200

Apr 8% PKR 220,320 163,938 PKR 56,382 24,000 3,000 2,200

May 8% PKR 220,320 163,938 PKR 56,382 24,000 3,000 2,200

Jun 8% PKR 220,320 163,938 PKR 56,382 24,000 3,000 2,200

Percentage of Total Yearly Sales Sales Revenue Less; Cost of Good Sold Gross Profit Less; Operating Expenses Salary Expense Electricity Expense Gas Expense Promotional expense Maintenance Expenses Rental Expenses Depreciation Expense Fixtures Depreciation Expense Equipment Depreciation Expense Furniture Total Operating Expenses Earning Before Interest and Tax Interest Expense Earning Before Tax Tax Expense 35%

15,000 171 1,458 1,450 PKR 47,280 PKR 9,103 9,103

15,000 171 1,458 1,450 PKR 47,280 PKR 9,103 9,103

15,000 171 1,458 1,450 PKR 47,280 PKR 9,103 9,103

15,000 171 1,458 1,450 PKR 47,280 PKR 9,103 9,103

15,000 171 1,458 1,450 PKR 47,280 PKR 9,103 9,103

PKR 379 379

Earning After Tax

PKR 379

PKR 9,103

PKR 9,103

PKR 9,103

PKR 9,103

PKR 9,103

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Jul 8% PKR 220,320 163,938 PKR 56,382 24,000 3,000 2,200

Aug 8% PKR 220,320 163,938 PKR 56,382 24,000 3,000 2,200

Sep 8% PKR 220,320 163,938 PKR 56,382 24,000 3,000 2,200

Oct 9% PKR 247,860 184,430 PKR 63,430 24,000 3,000 2,200

Nov 9% PKR 247,860 184,430 PKR 63,430 24,000 3,000 2,200

Dec 11% PKR 289,170 215,168 PKR 74,002 24,000 3,000 2,200 35,239 15,000 171 1,458 1,450 PKR 82,519 -PKR 8,517 24,001 -32,518 PKR 25,544

15,000 171 1,458 1,450 PKR 47,280 PKR 9,103 9,103

15,000 171 1,458 1,450 PKR 47,280 PKR 9,103 9,103

15,000 171 1,458 1,450 PKR 47,280 PKR 9,103 9,103

15,000 171 1,458 1,450 PKR 47,280 PKR 16,151 16,151

15,000 171 1,458 1,450 PKR 47,280 PKR 16,151 16,151

PKR 9,103

PKR 9,103

PKR 9,103

PKR 16,151

PKR 16,151

-PKR 58,062

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Income Statement For Year 2012,2013 & 2014

2012 PKR 2,754,000 2,049,221 PKR 704,779 288,000 36,000 26,400 5,200 35,239 180,000 2,055 17,500 17,400 PKR 607,794 PKR 96,985 24,001 PKR 72,984 25,544 PKR 47,440 2013 PKR 3,362,634 2,254,143 PKR 1,108,491 316,800 43,200 31,680 5,720 55,425 198,000 2,055 17,500 17,400 PKR 687,780 PKR 420,712 20,676 PKR 400,036 140,012 PKR 260,023 2014 PKR 4,105,776 2,479,557 PKR 1,626,219 348,480 51,840 38,016 6,292 81,311 217,800 2,055 17,500 17,400 PKR 780,694 PKR 845,525 16,737 PKR 828,788 290,076 PKR 538,712

Sales Revenue Less; Cost of Good Sold Gross Profit Less; Operating Expenses Salary Expense Electricity Expense Gas Expense Promotional expense Maintenance Expenses Rental Expenses Depreciation Expense Fixtures Depreciation Expense Equipment Depreciation Expense Furniture Total Operating Expenses Earning Before Interest and Tax Interest Expense Earning Before Tax Tax Expense 35% Earning After Tax

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Monthly Cash Budget Statement, 2012

Jan PKR 195,132 Feb PKR 163,458 March PKR 175,641 April PKR 187,823 May PKR 200,005 June PKR 212,188

Total Opening Cash CASH Inflow(Receipts) Sales Loan Total Available Cash CASH Outflow(Payments) Fixed Assets Purchase Cost of Good Sold Salary Expense Electricity Expense Gas Expense Promotional Expense Maintainance Expense Rental Expenses Interest Expense Tax Expense Drawings Principal Payment Tot. Outflows

206,550 130088 PKR 531,770

220,320 PKR 383,778

220,320 PKR 395,961

220,320 PKR 408,143

220,320 PKR 420,325

220,320 PKR 432,508

165220 153,692 24,000 3,000 2,200 5,200

163,938 24,000 3,000 2,200

163,938 24,000 3,000 2,200

163,938 24,000 3,000 2,200

163,938 24,000 3,000 2,200

163,938 24,000 3,000 2,200

15,000

15,000

15,000

15,000

15,000

15,000

PKR 368,312 PKR 163,458

PKR 208,138 PKR 175,641

PKR 208,138 PKR 187,823

PKR 208,138 PKR 200,005

PKR 208,138 PKR 212,188

PKR 208,138 PKR 224,370

Net Cash

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July PKR 224,370

Aug PKR 236,552

Sep PKR 248,735

Oct PKR 260,917

Nov PKR 280,147

Dec PKR 299,377

220,320 PKR 444,690

220,320 PKR 456,872

220,320 PKR 469,055

247,860 PKR 508,777

247,860 PKR 528,007

289,170 PKR 588,547

163,938 24,000 3,000 2,200

163,938 24,000 3,000 2,200

163,938 24,000 3,000 2,200

184,430 24,000 3,000 2,200

184,430 24,000 3,000 2,200

215,168 24,000 3,000 2,200 35,239 15,000 24,001 25,544 11,860 18022.81244 PKR 374,035 PKR 214,512

15,000

15,000

15,000

15,000

15,000

PKR 208,138 PKR 236,552

PKR 208,138 PKR 248,735

PKR 208,138 PKR 260,917

PKR 228,630 PKR 280,147

PKR 228,630 PKR 299,377

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Yearly Cash Budget

2012 2013 PKR 214,512 2014 PKR 425,136

Total Opening Cash CASH Inflow(Receipts) Sales Loan Total Available Cash CASH Outflow(Payments) Fixed Assets Purchase Cost of Good Sold Salary Expense Electricity Expense Maintenance Expense Gas Expense Promotional Expense Rental Expenses Interest Expense Tax Expense Drawings Principal Payment Tot. Outflows Net Cash

PKR 195,132

2,754,000 130,088 PKR 3,079,220

3,362,634

4,105,776

PKR 3,577,146

PKR 4,530,912

165220 2,049,221 288,000 36,000 35,239 26,400 5,200 180,000 24,001 25,544 11,860 18022.81244 PKR 2,864,708 PKR 214,512

2,254,143 316,800 43,200 55,425 31,680 5,720 198,000 20,676 140,012 65,006 21348.02133 PKR 3,152,010 PKR 425,136

2,479,557 348,480 51,840 81,311 38,016 6,292 217,800 16,737 290,076 134,678 $25,287 PKR 3,690,074 PKR 840,838

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Balance Sheet as on 2012, 2013 & 2014

Assets 2012

Description Current Assets Cash Total Current Assets Fixed Assets Fixtures Accu Depreciation Fixture Net Fixture Furniture Accu Depreciation Furniture Net Furniture Equipment Accu Depreciation Equipment Net Equipment

2013

2014

214,512 PKR 214,512 8,220 2,055 6,165 70000 17,500 52,500 87000 17,400 69,600

425,136 PKR 425,136 8,220 4,110 4,110 70000 35,000 35,000 87000 34,800 52,200

840,838 PKR 840,838 8,220 6,165 2,055 70000 52,500 17,500 87000 52,200 34,800

Total Fixed Assets Total Assets

PKR 128,265 PKR 342,777 Liabilities & Equity 2012 112,065 112,065 195,132 35,580 230,712 PKR 342,777

PKR 91,310 PKR 516,446

PKR 54,355 PKR 895,193

Description Liability Long Term Liability Total Liability Owner's Equity Owners Equity Retain Earning Total Equity Total Liability & Owner's Equity

2013 90,717 90,717 230,712 195,017 425,729 PKR 516,446

2014 65,430 65,430 425,729 404,034 829,763 PKR 895,193

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Source of Funding:
Financing Requirements Description Cost

Equipment Cost Fixtures Prepaid Rent Furniture

Total Fixed Cost Working Capital Total Project Cost Financing Distribution Description Debt Financing Equity Financing Percent

PKR PKR PKR PKR

87,000 8,220 90,000 70,000

PKR 255,220 PKR 70,000 PKR 325,220

Amount

40%
60%

PKR 130,088
PKR 195,132

Total

PKR 325,220

The loan of Rs 150000 will be taken from National Bank of Pakistan against the Gold (160% of amount) at the interest rate of KIBOR+Spread. The KIBOR for 3 years or more was 13.45% and bank will charge the spread of 5% totaling to 18.45%. The equity side will be financed by the four partners Ali Shah, Aleem Ahmed, Ghayyur and Jawad Ali. Each partner will contribute Rs. 50,000.

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MULTIMEDIA Business PowerPoint Template:

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Logo:

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Website Plan: The website of the our business Kabuli Inn will have the following pages; Domain: www.Kabuliinn.com Home: Like whole website the home page will be in national colors of Afghanistans flag i.e. Black, Red and Green. It will contain a facebook like button through which customers can like the facebook fan page directly. Except of that there will be options of Sign In and Sign Up, customers can sign in to get latest updates regarding the product and by using that customer data we will wish the customers on occasions like Eids et cetera. Furthermore it will contain vision, mission and values of our business with the visible and attractive logo of our business. On left side there will be three boxes for advertisements. About Us: Under this page we will write about the business and specialties, experience and about the taste. It will also be in the same colors those are Red, Green and Black. Furthermore a brief history about how it started and flourished will be mentioned. Our Menu: Under this page we will write the products which will be offered with the respective price. Initially we will have Pulao and Cold Drinks and we might start some deals in future. Branches: It will comprise of the exact addresses of our branches. As we aim to open branches throughout the Pakistan therefore this page will serve our that purpose and will provide a secondary effect and help in getting the brand equity.

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Achievements: It will comprise of milestones we will be achieving like helping the society in different

ways which we intend to do. Activities: It will provide the information regarding the activities and festivities we will be doing like festivals in respective universities with amazing photos to communicate our corporate philosophy.

Contact Us & Submit Comments: Under this page we will write about how a customer can directly get the information.

Here we will provide the cell numbers of various branches. So queries are resolved there and then. We believe customer is king of market. Therefore a direct contact with customers will provide a good and healthy feedback which will always help us and guide us in maintaining and even improving the product quality. This page will allow the customers to comment freely and suggest the improvements if they want. In this way our vision of 3600 Feedback can be facilitated.

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NETWORKING

Pakistan Food Association is a registered association formed with a purpose to optimize food and food related industry both locally and globally. PFA is a combined representation of food and allied industry the association represents number of food entrepreneurs, major chains, manufacturers, producers, importers, exporters, distributors and other food professionals. Through PFA platform participants can share knowledge, developed synergies to optimize business opportunities, they can seek collective business possibilities, rationalize legal and regulatory regimen. PFA holds series of events, seminars, workshops and field trips to share knowledge and to provide networking opportunities. It also supports and facilitates the members to learn and adopt standardized business practices and system including ISO9000, 22000, HACCP, 14000, TQM, etc. Under the umbrella of PFA local and international members can share information about suppliers, manufacturers, distributors, importers and exporters. Whatever your business needs might be we can help you get answers. For the quickest and most efficient response to your questions, you can call or email. Members may also get benefit of solving common legal and industrial issues. Why? We aim to join Pakistan Food Association to establish the networks in the industry. We have chosen the Pakistan Food Association because the market leaders of our like Student Biryani are its members and we can exchange the information and learn about the practices that
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lead to success. It will provide a platform to perform and succeed in extremely competitive industry of food. Furthermore it also helps us in positioning our product in an effective way because it is its vision as the vision is To support and promote food and allied sector locally and globally. Except of that it will provide a lot of opportunities to grow, compete and standardize the process that result in effectiveness and efficiency leading to higher profitability as it is clearly mentioned in its mission which is Pakistan Food Association is committed to seek opportunities to promote food industry as a whole through events, knowledge sharing, networking, standardization which will lead to enhance the competitiveness and business growth. Lastly we have chosen Pakistan Food Association because there is compatibility between our objectives and those of Pakistan Food Association like sharing knowledge, developing synergies et cetera. Because of above mentioned reasons we think it will be a right decision to prosper, grow, compete and even survive. When? We will not be member of the association just after the launch of our product because size matters a lot in sharing of information and experience. Therefore we have decided to join the association when we will have at least four branches in the city catering needs of four different universities in Karachi. Because it will be the right time as we will be large enough to sit and communicate the challenges with other members of association. We will join the association when we will be eligible to be part of that population of organizations. How? To join Pakistan Food Association following steps have to be followed. Download the form from associations website or get from the office located at 4th Floor, Park Tower, Shahra-e-Firdousi, Clifton, Karachi. Fill that form with required information and submit to the office.
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Once submitted Board of directors will analyze the business and decide whether to give the membership to the business. It is the dependent upon the discretion of board of directors which is comprised of:

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BUSINESS DEVELOPMENT PLAN

Milestones: After 3 years of business we will establish 2 more branches, one near Princeton University, and the other near Sir Syed University. In the 4th year we will open two more branches near Muhammad Ali Jinnah University and one near Asian Institute of Fashion Designing. By the 6th we will open a full-size branch at Boat Basin because by then we will have build up enough customer bases. In the 8th year we will open branches in Ghulam Ishaq Khan Institute of Science and Technology and in Fast University, Lahore. In our 10th year of business we will open a full size shop in Food Street, Lahore.

Scheduling: As far scheduling is concerned we will be starting our business from 1st February, 2012. For this to happen we need to start our scheduling from Jan, 2012. Below is our schedule for starting the business Jan 1st,2012 Jan 2nd,2012 Jan 6th,2012 Jan 20th,2012 Jan 25th,2012 Feb 1st,2012 We will be signing our Rent Agreement We will start renovation for the shop which will take approximately 10 days. We will order our furniture which will be received after a Week. We will buy utensils for our shop. Employees will be hired. We will be starting our Business.

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APPENDIX
Equipment Cost Description Stove Freezer UPS Cauldron & utensils Total Equipment Cost PKR 48,500 Fixtures Description Energy Savers Fan Total Fixtures Cost QTY Unit Cost Total Cost QTY Unit Cost Total Cost

2 2 1

PKR PKR PKR

1,500 30,000 17,000

PKR PKR PKR PKR

PKR

3,000 60,000 17,000 7,000

87,000

12 3

PKR PKR
PKR

135 2,200
2,335

PKR PKR
PKR

1,620 6,600
8,220

Furniture Description Table Chair Decoration Total Furniture Cost PKR 2,500 Total Fixed Asset Cost Description Equipment Cost Fixtures Furniture Total Fixed Asset Cost Total Cost QTY Unit Cost Total Cost

5
20

PKR
PKR

2,000
500 -

PKR PKR PKR

PKR

10,000 10,000 50,000

70,000

PKR PKR PKR

PKR

87,000 8,220 70,000

165,220

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Salaries Expense Description Chef Helper Waiter Total Salaries Expense QTY Unit Cost Total Cost Mnth Total Cost Annual

1 1 1
3

PKR PKR PKR

9,000 7,500 7,500

PKR PKR PKR

PKR

9,000 7,500 7,500

24,000

PKR PKR PKR

PKR

108,000 90,000 90,000

288,000

PKR 24,000

Rent Expense Description Store/ outlet Total Rent Expense Sq Feet Monthly Rent Yearly Rent

350

PKR

15,000

PKR
PKR

180,000
180,000

PKR 15,000 utility Expense per year Per Month

Description Electricity bill Gas bill Total Utility Expense

3000 2200
PKR 5,200

PKR PKR PKR

36,000 26,400 62,400

Amortization Table
Present Value Information Time Period Interest Rate 130,088 5 18.45%

Calculation s

PVDF annuity Installment Amount Installment Amount Interest Expense Reduction in principle balance

3.0956 PKR 42,024 Outstanding Balance PKR 130,088 PKR 112,065 PKR 90,717 PKR 65,430 PKR 35,478 PKR 0

Year 0 1 2 3 4 5

Date 31/12/201 1 31/12/201 2 31/12/201 3 31/12/201 4 31/12/201 5

PKR 42,024 PKR 42,024 PKR 42,024 PKR 42,024 PKR 42,024

PKR 24,001 PKR 20,676 PKR 16,737 PKR 12,072 PKR 6,546

PKR 18,023 PKR 21,348 PKR 25,287 PKR 29,952 PKR 35,478

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Depreciation
Equipment Accu Dep 17400 17400 17400 17400 17400 Furniture Accu Dep 17500 17500 17500 17500 17500 35000 52500 70000 17400 34800 52200 69600 87000

Year 1 2 3 4 5

Yr Dep Exp

Book Value 87000 69600 52200 34800 17400 0

Year 1 2 3 4

Dep Exp

Book Value 70000 52500 35000 17500 0

Year 1 2 3 4

Yr Dep Exp 2055 2055 2055 2055

Fixtures Accu Dep 2055 4110 6165 8220

Book Value 8220 6165 4110 2055 0

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ASSUMPTIONS
Sale Price/ Plate COGS Increase/Annum Salary Growth Rate Time Period(Yearly) Loan Payback Period Credit Sales Maintenance Cost of Fixed Assets (Annual) of Gross Profit Expected sales first year Total Rev Growth Rate Depreciation Method Fixtures Furniture Equipment Interest Rate (KIBOR+Spread=14.45%+4%) Salary and Utility Bills are paid Utility Expense Growth Rate Rent Expense Growth Rate Tax Rate Retained Earning Ratio Increase in Price(Annual) PKR 65 10% 10% 5 5 0 5% 85% 10% Straight Line Method 4 4 5 18.45% At the end of each Month 20% 10% 35% 75% 11%
PKR 20.00

Price/Cold Drink

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Questionnaire Note: The information you provide will remain confidential and will be used for academic purposes only. It will neither be sold nor given to anyone under any circumstances. Q1: Given below are some statements related to your taste preferences. For each statement kindly specify your opinion by check marking the correct box. 1.1 What is your gender? a) Male b) Female 1.2 What do you mostly prefer in your break time? a) Burger b) Biryani c) French Fries d) Aloo chaat 1.3 Do you like your food to be: a) Spicy b) mild c) non spicy. 1.4 Would you like to try something new: a)Yes b)no c)somewhat 1.5 What will you like to try? a)pizza b)Kabali Pulao c)Chicken Tikka d)Chargha 1.6 How much are you willing to pay for a quality meal? a)Rs 30 to 50 b)Rs 50 to 70 c) Rs 70 to 90 d) Above 90

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1.7 Are you interested in eating healthily in casual restaurants? a)Yes b)No c) somewhat 1.8 How often do you visit a casual restaurant each week? a)Rarely, 0-1 times b)Sometimes, 2-4 times c)Very occasionally, 5-9 times 1.9 Who do you usually go with when you dine at casual restaurants? a)Alone b)Friends c)A Large group 1.10 Do you prefer restaurants which have the service of take-away or sit down? a)Take away restaurants b)Sit down restaurants

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